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| Financing Your Mexican Property |
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| If you want to live in
Paradise |
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Investment historically and in many cases today, most property/real-estate
deals in Mexico are cash only. Mexican Banks are now beginning to offer
mortgage products for the purchase of real-estate in Mexico, although 30-40%
deposits are required and interest rates are not as attractive as those
in the US, Canada and Europe.
There are some banks in the US, who are now offering mortgages
on Mexican Property, but they are usually offered on the back of equity
built up in a property in the USA and the rates are higher on the additional
loan amount, to reflect the additional risk. Many Americans HAVE mortgaged
a house in Mexico using this financial vehicle so it is possible.
Financing inside Mexico is still difficult and relatively expensive, so
if you plan to buy real-estate in Mexico you will be well advised to have
your own foreign funding available; either through an equity-release scheme
or other fund. Some people who are planning to retire to Mexico will sell
their house in their home country and use the proceeds to finance property
in Mexico; those who want to keep a 'base back home' may release equity
from their existing home, rent it out, and use the dual proceeds to fund
their retirement home in Mexico.
It's important to think carefully beforehand about how you are going to
finance your property in Mexico. A Real Estate Agent in Mexico may be able
to advise you, and some even have connections with financial institutions
in the USA who can offer solutions depending on your personal situation.
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