Mexico Real Estate

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!"

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 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!"

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.

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!"

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.

Puerto Vallarta real estate always offers many, diverse activities for residents of the city. One of the activities which foreign visitors and residents alike enjoy is caring for the natural beauty of the area – one of Puerto Vallarta real estate’s most important attractions.  During the following months there will be a focus on protecting newly born sea turtles.

This month the nesting season for the Olive Ridley Turtle – the most common sea turtle in the Puerto Vallarta area – begins; the season lasts until November.  The natural nesting cycle of the turtles includes abandoning the eggs for the 50 to 60 day incubation period, when the eggs hatch, and the newly-born turtles instinctively head for the sea.  While it is a natural part of the process that many are taken by predators, including seagulls, it is important to ensure that a large number arrive safely to the sea, since these turtles are a threatened species.

In Puerto Vallarta, there are various organizations devoted to the protection of these turtles, which provide opportunities for volunteers to take newly born sea turtles to the edge of the water and help increase their chances of survival.  The programs not only help prevent loss due to natural predators, but also make sure that swimming and other potentially disruptive sea activities are put on hold during the time that the turtles go to sea.  The volunteers are organized, with a line drawn at the edge of the ocean so they don’t accidentally step on the turtles others are releasing.

This month volunteers from Puerto Vallarta itself, as well as from numerous other countries, such as Korea, Germany, Spain, France, Belgium, the United States, Israel and Finland, have begun to arrive to beaches in Puerto Vallarta and the surrounding area to help in this important process.

Just as nature provides a key element in the attractiveness of Puerto Vallarta real estate, residents and visitors alike do their part in protecting this threatened species, thus ensuring that its existence continues to add to Puerto Vallarta’s beauty.

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

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.

Puerto Vallarta is a large multifaceted city.  For this reason, Puerto Vallarta real estate offers a large variety of activities and events, appealing to just about anybody.  Puerto Vallarta real estate is continuously benefited by infrastructure improvement and investments in the city tourist industry, and the next few years will see further investments for the upcoming Pan-American Games.

Puerto Vallarta has officially been named a secondary host for the 2011 Pan-American Games in Guadalajara.  This role was made official on June 25^th with the signing of a contract between the municipal government and the committee in charge of the games (COPAG), establishing the responsibilities of both parties.

Puerto Vallarta will host the sail, triathlon, open water swimming and beach volleyball competitions.  In order to host the final activity, a new beach volleyball stadium, with capacity for 5000 spectators, will be opened in Puerto Vallarta.  The new stadium will be located in the Agustín Flores Contreras sports complex.  While facilities for the other competitions are already in place in Puerto Vallarta’s well established water-sport facilities, Puerto Vallarta will also provide the infrastructure for the celebrations of each event.

In the case of open-water swimming a route which runs along the waterfront will be used, so the general public will be able to have a panoramic view of the competition.  The triathlon will be held in the marina area. The sailing competition requires only open sea. 

Other secondary host cities for games are Boca Laguna, Chapala, which will host waterskiing, Tapalpa, which will host mountain biking, Lagos de Moreno, which will host baseball, and Ciudad Guzmán, which will host rowing and canoeing.

After Guadalajara, Puerto Vallarta will be the municipality most benefited by the 2011 Pan-American Games.  The city will receive 300 athletes, plus staff and representatives; just as importantly, the city will continue to receive national and international attention and promotion through organizations such as Global Sport – part of the International Olympic Committee – which will be selling 3 day visit packages for Puerto Vallarta.  The promotion and improvements will add to the already thriving water-sports culture and tourist industry that Puerto Vallarta real estate offers to residents and potential buyers.  Also, anyone water-sports fan will enjoy the benefit of watching some of the finest international athletes compete in these events.

The agreement which formalized the commitment was signed by various dignitaries, including Puerto Vallarta’s Mayor and Javier Bravo, the president of COPAG, Alfonso Petersen.  “There is a lot of work to be done,” said the mayor of Guadalajara; “Puerto Vallarta will host four competitions, and each one has special necessities with regard to investment and infrastructure,” adding that Guadalajara intended to support Puerto Vallarta in these responsibilities.

The 2011 Pan-American Games will continue to add  to an already-thriving water-sport culture, and acknowledge the city with this well-deserved role.  Property buyers interested in a beachfront city should consider the benefits of Puerto Vallarta real estate.  Besides the 2011 Pan-American Games, Puerto Vallarta real estate offers a full range of beachfront events and activities. For more information about life in Puerto Vallarta.

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

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.

