It may be better to rent first prior to buying. My husband has been a Realtor and Broker in Ontario, Canada and in New Mexico, USA. If seeking a professional realtor to sell or buy property in San Miguel, please email me. And, we have renovated and built homes. For these seeking a professional and honest architect and builder, please ask.

I also provide renters and property insurance for anywhere in Mexico.

In Mexico you are often on your own when it comes to home construction, selling and purchase.

Location

May I suggest you check closely to the colonia (neighborhood) where your potential house may be located. There are few building codes and restrictions. Hence, you may be in an area with a carpenter or metal shop, event center or retail outlet very nearby. Or, one may appear at any time. That little store selling soda, bread, junk food and beer may seem handy but quite possibly on a Saturday night, it is a local hangout for beer drinking, crude language, loud music, etc. Children play on the street as many homes have no yard. Complaining may result in retaliation and you being forced to move. 

Fireworks may initially be a novelty as as well as church bells but after some time a distraction. They may also create anxiety and fear in both children and pets.

Construction

Most foreigners are likely not familiar with Mexican building techniques and the lack of codes. So, while the granite is impressive the wiring, plumbing, windows and construction may be less so.

There are no apprenticeships for any of the trades including electrical, plumbing, construction, carpentry.

Single-pane windows with glass held in by silicone is the norm. Weatherstripping is non-existent. Wind, rain, cold, heat and noise are issues with these windows. On cool mornings, condensation runs down the inside. Double pane windows are highly recommended.

Plumbing drains are schedule 20 vs schedule 40 as required by law in Canada and the US. That means drains for sinks and toilets are half as thick as what should be the norm. Waste drains are often not vented and they may connect into a single pipe. With no vent pipe, flushing the toilet can suck water out of the shower trap and sinks and sewer gases create foul odors in the bathrooms

Circuit breakers may be 20 amp and 12 gauge wire and normally that is the exception such as for a washing machine. And while electric circuit breakers are to protect the wiring please note, small appliances and light fixtures are rated at 15 amps of current and they may short out and burn as the 20 amp breaker may not trip to stop the flow of electricity. It is recommended most breakers be 15 amp and wiring 14 gauge. Also, wiring connections are to be held with Marrette or similar connectors and not twisted wires with tape. GFCI outlets (ground fault circuit interrupter) should be the receptacles above kitchen and bathroom counters but seldom if ever used. There should be a maximum of 12 outlets on a general purpose circuit (lights and receptacles). Refrigerators and built-in microwaves, washing machines, gas dryers and stoves, etc should have their own circuit.

Large open expanses for windows and sliding doors usually have a concrete beam for support and not a steel beam. Structurally, this is a weaker option and it has been known to create structural issues.

Look for door thresholds at the bottom of outside doors to keep out water, wind and insects as they almost never exist.

Ensure there are screens on windows that open and doors where needed.

No heating and cooling are common. And, a heat source being an indoor, non-vented flame creates safety issues with carbon monoxide. Please see my comments below with regards to propane. A wall furnace with outdoor air intake and outdoor exhaust is recommended.

Concrete is frequently mixed on the ground by hand. There is a lack of proper ratio of concrete to sand; the mixing is inconsistent. This frequently leads to cracks, water leaks and structural issues. A cement mixer should be used for mixing concrete.

Majority of roofs are flat. Leaks are common. Boveda ceilings are especially prone to water leaks when not protected from rain. Elastomeric paint needs repeated applications and is the last choice to seal a roof. Sheet waterproofing materials are self-adhering rubberized asphalt membranes. And, an excellent choice is liquid rubber.

Often homes and all condos are attached to one another. Sound barriers between units often do not exist. You may be able to hear most anything throughout the walls. A lack of side windows means you need lights on much of the day. In winter you will find attached, concrete homes may be very cold and then hot in summer as there is not a lot of air flow.

Electricity for lighting, heating and cooling may be very expensive.

