Buying property
in Mexico - Since the 1970's foreigners have been able
to buy real estate in Mexico with coastal and border properties
which is owned through a trust deed established with a
Mexican bank. Foreigners may also directly own rural or
urban land in the interior of the country with certain
limitations on specific agricultural tracts.
The Trust Deed - The Trust Dees which is established
by means of a Mexican bank assures foreign property
buyers of all rights and privileges of ownership. In
1994 a Foreign Investment Law was passed that allows
these deeds to be constituted for a period of 50 years
and are renewable upon expiration. This law protects
the rights of foreigners and makes sure that the tansaction
is legal and unencumbered.
Title Insurance - As of 1996, Stewart Title Guarantee
Company has agreed to underwrite title insurance to
our clients, should they wish to purchase it. The cast
of this insurance is approximantly 1 % of the insured
amount. We view this commitment, as a strong endorsment
by one of the largest and most liquid Title Guarantee
companies in the world providing security in Mexican
Real Estate.
Taxes - Know as "Predial", and because they
have never been considered a source of governmental
revenue, property taxes in Puerto Vallarta are very
low, the rate is .08% of he assessed value, paid every
bimester, which is determined at the time of the sale.
The Closing Process - It takes between 30-45 days for
the closing process to be completed. Through our office
and a local public Notary, we coordinate the paper work
and escrow processes. The buyer pays the closing cost;
with the saler paying any capital gain taxes and real
estate fees. It is not necessary for the buyer and the
selle to be present at the closing, but by means of
a power of attorney can be represented by their Sales
Associate.
Corperation Ownership - Back in 1994 a change in the
Foreign Investment Law now allows Mexican corporations
to own property in the restricted area as long as it
is comercial property, this applies to even those corporation
with 100% foreign ownership. We must keep in mind that
comercial properties carry higher water & electricity
rates, plus require additional governmental reporting.
Property Maintenance - Maintenance and security for
condominium owners is handled by the Condominium Owners
Association. The fees are paid on a monthly basis. For
those homeowners who will be away from their property
for any length of time should consider a property managmnet
company a service which Realty Plus Puerto Vallarta
provides.
Insurance - We have in Mexico readily available at
low cost various types of insurance which include property,
liability, damage, and earthquake. All types of policies
can be issued to pay claims in U.S. dollars.
Financing - Coastal real estate purchases in Mexico
are no longer all cash transactions, with limited cases
of owner financing available. Recently however, U.S
based lending institutions such as Irwin Mortgage and
Metrociti Corporation have bega to offer long term mortgage
financing in U.S. dollars for up to 80% of the transaction
value.
Rental Potential - There exist a very strong rental
market for both homes and condos in Puerto Vallarta,
and Realty Plus Puerto Vallarta wih it's rental expertise
can assist you by providing a full range of rental services
for you. Good properties can expect to have an average
occupancy of 85%.
|
