GoMex Investment Opportunities

Investing in Mexico has proved to be a profitable venture for many people. Most real estate has more than doubled in value over the past several years, and with Mexico’s strong economy, the market will undoubtedly continue to rapidly climb. Owning property in a tropical, tourist destination has obvious personal rewards but it can also be a lucrative, moneymaking investment as well.

Owning property in Mexico is easier then most people think. In short, there are two ways foreigners may purchase land or hold land titles. The first is called a “Fideocomiso”. The Fideocomiso was created many years ago to protect Mexico from having wealthy investors buy up all the desirable land (coastal areas and near the border). Today, foreigners may own coastal or border property but it must be done through a Fideocomiso. Essentially, the Fideocomiso is a Bank Trust. This is not a lease. The land is put into a trust issued by the Mexican Federal Government. The trust owns the land, and you own the trust. The bank has no ownership rights to the trust and cannot “take is back” from you. The bank simply administers the trust on your behalf for a yearly administration fee. Trusts are typically issued for a 50-year duration period with the right to renew following the expiration date.

The second route for foreigners is through a corporation. In Mexico, a corporation may own beachfront, border or other property without restriction, as long as the property is not solely for personal use. A good example of these opportunities are villas, apartments, restaurants, malls or other commercial buildings and of course, resorts and hotels.

Investing in gated communities in and around Mexico is a fairly new and growing trend. Americans, in particular, have been retiring and investing in Mexico for years, a concept that Canadians are finally catching on to. This is a superior alternative to owning a timeshare. In this case, you actually own the property and may do whatever you wish with it. Most investors use their property for a few weeks of the year, and then choose to rent or lease it to friends, family or other tourists. Many use the income they generate from subleasing to pay for their mortgage and annual Fideocomiso administration fee. Generally, investors will eventually use this property for retirement purposes. Potential investors, however, must be aware of any restrictions placed on the property they are purchasing. For example, some condominiums and town home complexes prohibit subleasing. This is a restriction that one would obviously want to be informed of before making a decision to invest.

GoMex offers a variety of services to assist you in your investment experience. Some of those services include…

For more information regarding investment opportunities and our services in this department, please contact us via e-mail or call our head office.