The recent research done by the Helium Report has gone into the pros and cons of foreigners investing a development or a vacation villa in Mexico. Except for the “restricted zones,” which include all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline, foreigners are allowed to own property here. The Mexican government has created “Fideicomiso,” which is a bank-held trust where the foreigners are beneficiaries, to help them make their investments. To facilitate the investment the Mexican bank must be designated as trustee, while the trust beneficiary (the foreign investor) retains all rights of ownership – including renting, bequeathing, selling, or loaning the residence. The Helium Report suggests that its best you appoint a local (Mexican) legal representative to draw up the contract and to review the conditions and terms of sale while crunching the deal for a fully owned vacation property
The fractional ownership transaction differs a bit; here you deal with a U.S. based company while the developer side will deal with the bureaucracy on the Mexican side, thus making things easier for the buyer. Political risks and currency risks are some things that you have to consider when you make foreign investments, so that holds good for Mexico too.