Home Owner’s Association Covenants and By-Laws

When buying in a development with a home owner’s association (HOA), in Canada and the U.S. the Realtor will provide the covenants / regulations / by-laws in advance. This does not happen in Mexico. With the covenants you will know if there is a limit on the number of dogs you may be allowed; if you may have a trailer on the property; limitations on number of vehicles and landscaping; what may be built on your property in terms of style, size, exterior finishes, height; noise limitations; etc. If you do not have the covenants to review in advance, please have a conditional offer subject to your being provided the covenants and a week to review. The offer should state if the covenants are not acceptable, you have the right to withdraw your offer by a specific date or time frame and the deposit is fully refunded.

Pre-construction / Pre-builds

Pre-construction and pre-builds of condo complexes and new large developments at times are a major risk. There are literally thousands of buyers who have paid a large deposit and lost it all. The condos and houses are never completed or they take 2 and 3 years longer to complete versus what was promised. This happens throughout Mexico. As well, some developers have large mortgages on the property. So, while you may be able to occupy your home for which you have fully paid, the large mortgage of the developer may not be paid. You will not receive title until the developer pays off the mortgage which may literally be years. Without title you may not sell your home nor obtain a building permit for renovations. I recommend you have a clause in your contract stating if occupancy approval is not issued by the governing authority by XXXX date, the purchase contract is null and void and your total deposit is refunded within 30 days.

House for Sale

Bellow is a rendering of a house I have for sale in San Miguel.

This new house in a gated community I have for sale in San Miguel. City Market. MAC hospital and La Luciernaga Mall are 5 to 7 minutes away and centro is 12 minutes.

Construction is 245 sq meters / 2637 sq. ft and lot is 283.57 sq m / 3052 sq ft. Features include: double pane windows; 8 solar electric panels; gorgeous granite counter tops; solar hot water heating; plaster interior finish; 2 mini-splits for heating and cooling; rooftop covered patio; 18 foot ceiling in dining room; concrete block construction with a stucco exterior sealant; large enclosed storage behind 2-car enclosed garage; 3 bedrooms with 2 three-piece bathrooms and 2 two-piece bathrooms; water and UV filters, water softener; Smeg microwave, oven and dishwasher; induction cooktop; washer and electric dryer; all appliances are new; 2500 liter cistern; financing option.

There is lots of room for a 27 foot pool. Closing date is August.

soniamexico@outlook.com

Real Estate Agents

Visit a few local real estate websites and send emails. See who is responsive. See who you click with. Ask for recommendations on expat forums and Facebook pages.

Sometimes, it is hard to get agents to show houses that belong to other brokerages. You may need to be proactive.

There is limited MLS meaning at times there is no formal market comparison on sale prices. Someone could list a property for $800,000 but only get $500,000—you don’t know in México. It may only be what the agent tells you.

There are good real estate agents but you have to find the right one for you. Realtors have no licensing, no required training, nor credentials in Mexico unlike the US and Canada. Construction techniques, real estate law, contracts, fiduciary duty, ethics, marketing, etc. are a part of the training for realtors in both the US and Canada but not in Mexico. Often they do not have the ability to prepare a legally-binding contract. Many are not bilingual and foreigners who sell real state usually speak no Spanish. Anyone, may be a realtor tomorrow. My husband was a broker in Ontario, Canada and in New Mexico in the US. I am happy to recommend professional real estate agents in San Miguel de Allende.

Home Inspectors

Some may suggest having a home inspector when buying. There are no credentials nor licensing for a home inspector. Anyone may be a home inspector.

Contracts

The contracts provided by real estate offices may not be legally binding nor complete. Have all offers-to-purchase reviewed by your notario (not a lawyer). Buyers have the legal right to select their own notario. And, as a seller please have the purchase contract reviewed by a notario before signing.

Exchange Rates

In Mexico, sometimes homes are listed in US $. You may be playing the FX futures game. For example, you have a purchase contract for $400,000 US. You are paying in pesos. The exchange rate is 16.6. You close on the property a month later and the exchange rate is now 18.5. On the day of closing you now owe 900,000 pesos more. This is exactly what happened between late May 2024 and mid-June 2024. Be very careful and protect yourself when buying and selling real estate and be sure to have a clause that protects you with regards to exchange rate.

