Farm Land Investing in Mexico

One of the many unique things about farm land investing in Mexico is that there are brokers with access to available farm investment opportunities across the country. 

All things considered, a farm in Mexico is one of the most turn-key, user-friendly land purchases you could make anywhere in the world.

What would you do with your land once you'd bought it? You could either rent it out or hire a farm manager. 

A farm manager is like a property manager for a rental property. 

He is the key to your success. 

In Mexico, there are many professional farm management companies, meaning, again, your options are turn-key.

Prices for farm land for sale in Mexico range from $1,000 to $4,000 an acre ($2,500 to $10,000 per hectare). Again, this is tied to productivity rating. 

Buy as much of the most highly productive land you can (as opposed to more of lesser rated land) with the budget you have. The better rated land will hold its value. 

Your return will depend on what type of product you instruct your management company to farm. 

Agriculture will return 4% to 9% per year; cattle 3% to 6% per year; forestry 6% to 10% per year. 

The most productive land is to be found in the country's southwestern corner.

The option would be to lease out the land you buy. Your return this way is less but more reliable, at about 4% a year. Many people buy and rent out for a year. Then, when they're more comfortable with the whole idea, they hire a farm management company for the greater yield. Farm management companies charge 5% of gross sales or 10% of net income.

The Mexican Establishment for Land for Sale

To many foreigners faced with purchasing beach real estate in Mexico, the Fideicomiso is a total mystery. 

Buyers may not understand 

when they are required to buy through the Fideicomiso, 

how it is created, 

what rights they have in the real estate, 

who acts as the trustee, what the cost is, 

how long it lasts, and 

whether the buyer can direct the trustee to sell or transfer the real estate held in the Fideicomiso. 

Ultimately, what buyers want to know is whether the arrangement is secure.

Article 27 of the Mexican Constitution states that foreigners may have ownership rights to 

land for sale in Mexico provided that foreigners agree before the Secretary of Foreign Relations (SRE) to consider themselves as Mexican nationals with respect to such property, and not to invoke the protection of their own government in matters relating to the property under penalty of forfeiting the property if they fail to comply with this provision (this provision is known as the "Calvo Clause"). 

                                    

Furthermore, Article 27 establishes an outright prohibition against foreigners acquiring direct ownership of real estate within 100 kilometers of the national borders or 50 kilometers of the coastline (this zone is now known as the "Restricted Zone"). 

                                       

These constitutional restrictions have been softened by Mexico's foreign investment laws and regulations.

                                           

Types of Houses for Sale

Types of Houses for Sale in Mexico-
                                                        

Apartment - An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.

Multi-family house - Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.

Terraced house (a.k.a. townhouse or row house) - A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.

                                             

Condominium - Building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly. There are townhouse or row house style condominiums as well.

Cooperative (a.k.a. co-op) - A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

                                        

Semi-detached dwellings (in UK, a 'semi' is by definition two units with a party wall).

Duplex - Two units with one shared wall. (in UK, a duplex is an apartment on more than one storey)

Mobile homes - Potentially a full-time residence which can be (might not in practice be) movable on wheels.

Houseboats - A floating home

Tents - Usually very temporary, with roof and walls consisting only of fabric-like material.

                         

Attraction of Guanajuato

Some Mexican towns make themselves out to be tourist attractions and have little to show for it. 

Guanajuato is just the opposite. 

Guanajuato real estate makes little effort to attract tourists, yet it is one of the most interesting and beautiful towns in all of Mexico. 

It is located 275 miles northwest of Mexico City in the heart of Colonial Mexico.

During Colonial days Guanajuato provided up to one-third of all the silver in the world. 

The silver barons and baronesses left magnificent homes, and even more magnificent churches, which are still standing today. 

There is a story that one silver baron paved his street with silver bars for his daughter’s wedding, though no trace of this “nice gesture” exists today. 

Guanajuato also played a significant part in the War of Independence. 

Padre Miguel Hidalgo gathered a few revolutionaries and marched to Guanajuato where his army won the first battle of the war. 

Guanajuato became the capital of what was to become a free Mexico – for ten months. 

Though rich in history, Guanajuato does not live exclusively in the past. 

It is the capital of the state of Guanajuato and the home of a very modern university. 

