Thanks to Mexican legislation, foreigners are free to invest in property. This means that you can have your dream home in what we believe is the best tropical paradise in the world – Huatulco Mexico!
But before you throw a house-warming party, start your investment property process with proper due diligence. This simply means “doing your homework” BEFORE signing the contract and handing over the money. Due diligence is all about being aware of the structural, environmental, financial and legal risks.
Here at Own Mexico, we’ve made it easy to fulfill your due diligence obligations.
- On Your Mark – Be sure you have the time, energy, resources and patience to start and finish this process. Investing in property isn’t for the faint of heart, but the payoff is well worth the blood, sweat and tears.
- Shop Around – Get to know the real estate market in your chosen area. Check out the price range, homeowners associations and amenities that could be available to you. Talk with home owners in the area. Ask them questions about the utilities, comings and goings of neighbors and if there were issues with the builders. Getting a full picture of what you’re buying into will give you added insight when making your final purchase.
- Check Out a Sustainable Community – More and more buyers are investing in sustainable community properties. Huatulco Mexico is one such community. This means that the “environmental footprints” of construction and utilities less impactful and more up-to-date. Sure, a sustainable community dream home may cost a little more, but you’ll be much happier in the long run.
- Explore Your Surroundings – Find out if there are construction plans meant for your neighborhood. Will a new highway be going through your quiet residential area? Will a shopping mall be opening down the street? These elements can either add – or subtract – from the value of your investment property.
- Look at the Title History – The history of your dream home could greatly affect your real estate investment. Be thorough as some home owners have discovered only AFTER their purchase that litigation against their Huatulco property is pending. A title insurance company agent and lawyer can help you look at the property’s plat, title easements and Huatulco property encumbrances.
- Do the Math – Hire a third-party appraiser for an estimate on the property value. Then compare it to other real estate opportunities to make sure your investment property decision is sound.
- Inspect the Property – It’s common to hire a licensed, professional inspector to review the structural integrity of your possible purchase. We also recommend going along for the inspection. Keep your eyes out for water damage, mold and electrical problems. If you can’t be there, be sure to thoroughly review the inspector’s comments.
- Count the Repair Cost – This process can be tricky when investing in property. Some “professionals” are not what they seem. Be sure to get at least 3 or 4 referrals from trusted sources before you have someone repair your property. Also count on some surprises. You’ll be best served to have some money in reserve for any unforeseen repairs.
- Inquire about Insurance – Talk with a number of insurance companies to find out how much natural disaster insurance would cost. Hurricanes and floods – they can destroy your dream home in seconds. Safeguard your investment property, but be sure to include this additional coverage in your long-term budget.
- Secure Financing – There are plenty of expat home owners in the area who will refer you to – or warn you away from – mortgage companies in your desired community. Companies such as ours can help you find the best options for you and your budget.
- Homeowners Associations – If you opt for a Huatulco property with a homeowners association, ask to see the payment
history on file. Were the previous owners current with their dues? If not, you could be responsible for paying these fees and any interest.
Buying real estate is an investment in your future, one that is worthy of your time and effort.
Here at Own Mexico, we’ll guide you through every step of your due diligence process. From checking out the market to signing on the dotted line, we’ll make sure you enjoy a safe and rewarding buying experience in the sustainable community of Huatulco Mexico.