Mexico’s borders are delimited by three neighbours; the United States of American to the north, and Guatemala and Belize to the south. The Mexican sun rises along 3,000 kilometres of the Gulf of Mexico and the Caribbean Sea and sets in the 7,100 kilometres of beaches and cliffs of the Pacific Ocean. It has a population of around 98 million and Spanish is the official language, though English is widely spoken in the cities.

Buying property in Mexico, whether land, a serviced apartment or a house, can offer good value for money in comparison to prices in the US and Europe. Costs are lower for building, maintenance, land and of course the costs associated with ownership – taxes and utilities.

There are plenty of horror stories about buying property in Mexico but the majority of property deals are legal and go through smoothly. Just don’t try to take any shortcuts. Extensive research should be undertaken to find the ideal property in the right location. You will also need to do your research to find a reputable estate agent, lawyer and/or notary. Don’t buy in an area based on how it looks. There will always be issues that the eye can’t see. Follow the law at all times.

Authorities have historically required foreign nationals to complete property transactions in person, in country. More recent trends dictate that investors can complete the entire transaction remotely. The overall viewpoint tends to be, if you aren’t going to use it, why both seeing it. Agents authorised to market Mexican properties can offer you a complete turnkey package complete with preferred lawyer and power of attorney. You can find such agents on the Net, by visiting your local Mexican embassy for recommendations or looking for advertisements in the paper or at property shows.

When you find the ideal property, it is vital that you or your designated Power of Attorney follow correct procedures. You will need to nominate a lawyer or notary public who will complete due diligence to ensure the property has a clean history. This is the check that will uncover unpaid mortgages or whether the land belongs to the community, as land was given to groups of peasants after the revolution. If this is the case, the whole community will need to approve the sale, and not just one individual.

Under Mexican Law, liens are passed on with the title of the land. In fact, when you buy real estate in Mexico, you would do well to consider taking out Title Insurance which covers you should the property subsequently have hidden liens associated with it. Everything official related to your purchase should be done via your lawyer. Never accept suggestive shortcuts from third party ‘friends’. Caution should be exercised at all times, especially when transferring monies. Mexican people are very friendly and are brilliant at networking. They will always have a friend, of a friend, of a friend…all of whom will be taking a small ‘donation’ for their efforts.

International building standards have become a prerequisite in many countries but do not exist in Mexico. If you are buying an existing property, it is advisable to hire an independent surveyor to complete a check before handing over any money. For new buildings, try to investigate the builder’s previous projects or get a surveyor to inspect the quality of previous projects previously built by that builder. The surrounding infrastructure should be investigated. Not all areas are well developed, which may be the reason the property price is so cheap.

Also look at the soil type, as many areas along the coast contain a large proportion of volcanic rock. Look at the whole picture. Mexico is a vast country, and not all areas are accessible or liveable.

The normal trend when buying properties in Mexico is cash payments. But banks are now beginning to offer mortgages for the purchase of real estate. Banks will finance up 70 per cent of the property price. Interest rates vary and are considerably higher than in developed countries.

Here are a few basic pointers when speculating in Mexico:

• Check your funds – can you afford it?
• Check latest laws/advice from your local Embassy of Mexico
• Find an estate agent you trust and are happy with
• Find a reputable lawyer and/or notary
• For existing properties, find a reputable surveyor
• Ensure there is good infrastructure in place. Is there access to good roads, airports, schools, public transports etc?
• Check proximity to services such as grocery stores, ATMs, dry cleaners etc.
• What views or benefits does the property offer?
• Is the existing property in good condition? Does it require work? If so, how much?
• Temperatures can skyrocket. Does the property have access to a pool?
• Gated communities offer 24 hour security and can be a good option for those wanting security.

If you plan to rent the property, research which agent to use, and don’t just choose the first agent you come across. Rental returns vary depending on location and whether it is long or short term rental. All estate agents should provide you with full details on rental opportunities and forecasted returns in each area.

You will be liable for taxes in Mexico, although this will vary depending on which county you choose. Your estate agent should direct you concerning taxes and how to avoid or reduce them.

To sum up, if you are considering the purchase of real estate in Mexico make sure you undertake extensive research. Check the property location carefully and ensure you hire the right professional – one that will guarantee you don’t take any shortcuts. If this all seems negative for the potential investor, it is important to note that a very large percentage of land and property owners are foreigners. With the correct due diligence there is no reason why you can’t be one of these. Mexico is not the ideal location for first time investors, as there are too many uncertain factors to consider. If the correct channels aren’t followed, you could stand to lose a lot of money. Mexico is an emerging market, and if the correct location and property is secured, it is certainly an ideal investment opportunity for the experienced investor who knows what glitches to look out for.