Surprising Secrets: 7 Things You Need To Know Before Buying A House In Mexico
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- čas přidán 30. 06. 2024
- Let's talk expats buying real estate and living in Oaxaca, Mexico! I'm joined by Donna Shields. Whether you're a seasoned digital nomad, an adventurous retiree, or simply curious about life south of the border, this episode is packed with invaluable insights.
Email Donna to get her piece from International Living Magazine: Openmindadventure1@gmail.com
Real Estate: A Journey, Not Just a Transaction
Donna Shields recounts her adventurous road trip from Key West to Oaxaca, undertaken to scout for the perfect relocation spot. In her quest to find the perfect home, Donna rented five different places over eight months, exploring various neighborhoods and zeroing in on her specific needs. Renting in Oaxaca, she discovered, is quite different from the US.
Donna shares what you need to know to buy a house in Oaxaca, Mexico:
1. There is no MLS...it's a needle in a haystack process. There is no one centralized place to look at listings so buyers must contact multiple realtors to find properties for sale. Buyers also need to do a lot of legwork on their own, scouring through local Facebook pages for sale properties
2. The price of the same house can vary depending on the realtor. A property can be shown by different realtors, and the price may vary depending on the realtor. It is nothing like the standardized process we are accustomed to in the US. Realtors may consider you "their customer" just because they showed you a property, so be clear that you are working with multiple realtors.
3. There is no licensing for realtors. Just about anyone can call themselves a realtor so their knowledge level can vary greatly. It's critical that the buyer have a attorney specializing in real estate who can research the property prior to signing a contract. Some properties are "communal" which can convey a variety of obligations by the buyer.
4. Renovating can be a bigger headache than you think. We are experienced house flippers in the US, doing most of the renovation work ourselves. And yet, we are shying away from taking on a major renovation project for several reasons. 1) Without being fluent in Spanish, directing and managing a crew is very difficult, not to mention the vocabulary needed for construction is quite specific. 2) The permitting process is nothing like what we are accustomed to in the US which can be a good thing and a bad thing..less red tape but electrical and plumbing is not typically done to a standard we desire. 3) There is no such thing as a home inspection so it's buyer beware.
5. Buying a Mexican property means you likely need a Mexican will. Whether it's an investment property or your full or part-time home, it is an asset that must be protected. A will or trust that you may have in the US does not extend to assets you own in Mexico. Once you've purchased a property, finish up the process by having a Mexican will.
6. Work with a translator with real estate experience. Translators have specialties such as medical, legal, etc and you need someone who understands the real estate process. Not only do they translate but very often can guide you on the necessary steps to be taken with permits, notaries and items you just wouldn't know about. So think of them in a dual role; consultant and translator.
7. Buy a property with a very big cistern. Water shortages are a real thing and becoming increasingly more common. It may not sound like a significant feature, but you want a property with at least a 10,000-litre cistern. Additional tanks on the property are also a plus. Water delivery from the city can be sporadic..maybe once a month during the dry season...so having capacity to stock up and take deliveries from private water companies is essential.
More articles Donna has written in International Living:
My Motorcycle Adventure Through Mexico internationalliving.com/my-mo...
Finding a Part-Time Home in Oaxaca internationalliving.com/findi...
The Mexico Relocation Guide is the perfect resource for moving to Mexico. We've partnered with them and you can get the guide here: mexicorelocationguide.com/?re...
00:00 Introduction
01:03 Meet Donna Shields, Key West / Oaxaca
04:22 A motorcycle trip to 30 cities in Mexico
06:12 Exploring Oaxaca neighborhoods by living in them
11:54 1) There's no MLS
14:05 2) The price of the same house can vary depending on the realtor
15:43 3) There is no licensing for realtors
18:22 4) Renovating can be a bigger headache than you think
26:01 5) Buying a Mexican property means you likely need a Mexican will
30:41 6) Work with a translator with real estate experience
34:36 7) Buy a property with a very big cistern
Are you planning on buying a house in Mexico? Let us know in the comments section below.
6-26 updated title
Great interview and clarifying questions; thank you!
Glad it was helpful!
I'm an electrician and sometimes the wires on Mexico look like rats nests 😂 My husband is in construction also so we'll be really be checking every property fully
Yeah - anything goes in Mexico when it comes to wiring! I'm hoping to do a video with a home inspector to cover what is typical in Mexico!
Your comment on your pool light not being grounded is certainly a timely one.
Interesting. We are just looking at long term rental here in the Oaxaca City area and are considering doing that same process...rent AirBNBs in different barrios for 6 months. So I think it makes sense.
It's a great way to try out different areas! And most Airbnb's give a discount for month stays.
It's an invaluable process to know what you really like and to find your niche
I love your interview videos and Donna is learning so much by taking her scouting trips!
And 30 cities by motorcycle is quite the scouting trip!
Good on you for waiting to buy!
Having lived overseas for 20 years, and being a lawyer, it is obvious that one must inquire about wills in another country. y husband died in France. But in France, a handwritten will was enough as well as choosing the USA as our jurisdiction and not France. But in Mexico, you need a Mexican will if you purchase property.
Best of luck in your home-buying adventure in Oaxaca! It will be quite interesting to follow your journey...a learning experience for us all 🍀🌅
I'm looking forward to watching Donna's journey too. We may read about it in International Living, where she writes once in a while.
Great one! Donna's delightful! Amazing tips. Here in La Paz there are a ton of parallels! 😋
Do agents in La Paz need to be licensed?
@@AlmostRetiredinMexico 🤪 surely you jest!
Great video!
