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03/04/2006 Archived Entry: "Buying a property in Mexico City"
Some people will laugh their socks off at what I’m about to write… I’m looking to buy a property in Mexico! Incredible but true, the same guy who used to pour venom on this lovely (ahem) country has gotten to the point where he is considering settling in, at least for a little while. Of course there is more than meet the eye, and in particular the high cost of renting a decent place in the capital, which is a pure and simple waste of money, as well as the realization that the real-estate market is buoyant and a property would make a good investment.
What to buy? The market is crammed with new apartments with prices hovering around US$1000 per square meter. Except I cannot live in an apartment, I need some greasy turf that I can step on in the morning. So the quest for the perfect object is on.
In the meantime, I’m exploring the mortgage market. For any European the first shock will be the interest rates: 12% per annum, compared to around 5.5% in England and less than 4% in France. Gulp, borrowing money doesn’t come cheap here. Banks usually lend up to 80% of the value of the transaction, the remaining 20% needs to be paid from one’s own pocket. Other hurdle, a Mexican credit history is required to obtain a mortgage. Hence it is key to get a credit card as soon as you come to Mexico to build that all-important history (assuming you do pay off your credit card balance on time).
Interestingly, banks do not lend money for you to buy some land and build your dream house on it. I guess I’m going to have to give up on that dream of mine to construct my own Canadian-style log-house in the hills of the West of the capital…
Replies: 2 comments
Wow, I am in such awe...my dad decided to retire in mexico and I thought he had lost his mind...(a damn old yankee to boot) of course there are other factors in his choice as well but that is another story. Once visiting him I came back to the states thinking, yes he did get hit in the head at some point and we missed it...then the place somehow got to me. I didn't want it to, I really didn't. First it didn't smell that great. It was so dusty and really kinda dirty. I don't speak the laugage... Oh what am I thinking. The people that I met are so darn nice. The food is great, the coast is wonderful and fishing is awesome. Ok, that holds true in the states also but, it's just not the same. The people, that's it, the people. Good or not so good they are just so beautiful. They have a wonderful country in which they live and thrive. God bless them and their neighbor. I just hope that their neighbor does not intrude to change.
Posted by Donna @ 03/16/2006 08:44 PM MEX
You will soon fall in love with the city like most and never leave ;-)
Posted by Roberto @ 03/06/2006 06:10 AM MEX
