I’m going to explain why you should rent in Mexico. Especially before even thinking about buying a house or condo.
I know many of you will be tempted to buy a condo or house in Mexico when you live there. Particularly when it is so cheap and the location so perfect that you want to take it before you miss out on that deal.
And in some cases buying a house or property in Mexico might be the best case scenario for you. But before you consider that purchase, there are 6 important reasons you should rent before buying a house in Mexico.
1. Renting in Mexico Is Less Complicated Than Buying
Buying a property in Mexico can be a complicated legal process, and unless you have a trusty real estate lawyer, you could end up buying real estate in Mexico the wrong way and lose your home. So you might want to reconsider.
That’s because foreigners do not have the same rights to buying ceratin land or property in Mexico as Mexican citizens do. And unless you know how to properly do this research or write this into a legal contract, you could end up losing.
Recently, I watched a youtube video about reasons ex-pats leave Mexico, and this critical reason came up that I have heard happen to others. People from other countries come to Mexico; they buy a cheap and what seems to be a great deal property, then years later, another “official” owner of that property comes back to reclaim it.
What happens? One of 3 things.
1. A lot of money is spent in a legal battle to try and take back the property you bought, and you might win. However, with all the money spent fighting the legal action in court and with different government parties, you might have spent a fortune on this once “cheap property.”
2. A lot of money is spent in a legal battle, fighting for the ownership of this property, and in the end, you lose everything because the court has granted right to someone else.
3. You decide it’s not worth the legal battle, and end up losing the property.
Either scenario is probably not a scenario you’ll be used to and comfortable handling, which is why it’s essential to have a reliable and trustworthy real estate attorney and notary help you with the purchase of your home BEFORE actually buying it.
2. Renting In Mexico Gives You Flexibility
If you’re like most people, one of your reasons for moving to Mexico is in search of a new adventure!
Being tied down with real estate in a specific city or place might not give you the flexibility to explore different parts of the country. I know people who moved to Mexico with one specific place in mind, only to realize that they hated it when they spent an extended amount of time there.
You should also keep in mind there are many things you might not know about a place by visiting a few times. And these things include the weather year-round, the noise year-round, seasonal tourism year-round, and in some cases, even the lack of services year-round.
For that reason alone, renting in Mexico gives you another level of flexibility before jumping into buying real estate.
Plus, rent is so affordable in most parts of Mexico compared to what you’re probably used to that it really can make more sense financially. So you might ask yourself: Why buy when I can rent?
Check Out My Rentals Page To Get An Idea Of What You Can Rent.
3. Renting Requires Less Investment Upfront.
When you buy a house in Mexico, whether you decide to pay cash or finance it, your initial investment is going to be pretty large. Even if you decided to finance it, you’ll still have to give up some cash in a down payment.
Then there are other costs such as a real estate attorney, your real estate agent, a full house inspection, and perhaps some repairs—all of which you will have to pay for.
But when you rent a home, most likely, you will only be required to pay the first and last month in rent upfront. And in some cases, depending on your landlord, you might have to pay a deposit for your telephone line.
And a lot of rentals come furnished, so you don’t even have to worry about the additional expense of buying furniture.
Rent In Mexico Varies By Month
If you want to minimize your initial investment risk further, you should also know that rentals tend to have two high seasons:
- November through March
- July through August
To get the best deals, try and find your rental outside of these months to negotiate the best price.
4. Renting Can Help You Get Out Of Debt
One of the reasons you might be moving to Mexico is for financial reasons. After all, the cost of living in Mexico is much cheaper than that of Canada or the U.S.
You might have student debt, or credit card debt that you are paying off. Those high payments might not give you the cash flow you need to buy a house. So you might have to rent in Mexico for a while before you buy.
This will allow you to put money aside, and not only get out of debt but give you the power to purchase a home in the future if you decide to do so. And again, some rents are cheaper than a mortgage in Mexico. So you might be able to have a nicer place that costs you less each month.
5. You Don’t Have To Deal With Repairs
I remember booking a trip to the beach one summer, and looking forward to it for many weeks!
Then the unthinkable happened.
We had a water leak that same weekend! I could cry. Not only was it on the weekend, but not taking care of the problem right then and there wasn’t an option. We couldn’t put it off.
So we cancelled our plans, and dealt with the issue.
But if you rent in Mexico, you don’t have to deal with any repairs. Your landlord is responsible for getting repairs done and in a timely fashion, whether you are there or not.
Not to mention that we didn’t have a network of plumbers or any service people, so we just had to pick someone and hope for the best. Luckily, he did excellent work. But I have heard that home repair services in Mexico can often take forever. So if patience isn’t in your blood, then owning a home in Mexico might not be for you.
6. You Can Leave Faster Than Selling A House
Sometimes the unexpected happens, and you might not be able to sell your house fast enough to wait around. I know many people in Mexico who have been selling their houses for years. YES YEARS!
But what if someone back home, a son or daughter, gets ill and you have to move back to your home country? Or what if you decided you wanted to leave, but couldn’t because you needed the money from the house to be able to afford your move?
If you rent in Mexico, you can leave so much faster than trying to sell a house. It’s not unusual for houses in Mexico to sit on the market for years. So, unless you can weather waiting for the sale of your house in Mexico, you should rent instead.
If You Do Decide To Buy A House in Mexico…
There are going to be cases when you just can’t pass up a deal. Or you might have a personal decision for wanting to buy a place in Mexico.
It might be the perfect place for you in the ideal location. So when you do find the perfect place for you, and you are ready to buy a house in Mexico, I can strongly advise you to hire:
- Real Estate Attorney in Mexico who has dealt with Foreigners buying a property in Mexico.
- A Trustworthy Notary in Mexico who has also dealt with Foreigners who want to purchase a property.
- A notable real estate insurance agency.
- Technically there are no building codes in Mexico, so make sure you hire a good surveyor, and they will do a thorough inspection of the property. Do NOT hire a surveyor recommended by your real estate agent or the owner of the property.
Have you bought a house in Mexico? I’d love to know your experience! Or do you want to say hello? Either way, comment down below. I’d love to hear from YOU!
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