Glad you enjoyed it
We sold our house in the Baja and moved to Arizona. Our new house is twice as big with a pool. For have the price.
How much does a margarita cost? Or a good restaurant meal? Or how about property taxes?
Looking forward to your series on building a home in Mexico
Me too! But there's a lot of editing to do! I just hired an editor to help.
Thanks for the video, as Oaxaca is one of the places I might end up spending some time in when I retire
It's been on my list to check out since we moved to La Paz. But it's kinda hard to get to - flight-wise.
@@AlmostRetiredinMexico American flies from Denver into Oaxaca via Dallas or any connection into Mexico City will get you into Oaxaca
Great video
Glad you enjoyed it
I'm really interested in trying to find a place where I can live in my converted school bus. Long term. Even buying property where I can park it and live long ter
This was a good video, had good info, but it would have been nicer for you to display each of the 7 things on the screen, because by the end of the video I don't think I got the 7 things to know before buying.
Sorry - I put the seven things in the description.
Is Donna willing to share the names of the realtors she uses?
Fab interview. Donna and I are Reno people. Try renovating a ruin in historic centro. Aye aye aye.
Donna could definitely learn something from your experience in Merida!
Question for anyone:
When temporary residents drive own vehicles into Mexico; pay MX insurance, etc., is there any way to stop the American insurance on this vehicle while out of the country??? Or, does the American coverage have to remain active to keep your US plates on the car? I am not finding any answers to this question.
Also wonder why Americans going to MX register their cars in S. Dakota?? Do they have to take residency in S. Dakota?
Sure would appreciate hearing from those of you with experience
THANK YOU!
Wow!! I was going to ask that question too!! I heard that there are places like Triple A in Chula Vista...a few miles from the border.
Great questions.
When we drive our US plated car into Mexico, we tell the insurance company in the US that it is in storage (this was recommended by the insurance company.) It's the best way to lower the cost without turning off the insurance completely.
South Dakota never needs to inspect the car and doesn't require residency. So anyone can register there. It's great when your vehicle stays in Mexico.
Permanent residents on the mainland can't have cars with foreign plates.
Here's a video about SD plates: czcams.com/video/m1JOdioZtlI/video.html
Our experience, with the motorcycle, was the following: once we crossed the border, we canceled our US insurance because we had already instituted the Mexican coverage which is mandatory if you are driving your vehicle in Mexico; your US coverage (in my research) will not cover you. While we did register the bike in Mexico, I would have followed this same insurance process if I were keeping US plates on it
@DonnaShields-p7p Thanks. Living in SC, when the insurance is cancelled, they request you turn in the plates 🙃 I'm sure not going through all the hassle/expense of going to South Dakota; getting a new driver's license, etc. though. With my low income, I am not taxed here. I will have to try the "storage" trick with the insurance. They didn't OFFER this possibility! Just need a car to be able to travel with my cats and get around to familiarize myself with the new environment - check everything out!
Next question! I apologize to all of you for my questions, but I haven't heard of any expats/immigrants selling vehicles in Mexico. Can an American car taken into Mexico be sold there eventually - to Americans or Mexicans - or do you need to drive it back to the States to sell it??
Always love your interviews, Brighton
Thank you!
🙏🙏🙏
So ... Mr B or what ever your name is. Living under assumed names. HMmmmm. Just who or what are you hiding from ? LOL Good show. Thank You Donna and what's his name. PS the few times I've been to Key West I loved it. Not the prices or the crowds or the hurricanes though. P n D
I just googled my old name and I wasn't anywhere to be found! It's taken 20 years to accomplish that! If you want to see a bit of my history, I'm the IT guy from the article below. This was published on the front of the WSJ Business Page (with a cartoon drawing of me.) And syndicated across the country. This is the only newspaper that I know of that still has it available. Essentially, if I ever wanted a job again, I needed to change my name. www.deseret.com/2002/5/29/19657688/the-war-on-clutter-at-work-has-begun/
@@AlmostRetiredinMexico Grrrr8 to meet you Brian.
Don't tell anyone what you know now. Not even Pam
@@AlmostRetiredinMexico Tooooo Late. But just the Earthlings know.
Moscow Idaho isn’t that cheap anymore!!
No where is cheap anymore :-(
No we fond it was a lot cheaper there. Just stay out of the Baja it's more than the United States. It will shock you.
Hah! I live in the Baja and I'm learning that you are correct. Prices are definitely going up here.
Let the guest speak and stop talking so much?
Thanks - are you that Oscar from Sesame Street by any chance?
Gringos gentrificadores! Gracias a ustedes la renta y los precios no dejan de subir, no sean tan sin verguenza porfavor.
Gracias por compartir
There was recently a podcast regarding this topic. Very interesting as it was discussed that rising costs in Mexico are not only attributable to foreigners traveling to or living in Mexico, but also to the constant improvement of the Mexican economy overall and the pay increases that Mexicans themselves are subsequently earning. They can now afford higher rents and have more buying power themselves.
No offense to anyone is intended. Costs are unfortunately rising everywhere in the world.
@@jvahl8747 Yes, this.
@@jvahl8747 As a Mexican living in Mexico I can assure you, the gentrification in Mexico is becoming a big problem, especially in CDMX and Oaxaca, I love the USA but you guys are ruining the house market here.
I believe that you are not being fair at all. Not all foreigners are really wealthy. If I am fortunate enough to move to your country I will not be doing it with a padded wallet, paying whatever amount someone chooses to charge for rent, I will be on a budget. You also have to realize that landlords are not required to raise the amount of rent on foreigners, they choose to do so to make as much money as possible.