Puerto Vallarta Lifestyle

What you should be looking for while searching for a home in Mexico



After deciding to acquire a new home in Mexico, it's time to begin compiling a list of your goals and needs. Having a pre-planned itinerary will assist your real estate agent in narrowing down the search for your ideal house. Additionally, this will save you time and money when searching for a home. The information below may give you with a few additional suggestions that you may have overlooked when developing your first purchasing criteria. Every little bit helps when it comes to making such a significant decision as this. Therefore, why not begin on the right foot!


Choosing a Property


Location


When looking for a new house, the first and perhaps most significant consideration is location. Where exactly do you wish to be? What do you wish to see or be surrounded by on a daily basis? Mexico offers a diverse range of scenery.


Being inland can provide you with additional space to spread out, take in the view, and enjoy some alone. Not having your neighbors right next to you can provide a rural vibe while still close enough to town.


Desiring to live in the jungle does not always need living in a secluded region. Places like Akumal, Tulum, Puerto Vallarta, and Cabo, as well as other smaller seaside communities, can offer residences surrounded by lush tropical vegetation while being accessible to town and all of its amenities.


Certain individuals require exposure to or proximity to water. Mexico is well-known for its magnificent beaches in the Caribbean and Atlantic Oceans. Being near water provides various benefits, including the ability to enjoy water activities, fishing, and relaxing beneath a swaying palm tree.


Others may like to live near Mexico City or Guadalajara. Mexico offers such a diverse range of weather and cultural influences that you may easily come upon what you're looking for.


Which Amenities Do You Wish To Be Near?


Another aspect of the puzzle to consider is the type of amenities, if any, you desire. Do you enjoy being able to walk or drive to a variety of restaurants, shopping possibilities, and entertainment venues? Being centrally located enables you to take advantage of the convenience of having everything at your fingertips. If you choose to live on the outskirts or just outside of town, you may enjoy quieter days while still being close to downtown and white sand beaches. Here are a few other points to consider.


Being in the heart of downtown typically necessitates the purchase of an apartment. There are, however, many condominiums with a variety of floorplans and designs to pick from. It's priceless to walk out your front door and feel the city's pulse reach out and grab you.


If you prefer a little less hustle and bustle but still want to be within walking distance of everything, consider purchasing on the outskirts of town. Numerous neighborhoods provide both condos and single-family homes. These neighborhoods are located just outside of the downtown core.


Purchasing in a suburban region may still provide you with all you require and desire. You can acquire a home or condo in a neighborhood or gated community that is densely populated with restaurants, boutiques, and local entertainment. The downtown center and beaches are still within a few minutes drive.


Which Type of Floor Plan Is Most Appropriate for You?


The following are some qualifying questions. How many members of your family are there? Are you a frequent entertainer or host of out-of-town guests? These are the types of questions you should be asking yourself while you search for your ideal home. It is critical to have a floor design that has enough bedrooms, baths, and living area to suit everyone. Do you enjoy having a gourmet kitchen, private ensuites, and an outdoor space? Any or all of these qualities can be found in a wide variety of residences!


Other Particular Requirements


Assume your list includes particular specifications for the design of your future home. In that case, you should discuss them with your agent—things like energy efficiency, local infrastructure, and construction quality. Therefore, let us take a brief look at these three points.


Having an energy-efficient or self-sustaining home can help you keep your monthly expenses to a minimum. In a tropical climate, structures constructed with indigenous materials will fare far better. Solar energy and the use of recycled water both contribute to an eco-friendly atmosphere.


If you're looking for a townhome, it's critical to ensure that the local infrastructure can handle the population. Having stable water, sewer, and electrical infrastructure is critical for maintaining a comfortable lifestyle. Despite their modernity, several regions of Mexico are continually modernizing their infrastructure.


Assuring the construction of your new house is of the highest quality is critical. Mexico's developers take pleasure in their work. The majority of general contractors have extensive experience. They pay special attention to the quality of their handiwork and the materials they employ.


Note: Before filing a purchase agreement, your agent will arrange for an inspection and answer any questions you may have about the contractor.


