In practice, the decision is rarely straightforward. While building can be cheaper in certain circumstances, real-world experience shows that unexpected costs, delays and disputes are common. Buying an existing home, by contrast, often offers greater predictability, but it is not without its own risks.

Why building looks cheaper on paper

Early comparisons typically focus on construction cost per square meter versus the sale price of completed homes. This approach leaves out a range of expenses that tend to emerge only once a project is underway.

One of the most common surprises involves site preparation. A lot may appear ready to build, only for excavation to reveal extensive rock, large stones or unstable soil. Removing rock or cutting into bedrock requires specialized equipment and additional labor, costs that are rarely included in initial estimates. In several projects, unforeseen site preparation has added weeks to construction timelines and significantly increased overall budgets.

Land services are another frequent source of unexpected expense. Buyers may assume water and electricity connections will be simple, only to discover that trenching, transformers, permits or negotiations with neighbors are required. In some cases, fees are collected for services that are delayed or never fully provided, leaving buyers to resolve issues after construction has already begun.

Disagreements over finishes are also common once a budget is set. Initial estimates often assume basic finishes, while buyers expect higher-quality materials once construction is underway. Tile, cabinetry, windows and fixtures that appear standard to a contractor may not meet a buyer’s expectations. Resolving these differences usually means upgrading materials mid-project, which can quickly push costs beyond the original budget and create tension between owners and builders.

Design and permitting can introduce further complications. A project that appears simple may require revisions to comply with local regulations or structural requirements. While permit fees themselves are typically modest, delays during this phase can halt progress for months. During these pauses, material prices may increase and contractors may take on other work, extending timelines even further.

Time is often the most underestimated factor. Construction schedules frequently extend beyond original projections due to weather, holidays, labor availability and supply delays. In some cases, projects expected to take less than a year extend far beyond that. During this time, funds are tied up in construction while owners may continue paying rent or maintaining another property.

The advantages and limits of buying an existing home

Buying an existing home might involve a higher upfront price, but it offers clarity. The purchase price is known, utilities are already connected and permits are in place. The property can be evaluated as a complete package before committing to the purchase.

However, buying a finished home does not guarantee the absence of surprises. Hidden defects such as drainage problems, aging electrical systems, plumbing issues or structural concerns may not be immediately visible. Even with inspections, some problems only become apparent after living in the home through different seasons or weather conditions.

Renovations, if needed, are typically easier to plan than a full build. Even major remodels tend to have clearer scopes and timelines. Improvements can often be completed in phases, allowing costs to be spread over time. In many cases, owners can live in the home while renovations are underway.

So which option makes sense?

Building can be deeply rewarding when done well. Buyers who work with a well-respected architect and a proven construction team — particularly professionals experienced in working with foreign clients — often report positive outcomes. Clear contracts, detailed specifications and realistic budgets can significantly reduce misunderstandings. Many people have built homes in Mexico that meet or exceed their expectations and are genuinely thrilled with the results.

At the same time, building requires patience, involvement and a tolerance for uncertainty. Buying an existing home generally offers a faster path to occupancy, but it does not eliminate risk. Hidden defects and unforeseen repairs can still arise.

The more useful question is not whether building or buying is inherently better, but which approach aligns best with a buyer’s expectations, risk tolerance and level of involvement. Both paths can lead to excellent results when approached with realistic assumptions and the right professional support.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

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Surrounded by the Sierra Madre mountains, the gleaming, modern industrial city of Monterrey is a place defined more by ambition and industry rather than mass tourism. The city made it into international news a few years ago when Elon Musk announced he would open a Tesla gigafactory there, a plan that has since been put on hold due to US tariffs. But there were plenty of reasons Musk was interested in expanding into Monterrey.

Monterrey is the business capital of Mexico

The city calls itself “the business capital of Mexico,” and with good reason: it has a thriving aerospace, tech, biotech and automotive industry and several major companies are based there — along with a younger demographic of Mexicans who have moved there to take well-paying jobs at these companies. Driving this seemingly never-ending investment is Nuevo León’s affable young governor, Samuel García, who travels the world regularly to talk up Nuevo León as a base for Latin American expansion for U.S., Asian and European manufacturers and tech companies. 

Perhaps emblematic of Monterrey’s modern, ambitious vibe is the city’s Torre Obispado, the tallest skyscraper in all of Mexico. Not content with that status, Monterrey is also building the Torre Rise, which aims to become the tallest skyscraper in all of Latin America, featuring luxury condos, business offices, hotels, bars and restaurants.

Unlike Mexico’s older urban hubs, Monterrey doesn’t promote its history and tradition; its youthful vision is pointed firmly forward toward the future.

‘Dallas, but in Spanish’

The city’s economic success is partly due to its location near the U.S. border, which has also resulted in plenty of cross-pollination with the U.S., both economically and culturally. In Mexico, Monterrey has the reputation of being the most Americanized city in Mexico.

Culturally, it boasts a strong norteño identity, thanks to its proximity to Texas cities like Laredo and San Antonio, so it’s not unusual to see cowboy hats on Monterrey’s streets, and hear the norteño sounds of Los Tigres Del Norte and Ramón Ayala at parties. Many Monterrey natives have family in the U.S. and have spent extensive time there, which means a big demand for U.S.-style amenities and culture. The city’s young, well-educated population, if not fluent in English, tends to speak at least some. 

Thanks to Monterrey’s highly Americanized environment, it can be an appealing option for well-educated, younger workers from the U.S., who know Spanish, whose English can be a boon for international companies looking for workers who are fluent in the business world’s lingua franca.

Monterrey’s reputation for high-ranking universities also attracts young foreigners from the U.S. and other countries seeking to earn a less-expensive but still well-regarded university degree in an environment with plenty of good jobs. An undergraduate degree from even one of Mexico’s most prestigious, and most expensive, private universities, the Tec de Monterrey, can cost well under US $20,000 a year, significantly cheaper than in the U.S. At the Autonomous University of Nuevo León, a public university, international students can pay as little as US $1,000 in yearly tuition. 

Mexican-American Kata Lucia, a Mexican American engineering student at Tec de Monterrey, sees the city as a good option for Mexican-American students who want to connect with their roots in an environment that doesn’t feel entirely foreign. 

“Although I like to call Monterrey ‘Dallas, but in Spanish’ due to how Americanized it is, I’ve really fallen in love with the feeling it gives me,” she said. “It’s like being home in Texas, but also being in the unknown at the same time.”

