10 Reasons why I would NOT buy MEXICO REAL ESTATE 

I am the guy who wrote the article that this RU-vid is quoting. The story took a turn for the worse this week. My ranch manager, a young man with a wife and two young children, was taken (kidnapped at gun point by three masked men, and murdered. The funeral was today. Will the cops do anything? I dont see it happening. His body was dumped at the ranch entrance gate. Welcome to Mexico.

The Rocket Spanish sale is over but you can still start a free trial: www.TangerineSpanish.com

Hello, I am French, permanent resident in Mexico and very happy to be. I recently bought an apartment in Querétaro in a small new residence and I am very happy with my purchase: reasonable price, quality finishes, adorable neighbors. I have absolutely no intention of renting because I know the risks. This is my main residence and I feel very good about it. Real estate speculation can raise prices as is the case on the Riviera Maya and one can understand the reluctance of Mexicans people.

I don’t know. …I bought a house in Bucerias and my HOA fees are less than $400USD per year and closing costs were 6 %. Your figures seem quite inflated in every category and I’m in a very popular area. It seems to me the people who speak against buying property don’t (or more likely can’t) own property in Mexico. I grew very weary of the frequent trips to the ATM to gather rent cash for the end of the month. Owning is way better if you can afford it.

I have a rental property in Mexico and I get income from it. Tenants are cool and don't bother me and pay on time.

Hi Jordan, I'm not saying you're wrong about renting being a better option, in fact I tend to agree, but in your analysis you failed to factor in real estate appreciation. How much did that $500k home cost ten years ago? How much will it cost ten years from now. In certain markets, the appreciation could be quite significant.

The same thing is happening here in the US. People from expensive areas (CA, East Coast, big cities etc.) are fleeing from the rampant crime, and moving to smaller cities and states, buying up real estate and skyrocketing our markets. I'm a Realtor in Colorado... 40 years, in same area. The locals (natives) can't afford to live here anymore and they're fleeing to other places. I think that's why you're seeing an influx into MX and other countries. The average American can't survive retirement. Our country is broke, and it's going to get worse. I can sympathize with the Mexican people's sentiments about Expats. We are making life harder for them. We feel the same way about the transplants in our state. It's changed our culture, cost of living and overall quality of life. The one glaring factor to be aware of for Expats is the monetary policy. Our currency is in jeopardy. Research the BRIC nations. I'm not an expert in this subject, but there's a growing concern about the US dollar. I'm not sure how that will affect the worldwide economy, but I'd be very concerned about living in another country if the exchange rate evens out, across the globe.

To who do you market these to? Since it’s not the average person? My fam just bought a nice place and want to rent it out in Cancun

Im from Scotland and I bought in Cuernavaca. My wifes family has property nearby and my bro in law is an architect. We use his staff for renovations. Bought via Bank (Global bank my salary goes to that does Business in Mexico). I dont regret buying at all. Its in my name. To do that I just needed a letter from SRE to approve it which was very easy. The house has gone up $1m pesos in a year and we are in the process of buying in Merida as a rental initially. That will be in trust. Just also to clarify, i got a mortgage in mexico on residente temporal, so if anything Im grateful to the bank for offering it. Permanente now.

Hi Jordan, it’s only in the coastal & border areas where foreigners must buy property through a trust or a corporation. If a foreigner wants to buy property elsewhere in Mexico e.g. Mexico City, Queretaro, etc etc they can absolutely do it in their own name. I work in real estate here in the Riviera Maya and I can tell you that foreign capital fuels Most of the real estate and economic growth in this area. And 95% of foreigners who buy in this coastal area do it through the Fideicomiso (bank trust vehicle.) I can tell you that I’ve read a few escrituras (property titles) and the bank setting up the Fideicomiso is strictly a fiduciary holder. They are very explicit in that they have no right to the property nor any related obligations, e.g. in the case where the beneficial owner of the trust I.e. the foreigner were to take on debt on the property. I can also tell you that it would be Economic Suicide for the Mexican gvt. to nationalize foreign-owned properties when it’s these foreign dollars that are fueling both the real estate market and the overall economy in places like the Riviera Maya. And yes, as others have mentioned, your calculation fails to take into account the passive year-over-year appreciation on real estate which in areas like the Riviera Maya is a minimum of 8%/annum. Others have already mentioned the Vancouver foreign buyer tax situation. Btw, speaking of a ‘foreign buyer tax’, for people who do buy in coastal areas like the Riviera Maya, the costs of setting up the Fideicomiso (bank trust structure) are only about 2000 USD in the first year and 450-500 USD/year to keep the structure in place for subsequent years. Nothing compared to the foreign buyer tax of 20% of the purchase price in places like Vancouver. And btw, we have increasing options in terms of mortgages for Americans, Canadians and other foreigners to buy property in Mexico, some with as little as 15% down :) Happy to share more about this if you think your viewers would be interested :)