Keeping Your Budget in Check

When it comes to acquiring a new home, the majority of individuals have a budget in mind. Mexico is well-known for its great real estate market and the value you can obtain for your dollar. Whether you want to be on or near the sea – in the heart of the city or in a gated community – the cost will be significantly cheaper than in the United States or Canada. In some circumstances, you can obtain twice the amount of property found elsewhere in North America. Additionally, the value of the US and Canadian dollars relative to the peso will improve your purchasing power.


Establishing a price point while obtaining what you desire should be straightforward. As previously stated, more desirable locations will have a greater influence on the asking price. Expect to pay a little more if you want to stay near water or in the heart of a city. When compared to the cost of owning a property just minutes from California or Florida's beach areas, the costs along Mexico's coastline will be small. The same is true for gated communities and city residences.




Summary


When it comes to acquiring your dream home, having the appropriate plan and location makes life in paradise all the more enjoyable! Having a top-notch real estate agent ensures that you get the most for your money. That is not to argue that conducting research in advance is not beneficial. Having representation throughout the purchasing process, on the other hand, can make all the difference in the world. Contact Top Mexico Real Estate at your earliest convenience. Arrange a personalized tour of all qualified houses in Mexico with one of their experienced representatives.


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Vaccine passports have the potential to promote worldwide travel and the MICE business



The global travel and tourist business has been hit particularly hard by the limitations put by governments around the world on people's movement in order to combat the spread of COVID-19. Although the virus has been classified a pandemic by the WHO for more than a year, normalcy appears to be eroding as the illness continues to wreak devastation.


Forming a globally recognized system as a worldwide standard for all destinations will assist ensure that a traveler's journey is as smooth and easy as possible - an important aspect in helping to cure worldwide travel demand. If all of the certificates and passes that are being tested are released, it would just add to the confusion among travelers, which is the last thing that is required. Rather than being viewed as a competition, a digital vaccine passport should be viewed as an opportunity.


To avoid losing another summer's worth of vacation revenue due to the coronavirus pandemic, the United States, the European Union, some Asian governments such as Thailand, and the airline industry are rushing to create a centralized international system that would help electronically verify vaccination status and COVID-19 test results.


They claim that the COVID-19 vaccine passports can help launch most foreign travel. As a result, it will aid in the recovery of company losses (airline, tourist, business events, meetings, and hospitality industry).


Immunity Certificates


The user's official or approved electronic immunization record is the first section of a vaccination passport.


The European Union, China, and Japan are all developing their own cross-border digital immunization certificates. Meanwhile, the United Kingdom upgraded its National Health Service app last week to allow fully vaccinated users to show their status when traveling overseas, coinciding with a relaxation of travel regulations.


Applications that are simple to use


Digitizing immunization certificates or COVID testing data will not suffice. In this case, the travelers will also require a smartphone app that can import such certificates, securely store them, and distribute them with the appropriate government agencies as needed.


Concerns about security


The vaccination passports are a contentious issue, with internet debate emphasizing erroneous claims that they would be used to control people, limit freedom, and infringe on privacy.


The security developers emphasize that minimal personal data is stored on phones, and the only thing that is communicated are encryption keys that allow information to be sent safely.


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The Difference Between Return on Investment and Capital Gains


Once you've purchased your new house, the goal is to begin reaping the benefits of your investment. There are two ways to track the growth of your money: Return on Investment, or ROI, and Capital Gains.


Return on Investment – ROI


Rental income generates the ROI. ROI records can be generated for a resale property and are an excellent indicator of possible revenue. Return on investment is frequently forecasted for new developments based on existing market patterns and comparable rental records. To calculate the ROI, you'll need the following information:


  1. The sum of all rental income earned during the year

  2. Total of all year's expenses

  3. The property's purchase price

  4. To begin, deduct the expenses from the total rental income to arrive at the net income:

  5. Rental Revenue – Expenses = Net Revenue


Divide the net income by the purchase price in the second step: Net Income/Purchase Price multiplied by 100 equals percent return on investment.