A welcoming environment

Other expats in Monterrey we interviewed pointed to the warm sense of community they encountered there. Andrea Zavala, a local radio announcer for Monterrey’s Classic 106.9 FM and former Spanish immersion teacher in Ohio, highlights how kind the Monterrey community is towards outsiders, particularly to those with kids in the school system.

“There’s a WhatsApp group for each of our kids’ classrooms. The parents and kids from each class even meet up to celebrate Christmas, Halloween and Mexico’s Independence Day. They use anything as an excuse to get together,” she said. 

Also, she said, she encountered a “lot of support from the start.”

“If your kids need a ride or help with homework, parents from the community are there with a sincere and helping hand.”

After the gentrification protests in Mexico City last summer, a would-be foreign migrant to Monterrey might wonder if outsiders will be welcome. But since Monterrey doesn’t have many tourists or many temporary foreign residents, foreigners who settle in Monterrey are viewed more as new members of the community.

“I truly like how friendly the people are. Being from the southeast U.S., there are many similarities in the [two] culture[s]: greeting strangers, smiling, and making eye contact,” said April Bounds, an American who moved to Monterrey with her family last September. “The wealth inequality is stark here, but it’s important to remember that there are generally kind, hardworking people who are trying to get by like the rest of us.”

There are, of course, some challenges, especially if you don’t have a great command of Spanish, says Steen Kirby, an American expat who has lived in Monterrey for almost two years. Adapting to Monterrey also means adapting to life in a major urban center and all that comes with it, including sitting in rush-hour traffic jams.

But Kirby finds Monterrey to be a part of Mexico filled with unexpected gems. 

“There are companies like [outsourcers for] Tesla, Hyundai and Cemex here, so it makes for an interesting place to be in Mexico,” he says. “The skyscrapers and mountains also make for a wonderful backdrop to the city I call home.” 

Kirby also cites “the amenities and infrastructure in Monterrey, such as the fantastic malls and shopping plazas” and the phenomenal music scene Monterrey has compared to other parts of Mexico, with two major festivals a year — Tecate Pa’l Norte and Machaca Fest. These festivals draw artists like Karol G, J Balvin, 50 Cent, Blink 182, and Kings of Leon to the city as an easy stopover from southern U.S. cities. If you also include Festival San Lucas in the equation, a cultural event with more traditional noteño music, it makes for a year-round, music paradise for those who enjoy concerts. 

“But the biggest thing for me is how welcoming the norterños of Monterrey are towards people who are visibly not Mexican,” Kirby says. “I’ve lived in other parts of the north, like Tijuana, and felt less welcome there compared to being in Monterrey as a gringo.”

Stories like these demonstrate how foreigners can flourish in Monterrey, a rare middle ground between cultures where Americans, Mexicans, and virtually anyone who settles there can feel welcome. Maybe, with Monterrey set to host four World Cup games next June, others will start to fall in love with this unique gem in Mexico. 

What has been your experience in Monterrey? Let us know in the comments below.

Ian Ostroff is an indie author, journalist, and copywriter from Montreal, Canada. You can find his work in various outlets, including Map Happy and The Suburban. When he’s not writing, you can find Ian at the gym, a café, or anywhere within Mexico visiting family and friends.

The post Why moving to Monterrey might just be your Mexican dream appeared first on Mexico News Daily

In Mexico, one of the foremost minds behind this art is Mario Schjetnan. “If you want to develop a new site or area, you should start with a park,” is one of his more popular quotes. Schjetnan understands that we are both nature and architecture, and that without nature, architecture can become detrimental to our health.

An icon of landscape architecture, Schjetnan has left an indelible mark on the history of the discipline in Mexico, starting with his first project in 1979: the legendary Tezozómoc Park, inspired by the ancient Lake Texcoco. Schjetnan views open spaces as a “human right” and a means to “improve livability in the poorest sectors of Mexico and Latin America, promoting social justice and urban equity, while enriching the wealthiest areas.”

A journey through the work of Schjetnan

Environmental awareness, cultural memory and quality of life all converge in the work of Mario Schjetnan. He studied architecture at the National Autonomous University of Mexico and earned a Master of Landscape Architecture from the University of California, Berkeley. In 1977, he co-founded the Urban Design Group with architects José Luis Pérez, Irma Schjetnan (his wife) and Letty Pérez. The firm has designed numerous parks in Mexico, Latin America, the Middle East, China and the U.S.

To illustrate the breadth of his influence on Mexican urbanism and architecture, he served as the first director of urban and housing design at INFONAVIT, the Mexican government’s social housing institution, in 1972, overseeing projects in 110 Mexican cities and producing approximately 100,000 housing units.

His most significant works include projects that conserve essential ecosystems, such as the restoration of Chapultepec Forest, Xochimilco Ecological Park and Copalita Eco-Archaeological Park. He has also created remarkable urban parks on reclaimed industrial sites, including La Mexicana Park and Bicentennial Park in Mexico City.

For instance, Tezozómoc Park recreates the lake that once surrounded Tenochtitlán in pre-Hispanic times and now serves as a sanctuary for birds and the unique axolotl. The Xochimilco Ecological Park is associated with restoring the productive chinampa area, a pre-Hispanic method of cultivating floating terraces, earning recognition as a World Heritage Site by UNESCO. Additionally, the Copalita Eco-Archaeological Park is invaluable for archaeological and environmental conservation on the beaches of Oaxaca.

Likewise noteworthy is Itzicuaro Park in Michoacán, a groundbreaking example of landscape architecture due to its dual function as an ecological and productive space. It is based on five bodies of water that sequentially treat wastewater, with areas allocated for the commercial cultivation of trees, plants and vegetables.

A multi-award career

Mario Schjetnan has undoubtedly impacted contemporary Mexican landscape architecture, and his influence transcends borders. According to The Cultural Landscape Foundation, Schjetnan “belongs to a generation of landscape architects, architects and urban planners who recognized the environmental impacts of urban development and its consequences for life on the planet.”

This year, Schjetnan and the Urban Design Group received the Cornelia Hahn Oberlander International Landscape Architecture Award. This biennial award, established in 2014, aims to increase visibility, understanding, appreciation and dialogue surrounding landscape architecture. Schjetnan and the Urban Design Group are the first Latin Americans to receive this honor.

Additional accolades include the Holcim Foundation Award in 2008 for the Itzácuaro Park project, which created new job opportunities for community farmers, installed an effective flood control system and revitalized a heavily polluted drainage channel. He was also awarded the Sir Geoffrey Jellicoe Award, the highest honor from the International Federation of Landscape Architects, in 2015, and the Elise and Walter A. Haas International Award in 2019, which recognizes Berkeley alumni living abroad who have achieved career success.

