BeachSeeker
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Tips on Buying A House in Mexico
We are looking to buy a house near San Felipe (Non EDR). The plan is to use it as a vacation home and short term rental for about 8 years, then move
there permanently. It is in an established neighborhood with an HOA. The developers no longer hold any interest in the neighborhood. The house is in a
fideicomiso, I believe with Banco Inmobiliario Mexicano. We would be using a realtor in San Felipe with a good reputation.
Any general tips on buying a home like this in Baja? Anything to watch out for? So far we have noticed that things move a lot slower. Perhaps it is
just this particular realtor, but we are fairly serious and they still take 3-5 days to answer emails. We have bought a few houses recently in the
states and everything happens much faster.
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SFandH
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I recommend hiring a Mex real estate lawyer in Mexicali to read the paperwork and advise.
You said: "The house is in a fideicomiso". Are you buying it from a gringo that has the fidei in his name?
Ask to see this year's real estate tax receipt (2024). If not available, ask for the 2023 receipt. Check the names and other info on the receipt.
Be very suspicious. Hire an attorney.
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BeachSeeker
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Thanks for the information. Yes, buying in a small development of about 50 houses from a gringo who has another house in the same development and
spends a lot of time there. They have the fideicomiso in their name.
We are doing everything through a reputable realtor in San Felipe. Do you advise that I also hire an outside attorney to review everything, or should
the realtor be able to put me in contact with someone they frequently use?
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surabi
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Your "plan" of short term renting it for 8 months a year while you are not in the country is a whole topic fraught with issues in itself. Does the HOA
allow str rentals? Do you have a Mexican tax number? (You will need to pay taxes in Mexico and the US on the rental and need a Mexican accountant
familiar with short term rental platforms). Who is going to manage the rental business, guest issues, maintenance, etc. for you? Are you going to get
str insurance, or are you under the false impression that the rental platforms will reimburse you for damages, thefts, etc. caused by guests?
Lots of people think having an Airbnb is going to be easy money. I can assure you it isn't.
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pacificobob
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Competent , energetic,and ethical real estate
Agents are the exception rather than the rule on both sides of the border.
Best of luck. My Mexican investments have all worked out profitably. I don't think there is such a thing as too much legal counsel.
One odd thing i have observed is really informally conducted transactions in Mexico by folks who would proceed far more cautiously up north. 🤷
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Lee
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Quote: Originally posted by pacificobob  | Competent , energetic,and ethical real estate
Agents are the exception rather than the rule on both sides of the border.
Best of luck. My Mexican investments have all worked out profitably. I don't think there is such a thing as too much legal counsel.
One odd thing i have observed is really informally conducted transactions in Mexico by folks who would proceed far more cautiously up north. 🤷
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Watch your money. Trust but verify every time.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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BajaBlanca
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Best of luck! What fun to have found a house where you want to be!
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SFandH
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| Quote: Originally posted by BeachSeeker |
We are doing everything through a reputable realtor in San Felipe. Do you advise that I also hire an outside attorney to review everything, or should
the realtor be able to put me in contact with someone they frequently use? |
The realtor only wants to close the deal as quickly as possible to get his commission. An attorney that you pay to represent your interests is a good
idea.
I googled "abogado de bienes raices san felipe baja california" and found this.
https://www.point2homes.com/MX/Real-Estate-Agents/REAL-ESTAT...
Perhaps send him an email and see what he says.
I paid an attorney $500 18 years ago, and he helped me negotiate about $5000 worth of improvements on a new house I bought in BC. He was also with me
at the "walkthrough" when the house was completed and at the Notario's office when the deal was closed and money exchanged hands.
Make sure property tax and fideicomiso payments are up to date. Ask for copies of the receipts.
[Edited on 1-12-2024 by SFandH]
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BeachSeeker
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| Quote: Originally posted by SFandH |
The realtor only wants to close the deal as quickly as possible to get his commission. An attorney that you pay to represent your interests is a good
idea.