Gain in capital


The capital gain on a property is calculated based on the rise in the property's value. How much more can I sell the house for than I paid for it initially? Calculating capital gains is trivial in dollar-to-dollar transactions. The capital gain is calculated as the selling price minus the buying price.


When purchasing in dollars in Mexico, two variables must be considered. Not only the purchasing price in USD, but also the Mexican Peso equivalent. While the final factor for foreigners is the amount of money in their bank account, the Mexican government is only concerned with the purchase and sale prices in pesos. Capital Gains Taxes and other levies are calculated in MXN.


Capital Gains Illustration


To calculate your Capital Gain, you must first determine the initial purchase price in MXN as recorded on your title deed and the corresponding sales price in MXN. In the United States, if you purchase a house for USD 100,000 and sell it for USD 110,000 a year later, the final worth is straightforward to determine.


The difference between the selling price of $110,000 USD and the purchase price of $100,000 USD is the capital gain of $10,000 USD.


If the same sale occurs in Mexico, the prices in MXN must be considered.


If you purchased the property on September 30, 2018, for USD 100,000, the purchase price would have been $1,867,000 MXN, based on the conversion rate of 18.67 pesos to the dollar. If sold one year later, the sales price would be $2,178,000 MXN, based on the current exchange rate of around 19.8 pesos to the dollar. Capital gain would be calculated as follows:


$2,178,000 MXN – $1,867,000 MXN = $311,000 MXN or approximately $15,707 USD in capital gain.


Why is this significant if both transactions take place in US dollars? Capital gain taxes will be calculated using the increase in peso values; hence, your capital gain tax will be calculated using $15,707 rather than the actual USD 10,000 increase in the sales price. It is critical to take this distinction into account when calculating the worth of your investment.


Which is more significant, the return on investment or the capital gain?


In an ideal world, we would all like to own a property that generates a high rental income and appreciates rapidly in value over time. Your purchase is more likely to grow in one of these categories. Units with a high rental income are frequently located in established neighborhoods with little new construction and are conveniently located near amenities and attractions. Properties that appreciate swiftly are frequently located in new developments that do not provide as much rental income.


If it is impossible to find the "Golden Goose" that yields a high ROI and a high capital gain, it is critical to strike a comfortable balance between ROI and capital gain.


For more information on investing in a property in Mexico, call HOMIA Real Estate and arrange for a personal tour guided by one of their professional agents. Bear in mind that at HOMIA, we make things happen!


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The Benefits of Pre-Construction Investing




Many people's primary objective is to get a new property. Investing in the pre-construction period has been an increasingly popular trend in recent years.

Investing before construction enables you to make an initial down payment with the expectation of receiving the home later. The buyer can envisage the future development of the property by using scaled models and floor plans. Numerous aspects must be considered while making such a large investment choice.


Several advantages of investing in pre-construction real estate include the following:


The initial investment is little.


As with purchasing a built home, you can anticipate paying a down payment of 25% – 35% of the overall price. However, if you are purchasing a pre-construction house, you may be able to make the down payment in monthly installments during the construction period. This eliminates the need for a single huge lump sum payment. Alternatively, you may be able to defer further monthly payments until the completed house is delivered. This will free up funds for the life of the loan, allowing you to invest in other assets. Alternatively, you can accumulate the payment amounts during that time period and make a greater payment upon delivery to shorten the duration of your long-term payment plan.


Prices negotiated prior to building


At the time of purchase, the property's price is fixed. By the time construction is complete, the property's entire worth will have increased. Purchasing in advance allows you to pay a cheaper rate for the identical property that will sell at a significantly greater price five years from now. Equity, inflation, and the monetary exchange rate all have the potential to boost the selling price.


Cost savings associated with maintenance and repair.


When you buy a freshly constructed house, you save significantly on routine maintenance and repair costs. Consider these as overall savings when calculating the expenses associated with real estate investing. Because all internal components, such as plumbing, electrical wiring, and household appliances, will be in excellent shape. You might anticipate significant cost savings in terms of maintenance. Additionally, most new appliances come with extended warranties that cover any necessary repairs or replacements.