Mario Schjetnan’s work is guided by an unquestionable talent and a philosophy that unites humans and nature. His creations resonate with numerous sensitivities, dignifying cultural heritage and emphasizing the power of imagination, as well as the beauty and healing properties of nature, while respecting its balance.

Ana Paula de la Torre is a Mexican journalist and collaborator for various outlets, including Milenio, Animal Político, Vice, Newsweek en Español, Televisa and Mexico News Daily.

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Several more local loops have been rated tops in their region. Diamante Dunes and Querencia were declared the “Best in Mexico” by Golf Digest and Golfweek, respectively, and Solmar Golf Links was recently named “Latin America’s Best Course” by the World Golf Awards.

The area’s rich array of world-class golf courses is amazing. But then, they have to be, since they’re also meant to sell luxury real estate.

Why golf is so important to real estate sales in Los Cabos

A 2017 study of more than 10,000 real estate transactions by researchers at Florida Atlantic University showed that buying property near a golf course positively affected its value moving forward, boosting it by 8 to 12%. The researchers also noted, anecdotally, that golf itself is likely a lure to convince prospective homeowners to buy.

The latter assertion may not be backed up by statistical evidence. But it is taken for granted by many real estate developers, especially those in Mexico, where the second home market in destinations like Los Cabos is thriving. According to a recently published article in Barron’s, this is how the formula works: “In the golf real estate realm, developers build courses to sell houses. They hire big-name designers like Jack Nicklaus, Coore and Crenshaw, or Robert Trent Jones Jr. to lend star power to create an impressive 18 holes, confident the chance to play such a layout every day will draw buyers willing to pay millions for a second home or vacation escape.”

How golf and real estate in Los Cabos became synonymous

This formula has driven interest in resorts and real estate in Los Cabos since the early 1990s, when real estate magnate Don Koll brought in Nicklaus to design a course for Hotel Palmilla (now One&Only Palmilla), which he owned. Thirty years later, there are 18 currently operating golf courses in Los Cabos — a municipality with a population of about 350,000 — and at least three more are in the works. All serve as upscale amenities for resorts or real estate developments, or in some cases, both. 

Why big-name course designers cost more and why they matter?

Big names like Jack Nicklaus and Tiger Woods, the two most successful golfers ever and designers of eight, soon to be nine total courses in Los Cabos, do not come cheap. Whereas notable designers and major champions like Greg Norman and Ernie Els charge more than US $1 million per effort, Nicklaus and Woods, because of their exceptional star power, can command that and more … sometimes much more. Nicklaus’ fees are said to start in the range of $2-3 million, for example, while Woods’ fees are said to be even higher.

Of course, beyond bringing star power, their return on investment (ROI) for real estate is also high. To state the obvious, it’s not just that golf helps sell real estate in Los Cabos; it’s for how much.

Cabo del Sol

Cabo del Sol, a 1,800-acre luxury community a half dozen miles from Cabo San Lucas, is also home to Nicklaus’ Cove Club and Tom Weiskopf’s Cabo del Sol Course (currently under renovation), plus several luxurious resorts, including properties for Four Seasons, Park Hyatt, and soon, Soho House. It’s the real estate developments, however, that will benefit most from access to Nicklaus’ and Weiskopf’s loops. Homesites at the Cove Club start at US $3.7 million, villas at $8.6 million.

Diamante

At Diamante on the Pacific Coast of Cabo San Lucas, the biggest real estate development is the one surrounding Tiger Woods’ new invitation-only Legacy Club golf course and community, which is capped at only 250 members or families. List prices begin for homesites in Legacy Estates at $4 million, with larger homes in the range of $10 and $11 million. The Legacy Club is expected to open by the end of 2026.

Considering the Legacy Club course is reportedly going to take over from Tiger’s El Cardonal Course as the host of the PGA World Wide Technology Championship by 2027, the only PGA tournament in Los Cabos, expect list prices for nearby homesites in Legacy Estates, Legacy Villas and Legacy Gardens to remain robust.

Querencia

In Querencia, which is expecting a second course, Campo Alto, from acclaimed designer Tom Fazio in late 2026, prices likewise start in seven figures. At El Parque, a family-centric neighborhood of single-family homes and homesites in the upscale development, properties are now being listed between US $5.95 and $7.6 million.

Quivira

Signals are mixed on whether a second Jack Nicklaus course will ever be added to accompany the spectacular original, Quivira Golf Club, which opened in late 2014. However, real estate sales remain brisk regardless. Prive residences at St. Regis and Montecristo start at US $1 million, while 4- and 5-bedroom homes at Coronado are currently being listed for between $2.2 and $6.9 million.

Oleada

The 860-acre Oleada community is expecting its Ernie Els-designed golf course to open in 2026, while the 43 luxury two- and four-bedroom residences comprising the Conrad Residences at Oleada will be available beginning in 2027. Contact Hilton-owned Conrad for pricing information.

Chris Sands is the former Cabo San Lucas local expert for the USA Today travel website 10 Best and writer of Fodor’s Los Cabos travel guidebook. He’s also a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily.

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Although Mexico allows nonresidents to own real estate, holding legal residency often simplifies the process and can significantly affect capital gains tax obligations at the time of sale.

How to get legal residency

Mexico offers two main residency options: temporary and permanent. Both allow foreigners to stay in the country beyond the 180-day tourist permit, but each category carries different expectations and benefits.

Temporary residency is generally issued for one year at the beginning of your immigration to Mexico and may be renewed for up to four years. After that period, most residents become eligible to convert to permanent residency, which does not expire and removes the need for renewals. Permanent residents may work in Mexico without obtaining an additional work permit, although they must register with the tax authority and notify immigration afterward.

In all cases, the residency process begins at a Mexican consulate outside of Mexico and is completed at an immigration office (INM) once the applicant enters the country with the approved visa. 

Some consulates will issue permanent residency directly — for example, to retirees, spouses of Mexican citizens, or parents of Mexican-born children. Many consulates, however, decline to grant permanent residency to applicants below retirement age the first time around unless they qualify through family relationships or specific categories. 

In some cases, applicants who already hold temporary residency and live in Mexico may be permitted to convert to permanent residency earlier than the four-year period, depending on the criteria applied at their local immigration office.

What you’ll need to apply

The financial requirements for residency are based on either monthly income or savings and investments. These thresholds, published by the Secretaría de Relaciones Exteriores, vary slightly between consulates and may change at any time because they are tied to Mexico’s minimum wage or UMA values — the latter being a monetary number updated annually that is used to calculate fines, payments and tax obligations in Mexico. 

Under the commonly applied standards, temporary residency generally requires a monthly income of about US $4,393 or an average balance of more than $73,215 over 12 months. 

