Understanding Land Development In Mexico

Crossing borders in order to buy and develop land in foreign countries presents an exciting investment opportunity. It’s an opportunity that can be quite profitable but one that is also fraught with pitfalls. If you are an outside investor who intends to develop land in the country of Mexico, here are some things you should know.

A Notary Public Is Required In Mexico

In Mexico, a real estate transaction is not possible without the use of a notary public. Mexican Notary Publics must have a law degree and three years of experience in a notary public office. You should make sure that you have access to a qualified Mexican Notary Public when you decide to make any real estate moves in Mexico.

There Are Restrictions On Foreign Land Development In Mexico

Any Mexican land that is within 100 kilometers of the Mexican border or 50 kilometers of the Mexican coastline falls within the restricted (prohibited) zone. Mexican law prohibits foreigners from directly owning the title to land within the restricted zone. Foreigners interested in land in this area must hold it through an intermediary such as a Mexican bank or corporation, depending on whether the land is being developed for residential or commercial use.

Costs Are Lower In Mexico

The costs of home construction in Mexico tend to be much lower than in the U.S., which is one of the things that is so appealing about development in Mexico. This can mean higher margins on the property you build and lower risk.

Those interested in Mexican land development should not let restrictions put them off. As long as you approach the transaction in the right way, you should have few difficulties, and the rewards can be tremendous. Ocean front land in Sonora, Baja and Costa Alegre is beautiful, desirable and cheap.

Investors can build condominiums, resorts or vacation homes in these areas with the potential to sell or rent them at a tremendous profit. Investors looking for a new opportunity should definitely explore what Mexico has to offer in the way of land development options.