A few years ago in Alberta, Canada the taxation extortionist employees stole peoples farm land in a similar way. This also happened to an aging man in New Mexico who fought to keep them from taking his land, and everything was paid on his end. Mx isnt the only country to be careful of... such a planet we live on huh?

Hello, and thank you for the information. I'm 60 and starting to look into buying a home in Mexico (not sure where yet) by next year. What is your advice as to where to buy a home to live in, not looking to invest? I'm receiving $3,400.00 a month now from a disability pension, with a COLA every year. Can anyone point me to the best place to get started in this process? Thank you.

First, this is not ejido land. It is regular titled property. It is a regular working ranch near Bacalar. Secondly, we have had the police working the kidnapping and also a private investigator trying to figure out how and why they would target it. The whole thing makes zero sense. It’s not ocean front where it is valuable or where it might be a drug corridor. Why our jeffe? Well, as if things couldn’t get worse, we found out today that our private investigator is now dead. Murdered yesterday. Mexico is like a horrible nightmare I can’t wake up from.

My wife does not raise the rent in the house she rents because they are good at paying the rent. And we keep the house in her name only.

Is there any way to transfer dollars into pasos without having to pay those large bank transfer fees or international ATM charges?

I am looking at buying a house in Centro in San Miguel de Allende. Is that a bad idea? I am a single man from Blue Ridge, GA

Hi Mike. Former Seattlite here. I bought in Mérida. Glad you found your place in MX. 🙂

Are you investing in VYMI through a self directed Roth IRA or outside of an IRA? Also, you need to move towards a simulation with pseudo random lower dividend payments in your time series to better model real life. You can extract the range of outcomes from 100 or 1000 simulations. What are the measures of center / average and measures of spread variance to report. Then a simplified adjustment to account for tax implications if you use a 401k, 403b, Roth, or non IRA vehicle. Hint. Pre tax, post tax, forced withdrawal at certain age. Keep it simple

I actually live in Tijuana Mexico I have no problems thinking about getting a house on the beach. That's just from me I don't want to collect real estate properties and get into real estate in Mexico I just want a nice house for myself however I haven't experienced any problems with Mexicans they seem to be cordial they don't treat me like I don't belong nothing like that it's pretty much average I just go about my business and I'm perfectly fine I will take some of these things that he says is a grain of salt I've been here for about 3 years now and nothing happened to me. The rent in Tijuana is really good MyPay in San Diego is $20 an hour but I'm my rent is only $350 per month and Mexico so I'm able to save a substantial amount of money. If you're tired of being drained of money in America or in California expecially do what I did and move to a place like Tijuana

This is all very topical and helpful. Good work CYA because you don't want people citing your work as instructions. I work with a Vanguard wealth manager and their algorithms do not support 7% growth expectations going forward. YMMV. I have been looking at condo or casita ownership in Ecuador and Argentina over the last year. This type of discussion is very topical and relevant to me. Always doing the rental vs ownership calculations. In my case, we are only talking about AirBnB costs vs ownership. Still for expat travelers, costs are increasing everywhere, with short term rentals far higher as of late. If I had kept my money in real estate vs liquidating and going 70/30 portfolio, I'd have $400K more than I have today, as the market still hasn't recovered.