Customize your home


Purchasing real estate before construction gives you additional options. You may wish to select the ornamental components for the interiors, adjust the design, create the kitchen, and hand-select the appliances. Perhaps you have a particular preference for your home's location inside the complex.



You can choose a corner lot, one close to the front, or the sought ocean view property. You have the first peek at the development plans as an early investment. This includes viewing models and inquiring about all the details necessary to conceive and create the ideal location for your future home.


Gain in capital


Once construction is complete and the property is delivered, the investor has the option of selling it at the enhanced market value or renting it out long-term or on a vacation basis. You can rent out a single room or several rooms on your own or employ a property management company to manage the entire rental of the property. In either case, rental revenue may be sufficient to satisfy monthly mortgage payments.


The benefits outlined above are perfect for first-time investors as well as those with more expertise searching for a lucrative return on their investment.


There are numerous outstanding opportunities for pre-construction real estate investment. Top Mexico Real Estate's team of professionals can assist you.

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Retire in Mexico


 

Retirement is meant to be a period of relaxation and enjoyment of the results of your effort. You want it to start early and last a long time. Warm climates, holiday lifestyles, and a plethora of activities and entertainment may sound appealing but are sometimes unaffordable on a fixed moderate salary. You do not wish to postpone retirement or jeopardize your quality of life. Simply put, you need to retire to a place where you can live comfortably on a lower income. Therefore, you may choose to investigate the financial benefits of retiring in Mexico.


The following are some of the reasons why retirement in Mexico can result in significant savings:


Dollars-to-pesos conversion is rational.


Retirement in Mexico entails subsisting on dollars in a peso-dominated economy. And, as the dollar's trend upward against the peso is projected to continue, you may anticipate that your retirement savings or Social Security benefits will continue to grow over time. By stretching your funds, you can retire earlier and live a healthier, longer life.


Reduced spending equals a more profitable way of life


Not to mention, Mexico's cost of living is lower, to begin with. Mexico produces the majority of its delectable food on its own, which helps keep costs reasonable. Additionally, housing, utilities, health care, and transportation are affordable. This leaves you with more money to spend on the activities and leisure that are supposed to be a part of retirement! Possessing the ability to enjoy one's leisure results in a happier—and healthier—retirement. Additionally, who doesn't want that? -


Housing


Choosing a retirement residence is almost certainly the most critical decision you will make. After all, lodging will be your largest spend.


Renting


According to a study of US cities, the median rent for a one-bedroom apartment was $2,342 in 2020, just under $600 per month. Housing costs are significantly higher in coastal locations with warmer climates. With an average monthly Social Security benefit of $1,404, these rents are unaffordable. Let's face it — nobody wants to retire and shovel snow. Do you agree?


Owning


Perhaps you'd want to retire in a house. For example, coastal property in Florida would cost more than $300,000, not including closing expenses, taxes, and maintenance. Whether you pay cash or borrow money, that's a sizable piece of change to deducting from a retirement fund. Your CPA will almost certainly advise against it.






Mexico is my home

When retiring in Mexico, housing is far more affordable. For the same price as a two-bedroom house on or near a gorgeous beach, you could live in a two-bedroom house. This is true regardless of whether you rent or own your retirement residence. As a result of the significant savings per square foot, you may be able to afford an additional degree of luxury. Elegant condos for sale near the ocean in the Caribbean resort town of Playa del Carmen start at less than $180,000! There is no other place in North America that offers this level of inexpensive luxury.


Investment


If you purchase a home, closing expenses and maintenance are also significantly lower in Mexico. With the money you save on the purchase of your home, you may afford to make improvements and develop equity, so increasing your retirement portfolio rather than depleting it. Want to boost your retirement savings even further? Leverage the equity you build in your home to invest in additional homes and then rent them out as a holiday rental for passive income. Prosper and live a long life.


Retire in comfort


If you are thinking about retiring in Mexico, please contact us to discuss your housing requirements. We will assist you in locating the home of your dreams within your budget constraints.