I remember when I first started looking for property for myself down in Mexico. I will admit that I was pretty confident and made…quite a few mistakes mainly by trying to do various things on my own I was a strong believer in my own investigative abilities, I knew how to negotiate in Mexico, and I had seen my good share of various types of business contracts in Latin America But soon, after my solo property search adventures, several late nights of worrying about my money deposits, and various headaches from that first dreadful Mexico real estate purchase experience, I suddenly remembered that good old simple advise that my father and some business teachers had shared with me, “DONT STUMBLE OVER YOUR OWN PRIDE…ALWAYS SURROUND YOURSELF AND LISTEN TO PEOPLE WITH EXPERIENCE”.

When I started looking for properties down in Mexico. I started on the internet. Back then, I thought that when a property was listed on a web page in Mexico, the only Mexico real estate agent who could deal with that property was the listing agent that appeared on the web site! So here I was, surfing the internet, calling 5 different web sites, sending 8 different emails trying to collect information and data on various Mexico real estate options Some agents called back, some never responded, I had messages from Juan, messages from John, incorrect data from Pablo, it became complicated quite quickly.

OK, so what do the EXPERIENCED Mexico real estate experts recommend

Linda Neil with 35 years of experience in the La Paz real estate market suggests -

Her article Purchasing Your Mexico Dream Home states, “Step one in your property search is to find a Mexico Real estate agent who will represent you the buyer…an AMPI member…a buyer agent…interview….ask for credentials”

TIP 1) Interview and find a Mexico real estate agent who will represent you the buyer Most real estate transactions have two agents involved One to represent the interests of the selling party, the second to represent the interests of the buying party

Continuing with my adventure during my first experience in searching for real estate in Mexico was the investigation phase I finally was able to identify about 7 properties that were rescued from my mess on my desk from my first phase of investigation on the internet These seven properties looked as if they could fill the criteria points I was searching So I called back to each of these different offices for further information I did not think it would be “business smart” to tell the real estate offices that I was also collecting property information from other agents I was searching for the best prices and thought the best way is to have each send me their best options they had in their office I did not know that agents in AMPI work together sharing all information amongst their database.I was doing my own analysis, collecting my own information, preparing my own comparison tables.Watch out Mexico, with my analysis you wont know what hit you when I get off of that plane

What do THE Experts and Mexico real estate blogs suggest on solo investigations.

Mitch Keenan with over 15 years experience in the Yucatan real estate region adds the following.Buying Property in the Yucatan Market article lists the following advise”A good real estate agent will build a solid relationship with their clients, helping them with a range of issues that the foreign buyer would never be aware about” (History and credibility of the builder, the neighborhood and its safety issues, the price trends of similar properties throughout the market) “If you are out of town and even more so if you are out of the country, how can you expect to study the many factors and history that goes into a good market opinion on the value of a property You need a point man on the ground to look out for your interests.”

TIP 2) Work as a team with your buyer agent If you find a property on the internet, share the property with your buyers agent, let him investigate, let him give his in put and his knowledge,ask him to take pictures, ask him to investigate the legal status. Even though it is a listing from another agent, your buyers agent can call up the listing agent on your behalf, investigate the property professionally before your trip to Mexico saving you much time and much money.

In my first round with property searching, I was excited to physically visit and see with my own eyes the various options I had selected.A good start early in the morning sounded like a good plan for my first appointment I arrived sharp and a few minutes before with all the excitement of the full day of activities that awaited me The agreed and confirmed hour to meet had arrived and the agent had yet to show up.15 minutes later, no one yet 30 minutes ahhh finally.But I either had to rush quickly to see this first option or else call up my second appointment and tell him I am was running late I rushed through the tour, took some quick notes and scribbles, forgot a couple of questions and off I went to the next visit Second visit went ok, but then trying to find my third house, the street numbers jumped from 104 up to 188 What happened to 122 This is more common in Mexico than you can ever imagine of inaccurate street addresses So after driving back and forth about 5 times, I decided to scratch that option completely off of the list An hour later, I have an agent who is not happy asking why I stood him up With only three hours into operation “Mexico property search” I have a splitting headache and am ready to go to the beach and call it quits

Once again, lets see what the good old EXPERIENCED PROFESSIONALS sayWhat advise does a TOPMexicoRealEstate expert Jim Scherrel have on this topic

Jim Scherrel from the Puerto Vallarta real estate market points out the following items that your buyer representative will deliver when working with you as a team His article Mexico Buyers Agent How Important are Their Services lists the following, “your buyer representative will help you by a) unbiased and shows all properties available in the market b) thoroughly researches properties pros and cons c) conducts a comparative market analysis amongst many other activities”

TIP 3) Don't waste valuable time trying to coordinate property visit meetings in a foreign country.

people arrive late, fighting to find properties on unknown streets, focus your time on collecting data, taking photos, organizing and evaluating Use your time wisely.

