FAQs
Frequently asked questions
How may a foreign person hold title to property in Mexico?
There are several ways a foreigner may own property in Mexico.
1. If the property is not located in the restricted zone (50 kilometres from the sea or 100 kilometres from the border), a foreigner may hold title to the property. The foreign person will still need to apply for a permiso (permit) from the Mexican Government.
2. If the property is located in the restricted zone, the buyer will most likely utilise a fideicomiso (fiduciary bank trust agreement) for holding title.
The fideicomiso is a trust agreement that you establish with a bank to hold title of the property with you — you and the bank are both named in the title documents. The bank has a fiduciary responsibility to represent your interest in the property.
How would you compare the cost of utilities in Yucatán to the United States?
Electricity in nearly all of Mexico is controlled by the government-owned CFE, Comisión Federal de Electricidad. The amount you pay is based upon usage and is billed on a three-level tier — Basic, Intermediate and High. The lowest level is generally subsidised to provide cheap electricity to the poor. However, as soon as you get into the higher levels, electric usage can be expensive. There is ample motivation to use energy efficiently.
Natural gas in Mexico is basically the same price as it is in Texas. Most residential users purchase it by the tank — some homes have tanks on the roof, others use smaller mobile tanks.
Yucatán is truly blessed to have an abundant supply of sweet water. Water, and the cost associated with its household use, is very inexpensive.
Can I get a mortgage to finance my purchase of a house in the Yucatán?
Mortgages are available in Yucatán for Mexican and foreign home buyers. Scotiabank, Banamex, Bancomer and several other international and mortgage banks will provide mortgage-backed funds for a home purchase in Mexico.
However, the loan process is expensive, time-consuming and very rarely utilised in Yucatán. Most lenders will not make loans for purchases of less than $100,000 USD; down payments run 30% or higher; and interest rates are generally much higher than a buyer would pay in the USA.
Most lenders will not make a loan for raw land, raw beach, properties in very poor condition, or properties located in industrial or business areas.
Where do most of the expats live in Mérida?
By far, the majority of expats living in the city of Mérida live in the Central Historic District, known simply as “Centro”. Centro is a very large geographical area — in fact Mérida has one of the largest centro histórico districts in Mexico, surpassed only by Mexico City.
Most expats love the ability to walk to the theatres, parks, squares, markets and businesses located in Centro. There are cultural events nearly every night of the week — folkloric dance, concerts, poetry and musical recitals, ballet, the symphony orchestra, comedy, lectures, home and garden tours, the Mérida English Language Library, cantinas and much more.