Permanent residency typically requires a monthly income above US $7,322 or an average balance above $292,859 over 12 months. All financial documents must match the applicant’s passport information exactly, without any variations in spelling or punctuation.

At a Mexican consulate outside the country, applicants present their financial documents, identification and any materials related to employment, investment or family ties. If the application is approved, the consulate places a visa sticker on the applicant’s passport. This visa allows entry into Mexico for the second phase of the process, which must be completed within a limited number of days. 

Once inside the country, applicants visit the National Migration Institute (INM) to submit photographs, fingerprints and final documents. Temporary residents renew this information annually; permanent residents do not.

The advantages of residency when buying and selling property

Residency is not required to purchase property in Mexico. Foreigners may buy real estate anywhere in the country, including along the restricted coasts and borders, which technically is off-limits to foreigners. In these restricted zones, however, non-Mexicans typically use a fideicomiso, a bank trust that legally holds title on behalf of the foreign buyer, allowing a purchase. 

Outside the restricted zones, property can be titled directly in the buyer’s name.

Even though residency is not a prerequisite for ownership, and foreigners may purchase real estate with only a valid tourist entry card, having a residency card can make transactions smoother. 

Banks, escrow companies and notaries frequently prefer a residency card for identification. Residency also eliminates concerns about leaving the country when a tourist entry card expires, which can be disruptive during closings, renovations or long-term stays. 

Avoiding capital gains tax

The most significant advantage of residency appears when selling property. Under Mexican tax law, temporary and permanent residents may qualify for a full or partial exemption from capital gains tax when selling their primary residence. For many homeowners, this exemption represents substantial savings, particularly in cities where property values have appreciated quickly. 

Non-residents, by contrast, generally face much higher tax liabilities: They may be taxed at a flat 25% of the total sale price, with no deductions, or at approximately 35% of the net gain, depending on how the notary calculates the transaction.

To qualify for the capital gains exemption, however, the seller must meet several conditions: 

• The property must be the seller’s principal residence, not a vacation home, rental investment or raw land. 
• The seller must be able to prove occupancy, often through recent utility bills, a residency card, voting documents — in the case of Mexican citizens — or other forms of acceptable proof. 
• The seller must not have used the exemption on another property within the period allowed by law, typically once every three years. 

When all requirements are met, the notary may apply the exemption, reducing or eliminating the capital gains tax due.

Nonresidents, including foreigners who rely on tourist permits, generally do not qualify for this exemption and often face significantly higher tax liabilities at closing. For long-term foreign residents who intend to eventually sell their home in Mexico, obtaining residency well in advance makes sense.

Not just at tax time: A residency card makes daily life easier 

Residency also simplifies many aspects of daily life for foreign homeowners. It allows easier access to banking, facilitates the registration of utilities and services and supports compliance with tax obligations related to rental income. While nonresidents can handle these tasks, the processes tend to be more straightforward for those with a residency card.

For many foreigners, the decision to pursue residency depends on how they plan to live in Mexico. Buyers who expect to spend most of the year in their home, or who anticipate selling it in the future, gain the most from being a legal resident. Investors who plan to manage multiple properties or conduct long-term business in Mexico also benefit from holding residency.

All applicants should keep in mind that immigration rules, UMA values, minimum wage-based calculations and financial thresholds can change at any time. Unlike what you may be used to back home, requirements also vary from one consulate to another and from one immigration office to another in Mexico. Before applying, it is important to confirm up-to-date requirements through official channels or with qualified professionals.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

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On the surface, it may seem unfair. If the real estate agent didn’t bring the buyer, why should they receive anything close to the full fee? But in Mexico’s real estate system, the answer has less to do with who found the buyer and everything to do with the structure of the transaction, the legal responsibilities involved and the significant amount of professional work that follows the moment an interested buyer appears.

How selling your home works in Mexico

This is not an issue of an agent collecting a fee for doing nothing. It is an issue of the agent stepping into the role of both the seller’s representative and the buyer’s representative at the same time. That remaining 5% is the fee that covers both sides of the transaction, along with all the legal and logistical responsibilities that come with it.

The starting point is understanding how listing agreements work in Mexico. Most professional real estate agencies use an exclusive right-to-sell contract. This type of agreement, widely used across the country, states that the agent is owed a commission regardless of who finds the buyer. The reasoning is simple: the listing agent invests in photography, marketing, online syndication, signage, professional networks and MLS exposure. They are also the person responsible for coordinating the transaction from the moment a buyer appears until the closing is complete.

In an ordinary transaction, where another agent brings in the buyer, the 6% commission is split — typically 3% to the listing agent and 3% to the buyer’s agent. But when the seller finds the buyer, the agent often reduces the fee to 5%. That reduction reflects savings from not having to split the commission; it is not a penalty or a bonus. It is simply the amount required to cover both sides of the transaction.

All the work that goes into facilitating the sale

What many sellers don’t realize is that finding the buyer is only a small part of the process. Most of the work — and the bulk of the responsibility — begins after a buyer is identified. At that point, the listing agent steps fully into the role of the seller’s representative, managing the transaction from beginning to end. This includes verifying documents, coordinating with attorneys and the notary, negotiating terms, ensuring compliance with anti-money-laundering rules, handling escrow and making sure all deadlines are met.

On the seller’s side alone, the agent performs extensive work. Before an offer even appears, the listing agent is responsible for pricing strategy, creating a competitive market analysis, arranging professional photography, writing the property description, uploading the listing to the MLS, coordinating showings, filtering inquiries, providing feedback from potential buyers and marketing the property across various platforms. These steps require time, expertise and often out-of-pocket expenses.

Once the seller has a buyer, the responsibilities intensify. The agent drafts or reviews the offer, advises the seller on the terms, negotiates on their behalf, verifies documents such as the deed, water account history, property taxes, Homeowners Association (HOA) statements, and cadastral information, and coordinates with the lead attorney. The agent verifies the buyer’s funds, opens escrow accurately and makes sure all contract terms are clearly understood and fulfilled. 

This agent guides both parties through signing the promise of sale, oversees compliance with consequences clauses and prepares the seller for closing at the notary’s office. Even after closing, the agent often assists with the handover of the property, final utility readings and inventory checks.

Your agent also represents the buyer

But when the seller brings the buyer, the listing agent must also step into the shoes of the buyer’s agent. This can be an even more demanding set of responsibilities. The agent must educate the buyer about the purchase process in Mexico, explain closing costs and taxes, coordinate inspections or surveys, guide them through escrow procedures and ensure the buyer understands deadlines, penalties and documentation requirements. Agents must also help the buyer with issues such as obtaining an RFC, setting up a fideicomiso (if the buyer is a foreigner purchasing in the restricted zone) and provide access to the property for any necessary visits.

