Wednesday, October 5, 2011

Pre-considerations for buying your home in Mexico

According to a recent article on CNN Mexico- there are a few key factors to consider for selecting (not buying) a new home in Mexico.  Some of the same considerations apply when buying a home in any location. So when you are in the search for your ideal home you can find a property that is ¨not in¨ bad condition but may require a few adjustments to become what you always wanted. However, before making the decision to buy a house or condo for remodeling you need to have in mind the following tips from the experts.

1. Make some accounts with possible vendors. If a remodeling will involve an expenditure of more than 30% of the value of the property it could make a serious financial mistake. According to calculations by a well known bank:  investing more than a third of what it will cost you to raise the property value and the market will make it a big risk.  If you want to sell, the process will be long or you will lower the price, which implies losses.

"People do not buy a house to sell quickly, but rather as an asset that they can fall back on. If there is a need to sell, having too much invested in remodeling can involve a considerable loss," said Sandra Hendrix, commercial director of the real estate consulting.

2. Make sure you can make changes. In some older properties there is a provision known as Facade restriction, i.e., you must respect the outward appearance of the property and details such as fittings and original wooden doors. This can become a problem if a door or window doesn´t have a regular sized fitting.

3. Do not launch into it blindly. Even if the house you really like is great to your viewing- get an assessment and determine the cost of remodeling. This should be defined before you make your purchase.

According to Visa Practical Money Skills website, you must include a game plan between 5 and 10% of the total cost of remodeling to unforeseen circumstances such as an accident or additional material by drilling walls. Once you have an idea of
​​what it will cost to leave the house like you want it… it will be easier to make a wise decision to purchase.

4. Ask for help and be discretionary yet courteous. If you only change paint and tile bathroom or kitchen you may not have trouble hiring someone who can do it.  However,  if your remodeling involves building another room or take down a wall, having no professional advice may even cause structural damage to property.

The Mexican Federal Consumer Protection (Profeco) recommends that when you take the services of a contractor request a firm timetable for the work they will make in your house, which specify the materials used and what each one.  Also, remember to request bills and guarantees of attachments that may be defective as  it will give you protection in case of problems.

5. Evaluate financing. This is mentioned lastly, as it is does not have the same emphasis and impact for making a good decision on the specifics of home selction. If you live in your new home it is highly suggested that you do not use your credit. And remember to simply be as frugal as you can when looking to procure a loan. You can also view our earlier blog entries to view specifics on the buying process.

1 comment:

  1. Selecting a second home deserves almost the same amount of thought and careful consideration as does your primary residence. After all, you want to ensure a future of happy vacations and, if you’re like most people, prefer your investment to be one that appreciates over time.