A warm and sunny climate, fun and adventurous activities, delicious foods are just a few of the benefits of owning property in Mexico. Property ownership in Mexico comes with lower costs when you compare the costs to the USA, Europe, and Canada. Buyers will find properties with luxuries and pools, and other great perks that are affordable too including property taxes, maintenances for your property, and housekeeping services.
Here are some of the expenses of property ownership in Mexico that you should keep in mind if you purchase real estate in Mexico.
Real Estate Costs
One of the most significant differences in expenses of property ownership in Mexico is the actual cost of the property, which will vary depending on the location, size, and features. This is just like any property you purchase in any country.
Mexico Annual Fees
Any property purchased in Mexico is subject to an annual fee that is called “predial”, which has to be paid at the Mayor’s office in the state or city of the property. The rates can vary for the property taxes from state to state as it depends on the size of the property and where it is located at. The fee can range from just a few hundred dollars, but you have to make sure you pay these fees on time, because no bill is ever sent out.
Mexico Land Trust
Mexico has a Land Trust that is one of the expenses of property ownership in Mexico called Fideicomiso. The Land Trust comes from the bank and allows buyers to purchase land 50 km or 30 miles from the coast of Mexico or 100 km or 60 miles from the border of Mexico. Depending on your property, the Land Trust can be as high as $500 per year.
Closing Fee Costs
When you are figuring out some of the expenses of property ownership in Mexico, then you should also consider the costs for attorney and notary fees, the sales tax, and any agency fees if you use an agency.
If you purchase a property that is located in a gated community such as a condo, country club, or apartment, then one of the added expenses will include the HOA dues and any maintenance fees. These are yearly costs that must be paid.
Based upon the earnings of people in Mexico, the utility costs are high, but of course still lower than North of the Mexico border. The electricity cost will depend on the type of property. If you go over the ‘allowance’, then the government removes the subsidy and the full cost of the electricity is owed.
Another expense to take into account when considering property ownership in Mexico is home insurance. You should make sure the insurance covers the contents in the home and the home itself. If your property is on the coastline, then make sure your policy will cover any storm damages and flooding.
These are just some of the expenses of property ownership in Mexico. If we have left any out, then please comment below.