The agent must keep both sides aligned, informed and on schedule. That’s who is responsible for avoiding misunderstandings, documenting everything in writing and ensuring that no step is missed. If a mistake is made during this process — such as an incomplete document, a missed payment deadline or inaccurately drafted escrow instructions — the consequences can be significant, both legally and financially.

The notary public oversees the legal validity of the closing, but the notary does not act as a transaction manager, negotiator or representative for either side. That role falls entirely on the listing agent when no buyer’s agent is present.

Liability of the listing agent

It is also important to recognize the level of liability the agent assumes. The listing agent is accountable for the accuracy of the listing, the integrity of the process, all communication with attorneys and the notary, and the handling of all contractual deadlines. If something goes wrong, the agent is the one expected to provide explanations, corrections and solutions. The commission is not only payment for service. It’s also payment for risk.

Some sellers, understandably, feel that finding the buyer should reduce the agent’s fee even further. Considering workload and responsibility, the 5% commission is a discount versus the standard model. In the traditional 6% arrangement, the listing agent receives only 3%. In the “seller brings the buyer” scenario, the agent receives 5% but absorbs the workload of both sides. The fee is proportionate to the services provided.

Removing the agent from the transaction altogether introduces serious risk. Many complications that arise during closing are not obvious to someone unfamiliar with Mexican real estate practices: missing municipal documents, unpaid water accounts, incorrectly registered additions to the property, mismatched identification numbers or a buyer who underestimates the cost of closing. These issues can stall a transaction or put the seller in legal jeopardy. A professional agent prevents these problems or resolves them quickly when they arise.

What the commission fee really covers 

Ultimately, the 5% commission is not a fee for “finding the buyer.” It is the fee that covers the full representation of both parties, from negotiation to legal coordination to closing. It ensures a smooth, secure and professionally managed transaction that protects the seller’s interests and guides the buyer through a complex process. When viewed in that context, the commission is not only justified — it is essential to a safe and successful sale.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

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While many buy an existing home in their preferred location, a few bold types think even bigger, deciding to buy land in Mexico to build a home or condo building, often with the idea of renting it for some passive income in the months they spend back home each year. Mexico also presents great real estate opportunities for the entrepreneur who wants to build a property to then sell or rent out, rather than make Mexico their home. 

Do your due diligence

Whichever of the two is your preferred scenario, the basic advice is the same: Know the lay of the land and do your research. It’s easy to dream about buying land in Mexico and bringing to life a real estate project from scratch — renting out the condos in your building and reaping the fruits of your labor through passive income — but to find out how feasible this dream might be, Mexico News Daily spoke to some seasoned developers, who shared the realities of this grand endeavor. 

“Do your due diligence and have realistic goals,” says Ian Gengos, a Canadian realtor living in Mexico who works with Berkshire Hathaway HomeServices Baja Real Estate. “It’s important to do proper feasibility studies. Your company’s title and ownership of the land has to be clear. You have to know if you can sell the properties within the project you want to develop — and, also, if it’s even possible. I’ve seen people buy land and then have this vision that just can’t be realized because what they want to do is not able to be done where they want to do it.”

There are several permits and concessions you may need to fulfill your project’s needs. It’s also critical to work with architects and engineers who know the land you’re building on and who are comfortable meeting expectations with what you’ve set out to accomplish. 

As we’ve covered in the past, there are certain realities unique to Mexico: The acquisition cost of property in Mexico is higher than in the United States, for example. And it’s not unusual to pay up to 10% more for a property when you consider the added notary fee, appraisal costs and other expenses. 

The dangers of long-distance buying

There’s a lot to be said about having the right approach for your building goal.

“It depends on the purpose you have to buy property in Mexico. Is it [purely] for an investment or to have a place to live for you and your family?” said Ilan Vainer Cohen of Laiva Group in San José del Cabo. “In my experience, Americans and Canadian entrepreneurs who come to Mexico want to do both. 

“But as a developer, you should think about what makes a project appealing: If there is a new highway, a new mall, or new properties being constructed near your project, that’ll add value to your investment since people will want to live there or stay frequently during vacation periods.”

Between the internet and write-ups like this, it is possible to go through the process alone. You can research where in Mexico you’d like to live, save money for a down payment and talk to the developer. If you ask Gengos, however, you’d be setting yourself up to fail.  

“Unfortunately, there are a lot of people who pretend to be real estate professionals,” he said. “They’ll tell clients to wire funds to the developer or directly to a seller’s account without any recourse if things go wrong. They just want to sell somebody something without doing the work to protect the buyer against bad sellers and bad titles. Online, it’s hard to tell who is legit. But when you’re in Mexico, it’s easier to verify since you’re on the ground.” 

“It’s always best to work with a licensed professional who knows the area well and can help you navigate challenges,” Gengos says. “They’ll explain processes and guide you to the right property. For example, they’ll help you understand what a fideicomiso is and how to set up an escrow account. Even if you’re the best researcher, you can still run into trouble.” 

Also, says Gengos, it’s better to work with independent real estate advisors as opposed to a realtor who works for the developer. Gengos also stressed the importance of working with an agent who represents you exclusively as a buyer, to assure your interests are protected and prioritized. 

The value — and danger — of going the presale route

Knowing the pros and cons about buying land and building on your own versus buying a presale home versus buying a pre-existing construction is something that an experienced independent real estate advisor should be able to explain. Ilan Vainer Cohen, a Mexican resident who has spent most of his career in real estate development, says that getting the timing right can be a tough call. 

“I’ve had clients who wanted to buy a [presale] condo too early and some too late. Say you find a property in development for US $300,000. If you were to put a down payment, you’d be buying the vision of what your condo might be. [But] it’s a double-edged sword because you can’t foresee any problems that may occur in construction: Maybe the developer will fall behind schedule, and you’ll have to wait longer to move in. It’s the risk you take when you go that route.”

“But if you wait until [the property is]  finished to buy, the price may be US $450,000 because of all the effort that went into getting your dream home to market. The more [work] a developer [does] on a building, the more expensive the units will be at the end.”

For reasons like these, it’s also important to check the developer’s track record and reputation in the local community. If its history dictates a solid resume of quality buildings completed on time, it’s a safer investment. If not, you’ll save yourself the headache by moving on to another development project that’s more worth your time. 

This is another reason why having a local real estate professional on your team is worth the investment. 

