The right to information is one of the branches of law that have recently emerged in Western countries. This is particularly useful for foreigners who want to buy real estate, as access to information is the difference between a solid investment and a failure. Pawel Kentaro Grendys, an expert in Latin American real estate law, explains how Mexico is updating its legal framework to the benefit of real estate investors.
In the US, the real estate industry is estimated to account for $2.9 trillion. This figure is staggering in the world’s most developed country. There, real estate information is abundant and public, in such a way that it is very useful for families and so also for companies to analyze it in order to make the best investment decisions to optimize the returns on their economic resources.
In Mexico, with reforms to the country’s Magna Carta, the right to information was expressed in the sense that everyone has the right to free access to plural and timely information, as well as to seek, receive and disseminate such information. The right includes access to archives, records and public documents. For this reason, the National Institute of Transparency, Access to Information and Protection of Personal Data was created.
Explains Kentaro, “In the last six years, according to authorities, $98.5 million was invested for the modernization of the Public Property Registries of the country. And, to make them more efficient, the Integral Registry and Cadastral Information Management System was created. There is even a General Law Initiative to Harmonize and Homologate the Public Real Estate and Moral Persons Registries, already approved by the Senate.”
Undoubtedly, there is a lot of valuable information that consumers can receive monthly from the Public Registries. By having a report where they are informed in each state of the country what volume of operations in units and values were carried out in each of the municipalities of that entity, they know better the reality of the market.
Likewise, the information can tell consumers how many of these units sold were single-family houses, apartments, premises, warehouses, land, etc. With this information, economists analyze the trends in municipalities and states in real estate investments.
It is important to determine the exact purpose of the property before you start looking for the right investment property. It is important to consult a trusted real estate agent who understands the area and can help you figure out what type of return you will receive from rental income and appreciation.
Finding a great investment property in a beautiful location is as important as understanding the rules and working with seasoned real estate agents. Kentaro says that luxury condos can be used as vacation rentals in top locations and will save you the hassle of maintaining them, increase your ongoing income, and provide a high return on investment.
The Riviera Maya real property market is currently more affordable than similar vacation spots around the globe. The stock market is outperforming vacation home rentals and yielding incredible annual returns.
Mexico’s residency requirements and property rules are straightforward and allow foreigners to purchase real estate in Mexico and/or become citizens. This is to encourage everyone from around the globe to visit Mexico and enjoy all it has to offer.
It is a smart idea to partner with an experienced real estate advisor to find the best turnkey villas, condos and luxury apartments for your specific circumstances. A trusted real estate advisor can make the entire process smooth and even allow the buyer to access investment properties that aren’t yet on the public market. This will help you get incredible value.
