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Questions and Answers about owning beach front property in Mexico

The following article by Morgan Financial provides a few basic answers; if you have other questions please post them and we will provide a response for you. 

Owning Beach Front Property in Mexico

By Morgan Financial

With about 75 million baby boomers retiring soon and home values in the warm coastal areas of California and Florida becoming less and less affordable, many Americans are looking south to Mexico to purchase and finance vacation and retirement homes. The economy in Mexico is experiencing a surge in development and home prices fueled by interest from US homebuyers and investors. Properties are selling quickly and home prices are increading every month. Mortgages are now available for both new construction and exisitng residences. If you are looking to purchase property please look through the following QUESTION & ANSWERS

Q. Do I need a passport to own property in Mexico? A.Yes, you will need a valid U.S. passport

Q. Is the property owned in a 99 year lease? A. No, the property is held in a bank trust. "Fideicomiso" granting the trustee-an American corporation established in the name of the buyer- all the rights of ownership for a fifty year term. The trust is inheritable and extendable and is backed by an international bank.

Q. Can a foreigner own real estate in Mexico?: A. Yes, foreign buyers can own real estate in the "restricted zone" along the coast, by obtaining all ownership rights through a Fidecomiso or bank trust. This bank trust is established by the Mexican government "A Notario" and gives foreigners the same rights of ownership as Mexican citizens enjoy, except that the actual title is held in the name of the trust.

Q. How do I begin to create a trust? A. The Notario-a representative of the Mexican government- will wright up the new Fideicomiso and contact the bank to render the trust legally binding.

Q. What can I expect from Property taxes in Mexico? A. Taxes in Mexico are very inexpensive. On a $500,000 property for instance, you can expect to pay about, $50-$70 a month in taxes.

Q How do I hold title? A. Foreigners, in most cases, hold title with a bank trust. It is fee simple and the only difference between holding title on most property in the U.S. is that the bank holds the title in the name of a U.S. corporation with the U.S. buyer as the sole shareholder. When lending for a first deed of trust, the lender holds the bank trust until the loan is paid in full.

Published Monday, September 03, 2007 9:28 AM by Realty Executives Puerto Penasco


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