Settling in Mexico: Should You Buy or Rent?

You’ve visited Mexico numerous times and absolutely adore it. Now you’ve decided to make the leap and settle there! Whether you’re moving to Mexico for work or for pleasure, for a few years or for life, because you found your soulmate or just because you can’t live without fresh ceviche and delicious burritos, the big question is always, should you buy or rent? In this article, we discuss the advantages of each and help you choose what’s right for you.

Renting:

• When you rent, your overall expenses are lower, and you can avoid certain taxes. While you do have to perform basic upkeep of the property, major repairs—of water heaters, electrical wiring, plumbing, and the like—are the landlord’s responsibility, as is the annual housing tax.

• Rent is cheaper than a mortgage payment, and you get more bang for your buck.

• Rental houses tend to be better located, as newer housing is generally built in the suburbs rather than in city centers.

• If you decide to move to a different city or simply a different apartment, you can pick up and move once your lease is up (or even earlier, if you manage to break your lease). All that’s left is to find a new place!

• You can avoid many headaches. Sometimes even the most basic repairs can take weeks or months, but if you rent, the landlord handles all the paperwork.

Buying:

• When you own your own place, you and your family feel more at home. Moreover, real estate prices in tourist areas are increasing slowly but surely, and while the price per square meter will remain cheaper than in Paris or New York for a few more years, the earlier you invest, the more you’ll save.

• Your living situation is more stable. Having a permanent home eliminates a lot of bureaucracy, and you won’t have to change your address on official documents every six months.

• You could save on taxes. Permanent residents in foreign countries sometimes receive tax breaks. If you own property, the income required to obtain a permanent residence visa is much lower, and if you are over 65, you might pay less in property tax.

• As a homeowner, you can redo your home any way you want! You can paint the walls or put in a garden.

• Taking out a home loan improves your local credit. But even if you pay in cash, banks are more sympathetic to property-owners.

Examine your goals carefully before deciding—for example, how long do you plan to stay in Mexico? Renting and buying are both great options. Whatever you choose, enjoy your time!