Can I Finance A Home In Mexico?
Today we are diving into financing and how foreigners can purchase property in the Riviera Maya.
Let’s look at one of the agents who joined Ushombi very early on, Karla Flores, Co-Owner of Nomad Realty Club in Cancun, Mexico.
Karla has more than 20 years experience in the service and tourism industry working for hotels and travel agencies, and the last 10 years at B2B Corporate Level. She made a turning point in her professional life and went all the way into real estate, first under the RE/MAX umbrella as a Sales Associate, Certified International REALTOR® by NAR and now Specialized in International Partnership and now Broker – Co-Owner of Nomad Realty Club in Mexico.
Hi Karla, thanks so much for doing this interview with us, so why don’t you tell us about yourself and what drove you to pursue a career in real estate?
I was living abroad and noticed that no agency was providing a “360 degree service” in the real estate industry and I believe that’s what people truly need. They need a “360 service from an international point of view, because when you relocate to a new country you just don’t know anything about the flow of life there. So that’s why it’s important to have an experienced agent who can help guide you through the entire process. I wanted to help people transition smoothly to foreign country so what better way than to make a great partnership and turn my goal into a reality.
Tell us about Nomad Realty Club.
I initially started selling real estate while I was living abroad in the Dominican Republic. Then I moved back to Mexico and was still receiving requests for real estate services so I wanted to provide a much needed “360 service” to foreign buyers in the Riviera Maya. Some of the services we offer are Title Search and Due Diligence, Immigration services, escrow, construction permits and closing services.
What services does Nomad Realty Club offer potential home buyers?
Here at Nomad we want to provide a 360 experience for foreigners who desire to purchase property in the Riviera Maya. We feel it is extremely important to provide legal, migratory, construction purchasing services all under one roof regardless of the size of investment.
We also provide a comprehensive tax strategy for our clients before the purchasing process even begins. We want to consider all elements of the end goal for the property in order to best represent the buyer.
Describe the current market in the Riviera Maya.
It’s a hot market! Hotter than ever! The pandemic forced the condo developers to be more flexible with payment options and deliver their final product on time. When it comes to renting a property, many companies are more flexible as well. In the Riviera Maya there are lots of quality options ( eco-friendly, land lots, luxury homes, penthouses, etc.. ) so it just depends on the lifestyle a buyer wishes to have. We cater to the client, we don’t push a specific type of property or location.
What are 3 things buyers would need to know before purchasing property in the Riviera Maya?
1. What is the end goal for your lifestyle ? relocate or just invest ? This is very important to determine.
2. What is the lifestyle for that property? Rental investment? Are you going to manage your rental property yourself? Are you just going to flip the house? What is the strategy towards the property?
3. If you are renting, what are the amenities that you must have?
Can a foreigner receive a home loan from a bank in Mexico in order to purchase property there?
Yes, a foreigner has 2 options and we can help them with both. First, if they have already obtained Mexican residency then they already have access to a bank, so then we can arrange for them to meet with a mortgage lender or assist in receiving a loan from their bank.
If they don’t have Mexican residency then we can set up meetings for them with a mortgage broker at one of the banks we have partnered with.
Some developers are flexible and will allow buyers to make payments. Because of the pandemic, developers will offer financing options.
What purchasing formats can a potential buyer use to acquire property in Mexico?
If you are thinking of using the property as a vacation rental, then as a foreigner you can start a company and then purchase the property through the company. Tax wise this is a smarter option. If you are planning on relocating then you can open a Bank Trust and acquire property.
Does Nomad Realty Club help in securing a mortgage for foreigners?
We provide access through our partnerships with lending companies and banks to ensure a smooth process. We always make sure the broker is looking into all options for financing.
If you are looking to relocate or invest in the Riviera Maya then please reach out to Karla Flores, she can answer any questions you have and assist in your property acquisition goals.