Thank you so much for this video. Huge eye opener

Welcome to the world This happens everywhere

What's the latest on the controversy with Ernie (and José) about getting residency without financials ?

New to your channel, Jordan. Informative. Thanks.

Also, you should interview a notario public in a state from the central region of Mexico. You can learn about different classifications for bien raices or terrenos. Communales, ejidales, etc. After spending time in Mexico and making local friends you might become aware of which locations and properties would be better options for a permanent resident or even a Mexican citizen. Even in the estados unidos there are problematic areas that you would need to avoid. Issues that you are not aware of until you spend time and gain a local network and knowledge of the area.

Bravo! Well done Jason. Great advise. As a Mexican I agree 100% on your statements ( although with criteria still it all depends ) . Owning a real Estate can be a night mare or do ok, or also can perform very well also. But anyway, foreigners must be very well informed & accompained a trusy Lawyer or real Estate professional .

My California home cost $545K in 2017. Now it’s worth $900K. My mortgage is less than it would cost to rent it. Mexico must be really different than? Home values have declined over the years?

What is the best way to find rentals in Mexico?

My dad had a similar experience. He bought 200 hectares in the south of Quintana Roo (we have the titles signed by the responsible local authorities), but out of nowhere, they stopped appearing in the system that regulates land ownership. My father is no longer alive, and I don't know what to do about it because I don't have any money. I'm finishing my university degree, and I'm thinking of looking for a job as a waiter or bellboy in the Riviera Maya. As for my father, I wish justice could be served. His land and money were practically stolen from him. I want to go to the Riviera Maya because I want to improve my English skills.

I like my ABR stock dividends but variety is most safe. Your video sure has me thinking on renting instead. It would be nice to see some videos that are more rural living oriented. There are so many people in America that want a setting where they can do some gardening.

Amazing video. Great job Jordan. You’re a really smart guy.

Jordan: nice pick on VYMI. don’t forget dividends are added to the price gain on the mutual fund. So the “total return” is actually higher than the “dividend yield” that you reported…when the mutual fund price goes up/returns a gain…..(if however the mutual fund price/gain goes down, the dividend yield can protect the loss, but might not completely so viewers should know that). Just a friendly financial ps. Thanks. Also isn’t the capital gains much lower on the MX house sale if you’re a permanent resident? Thought I read that somewhere-maybe let me know if you know if you feel like looking at that.

Great video. Thanks for the honest information.

I couldn't find anything about Chinese being singled out for taxes in Vancouver. I saw an empty house tax in Vancouver for everyone...

Very interesting thanks for the info 😊

Thank you for the information. Pretty interesting.

I watch "JC Travel Stories"and that man loves owning a home, that he built, in Mexico. I wonder if things have changed for him? He and his wife live at Ajijic.

Do a video about passive income of capital. Like jepq, mpw, abr and others

Greetings from Canada and thank you very much for all the very useful info...

Great advice! I love your calculations.

Which states in Mexico are you not allowed to raise rent with inflation and which states don't allow you to kick out your tenants until after a year?

Another reason to not buy a house in Mexico might be how long it takes to sell a house. Maybe it's just Querétaro, but I notice houses tend to stay on the market for months if not years. But I'm not a real estate expert, and I haven't looked into the statistics.

Great video, thanks for the warning. 👍

Did you study Finance at College? I'm wondering how you got so clued up.

As Mexican we need to protect our natural resources, our beaches. If not American will take them and turn them as private and restricting the enter. We do know how American mind works.

Many foreigners have bough in Mexico with success. This is each to his own. This video heading states "10 Reasons why I would NOT buy MEXICO REAL ESTATE", then in the description it states "The Reasons Why I WOULD Consider Buying Mexico Real Estate". I am confused. Should or should I not buy?

Are you putting your money in VYMI in Mexico or the USA? We are Canadians living in Mexico. Thank u and will be grateful for this information. Retired and nervous about the Mexican banks

@3:00 both flags are mounted backwards. The flag of the USA should have the field of stars next to the pole, and the flag of Mexico should have the green section next to the pole.

As a Mexican, I am said to say that much of this stuff is true. That's why I loathe real estate as an investment.... Here, at least...