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Real Estate in Mexico and Pets



Many people involve their pets in all aspects of their lives. They are a part of the core of the family and are welcome to participate in most events. When pet owners go shopping or run errands, they want pet-friendly establishments. It is not rare to see people traveling or vacationing with their pets. Pet strategies in the hospitality sector, including food service and retail, have evolved over the years. Certain restrictions remain in place, but things are changing for our four-legged friends.


It has long been believed that families with children are more likely to have pets than those who do not. Similarly, certain empty nesters have become used to keeping a pet in the house. It seems that having a four-legged friend makes for nice company as we grow older.


But what happens if you want to move? And let's presume you're moving south of the border! You may be interested in learning more about pets and real estate in Mexico. It really isn't that difficult to bring your beloved companion(s) along with you. When embarking on a life-changing adventure, pets will help you deal with anxiety.


The following paragraphs should include some basic details to help you with your transition.


Documentation Needed to Enter Mexico with a Pet


A certified certificate of health for your pet(s) is no longer needed to enter Mexico effective December 16, 2019. However, this does not imply that you can simply cross the border and continue on your way. The pet's owner must take the animal to Mexico's Agricultural Health Inspection Office (OISA) for a brief inspection. Until official entry is permitted, the following procedures must be completed.


  1. Travelers must visit the Mexican Animal and Plant Health Inspection Office (OISA) upon arrival in Mexico with their pet dog(s) and/or cat(s) in a clean cage(s)/carrier(s) to contact the official staff working with SENASICA. The following will be checked by official personnel:

  1. That the dog(s) and/or cat(s) are free of infectious and contagious diseases.

  2. The animal(s) is/are ectoparasite-free*.

  3. The animal(s) does not have fresh wounds or wounds that are healing.


*If parasites are discovered during the physical examination, the owner/user should contact a veterinarian (or anyone) so that an adequate medication can be administered. If ticks are found, SENASICA workers will collect a sample of the ectoparasite(s) for testing at the official laboratory and will ensure that all parasites have been removed from the pet (s). The animal(s) will be held at the OISA [Mexican official office] until it is determined that the parasites are not exotic/foreign to Mexico or are not part of a Mexican Animal Health Program (Campaign).Otherwise, SENASICA can assess the appropriate steps through the Animal Health General Direction. Expenses incurred as a result of such conduct must be covered by the importer.


Other requirements/information about inspection at the OISA upon presentation of the shipment in Mexico:


B. If your pet(s) is/are being treated for lesions and/or infections on the skin caused by mites, dermatomycosis, dermatophylosis, hairless or similar lesions, you must present the diagnostic and treatment prescribed by the veterinarian to the official staff of SADER/SENASICA. Such material, including the professional registration number, should be provided on letterhead (or equivalent). It is appropriate to include a copy of the professional registration number with the letterhead (or equivalent).


C. Compliance with what is stated in this document does not preclude the importer from presenting documentation, submitting applications, and/or following procedures requested by other authorities.


D. If the cage/carrier is filthy and/or contains bed disposable (newspaper wood – other materials) toys or edible items, a disinfection may be performed, removing everything inside the carrier/cage in order to properly destroy it.


E. Only the amount of food used to feed the animal on the day of arrival would be permitted.


NOTE: If you fly often between the United States and Mexico with your dog, you can apply to be a part of the "Pet Program - Frequent Traveler." For more details, please call 59051000, ext. 53611, 54326, and 51020, or (0155) 43130154, 43130155, and 43130152.

 

Considerations for airline travel:


Traveling by Air with Your Pet


Most airlines allow pets to fly with them, but there are some limitations, as with anything else. Here are a few common policies found in the airline industry:


  1. Your pet's size will decide whether it can fly in the cabin or the cargo hold.

  2. Smaller dogs in a travel carrier that fits under the seat can be accommodated in the cabin.

  3. Larger dogs will be transported in the cargo hold of an authorised carrier.

  4. If the flight is longer than 8 hours, the pet must travel in the cargo hold, regardless of size. 


Please keep in mind that it is always best to check with your preferred airline before traveling with a pet.


