If you are thinking of an apartment in Mexico City, you may have heard about the pre-sale purchase option. And let me tell you that it is an excellent option for you. Even today with mortgage interest rates of 10% here in Mexico.
The pre-sale purchase means that you buy a property before it is entirely built. You will pay a down payment and the rest you spend in the future when the property is ready to be delivered.
Now, why is it advisable to buy pre-sale? The answer is simple: because you can invest the money you are not paying for the property elsewhere and make a profit.
Let's take a practical example:
You decide to buy a pre-sale apartment for $6,000,000 MXN
You pay a down payment of 10%, which is $600,000 MXN
You will be left with a balance of $5,400,000 to be paid when the property will be finished
Instead of keeping that money in the bank or spending it on something else, you can invest it in S&P500 (or Mexican CETES or other financial tools), which is a safe and profitable investment option.
CETES are debt securities issued by the Mexican government that can be purchased through different financial platforms. The interest rate offered by CETES varies, as of today they are at 12.09% per annum.
That means that if you invest $5,400,000 in CETES, you could generate around $652,860 MXN per year in interest.
In addition, it is in the interest of developers to sell at the presale. That is why prices are cheaper than the real market value when you buy pre-sale. You will obtain an assured capital gain when your apartment is finished. This added to the interest you have obtained from your investment in CETES.
In summary, buying pre-sale is an excellent option to invest your money and make a profit. By paying a down payment and leaving the rest of your money invested, you will be able to obtain the returns on your investment and the capital gain of the apartment. At TemploAgency we have very good options for pre-sale properties. Ask one of our property consultants to help you now.
I hope this information has been helpful and good luck in your search for your new home!