It's Official! Owning Property in Mexico: Safe and Smart!
Posted: Tuesday, September 26, 2006
by MuseCreative
Muse Creative
Searching for smaller towns? Locales with an abundance of outside activities? The children left the nest and now you have plenty of time and money to invest in international real estate?
You have been thinking about a very long vacation, where sense of wanderlust and enough technology available make possible to run an office or stay in touch with family while on the road. A vacation that will bring you near cultural and spiritual hubs that keep the adventures and experiences available year round, and much more, haven’t you?
If you are a Baby Boomer, this is for you, because most probably, life just got a "second air," and you want to continue exploring your opportunities, isn’t that true? So, why not Baja, Mexico? It's time to look down to the south for your next best adventure in international real estate business, and you are going to learn why so many baby boomers are thinking "Baja."
According to the Seattle Times, "U.S. housing market cools, but Mexico resort areas still hot"
But, can a foreigner really own property in Mexico?
Homesite developers in Loreto, Baja California Sur, like www.costaloreto.com, offer the foreign and domestic investors one of the best secure forms of property ownership in all of Mexico. The following information describes the process of Mexican Property Ownership, the equivalent to an American beneficial trust.
While it is true, that in years past, Mexican law prohibited foreigners from purchasing property, this is no longer the case. Although there are some restrictions, foreigners can purchase property and will receive either fee-simple title or a trust deed. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf. Either way, the owner will be able to own property, sell it, or will it to their heirs as they choose.
"Mexican Law provides for private ownership of land by foreigners, and its law is very specific about the way in which land rights should be transferred from seller to buyer, and also what type of lands are not eligible for public ownership. A Notary Public (see below) will guide you through the details of these, but generally:
* Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km restricted land border zone, or outside of the 50km coastal zone;
* Inside of the restricted border/coastal zones, foreign nationals may own land through a fidecomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name."
(As quoted here: www.mexperience.com/property/prop_buying.htm#3)
The Role of the Notary Public in Mexico:
The Notary Public is the most important person you will deal with when you make a property investment in Mexico. Do not confuse the role of the Notary Public in the US or UK with its counterpart in Mexico: they are quite different. In the UK for example, almost anyone can become a Notary Public. Not so in Mexico, where the role is appointed directly by the State Governor (the highest seat in State Public Office).
How it Works:
Foreigners will acquire irrevocable and absolute ownership right to property in Mexico through a 50 year perpetually renewable and transferable Bank Trust called a "Fideicomiso". This Trust is a legal substitute for deeded (commonly referred to in the U.S. as fee-simple) ownership and is to be carried out by a notary public. This Bank Trust is provided specifically for non-nacionals to own property in formerly restricted zones (border and beach areas). The trust system of ownership is sanctioned by the government of Mexico, provided for under the constitution of Mexico and secured by the Central Banco de Mexico by offering powerful protection to the buyer and investor.
Financing:
In years past, buying real estate in Mexico was always a cash transaction. But now, home mortgages are available to qualified buyers. Both Mexican and U.S. companies currently offer mortgages. It is important to note that interest rates are usually hgher than in the U.S. , and that additional fees apply. This does however offer the opportunity to purchase property in Mexico to buyers that may not have been able to do so in the past.
Things to Know:
If you want to live in Mexico (Instituto Nacional de Migracion)
This is the official site for the Instituto Nacional de Migracion (INA: roughly— National Institute of Migration.) This is also the official source to answer your questions about living abroad.
There qou will find answers to many of your questions about living in Mexico:
If you want to live in Mexico
•And live with funds I receive from abroad
•And invest my capital in industry, commerce, and services
*And practice my profession
•And assume a management position in a company:
•To engage in artistic activities or professional sports:
Right now is the best time to acquire real estate in Loreto, at Villa Julieta, an oasis, just within one of the most strategic, geographical spots in the world. Be one of the firsts to find all about it, and enjoy all its benefits!
Muse Creative is the owner of www.musecreative4u.comand webmaster of www.costaloreto.com.
Contact us If you want to live in Mexico to invest or to own a home with a First-class pre-development, ocean-view, and beach-front real estate, marina and golf club estates, to acquire and invest.
This Article has been viewed 182 times. (Not updated in real-time.)
Top-level comments on this article: (1 total)As an American living in Mazatlan and "owning" property, the article is accurate as far as it goes. Some of the "fine print" of ownership is missing, and much of the intricacies of securing loans (mortgages) to buy Mexican property are not detailed. However, this article makes a great start to educating one's self regarding Mexican home ownership.
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