Airlines may have separate and additional requirements. Check with your airline to determine what requirements they may have, if any. 

 

 

Finding an Appropriate Property

 

Once you've agreed to move to Mexico, the search for the perfect home for both you and your pet will begin. When searching for a spot where pets and Mexico real estate will coexist, there has to be a happy medium. Until touring properties with a trained representative, you should address some basic criteria. Here are a couple of ideas:

  1. Is there enough room for you and your pet to live comfortably?

  2. Is there a pet-friendly complex, building, or community?

  3. Is the flooring in the house suitable for pets?

  4. Is it possible for your pet to get up and spread its legs?

Other factors to consider include the availability of a deck, greenhouse, or patio, adequate furnishings, and ease of maintenance. There are just a few ideas to help you narrow down your quest for the ideal house.

When looking for a house, you should seriously consider a free-standing home. The benefits will be more space and a private outdoor space. The downside would be that more overall maintenance would be needed. The advantage of a condo would be less upkeep in terms of landscaping and building repairs. However, the size of your pet can determine how much room you need to spread out and play. Both types of homes can be found in a number of neighborhoods.


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Puerto Vallarta, the favorite destination for Canadians by 2021



According to an Expedia report, Puerto Vallarta is one of the top destinations for Canadians to visit in 2021, owing to its connectivity and short-haul flight distances, a fantastic temperate climate, and a plethora of natural attractions.


Although the majority of Canadians will remain at home due to the pandemic, many still have the desire and opportunity to travel in the year 2021.


Other international destinations to visit besides Puerto Vallarta, which is ranked first, include Hawaii, the Dominican Republic, the Maldives, and Polynesia.


According to the survey, after a record-breaking year like 2020, it's difficult to imagine why so many travelers want to escape to a beach destination or an island at the first opportunity.


According to statistics, Canadians are the most frequent visitors to Puerto Vallarta, since visitors from the “Land of the Maple Leaf” value the tranquility, security, and adherence to health protocols in the tourism industry, as well as the availability of outdoor activities in a scenic setting of mountains, rivers, waterfalls, and sea.



It is worth noting that air connectivity between Canadian cities and Puerto Vallarta has improved in recent months and will undoubtedly improve further during the winter season. There are currently weekly flights from Calgary, Edmonton, Montreal, Toronto, and Vancouver.


According to a report on “REPORTUR.mx,” the Pacific Coast has surpassed the Mexican Caribe in hotel occupancy during the week of November 9 to November 15.


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Property investment in Puerto Vallarta is a good investment, but is it a good investment in general?


Your first thought when considering purchasing a home is whether or not it will be a successful investment in the long term. The question of whether or not it is an excellent investment is especially pertinent if you are moving to an unfamiliar city or country for the first time. If you are relocating to Puerto Vallarta, it is vital to evaluate whether or not it is a wise investment before purchasing your piece of paradise. In addition, while the basic answer is that Puerto Vallarta Real Estate is a fantastic investment, it is essential to consider the why and how of this decision.


Property values in Puerto Vallarta are continuing to rise, and there has never been a better opportunity to invest in real estate in the Banderas Bay region of Mexico. Because of the popularity of Airbnb and other property management services and platforms, it is not difficult to break even on a property in Puerto Vallarta within a few months after purchasing it. This is especially true in the winter months. During the so-called high season, which runs from November to April, there is an unmistakable increase in the number of visitors and vacationers, both domestic and international. Airbnbs and other vacation rentals are totally booked for the entire season during this time period, which indicates a significant rise in rental demand. Because of the strong demand, rentals in Puerto Vallarta are becoming increasingly expensive compared to the rest of the year. As a result of this, the return on investment is undoubtedly simple, and homeowners are continually discovering that their treasured pieces of paradise not only pay for themselves but also produce tremendously positive revenue.


There are a few possibilities available in terms of rental potential. For starters, many people in Puerto Vallarta do not reside in the city all year long. When they are away for a few months or more, they frequently rent out their property, whether it is for a short or lengthy period of time. Others own two properties: one that they use as a primary residence and live in year-round, and another that they use to generate revenue through rental properties. Many times, rental income not only covers the cost of the rental property, but also the costs of other properties in the same portfolio.


