New website that only lists Mexico real estate under 100k

Cheapmexicorealestate.com is a new website available for foreigners looking to invest only up to 100,000usd in mexico real estate.  These types of investment opportunities still exist all over the Yucatan peninsula in Mexico you just have to know how to look to find the best Mexico property for the best price.

Mexico is a great place to vacation as it is very close to the United States and Canada by plane and the climate is warm when it is very cold everywhere else.  Have you ever been on vacation in Mexico?  If so, have you ever wondered how it would be possible for you to own your own place here?  I know i did that several times while on vacation in Mexico.  First, it seems a little scary looking at buying a property in another country where you do not speak their language.  Also, there are plenty of rumors flying around about how the government can take away your property or how corrupt things are in Mexico it goes on and on.  There of course are also rumors that foreigners cannot own a property in Mexico.  Nothing can be further from the truth.  The government cannot take away your legally titled property once it is registered with the public registry.  Also, foreigners can and do own homes, land, condos as well as commercial property in Mexico every day.

You just simply have to know the laws.  According to the Mexican constitution a foreginer cannot title any property that is within 100km of any border or 50km of any coast in their name.  That doesnt mean you cannot own it, it means you have to title it differently than you would if you were in the interior of Mexico.  In the interior you can buy property as you would in the U.S. or Canada.  It can be titled in your name with no problems at all.  If you want a home or property in mexico that is within 50km of a beach then you have two choices.

First choice is setting up a Mexican corporation or an S.A. de C.V.  This is very much like an LLC corporation in the U.S.  It is primarily for sole propreitorships and small to medium business.  That business then in turn can purchase property and hold title to the property in the business name.  You need two people that are 18 or older to sign up as principles of the corporation.  The nationality of the two people doesnt matter and you can split the ownership of the company any way you like.  For example each person is 50% owner or one can be 99% and the other can be 1%.  In order to title your property in a business name you have to show that either you are doing business with that property OR that you have the intent to do business.  An example might be if you bought a building and downstairs was a restaurant that you rented to someone and upstairs was a condo and you lived in it.  Something like that would work, but be aware if the tax/real estate authorities ever choose to investigate your property and they find that it is primarily for residencial use only?  They can slap you with a pretty hefty fine.

The other way you can title the property is in a bank trust or “fideicomiso.”  The property you have is titled in the name of the trust and then you are the trustee meaning that you have full control over the trust thereby giving you rights of ownership of the property.  For most purposes people use the fideicomiso to title their home.  Even if you plan to rent out your home or condo to make money that is still considered residencial and not commercial.

There are a few more things to know about this process when purchasing mexico real estate but this gives you a high level overview of how it works.

 

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