The Most Popular Way To Purchase Property In Mexico Is To Pay In Cash

Category: Finance, Real Estate.

Just a few years ago, there was no solution for financing property in Mexico.

On the other hand, US lenders were hesitant to write loans for property located outside of the country that they had very little control over. Mexican banks don t offer the kind of generous home loans that we enjoy in the United States. However, with the huge surge of more adventurous retiring Baby Boomers and a US housing market that seems to have reached a plateau, people are finding more and more ways to buy investment property in Mexico. The cost of property is so much less than here in the United States that many homeowners can use a second mortgage or the profit from an investment sale and pay for a property in Mexico outright. The most popular way to purchase property in Mexico is to pay in cash. The gem of the Mexican real estate market today is the Costa Maya, a 57 mile strip of white sandy beachfront located along the Caribbean Sea where entire lots are selling for as little as$ 60, 00 Paying in cash from the sale of investments is the least complicated way to buy property in Mexico and the most affordable. Additionally, there are fewer restrictions.

Interest rates on international loans are, higher than a, not surprisingly standard property loan. Since the concept of an international property loan in the US is still in its infancy, lenders have a tendency to be ultra- cautious. Buying property in Mexico today can be an extremely lucrative investment. However, for those who need to or prefer to seek out an international property loan, the choice is a viable solution. Those who invested in Cancun in its" early days" just 30 or so years ago have made incredible returns on their investment. With an international property loan, expect to put down at least 30% and a repayment term of 20 years.

The once quaint fishing village now has become one of the most popular tourist destinations and retirement hotspots, with property values in excess of$ 1 million. Normally, you ll have to show that the property is a second home or vacation home, and will not be your primary residence. Another trend is international financing companies located in Mexico, that are partnered with US companies, looking to tap into the fast growing American interest in investment property in Mexico. Lenders want to make sure that you still have ties to the US and so will still have an incentive to pay back the loan. Companies such as Houston based ConfiCasa Riviera Maya advertise cross- border loans with current rates between 99% and 198% depending on credit score, and the length, the amount borrowed of repayment. Lack of financing is no longer a reason to put off buying investment property in Mexico.

ConfiCasa offers interest rates as low as$ 50, 000 as well as development loans, ideal for investors looking to get in on blossoming coastal development in its infancy. Of course there will be more work involved with buying international property, but with the housing market leveling off and predicted to drop, it s time to look into real estate investment opportunities with more potential for big returns. Mexico and its booming real estate market is on the radar for serious real estate investors- the good news is that now just about anyone can get in early on the opportunity.