Frequently Asked Questions About Buying in Rocky Point
Can foreigners own property in Mexico?
It's legal for foreigners to own property outside of Mexico's restriction zones, which are 50 km from the shore and 100 km from international borders. Foreigners may possess a direct property deed to obtain the same ownership rights held by Mexican nationals.
How can I get financing?
There are several ways to approach financing in Rocky Point. When it comes to owner financing, sellers will usually require a 25-50% downpayment, a 6-7% interest rate, and terms for three to five years. Buyers and sellers typically enter into a private contract and process the title transfer after payments are made. Bank financing is a little different. Unfortunately, U.S. banks won't finance property in Mexico, and Mexican banks are prohibitively expensive when it comes to obtaining a mortgage.
Financing is also possible with U.S. home equity loans. If you own U.S. property with equity, you can refinance your property and use 'cash out' funds to purchase a new home in Mexico. US loans offer great, competitive interest rates and terms. For those interested in developer financing, it's worth noting that brand new developments usually offer low down payments (starting at 25%), 6-7% interest rates, and terms for up to 20 years. However, be *very* careful when buying in a development that's not completed. Please consult an expert advisor like the agents here at RE/MAX Legacy for guidance!
How does the buying process differ from the U.S.?
Although purchasing property in Mexico is relatively straightforward, it's worth remembering that there are nearly no restrictions on foreign property ownership in Mexico. You can hold the title of a property solely in your name and without needing a trust in which to hold it. Additionally, U.S. foreigners should be aware of the fideicomiso trust that allows them to purchase property in Mexico's restricted zone with conditions.
Can the Mexican government ever take my property away?
The Mexican government may not take away your property so long as you legally purchase it, and may only seize your property for public purposes under the North American Free Trade Agreement.
How do I set up my property for rentals?
There are thankfully few strict restrictions when it comes to renting your property in Mexico. The Mexican government allows foreigners to purchase real estate located on the beachfront and rent it so long as they use it for rental income within the country.
Is Rocky Point safe?
Rocky Point, Mexico is a small town that's enjoyed a decreasing rate of crime for many years thanks to its active and capable law enforcement. The best time of day to travel to Rocky Point from the U.S. is during daylight hours via the Lukeville/Sonoyta border crossing, located approximately 150 miles from central Phoenix.
What's the cost of living like?
Foreigners will be pleased to know that, on average, the cost of living in Rocky Point, Mexico is approximately $500/month. Prices may vary depending on the size of your property and location from the city's center, but average costs of living are inexpensive compared to other parts of the country and affordable for most homeowners.