It is also the home of the annual International Festival de Cervantino. 

Bed and Breakfast Experience

                       

Sometimes I marvel at how I arrived in Guanajuato, Mexico, with so little Spanish and with so few cultural skills.  

I believed I was ready to live in "real Mexico" and to cut the ties from this informal but very secure situation. 

I had a good guy who helped me out, a lot, when the frequent confusion of trying to adapt to a new culture overwhelmed me. 

I had no clue when I moved here that so many have been silently moving into the Marfil area of Guanajuato and buying up property. 

Nor did I know how many well-laid plans were in effect to buy up housing in the city with the intent of renovating the properties and turning a profit by opening 

Bed and Breakfast Guanajuato or reselling the newly remodeled house at a hefty profit. It's happening. People are flooding into Guanajuato.

Even if you are just planning on living here to try it out, maybe rent a lovely little villa or casita, stuff goes wrong and hits the fan.

A city in Mexico where no Gringolandia has existed is not going to have that well-honed Gringo infrastructure the other cities have. How the Gringo is treated in a city accustomed to a large Gringolandia and how they are treated in a city like Guanajuato that has a small but developing Gringolandia, will be as different as night and day.

Arc of Mexico Real Estate

For all property purchases, make sure you always receive originals and copies of all documents in the transaction. Reputable agents will hand you a sizable, oftentimes bound, package of the documents, including copies. The principal document upon purchase is your original title deed (escrituras in Mexico), and in the case of a previously owned property, a history of ownership. 

You´ll also need a copy of the property’s registration from the public registry of property (registro publico), where you can also get a certificate of good standing and absence of liens against the property. 

You’ll also need to know what type of land your property sits on, its authorized use and zoning compliance (known as uso de suelo), specifying it as legal for residential, commercial or other use. 

You´ll need physical documentation specifying the physical identification of the property (croquis and topographical plan), and compliance with environmental regulations if the property is located in a protected area. 

Outstanding mortgages, contracts, past-due tax bills and utility payments need to be in order as well, before you buy.

A certified real estate broker is the first step in making sure you have someone on your side to perform the due diligence before you put your money into the purchase of a property. The benefits of putting together a checklist of the items mentioned, along with others as per the suggestion of your realtor and owners in your area can pay off handsomely in both tangible and intangible ways later on.

This is the Mexico Real Estate arc which gives you various ways to buy and sell property.

The cost of living

International living opens up a whole new world for people who are not happy back in their home countries or for anyone who wants to improve their financial position. 

You can live the type of life you dreamed of for a fraction of the cost back at home.

People are starting to realize that the old 'patriotic' and 'tribal' mindsets are just worn out clichés used by governments to keep you obedient so you will gladly hand over your hard earned cash. 



International living offers a very real and exciting alternative irrespective of whether you become a perpetual traveler or retire to only one country.


The cost of living is much cheaper, climate more pleasing and mindless government at a minimum which means you can lead an international lifestyle of freedom, wealth and happiness. 

International living is a must for children’s' education these days and of course they adapt much quicker to new situations than adults do.


Just think about it.....working your business from a laptop, playing with the children when they need you, doing what you want when you want and of course family and friends will only be too happy to visit now that they have 'free accommodation' overseas.

Mexico Has Something for Everyone-II

A lot has been written and chronicled about the vast inheritance the “boomers” will realize over the next decade. 

Many, many North Americans will have, and have now, a lot of money that will be invested in something or somewhere. 

Why not Mexico real estate? Our neighbor to the south is keenly aware of the investment potential this unprecedented group of inheritors can make on their country. 

Not to mention the impact they’ll have on improving the quality of life with new infrastructure and development wherever they invest. 

It is estimated that 10,000 Americans buy real estate in Mexico each year. 

Today, the total is approaching 1.5 million purchasers from the north. 

The perception and viability of owning a home in this wonderful country has changed a great deal. 

Foreign buyers now understand and recognize the safeguards that can be provided for real property acquisitions in the nation. 

The overall integrity and professionalism of the real estate community has been greatly improved. 

There is a greater sense of comfort and security with North American buyers. Given the second home landscape in America over the next twenty four months, and maybe longer, Mexico will be the place to be, the place to invest, the place to own that second home!