Buying Property in Mexico: Fractional vs Full Ownership

Fractional Ownership of property in Mexico

Real estate fractional ownership allows you to share the costs of a property with other owners, who would then join you in splitting your usage time. This type of ownership is useful if you don’t have the capital or credit necessary to purchase the property outright because it provides an affordable alternative that still gives you access to the benefits of property ownership.

Fractional ownership is popular in Mexico because it enables foreigners to own deeded property while circumventing the restrictions placed on them by Mexico’s Federal Constitution.

Pros and Cons of Fractional ownership

Pros:

Lower initial costs are required for fractional shareowners. If you choose to purchase a full ownership property, you’ll have to pay the full price of the property upfront. Fractional owners, however, only have to pay for their share of the unit (which is usually between 25% and 50%.) This can make it easier for people who don’t have enough money on hand to invest in full ownership properties.
Maintenance is shared among all of the fractional owners which can reduce your financial burden when it comes to maintaining and insuring a property.

Cons:

You may not be able to use your vacation home as often as you want since there will be other people sharing it with you. You’ll want to make sure that there are no restrictions on how often and when you can use the unit before purchasing a fractional share.
Privacy could also be an issue if there are several other owners using the same unit at different times throughout the year.

Full Ownership of property in Mexico

You own the property in full, and it is yours to do with as you please. The title of the property is in your name. You can live in the property full-time, rent it out, or leave it vacant.

However, you are also responsible for paying any and all taxes due on the property (more on this below). While there are some benefits of not having anyone else to share costs with, there are also a few downsides such as no one else to help you pay for the upkeep of the home if something were to go wrong.

Pros and Cons of Full Ownership

With full ownership, you (and only you) will have the right to use and enjoy the property. There are no restrictions on how often or when you can visit your home and it will be completely private. You won’t need to get permission from any other owners if you want to make improvements, rent out the home, or sell it.

On the other hand, full ownership is more expensive than fractional ownership because naturally, you will pay for 100% of all expenses related to maintaining and running your home.

In Summary:

Whether you decide to buy fractional or full ownership in Mexico, both types have their own set of pros and cons. Depending on what your needs are, one option may better fit those needs than the other. As we mentioned throughout this article, the best way to find out which option is right for you is by taking a property tour in Mexico.

We recommend our clients buy in full ownership so they have full control of their investment and will not need to think about any comprise on their behalf.

Find your next home in Riviera Maya Mexico today

Navigating the real estate market in Riviera Maya Mexico can be a challenge. Tulum and Playa del Carmen are the hottest markets to buy an Airbnb or a vacation home in Mexico.

But to make the right decision you will need help from an experienced and qualified Real Estate agent who can help you every step of the way.

From finding and viewing the properties to buying and closing on your property.

Caribe Luxury Homes has helped many Americans, foreigners, and Mexicans find their perfect investment property and a vacation home in Riviera Maya Mexico.

And the service of our real estate agents is free for you as a buyer in Mexico.

Click here to chat with our qualified real estate agents in Riviera Maya Mexico at no obligation and for free today.

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