Article
Buying In Mexico
Now purchasing property in Mexico is safer than ever before. Since more and more people are opting to invest in Mexico condominiums property the U.S. Title Insurance and U.S. Third Party Escrow, C & F Real Estate guides you through your entire real estate transaction, ensuring that the process completes legally, safely and securely. The following is an overview regarding the ownership regulations for Mexico condominiums currently in place for individuals. Over time these regulations may change, therefore it is important to make sure that the process outlined here is still in effect by contacting a certified accountant or Mexican Notary. Within the last twenty years, real estate in Mexico has become a lucrative and viable investment strategy, bringing with it a new breed of sophisticated investor. Today, there are established regulations for non-Mexicans owning land in Mexico that make the process of purchasing safer and easier than ever before. These rules are in place to both protect the Purchaser's ownership rights and to promote the sales of Mexico condominiums real estate to foreign investors. The key to purchasing in Mexico is an established and perpetually renewable Mexican property trust called a Fideicomiso.
With the constitutional amendments in 1994, the foreigners got the right to purchase and own real estate in Mexico located within the restricted zone, which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or Fideicomiso. It is a Trust owned by the Mexicans. In this, the Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as purchaser for the Mexico condominiums property. The bank acts as the Trustee for the Trust and you are the Beneficiary of the Trust. The law authorizes Mexican-banking institutions to act as trustees. A trustee takes instructions only from the beneficiary of the trust. The beneficiary has the right to use, occupy and possess the Mexico condominium property, including the right to build on it or otherwise improve it. The beneficiary may also sell the rights and instruct the trustee to transfer title to a qualified owner. Many people refer to the trust arrangement in Mexico as a lease agreement, which is not true.
You have all the rights that an owner of property in the U.S. or Canada has, including the right to enjoy the property, sell the property, rent the Mexico condo property, improve the property, etc. The initial term of the trust is 50 years. An investor can renew the trust for an additional period of 50 years within the last year of each 50-year period, and this process continues indefinitely, providing for long-term control of the asset.
The closing cost of Transaction should be around 6-7% of Your Purchase Price. Although a 28 percent capital gains tax may seem high, Mexico does have several laws and procedures that will assist you in maximizing your cost basis, thereby reducing your net profit and lowering your capital gains. It is always better to understand these laws before you buy your Mexico condominium property, not when you decide to sell. Similar to financing in the U.S., financing your home or home site in Mexico requires verifying your income. Alternative documentation programs are also available and allow the use of bank statement deposits for verifying income. Otherwise, you can simply state income without providing verification.
Source-http://cfrealestateincabo.com/owning.htm
