Mazunte Mexico: Guide to Buying Real Estate in this Coastal Oaxaca Village

An Overview of Real Estate in Mazunte, Mexico

Mazunte is a small coastal village located in Oaxaca, Mexico along the Pacific Ocean. Over the past few decades, Mazunte has transformed from a quiet fishing village to a popular tourist destination, especially for those looking to enjoy the area's beautiful beaches, unique wildlife, and laidback atmosphere.

As tourism in Mazunte has steadily increased over the years, so too has interest in owning real estate property there. From large luxury villas to small bungalows, there is a growing demand for homes and vacation properties in Mazunte from both Mexican nationals and foreigners alike.

Benefits of Owning Real Estate in Mazunte

There are many advantages that come with buying real estate in Mazunte:

• Idyllic beachfront location with gorgeous views of the Pacific Ocean.
• Lower cost of living compared to the US and Canada.
• Opportunity to generate rental income from vacationers.
• Chance to own a piece of paradise in a tranquil, laidback community.
• Excellent weather year-round with average temperatures around 80°F.

In addition to the perks above, owning property in Mazunte serves as a hedge against inflation over the long run. Real estate prices have consistently risen there over the past decade and are projected to continue going up as more tourists discover the area.

Popular Places to Buy Real Estate

There are a few different areas in and around Mazunte that are seeing the most real estate development and transactions:

• Playa Mermejita - This long, sandy beach with huge crashing waves is a prime spot for oceanfront homes and bungalows. It sits right near downtown Mazunte.
• Punta Cometa - The rugged cliffs and panoramic views here make it a highly coveted area for luxurious modern villas.
• La Ventanilla - Just a few minutes outside Mazunte lies this quaint beach town popular for ecotourism and properties near the lagoon.
• San Agustinillo - This small village sits between Mazunte and Zipolite and offers a balance of access to amenities and tranquility.

Types of Real Estate Available

Those looking to purchase real estate in the Mazunte area have several options to consider:

• Beach bungalows - Smaller detached homes built in traditional Mexican style, often with thatched palm roofs.
• Oceanfront homes/villas - Everything from two-bedroom houses to five-bedroom luxury villas directly on the Pacific Ocean.
• Condos - For buyers wanting amenities without maintenance, there are some low and high-rise condo buildings.
• Land - Vacant plots to construct a custom home from scratch are available, particularly with ocean views.
• Bed & breakfasts - Established B&Bs with existing customer bases also come up for sale occasionally.

No matter if it's a quaint beach bungalow or extravagant villa on the cliffs, there is a property type out there for every buyer's needs and budget.

Mazunte's Real Estate Market Outlook

When evaluating the current state of Mazunte’s local property market, there are a few key factors to consider:

Increased Foreign Interest

Over the past five years, Mazunte has seen a surge of foreign buyers from the US, Canada, and Europe looking to purchase homes or vacation properties there. This influx of foreign investment has led to considerable growth in the region's luxury real estate market in particular.

Rising Property Values

Due to high demand from foreign buyers and limited housing inventory, property values in Mazunte have increased substantially recently. Beachfront homes and villas have seen average sale prices rise by over 50% compared to just a decade ago.

More Tourism Development

Mazunte’s stunning natural beauty, relaxing pace of life, and growing popularity with travelers has led to many new tourism-related development projects. This includes new hotels, restaurants, shops, and condos being built to accommodate the increasing number of annual visitors.

Positive Long-Term Outlook

Given the trajectory of Mazunte’s real estate market over the past five years, experts predict property values will continue rising over the next decade. As more foreign buyers discover Mazunte and tourism expands there, demand is expected to heavily outpace supply for years to come.

In summary, from luxury villas to beach bungalows, now is an excellent time for investors and second-home buyers to purchase real estate in Mazunte, Mexico for both lifestyle and financial reasons.

Buying Real Estate as a Foreigner in Mexico

While buying property in Mexico may seem intimidating, the process for foreigners is relatively straightforward. Here is an overview of what to expect:

Hire a Real Estate Agent

Working with a local English-speaking real estate agent is highly recommended for foreigners. They can guide you through the buying process, communicate with sellers, and avoid any cultural misunderstandings.

Secure Financing

In addition to paying cash, there are mortgages available from some Mexican banks for foreign buyers. Or, you can seek financing from banks in your home country depending on the property type and loan amount.

Negotiate an Offer

Once you find a property you want to buy, your agent will submit an offer and counteroffer negotiations will commence with the sellers until a final purchase price is reached.

Sign a Purchase Agreement

This legally binding contract will outline the agreed upon price, terms, contingencies, and closing date for the real estate transaction.

Obtain a Bank Trust

Foreigners cannot directly own property in Mexico within 50km of the coast. So buyers work with a bank to establish a trust that holds property on their behalf.

Close and Transfer Deed

During closing, funds are exchanged, fees/taxes are paid, and deed is transferred to bank trust so buyers officially take ownership.

Navigating Mexico’s real estate buying process can seem daunting to foreigners at first. But with the help of a good agent and lawyer, you can smoothly buy your dream property in stunning Mazunte!

FAQs

Is financing available for foreign buyers?

Yes, some Mexican banks do offer mortgages for foreigners purchasing property in Mexico. You may also be able to secure financing from banks in your home country. It’s best to explore all options early on when buying real estate in Mazunte as a foreigner.

Can foreigners directly own property near the beach?

Unfortunately, no. Due to Mexican law, foreigners cannot directly own property within 50km of the coast. Instead, buyers work with a local bank to set up a fideicomiso trust that holds the property on their behalf.

What are property taxes like in Mazunte?

Annual property taxes in Mexico are generally much lower than what foreign buyers may be used to. In Mazunte, expect to pay 0.2% to 1.0% of a property’s assessed value in annual property tax depending on the municipal zone it’s located in.

Is a real estate agent required to purchase property?

No, working with a real estate agent isn’t legally required in Mexico. However, it is extremely strongly recommended for foreigners unfamiliar with Mexican real estate laws and the local market. Good agents are invaluable for navigating the buying process.