The Process and the Cost of buying a property in Mexico City:
Buying property in Puerto Vallarta is possible, whether you’re an American citizen, Canadian, or from anywhere else in the world, it is completely legal to buy property in Puerto Vallarta. Foreigners can hold the full right to own property with the same rights and responsibilities as Mexican nationals.
However, as a foreigner, there are specific guidelines that must be followed, guidelines that real estate agents in Mexico City are extremely familiar with, even more now with the high demand of properties fon sale or on rent. Your agent will explain to you the exact process that takes place when buying a home in Mexico, and of course, help you with this process from start to finish.
Most foreigners choose to have a Real Estate Agent to help them to go through the whole process of buying a property in Mexico. Most foreigners aim to buy a property in cash but some others look for a financing option, consult your real estate agent to know the specific regulations of Mexico City.
Because Mexico City IS NOT near the ocean you may not be required to have a Bank Trust. However, despite no restrictions tu buy directly a property in Mexico City, you an choose to have a bank trust for protection or estate planning purposes, but again, to buy in Mexico City, a bank trust is not required.
DO I NEED RESIDENCY TO BUY A PROPERTY IN MEXICO CITY?
NO
You can buy a property being tourist or absentee owner.
But, What is a Bank Trust?
A bank trust is a financial institution that enables the bank’s customers to do transactions. The bank takes up the role of trustee during such transactions and helps customers transfer assets to another customer following the trust agreement terms and conditions. Act as a fiduciary or an agent on behalf of the trusts. In México a Bank Trust is Called FIDEICOMISO.
When is needed a Bank Trust?
By law in Mexico, a foreginer can NOT OWN a property withing 50 kilometers from the shoreline. Here is where a Bank trust is required. In Mexico city, to get a bank trust is not required to buy a house because Mexico City in not near the ocean But remember, you still can choose to have a bank trust for protection purposes.
If i decide to get it, How does a Bank Trust works?
Once you were working with your Real Estate agent to find the property you want to buy and you decided that is the one, it is time to Set Up The Trust.
A bank Trust IS NOT A LEASE, but you will need a financial institution to hold the trust, and the Mexican Bank, help you legally to MANAGE YOUR PROPERTY. Your house is not an asset of the bank or property of the bank, The buyer will have full right over the property, but need the financial institution to back the process, that is why every year after you buy your house, you need to pay a fee to the Bank trust.
The bank trust last 50 years, after that time you need to renew it.
Bank Trust FAQs
- Do I have to get the Bank Trust if I pay the property in cash? YES
- Do I have to get the Bank Trust if I pay Mortgage? YES
- Do i have to pay the fee every year? YES
- Where do I pay this fee? In the Bank who is holding the Trust
- The Bank Trust apply only in properties within 50 km from the shoreline? YES
- Buying in Mexico city despite is not close the ocean, can I still get a bank trust if I choose it, for protection purposes? YES
- How much is this Bank Trust Fee? Aprox700 usd
How much can be a down payment to buy a property in Mexico City?
Yo only need a percentage of the total cost of the property, it may vary from 10 to 50%, it may depend on the financial instution and the property cost.
You may be wondering about financing your dream home. Financing is a wonderful option for those who simply cannot afford to buy in full. Learn all about how foreigners can get a Mexican mortgage and finance their property i, by reading Financing and Mortgages in Mexico, a complete guide from Coldwell Banker.
DO I HAVE TO PAY PROPERTY TAXES IN MEXICO CITY?
YES
Steps of buying a property in Mexico City if you are foreginer:
- Contact a real state agent
- Find the property of your dreams according to your budget
- Prepare all the paperwork required, your Real Estate agent can help you in this step
- Prepare the sales contract, ask for a english version to be 100% sure about what you are about to sign
- Pay your deposit: it can be according with your very particular agreement, from 10 to 50%
- Get your Bank Trust
- Get your permission to complete the purchase with a Notary, to make it legal with the mexican law.
- Sign your prroperty documet and pay final taxes, also with the notary
Read more detailed information about the steps to buy a property in Mexico
Recommendations to look for a property for sale in Mexico City:
Real Estate Agents:
- Coldwell Banker https://www.coldwellbankerinternational.com/agents/mx/mexico-city-mexico/
- Top Mexico https://topmexicorealestate.com/
- Century 21 https://century21mexico.com/
- MexPat https://mexpatrealtors.com/mortgage/
- Applegate Realtors https://applegaterealtors.com/buying-a-home-in-puerto-vallarta/
Financial Institutions to help get a Mortgage in Mexico City:
- https://www.intercam.com.mx/ offer credit to buy a house, lend you the 60% of the total value of the property.
- https://www.globalmortgage.mx/
The high demand to buy a property in Mexico City:
In the past year, the demand to own a house in Mexico City has increased a lot, people from the USA and Canada come down here in floods to find the perfect property for vacation, to live in, or as an investment. Consider also that the process can be more complicated than if you were Mexican.
This has a direct impact on the property prices for sale, as an example: 2 years ago, still during the pandemic, you could acquire a house in Fluvial for around 200,000 USD, but this past year due to the high demand in properties the price increased by almost a 100%,
We can find the same effect in all the zones we did mention above for renting a property, the prices are still going up while you are reading this, and I know this first hand because I am trying and struggling to buy the house in the one I live in now
If you think the prices in Mexico City are indeed going very high, you must consider that this trend is expected to continue for at least the next year. This is because the demand does not stop and the flood of foreign money is still making the prices increase. Offer Demand effect.