[Edited on 1-12-2024 by SFandH] |
Thanks again for the info. I've actually tried contacting Jose Aguilar about a lot he owns personally in Percebu, but he never called me back. It's
amazing how uninterested real estate agents in Mexico seem to be compared to here in the states. It's taking at least a week just for my agent in Baja
to even respond to my messages. Is this really just how it goes down there? I'll talk to him about me hiring a third party attorney to review
everything, if they don't have someone in-house. Thanks for the tips about getting receipts for tax and fideicomiso payments. I feel pretty confident
the sellers have kept up with this, as they own and spend a lot of time at their other house in the same neighborhood. They aren't absent owners, but
I'll double check anyhow.
| Quote: Originally posted by surabi | Your "plan" of short term renting it for 8 months a year while you are not in the country is a whole topic fraught with issues in itself. Does the HOA
allow str rentals? Do you have a Mexican tax number? (You will need to pay taxes in Mexico and the US on the rental and need a Mexican accountant
familiar with short term rental platforms). Who is going to manage the rental business, guest issues, maintenance, etc. for you? Are you going to get
str insurance, or are you under the false impression that the rental platforms will reimburse you for damages, thefts, etc. caused by guests?
Lots of people think having an Airbnb is going to be easy money. I can assure you it isn't. |
Wow, so many assumptions...
I self manage a pretty substantial real estate portfolio to include an extremely successful AirBnB in San Diego. I understand what it takes.
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surabi
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Exactly. I know plenty of people who had Airbnbs in the US or Canada, and assumed that managing it would be the same everywhere. Only to find out the
management company was renting out unbooked days on the side and keeping the money, or letting their friends and relatives stay there for free. It's
not easy to find reliable people to manage a place here when you are hundreds or a thousand miles away.
And the bureaucratic hoops to jump through here are different. Just getting an appointment with SAT to get an RFC number can take months.
[Edited on 1-12-2024 by surabi]
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BeachSeeker
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My god you guys are exhausting. Lucky for you, I have the time, since I suppose I have to explain every detail.
So, here goes:
| Quote: Originally posted by surabi | Your "plan" of short term renting it for 8 months a year while you are not in the country is a whole topic fraught with issues in itself. Obviously... I didn't go into this without doing the research first and talking to others who have done it. I even created a post
here on Nomads to clarify some tax questions, which you participated in.
Does the HOA allow str rentals? Yes, I looked through the CC&Rs, talked to other owners in the HOA who are renting, etc.
This is such an obvious thing that the question is insulting.
Do you have a Mexican tax number? (You will need to pay taxes in Mexico and the US on the rental and need a Mexican accountant familiar with short
term rental platforms). An RFC is NOT required. You know this, and you know the implications. We've already discussed it in
the other thread. I'll get one if I choose to. No need to belabor this any further.
Who is going to manage the rental business, guest issues, maintenance, etc. for you? I will manage it, same as I manage my
entire real estate portfolio, some of which is remote. I have a very good system of creating teams for this. This is all pretty familiar stuff.
Are you going to get str insurance, or are you under the false impression that the rental platforms will reimburse you for damages, thefts, etc.
caused by guests? I am under no false impressions of anything. I've been doing this awhile. In fact it sounds like you are
the one that needs advise on how to operate a STR if you are having troubles with these things.
Lots of people think having an Airbnb is going to be easy money. I can assure you it isn't. I'm not one of them, but again,
you assume, and you look like an A$$. |
| Quote: Originally posted by surabi | Exactly. I know plenty of people who had Airbnbs in the US or Canada, and assumed that managing it would be the same everywhere. Only to find out the
management company was renting out unbooked days on the side and keeping the money, or letting their friends and relatives stay there for free. It's
not easy to find reliable people to manage a place here when you are hundreds or a thousand miles away. I appreciate your
concern, but, you are assuming things based on absolutely nothing. Obviously it can be done, as there are plenty of successful STRs in Mexico. So why
are you assuming that I don't have the knowledge or experience to operate a successful STR?
And the bureaucratic hoops to jump through here are different. Just getting an appointment with SAT to get an RFC number can take months. If you think that's difficult, try navigating the STR regulations in San Diego.
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Now that we've got all of that out of the way, can we please stay on topic and talk about the PURCHASE. If you want to continue talking about
operating an AirBnB in Baja, please go post it in my thread specifically titled "Anyone Run an AirBnB in Baja?" https://forums.bajanomad.com/viewthread.php?tid=99424#pid126... Thanks!
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pacificobob
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The red font really emphasizes your charm. Good luck.
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