Aside from the possibility for rental income, we are seeing an increase in the value of the real estate as Puerto Vallarta continues to grow in popularity as a destination for relocation. The city of Puerto Vallarta has undergone tremendous transformations in the last ten years, which have helped to establish it as one of Mexico's most popular vacation destinations. Puerto Vallarta is one of the top three destinations to visit in all of Mexico since it is safe, clean, and full of culture. Following the COVID19 lockdowns, foreign relocation has become increasingly popular, and Americans and Canadians, in particular, are flocking to Puerto Vallarta in droves. This upward trend shows no signs of abating, implying that property values will only continue to climb in the future. In a few years, a property that you purchase now for X amount of money will be worth twice as much, if not three times as much. Because of the rising value of the real estate in Puerto Vallarta, purchasing a home in this seaside city has never been a more profitable investment than it is currently.


Whether you want to live in your vacation house in Puerto Vallarta full-time or rent it out while not in use, you can be confident that your property is a sound investment that will create money over time. Purchasing real estate in Puerto Vallarta is an outstanding investment that yields a substantial income, some of which is generated over time and some of which is generated immediately. There has never been a better moment to invest in real estate in Puerto Vallarta, where the market is booming! Start your search today with Homia, one of the TOP Real Estate Agencies in Puerto Vallarta.


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Frecuently Asked Questions - General Question

 


1. Can I own property in Mexico?

Non-Mexicans can obtain direct ownership of property in Mexico's interior. Properties within 50 kilometers of any ocean front and 100 kilometers of any border must be acquired through a bank trust or the formation of a Mexican corporation, according to Mexican law.


2. Can I own property near or in front of the ocean?


Yes, legislation passed in 1973 and 1993 enabled foreigners, foreign companies, and Mexican firms with foreign participation to acquire interests in coastal real estate through a bank trust or a Mexican corporation. Please keep in mind that more details about Bank Trust and Mexican Corporation can be found in the FAQ – Closing Process section.


3. Can I purchase property within the restricted zone under a Mexican corporation entity?


Yes, a non-Mexican must buy property inside the restricted zone through a Bank Trust or a Mexican Corporation. If you want to buy a home purely for personal use, you must use a bank trust. If you want to buy for reasons other than residential, you can do so through a Mexican corporation, subject to certain conditions and procedures.


4. Can the Mexican Government confiscate my land?


Foreigners are often concerned that the Mexican government will seize their property. Mexico does not expropriate land except for a public reason under the North American Free Trade Agreement (NAFTA). In the United States, this is known as "Eminent Domain." When it is appropriate to expropriate property, prompt and fair market compensation, as well as accumulated interest, must be compensated.



5. What are my rights as a buyer?


While a bank trust is a legal replacement for fee simple ownership, the trustee is also the legal holder of the land. As the beneficiary, you have the unrestricted right to sell your house. You may also assign your rights to a third party or designate heirs.


6. Do I need a Temporary Resident Visa to buy property in Mexico?


Anyone, including those in Mexico on a tourist visa, can purchase property. It is claimed that if you sign a contract, rent a house or condo, buy a house or condo, or lease land, you are no longer a "tourist" and can apply for a Temporary Resident Visa. However, a Temporary Resident Visa is not needed in order to purchase land.


7. How long can a foreigner reside in Mexico per year?


When you arrive in Mexico, you will be issued a Tourist Visa. This visa allows you to stay in Mexico for up to 180 days (nearly six months) without having to work. You can also apply for a Temporary Resident Visa while still in your home country, which is valid for a year and can be extended for up to four years.


8. What is a Tourist Visa?

This is the visa obtained upon first entering Mexico and can be extended indefinitely by merely leaving Mexico within the allotted 180-day timeframe and then reentering.


