Mexico Real Estate

Playa del Carmen AMPI Chapter Elects New Board

The Playa del Carmen real estate market's AMPI association elects a new board for the coming term of 2009 – 2011. The AMPI Riviera Maya chapter spent the morning casting and counting votes to choose a new president and committees. AMPI, with over 4,000 members nationwide is represented in all regions of the Mexico real estate market with just over 50 chapters The association has amongst its goals the continuous training of its members, the encouragement of following a guide of regulations and ethics for members and various other objectives

The new board of directors were chosen as follows;

President Wilberth Gutierrez

Secretary Enriqo Dozza

Treasurer Ulla Meihbohm

Committe of Honor and Justice Teresa Gutierrez Thomas Lloyd Jorge Penkoff

Committee of Vigilance Enrique Dominguez Ruben Rios Maricarmen Domani

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Region: Playa del Carmen Real Estate Thomas Lloyd Graduate from Purdue University Business School with a degree in Management/Financial Option Investment. He has been living, investing, and working in Mexico for over 15 years. A Mexican certified & licensed realtor, he is the current president of TOPMexicorealestate NETWORK "Our experience at work protecting your interests" (512) 879-6546.

The Mexico Real Estate Closing Process

So, you have found your Mexico real estate propertyOr in my case, you have found a Yucatan real estateproperty, we have negotiated and signed a contract, you have paid your Mexico earnest moneydeposit and contracted with a notario/attorney to handle your closing. You have decided to either utilize the Fideicomiso, corporation or both. Your attorney/notario has copies of your passport, visa, the contract, and perhaps a POA from you to sign on your behalf.

The ball is now in your attorney's court to prepare all the necessary documentation for closing. This documentation includes checking to see that there are no debts or liens against the Mexico property; that the taxes are paid, the meets and bounds descriptions are correct, title is clear, the property is in the name of the seller listed in your contract, order the permiso for your Mexico bank trust(Fideicomiso) and/or create your Foreign Owned Mexican Corporation.

Typical closing time from signing the contract to actual transfer of title is a process of 4-6 weeks. If there are problems with the title or meets and bounds it may take longer. Usually the “Offer to Buy” purchase contract provides for an automatic extension of 90 days to acquire proper documents if there is a problem. Should the documentation problem take longer to rectify, the seller and buyer will need to sign a contract to amend the closing date.

Most foreign buyers wire the proceeds for closing to the Mexico real estate agent's earnest money account a few days prior to closing. If the Seller wishes to be paid in pesos, the realtor exchanges the proceeds into pesos on the day before closing and orders certified checks or cash to pay the seller and the notario. The realtor issues a final closing statement for review by the seller, buyer, agents, attorneys, and bank the day prior to closing.

The Mexico notary public will provide the buyer with a copy of certified escrituras at closing, after all signatures are collected. Afterwards, the notario will send the new escrituras to the office of the Catastro for recording of the new owner and title. The Catastro will then send the newly recorded title either back to the notario, the buyer, or the buyer's agent or accountant. The Office of the Catastro is notoriously slow. It is not unusual to wait many months for the new escrituras.

The offices of Catastro in the states of Yucat n and Quintana Roo are in the process of moving all the title and property tax information from paper files to electronic files that will be digitalized and stored electronically. This process has caused additional delays in receiving new title documents from the Catastro.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Second Chance in the Playa del Carmen Real Estate Market

The Playa del Carmen real estate market has had some of the world's most interesting growth rates and fascinating samples of regional trends During the 1990's the little village was known as the pier town where you grabbed the ferry to get to Cozumel

It was not the destination, but more the community on the road towards the destination This soon changed though, people began to notice its beaches and the community.European backpackers began frequenting the area and the 5th avenue began to make a name for itself. Hotels and investors began to notice quite quickly the potential of the area Hotel room inventories grew from 10,000 units up to 15,000 – 20,000 Today, the Riviera Maya hotels have more rooms than Cancun With the tremendous growth in various Playa del Carmen industries, the populaton boom began and the real estate market began taking off

