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Writer's pictureARPR MÉXICO

How to Calculate Home Capital Gains In Mexico 2021

If you plan to buy or sell a property this 2021, we tell you in this post a series of steps to know how to calculate the value of the capital gain you want to sell or buy!


How to know what is the capital gain of a property?

Calculating the capital gain of a property, whether it is a house, apartment or lot, is easier and simpler than we think. Whether you are looking to invest in a property or sell one, knowing the real value of this is essential, because with that we can be more confident when negotiating and make a greater profit. The capital gain of our property will be calculated knowing the cadastral value of when the property was acquired, once we know this, we analyze how much it has increased over the years in more recent cadastral values, this percentage is our cadastral capital gain. To know our commercial capital gain it is necessary to subtract the updated cadastral value from our commercial value. This will be our average commercial capital gain. Adding these two data will be our annual capital gains.


We must be attentive to several aspects and details when calculating the value of our property, whether we want to buy or sell it.



How to calculate capital gains 2021?

  • Performing a cadastral appraisal

  • Valuing the type of land use

  • Valuing the city

  • Analyzing the zone or neighborhood

  • Valuing the commercial value or price


CADASTRAL APPRAISAL

The first step to know how much a piece of land costs is to estimate its cadastral value. The cadastral value is the valuation of the real estate that is made by the General Directorate of Cadastre, which depends on the Ministry of Finance. This depends on the cadastral address of each state or city.


To calculate the cadastral value of a land or lot, the location of the property, the age of the building, the quality of the construction, the expenses and suitability for production, the cost of the land or if it has a historical-artistic character, among other issues, are taken into account.


The cadastral value cannot exceed the market price, which is normally half the market price. Cadastral values can be updated every year by means of a coefficient. The cadastral value of all properties in a municipality can also be updated in a general way. This revision is carried out by the General Directorate of Cadastre after a prior request from the municipality in question. This does not define the real value, the real value is strongly influenced by the commercial value, i.e. how the prices are around and in the area where the real estate is located.



Valuing the type of land use

The determined use and type of land will be a key tool to know how much a land is worth; since it will not have the same price a land use for a house or apartment, than for a building or condominium where several houses, apartments or commercial premises will be implemented.


This depends on how the land or lot is going to be used, its measurements, and if there is any protected area in its surroundings, as well as ecosystems, hills, views and orientation of the land or lot, etc. These can greatly influence its commercial value.


When the land use is usually commercial or industrial, the price of this increases.



VALUING THE CITY

This will tell you absolutely everything, depending on the quality of life, security and growth of the city this will hurt for better or worse your investment, also if your land or lot is located in a city or rural area, this will depend if the city is in constant growth or if it is an agricultural area.



ANALYZING THE AREA OR NEIGHBORHOOD

This consists practically as the previous point, to value the zone where the land or lot is located, to go through the area where it is located, and to be attentive to the investments that there are around like real estate complexes, restaurants, bars, factories, companies, airports, etc. This will help us to filter our valuation with other properties that are nearby.



COMMERCIAL VALUE

To know the commercial value of the lot or land it is necessary to know and analyze the previous points, so we can filter our search and be able to compare the land which either we are going to buy or sell, to know how much is a land in Mexico, one of the most feasible means is to make an investigation within the various real estate pages, Once there, look for land and lots that are in the same area that will be our commercial value, whether we want to buy or sell, this will help us in making decisions, also the price of land will vary depending on the state - its urbanization, added value, economy, security, and so on.

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