Sale Prices and popular zones for foreigners to live in Mexico City:
La Roma
Is one of the most desirable popular zones for many, is close to everything, right in the heart of Mexico City, traditional bit old town feeling and hipster vibes everywhere, huge trees and a melancholic environment, beautiful buildings with art nouveau balconies, incredible small restaurants and coffee shops in inviting designs. Traditional markets to buy your groceries around, and everything is close but is not so cheap anymore
There are two options in la roma: la Roma South and the Roma North.
La Roma Norte
Is my favorite area, more old style, with beautiful buildings, old restaurants, hipster environment. A huge foreign community lives here, hard to tell what countries specifically but there is a big community of people from Argentina and Colombia. .
- Sale Price of condo in this area: 150,000 to 500,000 USD
- Sale Price of house in this area: 500.000 to 2M USD,
La Roma Sur
A bit more modern looking, not the hipster vibe anymore but is a calm neighborhood, closer to main avenues too and a lot of restaurants and malls close, is a bit cheaper than the Roma Norte, this last one is more popular..
- Sale Price of condo in this area: 150,000 to 500,000 USD
- Sale Price of house in this area: 500.000 to 2M USD
La Condesa
Is a very privileged and popular zone, in the heart of Mexico City. Is actually in the middle of the action, the area is very popular with locals and foreigners, has a lot of street markets, and cool restaurants, and has a vibe of privilege when you live in this zone. You can see people jogging and taking dogs for a stroll in the main parks around. Has nightclubs and the life around feels cool and busy, many crave to live here. Cons: is too crowded, a lot of traffic and because of the night life, certain zones are noisy.
- Sale Price of condo in this area: 300,000 to 600,000 USD
- Sale Price of house in this area: 700.000 to 2M USD,
Colonia Del Valle
Is my personal favorite well…. I lived there my whole life lol. La Colonia del Valle is a very cool Mid class neighborhood that is very close to everything and has everything. Located also in the heart of Mexico City is surrounded by the main avenues, malls, parks, and restaurants and everything you may desire or need is inside. This privileged zone has excellent public services better than any other part of the city and is a perfect place to live in. Yea is my neighborhood I know but I swear is perfect.
- Sale Price of condo in this area: 250,000 to 700,000 USD
- Sale Price of house in this area: 800.000 to 2.5MDD,
Coyoacan:
The jewel of Mexico City. Is like a traditional old town in the heart of Mexico City, there is no place in the whole city like Coyoacan, everyone loves Coyoacan, and everyone living in the city wants to go there for an evening on weekend to escape from the rush and mess of the city. This place is truly beautiful. You can barely believe something like this is inside the city, old houses, old traditional Mexican town vibes all around, and a ton of cool small bars and restaurants. Street food, traditional markets, People selling handmade jewelry, and crafts. You can drink coffee, eat churros, eat ice cream, walk in the amazing plaza, sit by the huge fountain to listen to the bird, and feed some squirrels. Let’s have dinner in one of those amazing warm light restaurants with soft music at street level. You can hear someone playing an instrument, the guy selling balloons. I lived there for 2 years, my experience? Heaven.
- Sale Price of condo in this area: 200,000 to 1M USD
- Sale Price of house in this area: 1 M USD to 2M USD,
Polanco
Very popular zone for many foreigners. I have to say this zone is the most exclusive in the city, is cool and very well located and is very expensive. All around is around luxury and lifestyle if you are looking for a well-located area, with high-class surroundings, exclusive stores, and restaurants this is for you. Cons: Traffic sucks here…
- Sale Price of condo in this area: 1M USD to 4M USD
- Sale Price of house in this area:1 USD to 8M USD
Colonia Juarez
Very popular zone for many foreigners too, close to downtown. Well located, this zone is old and the prices are more affordable, has many main avenues around and the vibes here with old buildings and cool small restaurants are very attractive for foreigners too.
- Sale Price of condo in this area: 200,000 to 500,000 USD
- Sale Price of house in this area: 600,000 to 2M USD
Another zones to live in Mexico City Area Considered by foreigners:
Portales:
Close Colonia del valle and Coyoacan, this district is a bit more middle class neighborhood, you can find bit more affordable prices, also on the sight of foreigners:
- Sale Price of condo in this area: 150,000 to 300,000 USD
- Sale Price of house in this area: 350,000 to 1.5M USD
Narvarte:
Right next door with Colonia del Valle, an awesome good location, subway, ground public transport, groceries stores around. Good looking, a calm, and cozy Middle-class neighborhood, has tons and tons of good restaurants and taquerias around and is surrounded by main avenues. This zone is incredible to rent a house.
- Sale Price of condo in this area: 200,000 to 400,000 USD
- Sale Price of house in this area: 400,000 to 700,000 USD
Are there other zones to live, maybe not right in the popular zones but in a very affordable zone?
Yes, and the prices can have a huge difference. But also you have to consider that those zones can not be fancy at all or are very far and the transport (because public transportation in CDMX is always crowded as hell) and the distance can be an issue to move around.
Some other areas, very cheap you may consider, can be around o 1hr from everywhere as always in Mexico City:
- San Jeronimo (South)
- La Petrolera ( Azcapotzalco)
- El Arenal ( Tlalpan)
- Lindavista (North)
- Tacubaya( Center)
- Napoles: (Center)
Mexico City is a popular detination now, but to live here has its considerations, stay safe and I will keep posting more useful information about how is to live in Mexico City, Stay tuned!
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