OFF-PLAN IN MEXICO: HOW CAN YOU REDUCE RISKS BY BUYING REAL ESTATE IN THE CONSTRUCTION STAGE?
Table of Contents buying real estate
When buying a property, investors need to choose between an off-plan or a ready-made house or apartment. If your goal is to buy real estate in Mexico and save money at the same time, then it’s best to consider off-plan real estate.
Of course, not all investors want to invest in an off-plan residence because it can come with some risks.
But remember that real estate under construction (off-plan) is about 20% cheaper than a ready-made apartment or house.
In this article, we’ll explain these risks and why it can be profitable to buy off-plan real estate in Mexico.
WHAT IS AN OFF-PLAN PROPERTY IN MEXICO ?
Off-plan real estate is any type of house, apartment or property under construction. You might know that the cost of say, an apartment in a building that hasn’t yet been commissioned is always lower by about 10-20%. On the flip side, buying off-plan comes with some risks. But you can minimize this if you pay close attention to the proper procedures when you choose your future home.
THE PITFALLS OF BUYING REAL ESTATE OFF-PLAN
There are some main risks to consider when you buy a property under construction.
- «Frozen» construction. Europeans are familiar with cases of developers deceiving real estate buyers or shareholders. In the Mexico, this rarely happens.
- We’ll explain how off-plan property is regulated through the law.
- Postponed deadlines. If a construction company runs out of funds, «frozen» construction can continue being developed if the completion date is postponed. Sometimes this delay is several months or years.
- Price changes in the real estate market. This is unpredictable because a country’s economy is affected by the global economy. Even experts can’t always predict how prices will change.
HOW TO PROTECT YOURSELF FROM RISKS WHEN BUYING REAL ESTATE
Before you buy a property under construction in Mexico, check out the tips listed below.
- Get all the developer’s information.
- Find out detailed information about the developer, especially their reputation and track record. According to real estate experts, you must carefully check the construction company and the number and quality of their previous projects.
- It’s also important to check if the land where the property is built is rightfully owned by the developer.You can easily do this on the Internet.
- Organizations with good reputations have information about their completed projects on their websites and social networks.
- They also openly tell investors and buyers about any construction changes and share other useful information.
