Are you wanting to buy property in Rocky Point? Many Americans own property in Puerto Peñasco, Mexico. Rocky Point real estate can be purchased for an investment or second home. There are also many Americans who live in Peñasco full-time!
Affordable beachfront properties are available for purchase. Rocky Point condos offer the convenience of amenities and low maintenance. Condos on Sandy Beach can be rented for a great cash-flow investment.
Single-family detached homes are available in Puerto Peñasco. The two main neighborhoods are Cholla Bay and Las Conchas. Homes in Rocky Point can be rented out on AirBnB or VRBO.
Visiting Rocky Point for the first time? Check out the first-time visitors’ guide!
Can Americans Own Property in Rocky Point?
Yes, Americans can buy property in Rocky Point! Rocky Point is in the restricted zone (along the coast), but foreign investors can still own property through a Mexican Bank Trust (Fideicomiso). As the beneficiary of the Bank Trust for the property, you have all the rights and privileges as an owner. You can sell the property or will it.
In the state of Sonora, Mexico, where Rocky Point is located, real estate agents are required to be licensed. Working with a reputable real estate agent is always a good idea when buying property in Rocky Point — especially in a foreign country. There are many real estate agents in Rocky Point. If you’re interested in buying or selling real estate in Rocky Point, click here to get a referral to a local agent.
The Buying Process in Rocky Point
As in the United States, buying property in Puerto Peñasco, Mexico, starts with a contract. Once the purchase contract is signed by all parties, it is sent to an escrow company to handle the paperwork and disbursement of funds.
The escrow company I used to purchase my condo in Rocky Point was InTrust. I had a great experience with them and highly recommend InTrust for your Rocky Point home purchase. Your real estate agent can also recommend an escrow company.
Because there are many Americans investing in Rocky Point real estate, most of the documents are translated into English for convenience. As a foreign investor, you will be required to submit copies of your Drivers License, US Passport, and a recent utility bill from your home in the US. To comply with anti-money laundering laws in Mexico, other information is required as well, such as your social security number.
Funds for purchasing your Rocky Point property can be wired from a US bank account. There may be options for loans, but expect a longer closing time and more complications if you’re going this route.
When you buy a property in Rocky Point, expect a 30-45 day closing process. It is often best to hire an attorney as well, especially if you are buying a property in an LLC (or plan to put your new Rocky Point property in an LLC).
Buying Rocky Point Property in an Arizona LLC
When shopping for your piece of paradise in Puerto Peñasco, you will come across many real estate listings saying the property is “owned in an Arizona LLC.” When you purchase a home in Rocky Point that is owned in an LLC, the process is usually quicker and cheaper for the buyer.
Instead of buying the property, you will purchase the LLC (and the property transfers to you as part of the LLC). This is a popular option in Rocky Point because you avoid the 2% transfer tax on property. Buying a property that is already owned by an LLC can also speed up the real estate closing process.
It is important to hire an attorney who is familiar with Rocky Point real estate when purchasing a property in an LLC. A reputable attorney will ensure all of the correct paperwork is filed in a timely matter in both Mexico and Arizona.
Purchasing an LLC that owns property in Mexico requires the Articles of Organization and the Operating Agreement to be revised. You may also need an EIN (Tax ID number) from the United States for your new LLC.
Condo or House: Which is Better to Buy in Rocky Point?
There are positives and negatives to both condominiums and houses in Rocky Point. When you buy property in Rocky Point, always make sure to do your research!
Buying a condominium has the convenience of on-site amenities and low maintenance. Condominiums require association dues, which often include water for your unit, cable television, and internet access. If you are planning to rent out your Rocky Point property as an investment property, it is easier when it’s a condominium at an established resort. The resorts can rent out your unit for you and take care of maintenance and cleaning.
Of course, owning a condominium means you are closer to your neighbors. You do not have as much privacy as you would in a single-family detached home. Owning a condominium in Rocky Point means you’ll deal with some noise from people partying on their vacation.
Buying a house provides more space, but comes with more maintenance. Most single-family homes in Rocky Point are on hauled water (not city water), which comes with extra expenses. If you own a home in Rocky Point, you’ll be responsible for all of the maintenance. If you rent out your property, you’ll have to hire people to take care of the cleaning and maintenance while you’re away.
Utilities and Other Expenses for Rocky Point Property
When you buy property in Rocky Point, you will be responsible for paying utilities and property taxes. Most utilities need to be paid in Mexican pesos. There are sometimes options for paying online. You can also pay by going into the offices here in Rocky Point.
Electric for your Rocky Point property is through CFE. They have an app (CFE Contigo) that you can use to monitor your electric bill. There are kiosks around Rocky Point to pay your bill, or you can pay through the app if you have a Mexican bank account and debit card.
Property insurance is recommended, but not required. There are many insurance companies in Puerto Peñasco to choose from.
Investment Properties in Rocky Point
Many people buy property in Rocky Point for an investment. Rocky Point real estate investments come with additional requirements. You will need a Mexican Tax ID (RFC) to be able to collect income from your Rocky Point property. You will also be required to file taxes in Mexico.
Most investors who rent out their Rocky Point property will hire a local accountant to manage the various facets of owning investment property in Mexico. If you need a referral to any real estate professionals or accountants in Mexico, let me know!
The process to buy property in Rocky Point may be different than in the United States, but there are lots of professionals to help you! Are you ready to get connected to a Rocky Point real estate professional?