Of course, all this information only scratches the surface of knowing how to invest in the Mexican real estate market. But if there’s one solid takeaway, Mexico has its own unique way of doing things much like the United States, Canada, or anywhere else in the world. It’s important to do your homework. Another good piece of advice is to connect with other foreigners who have built here. Their experiences can tell you a lot, often in plain language that’s easier to understand, about what to expect from the process — and what to watch out for.

Have you built a home from scratch or bought a presale (preventa) in Mexico? Do you have any advice for foreign buyers? Let us know in the comments below.

Ian Ostroff is an indie author, journalist, and copywriter from Montreal, Canada. You can find his work in various outlets, including Map Happy and The Suburban. When he’s not writing, you can find Ian at the gym, a café, or anywhere within Mexico visiting family and friends.

The post Investing from scratch: When your dream is building property in Mexico  appeared first on Mexico News Daily

Recent data indicates that the wellness real estate (RE) market in Mexico is projected to see an estimated annual investment of US $16.418 billion for 2025, with sustained growth of 13.7% per year.

These homes feature holistic environments and designs that promote the physical and emotional well-being of the people in residence. Especially in Mexico’s vacation hubs, you can find increasing numbers of well-appointed new builds on the market with plenty of these wellness features and amenities.

In Mexico, the primary wellness real estate standard is the WELL Certification, created and overseen by the International WELL Building Institute. This standard considers comfort factors like air quality, water quality and lighting, as well as amenities aimed at sustaining mental health and physical fitness. 

Where are the wellness-friendly locations in Mexico?

Certain locations in Mexico are closely linked to wellness tourism destinations, such as the Riviera Maya on the Yucatán Peninsula. However, the trend can be seen throughout the country. 

If you’re looking for a full-time home or vacation property you can retreat to and recharge, here are some properties offering wellness-focused features and amenities:

Reserva Escondida Torre Nogal, Mexico City

Mexico City is a vibrant, culturally rich metropolis. But it also can be exhausting! What if you could enjoy all that Mexico’s capital has to offer — and then come home to your own private nature sanctuary? 

This pet-friendly luxury residential tower is located northwest of Mexico City in the heart of the Zona Esmeralda, surrounded by 3 million square meters of protected woodlands and spectacular views of the beautiful Parque de los Ciervos, which features walking trails next to wildlife habitats. 

The property has multiple options for relaxation, entertainment or both. All apartments have access to terraces, and the site features a paddleball court, massage room, lush gardens and even its own cinema.

More info can be found here.

Project KAANA

If you dream of being right on the beach, KAANA, in the heart of Cancún’s hotel zone, is an excellent choice, surrounded by the vibrant electric blues of Nichupté Lagoon — a natural reserve with a unique system of seven lakes — and stunning views of the Caribbean Sea. With all its relaxing amenities, including a yoga area, a gym, a massage room, a pool and a steam room, this 12-story luxury residential development is like a stay at a luxury Cancún hotel … but surrounded by all your own stuff.

Located 15 minutes from Cancún International Airport, this property has EDGE (Excellence in Design for Greater Efficiencies) sustainability certification, which means at least a 20% savings on your average prices for energy and water. 

For more information, click here.

Love Tulum

This oasis of best ecological practices and innovative architecture gives you the best of both worlds — located in the heart of Tulum’s jungles but with easy access to town nearby. With a blend of private and communal spaces, the Love Tulum residential development easily fosters a sense of community and designs spaces to encourage mental peace.

The property’s communal spaces were built with natural materials such as Super Adobe and were designed to be organic and integrated with nature. Examples include its large palapa designed for events and ceremonies and the walkable trails on the property that lead to pristine cenotes. Fractal architecture and bioconstruction are everywhere here. 

You can purchase single-family plots ranging from 1,000 to 2,000 square meters, but to preserve the area’s integration with the natural environment, you are allowed to build on only 25% of each plot, so this is for folks who are committed to living surrounded by nature.

For more information, click here.

Libera, multiple locations 

This chain of residential developments has properties on the Yucatán Peninsula in Tulum, Mérida, Celestún, El Cuyo and Sisal. This is where to go if you want to live in the quietude of nature while still having access to activities that’ll keep you entertained. 

This developer was also the first real estate company in the country to receive the Environmental Quality Distinction from Mexico’s Federal Attorney General’s Office for Environmental Protection (PROFEPA).

While Tulum remains the classic jewel of the Mexican Caribbean, it’s worth considering Libera’s other properties on the Peninsula that are in less overdeveloped locations: 

• There’s Cuyo, for example, an up-and-coming gem offering more privacy and stunning sea views. 
• Celestún is a “pink paradise,” a sanctuary of estuaries, flamingos and mangroves. 
• Sisal provides low property development amid gorgeous, mostly untouched Caribbean beaches.

But all four developments are designed to equally blend into their surrounding landscapes, and each has facilities meant to help you enjoy the surrounding environment and enjoy outdoor activities. Go swimming in a beautiful cenote, practice meditation in the onsite Zen park, have a mini-adventure with family in the onsite camping area and give Fido some quality time in each development’s pet park. 

If you enjoy exploration and connecting with nature, this place is worth checking out. 

Learn more about it here.

Desarrolladora ECO-GM

This is another property located in the heart of the jungle, 35 minutes from Quintana Roo’s beaches and just 25 minutes from Cancún International Airport and the Maya Train. 

If you love conservation, Hakuna is one of their projects that preserves over 60% of its green spaces and protects the local ecosystem. Here you’ll find eco-friendly technologies and amenities that enhance the living experience, all while fostering sustainable growth and generating long-term value. 

If you enjoy making friends with your neighbors, Hakuna’s amenities are great for promoting a tight-knit community, with a camping area, landscaped walking paths — including orchards — a pet park and an outdoor gym. Meaning, there are plenty of opportunities to meet the people living around you.

For more info, click here.

Hogares Eco Sustentables de Mexico

Are you looking for modernity and comfort in a more urban setting? Hogares Eco Sustentables de Mexico creates residential options throughout the country where alternative energy technologies are already built in. Rather than polluting energy sources like gas and coal, its homes feature solar and other sustainable energy technologies. 

Many buyers will likely be interested in the developer’s properties in Mexico City and the greater metropolitan area, but it also has properties in up-and-coming urban settings like Salina Cruz, Oaxaca — one of Mexico’s main port cities and an entry point to the Istmo de Tehuantepec. 

If you prefer an urban design approach that integrates technology, innovation and environmentally friendly energy efficiency, Hogars Eco Sustentables’ offerings may appeal to you. 

For more info, click here.