Hey, love your videos! Where do you find your footage and how do you collage it all together?

What about the appreciation on the house you purchased?

Your calculation omits the real estate appreciation which is not negligible!

Hi Jordan, my views on this are, when you buy property in another country, be prepared to walk away from it unless the laws of that country specifically recognize you as equal to born citizens. Also, I feel somewhat the same in that Cda recognizes and welcomes foreigners, and they can est a good life here, free of crime and impediment to growing wealth. But this is not the same in every nation. Such is life. If we don't like how we are treated, we can choose to stay in our home countries or go elsewhere. I love Mexico and Mexicans have always been welcoming. I don't like when Americans or Canadians flaunt their wealth. Humility goes a long way IMO.

Great video! Thanks for the tips. I wish I'd seen this years ago 😅 One tip: there's some echo in the audio.

Jordan, that was outstanding. Man you know how to work those numbers, thanks bud.

Super job on this video. I am visiting some relatives in Puerto Rico who are encouraging me to move here and Mexico WAS my plan. So your details about dangers with purchasing property here was really on time for me. Nice work!

My mother passed away last year and didn't leave a will...she rented her house and renters found out of her passing and its been a struggle getting them to leave the property...theres laws that protect them and may take my mothers home from me.

Interesting clip, thanks for sharing. Food for thought. What about renting the owned property to Air B&B in say Puerto Vallarta.

in America it's common to look at purchase price:yearly rent ratio as a good rule of thumb if buying is better than renting. In mexico the formula must change, some factors: no mortgage deduction tax break because all cash, properties tend not to appreciate over time the way they do in the US except for special markets like condesa (pro renting), lower property tax/HOA (pro buying). But still, using the original ratio, in mexico city the ratio does not seem so extreme. My apt in condesa rents for $1.7k/mo (unfurnished/no utils) but sells for $300k...far more of a 50/50 call than his example.

In Ecuador the American dollar is their currency too.

I was just in Bucerias, MX. Expensive. Ecuador is much more affordable.

First time commenting on your channel. Loved it! It was very informative and to the point. I also really appreciated the financial advice. 👍 Sounds like you were speaking from experience.

Thank you for your information for letting people like me know

Jordan, you forget to factor the inflation on the home value . The price would most likely rise 35% in 10 years. A 500K home may have a value of $675K

Your comment about Vancouver, Canada is completely false. It is a foreign home buyers tax imposed on any foreigners and not only Chinese. It is a one time tax and your statements regarding this are not correct.

I've followed you from the beginning of the Tangerini days, and this particular video is one of the most important and relevant to my personal situation and considerations as I look forward to relocating to Latin America. Thanks for sharing your thoughtful insights!

One big part missing from your equation is the appreciation of the house. I purchased a house in cash in 2019. My exchange rate when I moved the money here was $22 peso to the dollar. The house is worth 50% more today and the exchange rate is $17. If I sell the house today and move the money back to the US I made a great return.

Think about foreign investors having unoccupied home in Vancouver. Expect police to protect their investment they are not living in the home so they are not contributing to Vancouver. Also if you Canadian and own a home unrented and unoccupied in BC you pay a extra fee.

Thanks for this video. You had me at #1. By #3, I was looking for my anti-anxiety medication.

So glad I bought my house in Mexico in my name. My fixed expenses are about 200 bucks per month forever. I could decrease it even more if I invested in solar, but it doesn't make financial sense. I can be at the beach in a 4-hour drive, camp safely for 20 bucks per night steps from the beach.