Its the simple advise that many times can be the most valuable It applies in Mexico too “Surround yourself with Experience” and enjoy Buying property here can be exciting, fun, and profitable

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

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.

Find out how to protect your good faith deposit and Mexico Earnest Money.

Your ready to buy your piece of paradise, but handing money over to someone you don t know in a foreign country is a scary proposition. So how do you protect yourself from a fraudulent situation

Purchasing property in the Cancun real estate market and even in all regions of the Mexico real estate market is a quite different process than in many other countries. And when it comes to handing over deposit money, many buyers make the mistake of leaving their good judgment at home; thinking this is Mexico and this is how business is done here.

Most of those trustworthy buyers have purchased without problem, but there is always a risk. It is not necessary to have a Mexico Real Estate license to sell propeties So it is important to know who you are dealing with and how to protect your interests.

Mexico Escrow Services

Although not widely used in Mexico, escrow services are available through well know US companies and should be your first choice. There is a fee, but the protection it offers is well worth the extra expense.

Escrow is mostly used for re-sales but the property owner must be in agreement This can sometimes be an obstacle as some Mexican owners do not understand the concept of escrow. In most cases the listing broker can convince the owner if it is properly presented.

Mexico Broker

This would be the next option only if the property owner will not accept escrow deposit. Either the listing broker or the buyer s broker holds the deposit. This is more of a risk, so ask for references and DO CHECK THEM.

Mexico Developer

Most developers will not accept escrow deposits as they use incoming funds for construction. Deposits may be refundable or non-refundable (before the contract is signed) so do ask. It is important to work with a broker that you trust to present you with projects by developers with a proven track record.

The Mexico Property owner

It is customary for the initial deposit to go directly to the owner in the case of a re-sale. This is very risky and I do not recommend this situation. If unavoidable, do so in conjunction with your OWN Mexico real estate lawyer, following his advice so he can make sure you are legally protected.

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

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.

This summer I have been seeing news stories and large amount of articles of the dangers and risks of coming to Mexico to visit or to vacation The majority of the stories have spoken of the entire country of Mexico in general, and unfortunately did not speak of regions or neighborhoods where the incidences were occurring whether it was some neighborhood of Mexico City, or some region of the state of Baja California

I also noted the misfortuneate timing of these news events being in the summer time which is basicallyeffecting Mexico's tourist high season and which is also effecting my area of work, the Mexico real estate industryLately though, I have starting to notice some articles that are becoming aware of the spilling over effects and have started to correct or attempt to report the data with a little more investigation and detail My question, “Is this too little too late”

This morning as I read through various articles I came across one that caught my attention inside of the Wall Street JournalThis article reported that many of the Mexican resort cities that are more than 1,300 miles away from the violent clashes, are witnessing cancellations and having their businesses effectedThe article is more complete by reporting more details so travellers are not making travelling and cancellation decisions based on partial informationThe link to this article http://online.wsj.com/article/SB123931839488506787.html#articleTabs=article

One of the quotes which I found interesting,

” Despite the travel alert, “we are not advising people not to go to Mexico,” says Heide Bronke Fulton, a State Department spokeswoman. She adds that the main areas of concern are cities and towns near the U.S. border. Travel alerts, which can caution against everything from cyclone season to terrorism threats, are far less severe than the State Department's “warnings,” in place for countries like Iraq and Sudan, which essentially advise against traveling to a country altogether. ”

After speaking with several visitors down here in Mexico this past week I realized the importance of passing this information and these types of articles and updates through channels such as Mexico real estate blogs and other mediums on the Internet The visitors from up north advised that the news being heard on the television and many news sources is quite harsh “Very bad and negative People and my family have come to me and asked me to cancel my trips down to Mexico I had to pull out a map and show them where I was going and where the problem areas were occurring” Even the Mexico tourism department has become very alarmed at the generalization of the reports up north and their effect on their economy They have published a map on the internet to help visitors understand the locations http://mexico-update.com/index.jsp

Unfortunately, the messages of pinpointing locations and distances may have missed the high season period The Mexico tourist department is rushing trying to correct this mishap It is April, a good portion of the high season has already been incorrectly effectedThe year for tourism in Mexico was starting strong, but now several hotels and businesses are now concerned in the cancellations that have occurredLets hope that this other message continues to be transmitted effectively to help recover some of the drop in reservations and travel plans for the rest of the year.

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

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.

For most Americans and Canadians who own a Lake Chapala Real Estate, the late summer and fall seasons are the favorite time to spend in their Chapala or Ajijic homes to enjoy the higher lake levels, and to enjoy the refreshing climate brought by the rainy season.  During the rainy season, warm sunny days are balanced by rainy late afternoons, which cool the temperatures.

