Here's a list of the most commonly asked questions.
We're happy to personally answer any doubt you may have.
Yes, foreigners can own property in Mexico, including Huatulco. However, there are certain restrictions in place. Foreigners can purchase property within the "restricted zone," which includes coastal areas and border regions. To own property in a restricted zone, you'll need to obtain a ¨Fideicomiso¨, which is essentially a bank trust that holds the title with the Buyer as the sole beneficiary, or form a Mexican corporation.
Local banks / Mortgage Brokers: There are different financing options and mortgages available to both residents and non-residents. The interest rates and terms can vary, so it's advisable to compare offers from different banks and lenders.
Foreign banks: For non-residents, securing financing through their primary banking institution can result in lower interest rates and less requirements.
Cash purchases: The most common purchase structure is a cash transaction, where the risk of interest rate fluctuations are removed.
Huatulco and its surroundings offer a variety of properties, including anything from entry level condos or apartments to oceanfront condos, villas, homesites, and commercial properties.
The specific options available will depend on your budget and preferences.
Once you have engaged a real estate agent to begin your property search and share insight on the market conditions, the the process is similar to buying property in other countries. Negotiations will start by presenting an offer or letter of intent. Once terms have been accepted, you will sign a legally binding Purchase Sale Agreement between both parties. From there the closing process begins by engaging a Notary who is the attorney responsible for transferring title free and clear from Buyer to Seller.
From the signature of Purchase Sale Agreements to closing generally takes 45-60 days in the case of a pre-existing home. In the event of pre-construction, you can expect about 2 years from signatures to delivery and title transfer.
It's advisable to work with a local real estate agent who is familiar with the local market. This ensures you have someone assisting you with the necessary due diligence and the ins-and-outs of the legal requirements. Hiring someone who speaks the language is recommended.
Learn more about this entire process by watching our webinar.
Closing costs are always covered by the Buyer, and depending on the location you should expect to pay about 6% of the property value. This is all inclusive of taxes, fees, and setting up a trust (fideicomiso) or corporation.
In addition to the purchase price, you'll need to consider ongoing costs such as property taxes, maintenance fees, and utility bills.
It's also important to factor in potential rental income if you plan to rent out your property that can easily cover your annual expenses.
The Huatulco International Airport (HUX) has multiple daily flights from Mexico City, in addition to flights from Guadalajara and Monterrey. Connecting through these major hubs is very straightforward.
Huatulco also has season flights from Tijuana (San Diego CBX), Dallas (DFW), Chicago, Toronto, Calgary, Montreal, Vancouver, Edmonton & Winnepeg.
You can also fly into the capital city of Oaxaca (OAX), which is only a 3.5 hr drive from Huatulco.
Huatulco enjoys a tropical climate with warm temperatures year-round.
Temperatures range from high: 82-86°F (28-30°C) to low: 72-75°F (22-24°C)
Rainfall: Rainyseasonfrom June to October, with occasional heavy showers and thunderstorms.Dry season: November to May, with minimal rainfall.
Huatulco offers pleasant weather for most of the year, making it a great destination for beach lovers and outdoor enthusiasts.
The primary difference between purchasing private property and communal land on the Oaxacan Coast lies in the nature of ownership and the rights associated with each.
Communal land transactions can be more complex and involve negotiations and approvals from the community. Some of these properties were originally intended and allotted for agricultural use and you need to acquire the right to use the land this often involves a long-term lease or possession agreement.
Private Property signifies that you hold a publicly registered deed to the property. As a foreigner this is through a Fideicomiso (bank trust) or a Mexican Corporation. You have full control of the property including the right to sell, rent, or modify it as you wish.
We recommend to consult with a local real estate agent and / or a real estate attorney to understand the nuances of property ownership in Oaxaca.
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Experienced and knowledgeable agents making buying & selling Real Estate easy on the coast of Oaxaca, Mexico.
