Real Estate Puerto Vallarta

Maybe you’re thinking about retirement in a few years and owning a vacation home or some real estate in Puerto Vallarta. Or maybe you’re among the younger set, with children and see this city as a family investment that will pay strong dividends.

Puerto Vallarta offers all necessary services and needs for health, safety and entertainment that we all need for our loved ones and ourselves.

There are outstanding developers today in the real estate market in Puerto Vallarta, creating a wide range of opportunities for investors, who not only seek a holiday option, but also an investment choice is supported by the attractions of the beautiful natural areas and activities such as fishing, golfing, and all types of navigation. There are many choices when it comes to investments and Puerto Vallarta possesses the greatest potential of the Pacific with its unlimited attractions that allow travelers to find something new ever when they return.

You will be enchanted by the Bay it is a paradise of vibrant colors and lush beaches. Explore the natural surroundins, jungles and submarine wonders.

The new residential real estate Puerto Vallarta market not only provides alternatives to personal reasons, but as a short and medium term investment.

Real estate isn’t just buy a house of a particular style anymore, it is an important decision from a financial and investment perspective.

To purchase property not only implies that a decision on the style of home we want to buy, but also means that a crucial decision from an investment and economic perspective.

Real estate in Puerto Vallarta is one of the most prosperous in the national and international level, it grows from year to year and had very good results in the 2004-2010 period. The similarity between real estate professional development of Mexico and the United States gives us an idea of the importance of this sector in Mexico. The Mexican Association of Professional Realtors (AMPI) is the only real estate association, much like the National Association of Realtors (NAR) in the United States.

The real estate market stands out for being a safe and property investments, and gives very good dividend to investors. The best opportunities to make money in a country like Mexico exist when investment instruments have low yield rates and the stock market is unstable, because Mexico is known to have extensive guarantees to satisfy the necessary security for investors. The current state administration is to give all support to facilitate the bureaucratic procedures. Sometimes it is easier to buy a home in Mexico than in the United States or Canada, since the sale   purchase process is performed by specialized brokers and a notary, which validates and certifies all transactions.

Buying a property in Puerto Vallarta

We all dream of one day owning a piece of beach holidays, or the day we said goodbye to long years of work. In the past, was the only way they could acquire the property with cash payments. Now you have the opportunity to acquire property with the bank or credit card direct financing on the part of developers.

Nevertheless, it is important to define what you want to buy (house, villa, land, or an apartment). It is important to know what your budget, if funding can be found who will advise you, in short, there are a number of relevant aspects that should be reviewed by experts in their respective fields. It is necessary to know and understand Mexican law in order to protect your investment. For foreigners, at least, the purchase is made through a Fideicomiso (Trust contract).

What is a Trust Contract?

The purpose of the trust contract is to maintain the right buyer who acquires guaranteed rights and administration of estates. In the case of foreigners, is the confidence that the contract is made because there are restrictions in terms of direct ownership of land. The trust agreement also ensures legal certainty with regard to the possession of the property. This contract must be registered in the presence of a notary and with the consent of the Minister of Foreign Relations here in Mexico.

Want to establish a trust contract, start with a minimum payment for the formation of trust with a bank and also a payment based on a percentage of property values. The bank charges an annual fee (which depends on the estimated value of the property), which pays for the cost of their services. A trust contract last 50 years and is renewable.

Important aspects in the buying and selling of real estate

It is important that notaries are involved in the process. He is a go

Governmental representative certifies and perform all the sales contract process, which occurs on transfer of deed of ownership from one person to another. It is also a guarantee that the notary responsible agent of the property because it protects the interests of the buyer and the seller. The following documents must be given to the notary so that he might be able to process the transaction, a full assessment of the property to calculate how much tax to pay, a letter from the municipal that their water bills and property tax payments has been paid to date, and a certificate of any existing liens from the Public Registry of Property.

Time, Mexican laws impose a 33% tax paid on the difference between the registered purchase price and selling price (less authorized deductions and inflation compensation). Nevertheless, it is possible that the seller pays a 25% tax on the total value of the transaction, without deduction.

Beginning in 2004, the only way a foreign seller may be exempt from capital gains tax payment is to prove that he or she is a resident in Mexico. In the case of another residence outside Mexico, he or she must demonstrate that their main economic activity occurs in Mexico. There must be evidence that 50% of their annual income is in Mexico, or that their most important academic activity in this country.

A guide to the acquisition of property is secure

1 – The first step is to retain a specialist property company who will charge a 6 to 8% commission based on property value. You must also choose a trusted notary.

2 – Look for AMPI abbreviations in the property’s description, so that there will be a guaranteed thorough legal review. This will facilitate the transaction since the closed season is essential.

3 – Make it clear that the seller is responsible for all closing costs, including costs, taxes and fees.

4 – Analyze all financing options. There are now direct financing in the short and medium term for Mexican and foreigners. Foreigners also mortgages to buy or build their vacation home in Mexico. This type of financing is available from companies such as Collateral Mortgage Ltd, which provides loans of up to 50% of the value of the property, starting at $ 400.0 000.0 00 USD and 20 years that American citizens who wish to build, rebuild or buy vacation property in Mexico.
Another way in which residents will have funds to purchase real estate in our country by obtaining financing through properties or assets in their home as collateral.
The minimum down payment is 30%, and the annual interest begins at 8.7 75%. The minimum credit is for the amount of $ 100.0 000.0 00 USD and the maximum is $ 800.0 000.0 00 USD.

5 – notary acts as a responsible agent for the property. This is not generally common to have title insurance, but there are Mexican and foreign companies that offer this service. Stewart Title Insurance is the leading company of its kind in Puerto Vallarta.
Under the title insurance guarantees validity and priority of their rights on the property to the insured (owner, trust holder or mortagee). There is also a compensation contract between the insured and the insurer issuing the policy. A title insurance is also a thorough analysis and evaluation of public and private documents and plans relating to the property deed.
In case of loss or negative review of title insurance issued by a company that the company is committed to:

I) Compensate the insured for losses when the loss or damage not caused by deeding titles or problem that was expressly exempted from the policy.

II) Pay the legal costs of defending and protecting the insured faced with a claim that the questions about the validity and preferences of their rights to the property.

III) When possible, remove or resolve the error or encumbrance affecting that title.