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Prices are
often much cheaper than most areas of the U.S., but in
many locations prices of houses and lots are as
expensive as the U.S., one example being Mexico City.
U.S. banks have begun to give home loans for properties
in Mexico, but, so far, not for other Latin American
countries. |
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Many websites
advertising and selling Mexican and Central American
real estate exist, but they may need to be researched.In
Costa Rica, real estate agents do not need a license to
operate, but the transfer of property requires a lawyer. |
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In
investment finance, private equity real estate is an asset class
consisting of equity and debt investments in property.
Investments typically involve an active management strategy
ranging from moderate reposition or releasing of properties to
developme or extensive redevelopment. |
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Investments are
typically made via private equity real estate fund, a
collective investment scheme, which pools capital from
investors. These funds typically have ten year life span
consisting of a 2-3 year investment period during which
properties are acquired and a holding period during which
active asset management will be carried out and the
properties will be sold.
The real estate
business in Mexico and Central America is different from the
way that it is conducted in the United States.
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One important difference from the United
States is that each country has rules regarding where foreigners
can buy. For example, in Mexico, foreigners cannot buy land or
homes within 50km of the coast or 100km from a border, while, in
Honduras, they may buy beach front property. There are also
different special rules regarding certain types of property:
ejidos—communally held farm property—cannot be sold to
anyone, but that does not prevent them from being offered for
sale. |
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Some similarities
include a variety of legal formalities (with professionals
such as real estate agents generally employed to assist the
buyer); taxes need to be paid but typically less than those
in U.S.; legal paperwork will ensure title; and a neutral
party such as a title company will handle documentation and
monies in order to smoothly make the exchange between the
parties. Increasingly, U.S. title companies are doing work
for U.S. buyers in Mexico and Central America.
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