I worked construction in SD CA and lived in TJ. About 300 dollars a month for a fantastic, nice motel with maid service who actually washed and folded my clothes too! and free happy hour food and coffee in the mornings. Renting just a room in SD was around $1,200. to $1,500. dollars a month. Border crossing time got too long around 2004 so retired and moved to La Huasteca San Luis Potosi and love it here. My wife's TIA gave me 2000 foot of river front land which took me 15 years to clear and landscape. I turned the land into private land in my name. Tax on land is around 30 dollars a year. I have been all over Mexico and never a problem and I have partied in some real bad neighborhoods and every Mexican treated me with respect and took care of me. I am going to take a onetime upfront payment for each of 4 lots on top of my land and give a personal written permission to use the lot for life. I am not renting, leasing, or selling. Each lot will have access to total land which looks like a golf course and river. A person can build their home anyway they want it for very little money here. I maintain the land which is a huge job. Doing it this way will save a whole lot of BS. and money for the buyer and no one will try and scam the buyer EVER! with me the owner of the total land. The lots start at $300,000. dollars. I have a USA bank only and don't take pesos. Whenever I need money, I go to the ATM a block away. This area is the best place I have ever been to in Mexico. I have lived here now around 20 years. Wife's family started this town many years ago. The best people I have ever met in my life live around this small pueblo and surrounding MTNs. Check this out: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-uSs50yzmbKw.html or this: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jMcLNCyQ-LA.html My land: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-B22V4jEAoS4.html or this: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-iUoxkaL2fUs.html I was born in MPLS MN and grew up a white farm boy and eventually joined the USA Navy. There are some problem areas in Mexico just like in the USA. I personally think Mexico is safer than the USA and I have lived all over the USA Too! This area we have never had a problem. If you're a good person and not messing around with drugs, you will never have a problem in Mexico. If you want to talk to me: grantmx@hotmail.com Grant

I kinda get their resentment because in Mexico dentists and M.D.s retired or otherwise do not make enough money as Americans to buy all of that land and property as that person you referred to did .......does not make it right though a purchase is a legal thing and should be safe from intruders

I was considering buying in México last year but was deterred by many of the things you mentioned! I am currently looking in Colombia 🇨🇴 and looking much more promising. The law provides foreigners with the same protections and privileges as citizens.

Good video!

Great video. Thanks.

You made some good valid points. Great video 👍🏼

I think you are right to hold off. I only know my experience in the Lake Chapala/Ajijic area and the last two years were a nightmare. Also prices went up ridulously; exactly what happened in the US crash 2006/07.

Very nice format again. Great work. I enjoyed it all.

But I heard that you are going to buy a home in Mazatlán . Are you still thinking on it ?

Mexican NEVER puts their money in banks. (or the strict minimum amount to do certain specific things) They keep their money at home and treat their own home as a bank (explains lots of bars in windows and so many dogs) 70% ++ of land owner's (big area) have armed guards even if technically illegal on paper, but Mexican's know better. This dentist refused to adapt to his country of adoption and decided to do things the American way. Stubborn people pay dearly to learn lessons. Even then it looks like he still resisted that learning moment. (armed guards, laws are suggestions, don't trust banks, don't trust gov) Adaptation is the key. Mexico is not US or Can.

I think the guy that had problems with the property he purchased in Quintana roo near bacalar probably had those issues because he bought land that was ejido, if he had proper private title to it then the Mexican government would have been much more likely to quickly help him with any issues he had with armed trespassers, in fact those trespassers might not even have tried what they did, most likely the whole reason they came on the property to begin with was because they felt the land was still communally owned.

Wow, you just get better every video. Very Impressive! Great presentation, editing, research, timing, all just perfect! Congratulation!

Excellent Analysis! It's clear that Rent is actually cheap and affordable in Mexico vs US where rents are pure profit minded.

You should do more vids like these since the subject matter seems to be your expertise. Love your number crunching!

The laws favoring renters in Mexico sound close to what they used to be like in Rhode Island when I had some irresponsible tenants who trashed the place and didn't pay their rent.

Thank you so much! This is so helpful. How difficult to find a place that will allow two small dogs in Queretaro? 🐕🐕

Why are you not figuring in appreciation of the home you buy. It could be 2, 3 4 times the value of the purchase price. then it would be no comparison the other way around. Which is usually the case in the US. that being said I would still not buy a house in a foreign country. I would want to keep my travel options open by renting. Or a neighborhood goes bad and you need to sell to get out.

