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Real Estate
" Is it safe to buy real estate in Mexico? "
This is one of the most common questions asked of agents and developers in Puerto Vallarta by North Americans.
The answer, from a legal standpoint, is that foreigners may be granted the right to own real property under only very specific
conditions, which are outlined in the Foreign Investment Law of the United Mexican States.
Direct ownership by foreigners is prohibited by the Mexican Constitution in areas known as the Restricted Zone. In that zone,
which is within 50 km of the coastline, or 100 km of the Mexican border (international land boundaries, and that includes
border towns/cities), property can be purchased through a bank trust, or a "fideicomiso" as it is called in Spanish. More about
that on another page. Outside the restricted zone, property can be purchased with a direct title, or in fee simple or freehold
title, as most North Americans know the term. In fact, there are laws that allow and encourage foreign investment throughout
the country.
Non-residential property can also be acquired by a Mexican corporation, which can now be 100% foreign owned. Limitations are
placed on the type of property, normally industrial or commercial in nature, or property that will be designated for some type of
tourism use. This type of property can be bought in a fee simple form, eliminating the need for the bank trust. The are
numerous regulations that govern this type of acquisition.
Development of resorts, condo projects and homes in Costa Vallarta is nothing short of phenomenal, and has been for several
years. Appreciation rates have been in the 5 to 20% range, annually, depending on location and the type of property. Although
many of these projects are developed by Mexican interests, the investment in property acquisition located in retirement and
tourism areas is dominated by Americans, Canadians, and Europeans to some extent.
It is estimated that 1.5 million Americans own vacation property in Mexico, according to Mitch Creekmore, a vice president of Stewart
Title Guaranty de Mexico. “Values in some markets have tripled in five years – far exceeding the rates of return you find in the
United States.”
Mortgages are once again available to buyers in Mexico, but for the time being only to American citizens purchasing here, and of
course mortgages have been available to Mexican citizens and Nationals. GE Consumer Finance is one of the lenders, offering
mortgages up to 70% of value, at rates currently of 7.99%. That is General Electric, folks, a global company managing assets in
the billions.
There are many other mortgage firms, and American banks such as Sonada Financial Group and Marshall & Ilsley,
participating in the marketplace, and more are coming.
MLSvallarta.com
If you would like to search for a condo in the Costa Vallarta real estate market,
click here to visit the multiple listing site for Puerto
Vallarta and surrounding area. Chances are you will discover only some similarities to other multiple listing sites in
North America. Information provided is basic, although some property descriptions are more descriptive than others,
and photos are limited to one only. On occasion, the broker’s name is included, rather than the listing agent’s. All
properties for sale are not necessarily listed on MLS.
There is not a local real estate board in Puerto Vallarta, and consequently there are no rules and regulations that an
agent must adhere to in submitting property data. Selling, or Buyer Agents, do no have access to data such as “days
on market’’ and ‘’price adjustments’ made during the term of the listing. Sold properties may be left in the system
for weeks or longer. Agents who respond to other agent’s requests for more information will usually provide a property
profile or feature sheet on the subject property.
Should you wish to complete a submission form on my Contact Us page, include a
MLS # reference to any property of interest. Rest assured I will do my utmost to respond promptly with the information
you are seeking.
More info for you...
Real Estate Areas and Regions with Map
MLS Vallarta
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