Have you been wondering if houses are expensive in Mexico? Recent statistics have shown that the average cost of real estate in Mexico’s capital costs around three million pesos, which is $160,000 USD.
This price is nearly double the national average, but it is still much less than buying a similar house in the United States and Canada. There are different factors that determine the price of a home such as the size, location, bedroom, and bathroom numbers, and the size of the lot.
If you own real estate property in a tourist destination on the coast, the price would be significantly higher due to the demand of people wanting to live on the beach.
Villa La Estancia is an excellent choice if you want luxurious beachfront real estate in a safe and peaceful setting. Meanwhile, keep reading below to learn if houses are expensive in Mexico.
What Factors Determine a Home’s Cost?
To begin with, generally, the biggest factor to determine the price of a home is the location. If a location is desirable, then it will cost more than if the home was in a location that isn’t as sought out.
For instance, if a home is located on the beach or nearby the ocean, it is usually worth more than a home that isn’t. In addition, if the home has numerous bedrooms and bathrooms, then the price will be higher in value.
Also, if the home has a swimming pool, a garage, a nice yard, and other features, then the house’s value will increase. Likewise, if the house has extra amenities and services such as with a condominium complex or it is in a gated community, these types of properties tend to be more expensive.
This article could be helpful for you: When to Buy Real Estate in Mexico.
Are Houses Expensive in Mexico?
If you are wanting to buy property in Mexico, there are other costs that you need to consider. To begin with, before you buy any real estate in Mexico you should pay to have the property inspected beforehand.
This will let you know if the property has hidden damages or issues. You should also get a property valuation report too. The property valuation reports in Spanish are called “Avaluo” and they can cost from $200 to $300 USD this evaluation will be done by a reputable professional.
Once you have an agreement to purchase the property, you will need to pay closing costs. This term means the fees and charges to pay for the parcel to be transferred legally to you.
The closing costs can range from 5% to 10% of the sale price of the property, and these fees will include the Notary Public, sales tax, and other charges to secure the property transfer.
Read about Villa La Estancia and the values we have.
Mexico’s Ongoing Property Costs
In Mexico, all property taxes will have to be paid annually or also known as “Predial”, which means property owners must pay once a year. Usually, the property taxes in Mexico are only several hundred dollars a year.
Also, if you have bought an apartment, condo, or penthouse, or your property is in a gated community, you will need to pay maintenance and service fees regularly. The fees go towards keeping the swimming pools, landscaping, gyms, and clubhouses clean and maintained.
There are also property associations that homeowners need to pay for big projects such as a new roof or major repairs. You need to know that maintenance and service fees can increase over time. Also, you are required to pay all utility costs such as electricity, water, gas, etc.
You may be interested in The Benefits of Fractional Ownership.
Mexico Bank Trust Fees
Lastly, only citizens of Mexico can buy property legally that is within 30 miles (50 km) of the coast of the border of Mexico. If you are a foreigner wanting to purchase land on the coast or border, then the law in Mexico required your land to be held in the Bank Trust or in Spanish Fideicomiso.
The Bank Trust will be established once the property is purchased. There is a setup fee, plus yearly fees for this too. The set-up costs can range around $1,000 USD and trust fees can range from $500 to $2,000 USD yearly.
Did you enjoy reading this article about if houses are expensive in Mexico? If you want to buy luxurious beachfront real estate in Mexico, the best choice is Villa La Estancia.
We are proud to offer the hotel-condo concept, so our homeowners have their own beachfront residence along with complete access to our luxury resort amenities and services. Currently, we have 2 locations in the country’s best destinations including Nuevo Nayarit just north of Puerto Vallarta and Cabo San Lucas.
Our private beachfront residences are spacious, elegantly furnished, and very comfortable. In addition, onsite amenities are world-class and include multiple pools, jacuzzis, a spa, a fitness center, room service, a front desk concierge, and delicious onsite restaurants.
Give us at Villa La Estancia a call today to book a dream vacation to Mexico and to learn more about our amazing beachfront residences for sale, too!