Meet Kathy and Ken Brady, two Upper East Siders looking to invest in Mexican realty. They ended up buying about 2 hectares, or nearly 6 acres of land in the town of Tulum in the Yucatan Peninsula for $320,000. It’s currently jungle overgrowth, so they’re waiting for it to increase in value. So far, it’s appreciated more than 12% since they bought it, and will likely only increase as an airport is being built nearby. This couple has taken part in a new trend- investing in real estate in Mexico.


Where else can you see returns like this? Mexico was far less affected than the US and other countries but the 2008 economic crash, and there is a turnaround from the little damage they had. The Mexican economy is currently expanding, but prices are staying low.

This is a perfect time to buy in Mexico, and even cheaper to live there, especially considering recent constitutional changes. It’s far easier now for foreigners to buy land, and safer. With a Direct Property Deed, the government can’t take land owned by foreigners. The details are a little different when you’re buying land 60 miles from the border or 30 miles from the coast; you have to get a “fideicomiso,” or a trust through the local bank that lasts 50 years.

If the Mexican government does intend to seize your land, there is a modification under NAFTA that requires the takeover to be for “public purpose.” This however rarely happens, and when it does, the government will give you a large sum of money, meaning fair value for the land plus interest.

Most purchases and transactions in Mexican real estate are done in cash, but some US institutions and real estate developers will allow you to do financing. You can also do this through some Mexican banks, but be wary of higher interest rates.

One downside to owning property in Mexico means that you have to pay taxes in both the US and Mexico. You’re required to pay a transaction fee, and you will have to pay property taxes each year that cost no more than one percent of your land’s value.

It’s also important to be wary of drug related crimes in Mexico. Be aware of your surroundings and be wise about what you do. The government wants to maintain tourism, so they are working hard to curb drug related violence, but you still don’t want to be in the wrong place at the wrong time.

Despite taxes and violence in some areas, investing in Mexican real estate is still a very good idea. If vacationing in Mexico isn’t your cup of tea, you can also consider commercial and retail sectors. These are very profitable currently. Investing is always a gamble, but it seems that Mexican real estate is a worthy place to put your money, for the time being.

If you run into any trouble investing and need a real estate attorney in Mexico to help you out, look no further than Loit & Associates. If you need help investing in real estate in Mexico, these attorneys and specialists are trained and practiced in Mexican law and are ready to help you out of any situation.