How You Save Money Buying Pre-Construction

Today we examine the advantages of buying a pre-construction project in Mexico and how you can save money in doing so.  There are many properties to choose here, and buying a used home can have its´problems, requiring due diligence on the part of your attorney when doing title research. This is especially true if the property goes back many generations. So aside from the already low prices in Mexico here are some ways in which you will save .

Pre-construction could offer you substantial savings in a neighborhood that is in high demand, or one which is regarded as new or up-and-coming. In certain neighborhoods, rentals are much higher beacause of the demand to live there. After doing some research you´ll be able to find a best pre-construction development that fits your budget and has the kinds of amenities you are looking for. For example, the homes of Valle Bambu  are located near the Centro Maya shopping centre in an area which is growing and has easy access to transport, therefore it is more affordable and convenient but not as likely to pull in high rental income as in a closed community like Playacar.

One advantage to buying in pre-construction is your ability to negotiaite on the payment schedule, by establishing a fixed calendar for payments which can result in great advantages for you. In exchange for making a large initial deposit you could upgrade to a better unit in the building like a penthouse, or have the developer throw in some furniture or even a Jacuzzi.

Buying early in to a development offers more choices and ultimately more savings. Is there a particular type of colour you would prefer for the walls? What about the lighting fixtures or the material for the countertops? With pre-construction these change will not cost you anything, amounting to direct savings which would otherwise be difficult to get when buying an already existing unit. 

Finally, pre-construction property can turn into a great investment when you look at appreciation. Once the development is completed the price of a condo unity will likely rise by 10%, or even 15%. Playa del Carmen is a city in the Riviera Maya that is booming, and has a lot of pre-construction properties on the market, with new ones appearing all the time. It´s hard to miss the large billboards that line the busy downtown streets, so it may be as simple as taking a snapshot with your phone and following up with a phone call and a trip to the showroom office. Before you know it your home will be ready and you´ll have more money in your pocket as well.

Now if you have any question about how to purchase property in Mexico or about any of the TOP MEXICO REAL ESTATE properties we have listed anywhere throughout Mexico, please feel free to contact any of our Top Mexico Buyer’s Representatives and we will be glad to help you find your very own piece of paradise.

And remember, here at Top Mexico Real Estate…

We make it happen!

3 Facts About Title Insurance You Should Know

Title insurance is an agreement of indemnity between the purchaser and the insurance company, so through a title insurance policy you will be protected in the event that there is any claim in title because somebody has a better right to the property. This is a consequence of fraud, forgery of documents, lost heirs and overlaps of property. Since obtaining title insurance in Mexico is highly recommended I´ve put together some facts below that showing why it is an important part of purchasing property in Mexico.

The bank trust is the only financial vehicle through which you can obtain your money back if there is a claim in title and you lose the property.

In Mexico it is the only vehicle through which you can be protected that will give you a guarantee that if you lose the property because of fraud or any claim in title that causes you to actually lose the property, you can get your money back. No-one will do that. Not the attorneys, not the notary public, not the government, public registry- no-one. If you don´t have title insurance and there is a claim in title then you are on your own. You would have to fight off any litigation if that is necessary and protect your property.

If there is a claim in title the insurance policy would pay every single amount of money necessary to protect the title.

Prior to having your property insured your lawyers will have to verify that the property is free and clear of any liens, and that the seller was the rightful owner. Title research allows them to verify that everything is in order. That is why through the title research they will obtain a complete chain of title from beginning to end, going as far back until the time of the revolution if necessary. This is to verify that all the conveyance in title through every single transfer of title or modification of the property was done appropriately. The underwriting process will determine if the property is insurable or not. If there is something wrong the insurance policy could have an exception of coverage or we can deny the granting of the insurance policy.

If there is a valid claim in title it would fought it off in court and if you do suffer the loss you would be indemnified.

Let´s suppose that in the future somebody comes up knocking on your door and says that your property is theirs and they have legal documents to prove they are the owners. If you have the insurance policy your legal representatives would go back, review the documents, and see why there is a claim in title.  And the indemnity means paying you the amount of money you spent on the property, meaning the purchase price recorded in the title. Through the insurance policy you would be fully protected for any claim in title.

For more information about title insurance or purchasing property in Mexico please subscribe to our blog, or contact us.