Vinte

If you are looking for a “green life” but want to settle somewhere other than Mexico City or the Yucatán Peninsula, then you owe it to yourself to explore Vinte. This developer has a strong presence in many states — everywhere from Mexico City, Hidalgo, Estado de México, Nuevo León, Puebla, Querétaro and Quintana Roo.

Recognized as an innovator in sustainable housing, Vinte has the highest number of EDGE-certified properties in Mexico. This company promotes green mortgages, has created zero-energy houses and offers homes with zero-gas hybrid technology. Their projects also include spaces that encourage interaction with nature and the community, including green spaces, playgrounds, bike paths, multipurpose playing courts, pet parks, clubhouses and even baseball and soccer fields that are ideal for families with young children.

For more info, click here.

Ana Paula de la Torre is a Mexican journalist and collaborator for various outlets, including Milenio, Animal Político, Vice, Newsweek en Español, Televisa and Mexico News Daily.

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For many foreign buyers, the final amount they pay at closing ends up higher than expected simply because they didn’t budget for all the details that go into purchasing a home here. Understanding those costs up front can make the process less stressful and help you make better financial decisions.

Closing costs: What to expect

Closing costs are generally higher in Mexico than in the United States and can vary depending on where you buy. In San Miguel de Allende, for example, they typically range between 5% and 6% of the purchase price, but for Querétaro, barely an hour away geographically, the percentages tend to run higher — closer to 8%.

These amounts do not include any loan origination fee a buyer might pay when financing a purchase. For example, if you use a U.S.-style mortgage from a lender specializing in foreign buyers, there may be an origination fee in addition to regular closing costs. That means your total costs could rise to around 8% or 9% of the property’s price.

Buyers are responsible for all closing costs in Mexico, while sellers typically pay the real estate commission. This division of costs is standard practice across the country.

What’s included in closing costs in Mexico for real estate

Closing costs generally cover three main categories:

Acquisition Tax: A government tax charged when a property changes ownership. This is similar to a transfer tax or stamp duty in other countries.

Notary Fees: All real estate transactions in Mexico must be formalized before a notary public (notario público). The notary’s office verifies the title, oversees the legal transfer, collects taxes and registers the sale with the government. Fees vary slightly by notary, but they’re generally consistent within a region.

Legal Fees: Many buyers also pay a lead attorney’s fee, which covers legal review of title documents, due diligence and administrative fees for the attorney’s time in coordinating between the notary, buyer and seller.

These costs are typically bundled into your final statement at closing, so it’s important to review the breakdown carefully. Most notaries and attorneys in a given region follow similar fee structures, so significant variations from the norm should raise a red flag. A competent realtor should be able to give you a good idea of what the norm is for your area.

Negotiating the price

Home prices in Mexico are often negotiable, and your real estate agent can assist you with negotiations. It’s common to see final sale prices come in at 5% (or maybe a little more) below the initial asking price, depending on market conditions, property age and seller motivation.

Working with a local agent who understands the market can help you determine what’s reasonable to offer. While bidding wars are rare in most areas, desirable homes — especially in popular locations  — can still attract multiple buyers, so flexibility is key.

Furnished or turnkey homes

One pleasant surprise for many foreign buyers is that homes in Mexico are often sold furnished, or even turnkey, meaning they come fully equipped and ready to move in. “Turnkey” usually means everything is included: furniture, appliances, kitchenware and sometimes even artwork and linens. You might only need to unpack your clothes and toothbrush before settling in.

That can be a real advantage for buyers relocating from abroad, as furnishing and outfitting a home in another country can take time and effort. However, it’s always wise to confirm in writing exactly what’s included. Some sellers remove personal items or heirlooms in a home before closing, so make sure your purchase agreement clearly states what stays with the property. 

If you’re buying an unfurnished home — or just want to bring some of your stuff with you — Mexico allows foreigners with a recent visa a one-time permit to import their personal possessions without paying any duties, which means you can also bring items from home with you in the move — even large items like furniture and a car. However, customs agents at the border have complete discretionary authority, so be aware that if they believe any of your items are brand-new, they may insist on charging you import duties on those items. 

After the purchase: Property taxes

Once you’ve closed, you’ll encounter another pleasant surprise: Property taxes in Mexico are extremely low compared to the United States, Canada or Europe.

In many cities in Mexico, annual property taxes (known as predial) can often be paid online, and the amounts are modest — sometimes only a few hundred dollars a year, depending on the property value and location. This low tax burden is one reason Mexico continues to attract retirees and second-home buyers from abroad.

Still, it’s important to stay current with your payments. Late fees and penalties can add up over time, and unpaid taxes can complicate future sales.

Fideicomisos: What coastal buyers need to know

If you’re purchasing a home near Mexico’s coastline or within 100 kilometers of a foreign border, you’ll need to establish a fideicomiso — a bank trust that holds the title on your behalf. 

Under Mexican law, foreigners cannot directly own property in these restricted zones. However, a fideicomiso gives you full control over the property, including the right to sell, lease or pass it on to heirs, who can easily renew the fideicomiso.

According to Christina Larson of Boardwalk Realty in Puerto Vallarta, one of Mexico’s most active coastal real estate markets, where fideicomisos are required, setting up the trust costs around US $2,000, with annual maintenance fees of about $500. This fideicomiso lasts 50 years and can be renewed for another 50 when it expires.

While it adds another step to the process, Larson explained that a fideicomiso is straightforward once you’ve chosen a bank to administer the trust. It’s a well-established system that thousands of foreign homeowners in Puerto Vallarta and other coastal resort cities use without issue.

Renovation and building costs

For buyers interested in renovating an older home — or building one from scratch — costs in Mexico are generally significantly lower than in other parts of North America and Europe. Labor is more affordable, and materials can often be sourced locally.

In most cases, you’ll work with an architect who has his own construction crew. The key is to find someone reputable who understands both your vision and the local building codes.

Renovation projects in Mexico can be rewarding, particularly if you appreciate the country’s architectural styles and craftsmanship.

Why local expertise matters

Real estate markets in expat enclaves in Mexico have often adjusted themselves to suit attractive foreign buyers, so buying in these places may feel rather familiar — especially to Americans and Canadians. But there are still key differences that make it advisable to work with a knowledgeable local realtor.

A local agent can help you:
1) Understand the true costs of purchase, including taxes and fees.
2) Negotiate effectively in the local market.
3) Coordinate with trusted notaries, attorneys and escrow services.
4) Guide you through cultural and procedural differences that might otherwise cause delays or misunderstandings.

Mexico’s real estate market operates smoothly when all parties know the rules and communicate clearly, but it’s not identical to systems outside the country. Having the right guidance from the start can save time, money and stress.