Mortgages

Mortgages are available with a typical rate of 8 to 12% interest. Some Mexican banks and financial institutions will lend to foreigners. Monthly commission to the banker who arranged the mortgage plus life and property insurance are common. Mortgages may have to be paid off by the time you are in your 70s but some financial institutions have raised the age to when you are age 80. So, one of your first questions will be at what age must my mortgage be paid off.

To qualify for a mortgage, Mexican banks usually only consider your Mexican credit score and the amount you deposit into a Mexican financial institution. However, some other mortgages sources will consider your US or Canadian credit score. If a bank will not consider your foreign credit score my suggestion is to open a Mexican bank account. Once you have done so, obtain a charge card. Initially, the limit on your card will be low and 5000 pesos limit is not uncommon. You can have your bank automatically pay each month’s charges in full and therefore avoid high interest which are typically 50 to 65% with the upper range being more common. Frequently buy items on credit or buy an item with several payments with zero interest. When allowed, increase your card’s limit. 

A mortgage takes many weeks to approve. There will be pages and pages of forms, all in Spanish. Typically, plan to start an application 3 – 4 months in advance. 

The Process

Unlike north of the border, the seller may be in the house when there is a showing and they may also be at the notario’s office with you on closing.

I suggest to wire transfer the funds when the home purchase is closed. This is the way Mexican notaries normally receive payment. Often notaries / lawyers do retain an escrow company as they are barely regulated by Mexican law. Plus, they charge a high fee just for transferring funds, which you may do yourself.

For the deposit on a property purchase, 10% is common. On closing, often the buyer pays the seller directly. Should the property sale not close, usually the 10% deposit is forfeited. Be very cautious as some real estate people think they should keep part of that deposit. They should not! They have not completed their job. Be sure this is made very clear when listing a property.

You may be given a day or two to inspect the house prior to signing on the dotted line.

A few weeks to months after the transaction is complete, your deed is ready.

If you’re buying a home in Mexico, you will face closing costs of 5–10% of the property’s value, including professional fees and taxes. I would round out 10% in your planning to be safe.

Deed versus Fideicomiso

Some property falls within a ‘restricted zone’ and cannot be owned outright by non-citizens. This includes any land situated within 100 km (60 mi) of an international border and any land situated within 50 km (30 mi) of the ocean. In 1993, this was adapted so that foreigners can purchase property in the restricted zone, but in a trust, with the bank as the holder of the title. It was a way to allow foreign development in tourist zones. This vehicle, or trust instrument, is called a fideicomiso—it remains valid for 50 years and is renewable. It’s in your name, but the bank holds the paperwork on your behalf in a trust. There is an annual fee paid to the bank.

Deed ownership is the type of ownership we are most used to north of the border. There is a title to the land which is held directly by the owner. If you’re not in a restricted zone (most of the country), this is the ownership you’ll have.

Residency + Will

When you own property in Mexico, always have a Testamento (Will) and residency, either a Temporary or Permanent Resident card. If one of the property owner dies without a Will and residency it takes a huge amount of time and money to resolve. This is even true when a couple owns a property and one dies.

You also want residency to reduce or eliminate capital gains tax when selling a property.

Property Tax

The property tax on homes (impuesto predial) is due in the first 3 months of each year and there are discounts for paying before the end of March with the greatest discounts bing offered in January. Depending on your region and services (cities are generally more expensive) and what you own, your property taxes will start at about $2,000 pesos and seldom over 20,000 pesos per year on a private residence. Kiosks are set up in many cities to facilitate payment.

It is your responsibility to pay your property tax (and all utility bills). Do not assume that a bill will arrive in the mail. You need to be proactive and note when bills and taxes are due and please pay them on time.

Paying Property Taxes in San Miguel.

Property taxes are to be paid in the first 3 months of the year. Should you pay in January there is a 15% discount. If you pay in February, there is a 10% discount. Your account number is on your tax bill called CUENTA PREDIAL. It is 12 digits and when you pay online please omit the first two digits.