I've been saying this in all the videos about real estate in Mexico. I'm from Mexico living in MD, I own a house in MD and I bought a investment property in Mexico and that's when I found out it's not a good investment to buy in Mexico. If I buy a US$200k house in MD, I can rent it for at least US$2,500, and after payments, maintenance and management I can cash flow around US$500 a month. If I buy a US$200K in Mexico, I can rent it for US$600 at most. No brainer for me.

Wow, that was a very concise and detailed reality check regarding MX (and most country's) real estate. I've lived in many countries. My rule of thumb is only rent in foreign countries. As a foreigner, ur at a disadvantage, and subject to the whims of foreign governments. One other common problem is that buying is easy, but selling could take years, especially if economic conditions change in that country --- AND things are always changing --- usually for the worse, not better.

Hey buddy I lived in USA since 5 yrs old just got bak to Mexico im in puerto Vallarta now maybe I can be of some help to u ..my kids live in USA dnt speak Spanish but wat I’m good at is business n buying real estate but I mite b able to help in ur situation if ur interested leave a message no money or anything like that I made my money in Vegas 2001 but I mite be able to help better than police can depending wer ur situation is I no trust here is an issue but honestly it wort hurt u to hear me out and explain how n why I help well hope to hear from u

Dividends do trigger some taxes burden so using straight math ---> dividends pay rent...maybe be a bit but your strategy is solid over the longer run.

Excellent videos on why and why not buy a house in Mexico! I lived in Seattle for over 40 years and now have recently moved to Ajijic. If I had not bought my home in Seattle when I did and just continue to rent I would have not been able to afford the same house years later because of dramatic increase in housing costs. I believe the same thing will happen in certain areas of Mexico like Ajijic and Puerto Vallarta you mentioned together with the massive potential growth of the Mexican economy and the peso that is happening, which is not going to make it easier for renters and especially if all your investments are tied to the US dollar. Selling my house in Seattle and buying one in Ajijic while housing costs are still reasonable allowed me to get a much nicer and brand new home for about a quarter of the cost and the rest I can invest in assets like EWW (great way to invest in Mexican companies to get in on Mexico's growth!) and DIVI (I prefer over VYMI because of lower fees, higher yield, and long term ROI). I also like to own my own home to do with as I like rather that being a rental nomad and owning Mexico property as a diversification to my portfolio especially with Mexico's economic growth. After 7 years of exploring Mexico I finally decided to live here and it feels like I am finally living my dreams in the Ajijic area! But heck that's me, life's too short go live YOUR dream...

Thanks for the video. I agree with every Mexican national who says that foreigners shouldn't have the same property rights as Mexican nationals 100%. Why should they? They're foreigners who raise property values too high for many local Mexicans. Glad Vancouver Canada nationalized homes bought by Chinese it protects Canadians. Look what's happening in the US with China buying land near military bases... that's not safe for Americans....so why would you expect to have the same rights if you're a foreigner??

I'm sure it's not like that all over, Mexico is so beautiful I would love to make a living there

Only get a house in mexico if you can put 30% down payment + keep your mortgage at 25% of NET income. Most other situations is better to rent in mexico than buy. Once you do own a house the costs are little (low maintenance costs, low taxes, cheap utilities etc). Also you need a credit score to get a loan, without it you will have a hard time getting any loan in mexico (Europeans be aware! credit score + credit card usage is important here). Also i recommend you speak Spanish close to excellent as any of the paperwork with the notary/government and bank will be Spanish only, you need to be fluent in it or the paperwork will feel overwhelming.

Absolutely fantastic Jordan !!!

Yeah bad idea to buy a home in cash instead go gamble it on the stock market makes no sense a home is the safest investment

Just like any other country like yours. You must follow the laws of the country. You don’t like them leave!!! The sentiment against foreigners is because when you go to our country the cost of living increases. Foreigners who sell properties make this happened. Mexico needs to do something about foreigners who come and sell at higher cost.

Your comments are very interesting. Yes, there are excellent reasons to rent as opposed to buying. Another reason to rent is a senior citizen might want liquid investments available for the benefit of their heirs. Trying to sell a house in Mexico and distribute the cash plus paying Mexican taxes can be a very big hassle.

4:16 Which area of the coast is that drone shot?