The bottom line

Buying a home in Mexico remains an appealing and attainable goal for many foreigners, but it’s important to go in with open eyes and a well-planned budget. Between acquisition taxes, notary and legal fees, and possible financing costs, closing can add anywhere from 5% to 10% to the total purchase price.

Factor in these costs from the start, confirm what’s included in your purchase, and rely on an agent you trust to guide you through the process. With the right preparation, owning a home in Mexico can be a rewarding experience and a sound investment.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

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That reality is beginning to shift. With U.S.-style financing models entering Mexico’s real estate landscape, buyers now have new options for purchasing property — particularly in high-demand markets such as San Miguel de Allende, Los Cabos and Puerto Vallarta. While still a niche part of the market, the availability of structured lending could gradually change how and who buys homes in Mexico.

Until recently, the vast majority of real-estate transactions in Mexico were completed entirely in cash. The process was quick and relatively simple. However, it excluded many would-be buyers who preferred or needed financing. Mexican banks generally wouldn’t lend to foreigners because they lacked a local credit history or income in pesos, and properties in restricted zones (near the coast or borders) required a fideicomiso — a bank trust structure that added even more complexity.

Developers occasionally offered short-term payment plans, but long-term, U.S.-style mortgages were essentially nonexistent. As a result, Mexico’s housing market largely catered to cash-ready retirees and investors.

The new landscape of U.S.-style financing

That situation is now evolving. Companies such as MOXI Mortgage International, MEXLend, and HIR Casa are introducing mortgage products designed for foreign buyers, especially Americans who want to finance property in Mexico rather than pay entirely in cash.

During a recent meeting with Victoria Ávila, manager of MOXI’s San Miguel de Allende branch, and María Ocampo, manager of the company’s Puerto Vallarta branch, the lender shared details about how its model is expanding across Mexico.

MOXI loans are available exclusively to U.S. citizens and underwritten using familiar U.S. standards. Borrowers apply in English, submit American financial documents and repay their loans in U.S. dollars. The company offers three types of loans: traditional mortgages for new purchases, refinancing loans and an “Anywhere Loan,” an unsecured product of up to US $200,000 for borrowers who already own property but need liquidity for improvements or other investments.

The availability of mortgage loans

MOXI’s minimum mortgage loan amount is US $250,000, targeting mid- to high-value properties over US $350,000 in value. Loans carry a 2.99% origination fee, charged in addition to the usual closing costs in San Miguel de Allende, which average around 5.5% of the purchase price. Terms extend up to 30 years, a rarity in Mexico’s financing market.

To broaden access, MOXI is partnering with HIR Casa, a Mexican financial institution that offers smaller loans and financing to non-American buyers. HIR’s programs typically run up to 10 years, filling a gap for buyers who don’t qualify for MOXI’s larger, dollar-denominated loans.

Meanwhile, brokers such as MEXLend provide mortgage options from multiple lenders, offering both peso- and dollar-denominated loans to domestic and international clients. Together, these institutions signal that Mexico’s property market is becoming more sophisticated, with financing alternatives slowly replacing the long-standing “cash only” model.

A potential shift in the market

Local professionals say the growth of mortgage products may not transform the market overnight, but it’s already influencing buyer behavior.

“Financing doesn’t dominate our market, but it’s becoming part of the conversation,” says Ernesto Kiang Chong, a Mexican realtor with eight years of experience at CDR Forbes Real Estate in San Miguel de Allende. “It’s helpful for buyers who want flexibility, but sellers and agents also need to understand how loans affect timing, paperwork and closing.”

When it’s time to sell: the challenge of removing a lien

While financing opens the market to new buyers, it can also create challenges when it comes time to sell. Homes purchased with a mortgage carry a lien held by the lender, and that lien must be fully released before ownership can be transferred to a new buyer.

This can become complicated if the seller intends to use the proceeds from the sale to pay off the loan. “If the funds from the buyer need to go directly to the lender, there can be hesitation,” explains Chong. “Buyers want assurance that the lien will be cleared before title transfers, but the payoff and release process can take time. That sometimes delays closings and causes frustration on both sides.”

In the United States, escrow agents routinely coordinate lien payoffs and releases as part of closing, often in a single day. In Mexico, however, the process can be more cumbersome, involving coordination among the lender, notary and local property registry. The lender must issue a carta de liberación (release letter), and that document must be officially recorded before the new deed can be executed.

If any of these steps are delayed — such as wire transfers, document verification or registry updates — the closing may be postponed by days or even weeks. For sellers depending on the proceeds to fund another purchase, those delays can be particularly stressful.

Managing expectations

To avoid problems, Chong recommends early planning. Sellers with financed properties should contact their lender well in advance to request a formal payoff statement and confirm how long it will take to obtain the lien release. Working with an escrow company experienced in cross-border transactions can also help ensure that payoff and closing funds are handled correctly.

Buyers, meanwhile, should be prepared for longer timelines when purchasing a property that still carries a loan. Coordination between the lender, notario and escrow service is essential for a smooth handover.

Because financing remains relatively new in Mexico’s property market, Chong emphasizes that it’s important for buyers and sellers to work with a real estate professional who understands cross-border lending and can guide them through the process. “A good agent can anticipate timing issues, explain lender requirements, and keep communication flowing between all the parties,” he says. “That can make the difference between a smooth closing and a very frustrating one.”

A knowledgeable realtor can also help buyers evaluate the pros and cons of different financing options, coordinate with escrow and the notario, and ensure the lien release and registration steps are completed properly at resale.

A market in transition

Financing in Mexico is still a relatively small segment of the overall market, but the presence of companies like MOXI, MEXLend, and HIR Casa represents a gradual shift toward greater accessibility and standardization. Cash transactions will continue to dominate for the foreseeable future, yet the ability to secure a long-term mortgage makes owning a home in Mexico more feasible for a broader range of buyers.

As lenders, agents and notarios gain more experience with these transactions, processes should become faster and more predictable. For now, each financed sale still involves a learning curve.

Even so, the impact is being felt. “It’s not a revolution,” Chong says, “but it’s definitely an evolution. Buyers have more choices, and that’s good for the market.”

The bottom line

The introduction of U.S.-style mortgage products in Mexico offers a promising new avenue for qualified buyers — especially Americans — to purchase property. It’s a welcome development in a market long dominated by cash deals, but one that also comes with added layers of complexity, from origination fees to lien management at resale.

As Mexico’s real estate sector continues to mature, working with an experienced agent who understands both the benefits and the challenges of financing will help buyers and sellers navigate this changing landscape with confidence.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.

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