Once you’ve decided to move to San Miguel de Allende, it’s time to look for a house.

If you’ve decided to buy, there are a lot of realtors in the city, but there is no multiple listing service. It’s quite fair to ask different realtors to show you what they have available, but you have to buy from the one that showed you the property first. Just tell them your budget and off you go in search of that perfect home.

Today, houses are available from a low $99,000 for a small condo to millons of dollars.

Real estate prices in San Miguel have been going up in recent years.
A two bedroom house in El Centro that sold for $155,000 in 2,000 sold for $225,000 USDollars in 2006, for example. Another, three bedrooms, in the country, with almost an acre, sold for $172,000 in 2006 and for $250,000 USDollars in 2007.

You’ll pay top dollar in El Centro, or the core of San Miguel de Allende. or in Atascadero or Balcones at the top of the hill overlooking the city. Another prime spot is Malanquin, a golf community.

Popular neighborhoods for gringos right now include San Antonio, Guadiana, Las Frailes. All are close to El Centro and within walking distance to the Jardin. Independencia is also becoming very popular. Prices in these colonias are less than in El Centro.

Farther out from El Centro you’ll find more and more gringos moving into Allende at the top of Cinco de Mayo; Ojo de Agua and Chorro with large expensive homes; Azteca, which is uphill from the Ramirez Market, with more modest homes; and La Luz,

Many buyers prefer to live in mixed, American/Mexican neighborhoods in the city. Others are buying homes inside the numerous gated communities that are springing up on the road to Dolores Hidalgo and the road to Queretaro.

And, there’s still plenty of open land out in the country if you want to build your own ranch, hacienda, horse farm or house.

It’s been easy to make a profit on property in the past few years, so your investment is fairly safe. But, some say, the market may be saturated due to new construction. Scores of new houses and condos are being built every year.

If you want to see the prices on a variety of houses, go to this website: http://www.selectrealestate.com.mx (We are not endorsing Select, although it is a new and growing company, but it is one of the easiest place to find prices and pictures to go with the properties for sale today.)

You’ll probably have to pay cash for the house once you decide to buy it. A few Mexican banks, like Bancomer, have recently started offering mortgages, but the interest rates are 8 to 10 percent. Laredo (TX) National Bank is also offering mortgages on Mexican property.

Today, you’ll get a title and own the land and house, just as you do in the United States. Only near the ocean does Mexico hold your property in trust at a bank and even then you can sell it, will it, or give it away. It’s yours.

Before you make your down payment, be sure to hire a Mexican lawyer. You’ll need him at closing and you’ll want to be sure that all owners of the property really want to sell, that there are no liens on the property and that the seller has clear title to the property, and that there is an easy way to get your money back if something goes wrong at or before the closing.

Also be sure to get someone qualified to go through the house with you to look for problem areas, just as you would in the United States. Your realtor should have a list of available engineers. To check roofs, electric, plumbing, foundation, etc will probably cost less than $100.

Once you’ve signed the contract, written by your attorney, you’ll have to make a down payment of at least 10 percent. At the same time, you will have to hire a notario publico (a notary public). This is the buyer’s decision, not the seller’s.

The notario will research the property to do a title search, manage all the paperwork, and after closing, record the deed. He is a neutral party, government appointed, and will fairly represent both sides at closing.

Always ask about charges, because closing costs can be as low as $1,500 or as much as 15 percent of the purchase price. And you might want to have an interpreter at closing because everything is in Spanish.

Property taxes are very low … maybe $40 to $120 a year on a $200,000 house, depending on size, property and other variables. This protects Mexican property owners, who may have land and a house but little money to pay taxes.

When you sell the house is when you may have to pay taxes on the property. The laws on this have been changing in the past year, so ask your attorney or notario once you decide to sell any property.

Many houses are sold furnished, ready for you to move in. But, if you decide to move your belongings down from the United States, it may be difficult to find a moving company willing to bring your things over the border. If may be necessary to hire one truck to the border, and another from the border to San Miguel.

Find out how much this will cost before deciding to ship everything from home. Many San Miguel retirees simply sell or give everything away, have their children take what they want and send the rest to auction, or bring only family favorites and store the rest.

If you insist on bringing things to San Miguel, get your FM3 first (see the section on retiring to San Miguel) so you can bring them in duty free in one shipment.

Most retirees find it unnecessary to buy homeowner’s insurance. Your house will be made of rebar, bricks and concrete, and unlikely to sustain any major damage. A policy to cover injuries to visitors or workers is available for less than $100.

Remember, you can always ask questions of your attorney, realtor, notario or the residents who read the online coollists (go to the yahoo collists and look for civilsma or sma).

Ask about neighborhood safety. There are very few crimes in San Miguel (probably a lot fewer than in your home town) but there are gangs in some areas and some streets are known for glue-sniffing kids. There are also neighborhood watch programs in some areas. Talk to the people who will be your neighbors.

Beware of conventional wisdom from folks you don’t know well. San Miguel is notorious for misinformation which gets passed around and finally becomes “truth.” Rely on your realtor and your notario when you want to know what really happens.