Playa del Carmen over the past five years, has been some of Mexico's strongest appreciation markets with returns in the double digits Many investors would purchase Mexico pre construction condo units and sell them 8 or 12 months later with 30% or more appreciation It was a boom all over the coast being witnessed during the first years of the 2000 decade.In the middle of this decade, the comments “I should have bought that property 2 years ago” were quite common These observations from the buying market in 2006-2008 were also accompanied by a decline on the appreciation rates Each year, as the price per square meter crept upwards, the rate of appreciation began losing some steam

2008 and summer of 2009 brought a unique occurence to this regional marketplace.The world economic recession has brought its effects onto the Playa del Carmen real estate market and in the Mexico real estate industry The appreciation rates have flattened and have begun to drop Large amounts NO,but very interesting amounts Some people see this as a half empty glass of water but the current scenario does bring about some fantastic opportunities for the smart investor In fact, there are some quite interesting investment alternatives that could be reviewed as an even healthier market for investment purposes than than the investment environment originally witnessed during the beginning of the years 2000 Let me explain

At the beginning of the Great Appreciation Boom of Playa del Carmen, there were still many risks in the market, there was the risk of new developers, risk of the reaction of the buying market, risk of unknown area development. Today, investors have first hand, regional history data The market absorption and projections are based more on history facts rather than the guessing game or correlating future results based on similar marketplaces in other regions Risks within investments, if purchasing finished products,have been reduced by the knowledge of purchasing a finished product versus the unknown results investing within a new construction Reduction of risks by knowing which neighborhoods were successfully developed and which neighborhoods have not been accepted by the buyers Also, the investor is able to measure how continuous of a demand the Playa del Carmen has reacted over several years of construction and absorption cycles These first hand facts give you and your consultant better data to manage your investments and increase your probabilities of strong returns

The probabilities of continued long term growth are strong in favor of the real estate investor when purchasing properties in the region of Playa del Carmen Obviously there is a short term downturn But that is what this entire article is discussing This fall of 2009 is presenting some incredible and unique real estate opportunities that are not common and which allows many people the “Second Chance ” to buy into the market and ride the wave of appreciation. Contact us here at Lloyd's Real Estate to learn more on how to buy real estate in Mexico and how to apply some strategies when acquiring land in Mexico

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Cozumel Real Estate Updates in the News

The Cozumel real estate market is effected by several factors which include amongst many others, hotel occupancy rates, the ecological environment of the island, and the cruise boats that visit the piers from this Mexican Caribbean islandBelow are short updates on activities this past month that are effecting the island but also the Mexico real estate market as a whole.

During the Easter vacations, the hotel occupancy rates arrived to nearly 80% Currently the island has approximately 3,522 units in inventory for the hotel industry People comment that the world economic situation has reduced the normal rates but also pointed out that with the gain of the dollar against the peso, this has regained opportunities given the fact that tourists have more pesos to spend It is estimated that each hotel room guest spends approximately $100 usd while a cruise ship tourist spends nearly $80 usd

Another update is in regards to the project of the recuperation of the beaches in Cancun, Playa del Carmen and the Cozumel Island The mayor of the municipality met withthe governor this month to advise that the island is not against the project of restoration of the beaches, but is searching for an alternative area where they plan to extract the sands The current project outlines an area on the norther part of Cozumel where they plan to dig up fresh sand The project calls for the restoration of 7 million cubic meters of sand to be sucked up from the ocean floor off of the island and blown back to the beaches throughout the cities of Quintana Roo

The news that is on front page throughout many parts of the world is the virus outbreak called the swine flu Here on the island, and in the entire state of Quintana Roo, there have been no reports of anyone having been infected The federal government has been aggressive on their response and their actions to prevent further spread of this flu and have closed all schools throughout the entire country until May 6th Cruise ships coming to Cozumel have also been postponed for the immediate future until the federal Secretary of Health gives the green flag They expect the ports to be open if all goes well within 7 – 14 days At the same time, as the government has taken correct steps in the prevention of the spread of the virus, the local, state, and federal government are already preparing action plans and marketing campaigns to be initiated to support the re surge of the important tourist industries