9. What is a Temporary Resident Visa?


This is a document for someone who wants to live in Mexico part-time but does not want to make it their permanent home. To be issued a Temporary Resident Visa, you must demonstrate that you have sufficient capital to be financially independent, or that you fulfill certain conditions to operate or own a company in Mexico. Temporary Resident Visa "Rentista" status is open to those with a monthly income of more than $1,000 USD (from investments, social security, or other retirement) plus an additional $500 USD for each dependent. The amount of income needed is nearly cut in half if one owns property in Mexico.


10. What is a Permanent Resident Visa?


This document is for someone who wants to live in Mexico permanently, and the requirements are just marginally more rigorous than for temporary resident status. After four years of successfully fulfilling the conditions of a Temporary Resident Visa (including limited time out of Mexico), one may apply for "Inmigrado" status, which grants you most of the rights and privileges of a Mexican citizen, with the primary exception being the right to vote. Inmigrado status does not require you to give up your native citizenship, but it allows you to work and stay in Mexico without having to renew your immigration papers every year.


11. If I decide to sell my property, can anyone buy it?

Yes, you can sell to both Mexicans and non-Mexicans. Please keep in mind that a Non-Mexican will also be needed to establish a bank trust.


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Financing Options | Buying A Home In Puerto Vallarta



Not everybody can afford to buy a dream home in Puerto Vallarta outright.

Fortunately for the rest of us, funding is easily accessible here.


A common question we get down here is, "I've been coming down to Puerto Vallarta for years on vacation, and I'd really like to buy something, is financing available in Mexico?"


The short answer to that why yes.


Welcome to this video, in which we will look at financing options for international buyers of property in Mexico.


Before we begin, there are a few things to consider:


  1. Financing for property purchases in Puerto Vallarta or elsewhere in Mexico is not accessible from US or Canadian banks.

  2. Second, financing is usually only available for resale property rather than pre-construction.


Let's take a look at the various financing options available for buying a home.


There are three methods available: 


  1. Private brokers who provide services to international buyers in the Mexican market.

  2. Financing is obtained directly from a Mexican bank.

  3. Use of seller financing, also known as carryback financing. Please keep in mind that this option is only available if the seller of the property you're interested in agrees to it.


Let's take a closer look at these three choices, starting with the first.


PRIVATE MORTAGE BROKER:


Borrowing through a private broker is similar in several aspects to obtaining funding in the United States and Canada. The benefit of this approach is that the broker manages all transactions with the Mexican bank that provides the actual funds. It is worth noting that taking out a mortgage through this process does not necessarily require any formal relations to Mexico.


To get started you just need your passport and your tourist visa. the broker may assist you in setting up a Mexican bank account which once the transaction is complete you'll use to make payments on the loan to get the mortgage.


You'll need to pre-qualify by providing the lender with recent tax returns bank statements pay stubs and credit history from your home country and you'll need to show that you have enough funds upfront to cover the down payment and closing costs which can be up to 40 percent of the sales price you'll also need to be able to purchase life insurance from a Mexican insurer and depending on the value of the loan you may need to pass a health examination interest rates and the term of the loan can vary and should be discussed with the broker when you apply for the loan all in all using a private broker for financing is a good way to go especially if you're new to Mexico and not already accustomed to doing business with Mexican banks.


MEXICAN BANK FINANCING:


Borrowing directly from a Mexican bank is the next choice we'll look at. This is usually a three to four-month process that allows you to have the following documentation:


  1. Three months of historical Mexican bank statements demonstrating sufficient monthly deposits to cover your payments.

  2. Temporary or permanent residency immigration card

  3. Current Mexican tax number known as an RFC

  4. Current medical certificate showing the applicant's good health, which would enable you to buy life insurance. 

  5. Email verification 

  6. Six months of bank accounts from a foreign country.

  7. A high-quality credit report from a credit provider headquartered in the United States.


SELLER FINANCING:


The final form of financing available is seller financing, also known as seller carry back. In this option, a loan agreement is established between the buyer and the seller, and at the time of closing, the buyer takes possession of the property and then repays the seller in accordance with the loan agreement he or she will have all the rights of ownership of the property.


If the loan is for a pre-construction home, you normally pay off the loan during the construction phase and the remaining 10% upon delivery of the property.





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