Your property taxes may be paid in person:

Cajas de Predial en Edificio Administrativo Municipal de San Miguel de Allende (Presidencia / City Hall) de 8:30 a.m. a 4:00 p.m.

Cajas de SAPASMA en Prolongación de Alcocer No. 2 de 8:00 a.m. a 3:15 p.m.

Cajas de Palacio Municipal in centro de 8:30 a.m. a 8:00 p.m.

Or, you may pay your property taxes on line as per here. If you need assistance, please contact Joanna via email.

Select the Type of Property (Urban or Rustic)

Select: check amount and then go to pay.

Continue your payment online safely with the service provided by BBVA Bancomer and BanBajío.

You may also print the bank reference to make your payment at the bank of your choice.

Heating and Cooling Homes

Heating and cooling in homes in Mexico is a plus and sometimes a must. In places with higher elevations including San Miguel, each winter the temperatures do go as low as the mid to upper 30’s. In the north of Mexico, it is often below freezing and snow is common. In San Miguel, every few years you will see a little snow in the mountains including only a few minutes from downtown. And, each year from as early as March to mid June the day time highs reach mid 90’s in much of Mexico and the coast above 100 F for weeks. With climate change expect more extremes.

Electricity for a source to heat or cooling for a large room or house is expensive unless the home has solar electric. A combination of solar eclectic and mini-splits may be a huge plus in many areas in Mexico. Fireplaces are sometimes not vented, always inefficient and they may be dangerous. Any open flame as a source of heat may be deadly. Propane for a heater is usually stored in a relatively small tank meaning there is a need to fill often.

Concrete homes once they get hot or cold are difficult to make comfortable and not just for a day but sometimes for weeks. A house, attached to another on each side may be even harder to heat and cool as there is a lack of windows to let in the sun and for ventilation. A safe source of heat is a wall furnace. They take in fresh air from outside and vent to outside. They have varying flames and fan speeds based on room temperature and set temperature. Rinnai makes excellent wall furnaces. You may start by seeing them on Amazon.

Mirage is one of the largest suppliers of mini-splits in Mexico. There best models have a very high energy efficient rating (SEER) of 22 and they re very quiet. Some mini-splits are only for cooling while others are for both cooling and heating. Please check the option prior to buying. the cost difference is small.

Propane

Please be careful with propane. In November 2023, a friend in SMA lit her propane oven and it exploded. Sadly she died. Two weeks later in San Miguel another friend turned on the gas clothes dryer. Initially there was a small explosion. He was singed from the flame. He quickly left the room and it exploded blowing out windows and a door.

In Mexico, natural gas and propane appliances sometimes lack the safety features found in Canada and the US for example. You may inadvertently bump into a stove and the gas to a burner is now on. That would lead to an accumulation of dangerous gases. On some ranges, there is an automatic shutoff valve located in the pilot assembly that shuts off the gas to the burner any time the pilot and the burner are both off. These are rare in Mexico.

Unfortunately people sometimes keep trying to light an oven or stove-top burner or a hot water heater. If it doesn’t light quickly, it requires you to stop and the flow of gas needs to be turned off. You need to allow the area to ventilate before trying again. Sometimes on a gas cooktop for example, with a window or door open, a breeze may extinguish a low flame. The gas now accumulates. If a person then tries to re-light the burner an explosion may result.

Gas stoves can release carbon monoxide, carbon dioxide and nitrogen dioxide. In its unburned state, natural gas contains harmful air toxins, including benzene, a chemical linked to cancer, and methane, which is harmful to the environment. In theory, natural gas’ harmful toxins are eliminated during combustion, but last year’s Harvard study proved stoves often leak the toxic unburned gas when not in use.

Another study from. December 2022 showed that US homes with natural gas stoves had 13% more instances of childhood asthma. The number was even higher in certain states, including Illinois, New York and California.

Please, never use propane for cooking or heat or the visual of a burning fireplace without a carbon monoxide monitor.