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

What is a Mexico Notary Public and What Are Its Roles

A Mexico notary public is an attorney that specializes in real property law and is specifically licensed by the state to legally transfer Mexico real estate property from one party to another. In my previous post in our Mexico real estate blog, I talked about the how to buy real estate in Yucatan One of the most important roles during the transaction are that of the notaries The number of Mexico notary public licenses is limited by the state. An attorney who wishes to become a Mexico notary must first attend classes and then pass a board. It is a demanding process and many do not make the cut.

For those few attorneys that do pass the test and are eligible to become a practicing Mexico notary public, they enter a waiting list for the next available notary license from the state. The wait is usually many years. Frequently, a law firm will have one or two junior partners who have completed the notario board exam and can assume the position of notario for the firm. A Mexico notary public license is extremely valuable and dearly guarded by the firms that have them.

The notary public is ultimately responsible to ensure that a clean, merchantable title is passed from the Seller to the Buyer, that the property taxes, transfer fees/taxes and any Mexico capital gains taxes are paid at or prior to closing. They are also responsible to properly record the transaction in their personal books and with the office of the Catastro (Mexico Public Registry). Should a notary public fail to discharge their responsibilities in an honest, fair and transparent manner, they could lose their notary license.

Choosing a notary public is usually not difficult and your Mexico real estate agent will be able to suggest a good notary that is versed in transferring titles to foreign buyers. You may also choose to work with an attorney who is not actually a notary but is connected to a notary. Frequently, these attorneys have passed their board to become a notary and are waiting their turn. In the meantime, they are skilled at checking titles, ordering Fideicomisos and setting up corporations.

If you are setting up a corporation, it is a good idea to find an attorney/Mexico notary public that understands the mechanisms of the proper corporation to best execute your business plan and objectives. Having your corporation construed and worded properly the first time will save money, time and frustration.

Notary Public fees will vary from one firm to another. Many fees are based upon the amount of the operation (appraised value of the property). Taxes and transfer fees are based upon this appraised value.

Frequently, the appraised value of the property is much less than the actual purchase price. If you wish to record your deal at the actual purchase price, that is fine, but be prepared to pay higher closing costs and, perhaps, you will be expected to pay the additional capital gains tax that the Seller will incur due to the buyer's desire to close the deal at the actual purchase price instead of the appraised value.

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Thinking of buying a place now for a future Mexico retirement

Not quite ready for that Mexico retirement But if you re planning your future in a sunny place, now is the time to get the ball rolling. Join the multitude of buyers doing just that.

Mexico Condo & Pre-construction Opportunities

In the last few years the variety of options for second homes and retirement homes in the Cancun real estate region and the Riviera Maya area has increased to enormous proportions. This boom in the Cancun condo market and the pre-construction opportunities provides options for different lifestyles and tastes. And with more options available, developers are becoming more competitive, offering more amenities and better finishings.

This competitive market has also opened the door for more flexible payment plans. Over the past few years, most developers throughtout the Mexico real estate industry required an initial down payment, maybe 25-30% and then the balance paid in equal installments over the construction period. This scenario made it difficult (and undesirable) for most buyers.

Finally some savvy developers are offering more accessible plans, with an initial down payment and the balance upon delivery and title. With this type of payment plan, buyers can apply for long term financing. There are now many banks and Mexico mortgage companies offering financing for US and Canadian citizens.

And now with the credit problems in the US, many developers are rolling back prices to spur sales. Since there are lots of options available for buyers, they are starting to realize they need to be competitive with pricing. Because of the devaluation of the peso, many are switching their pricing schedules to pesos, making it even more attractive for US buyers. With the currently high Mexico exchange rates, buyers can get more for their dollars in this market.

TOP Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"