One of Lake Chapala Real Estate's main attraction is, of course, the lake itself, offering boating activity to the residents of area, and a beautiful view to those living in the towns of Chapala and Ajijic.  While the water level was somewhat low in the spring, the good news is that due to recent rainfall, Lake Chapala has maintained the benchmark of 95.83 cm for four straight days, including the 39 cm which it has recovered since June.

Since June 27, when the rainy season in the Lake Chapala Real Estate area started, the lake has been steadily recovering the water to reach its current level. The 39 cm in the water level represent 433 million cubic meters of water volume in the lake.
Lake Chapala has a total capacity of five thousand 664 million cubic meters and is at 71.73% of total capacity, according to the National Water Commission (CONAGUA).

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

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.

Last week, I began discussing the process of how to purchase your Mexico dream home

Please click here to see this first post Mexico Real Estate Purchasing Process

and go here Mexico Real Estate Agents to learn more on this subject.

Rule Number Three:Mexico Real Estate Closing Costs

(Fideicomiso) Closing Costs:

Closing costs will range from 4% to 30% (yes, 30%!) of the total cost of your Mexico property. The higher the price of the property, the lower the percentage of total costs for closing. This is because certain expenses for permits in Mexico,and certificates are fixed, regardless of the value of the property. Costs of transfer include title search, transfer taxes, bank fees, government permits and Mexico notary public fees. Your seller may assist in some of these; especially those related to title search and insurance. Be sure to get a written estimate so that you will not have unwelcome surprises at the date of transfer of title! While your real estate agent may know the procedure, his or her specialty is to identify the correct property for you and to negotiate advantageous terms for the purchase. The technicalities of the transfer; negotiations for permits, registrations and so forth are generally more objectively and thoroughly handled by a neutral third party who does not have a financial interest in the transaction.

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

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.

Many new Landlords with Mexico Real Estate rentals are unsure what their lease agreement (Contrato de Arrendamiento) really says and if they are truly protected. As with any Mexico legal document, the lease agreement is binding and should be reviewed by all parties carefully.

You will see from my other posts written about rental properties, click here Mexico Real Estate blog, it is important to get correct Mexican legal counsel when working with agreements and contracts Executed leases should be in Spanish with a complimetary English version available.

Key Points on a Mexico Lease Agreement:

• Names of all parties to the lease
• Lease dates
• Rental amount
• Location in which rent is to be paid
• Rent due date
• Late charges
• Security deposit amount
• How maintenance and repairs are to be handled
• Move out notice requirements
• Details about Landlord access to the property
• Utilities and Services
• Condition of the property
• Rules and regulations
• Pets
• Landlord remedies

Although many Mexico Managment Companies use different leases, some are drafted by an Attorney or Notario. Whatever version you or your Property Manager uses, make sure that you have a complete understanding of the document and how it will legally affect you and your Tenant.

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

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.

Article 27 of the Constitution of the Republic of Mexico prohibits foreign ownership of real property located within 30 miles of any coastline or 60 miles of either border This is referred to as the Mexico restricted zone

Owning within the Mexico Restricted Zone

In 1973, recognizing that many Americans would enjoy the rights of ownership, and bring needed dollars to the country, President Echeverria approved the bank trust, Mexico fideicomiso, form of ownership which is available to non-Mexicans This regulation was further expanded in the Foreign Investment Law of 1989.

Mexico Properties located within the restricted zone, which includes the entire Baja Peninsula, may be acquired by a foreigner through a Mexican bank trust naming the buyer of the property as the beneficiary of the trust Naked title is placed in the name of the bank selected by the buyer, as his trustee The bank administers the property according to the instructions of the buyer/beneficiary The buyer/beneficiary has full ownership rights: he may build on the property, tear down existing buildings, modify them, rent, lease or sell at anytime conforming only to the general laws of the country established for all persons

Term of a Mexico Bank Trust

The term of the trust is fifty years and can be renewed for additional fifty year periods, after which it must be transferred to “one entitled to hold property” in Mexico In other words, title to the property may rest in one beneficiary indefinitely, provided that it is renewed within the terms established by the law

Procedure and Costs

The procedure for establishing the fideicomiso, the bank trust, is as follows: a permit must be obtained from the Secretary of Foreign Relations which includes a description of the property to be placed in trust, the use for which it is intended, and personal data on each of the beneficiaries Once granted the bank draws up the trust document which is recorded in the municipality where the property is located.

The costs for the permit to establish and register the trust are currently about $1,700 US and Mexico bank trust annual fees are generally $400.00 to $700.00 per annum there are additional closing costs in Mexico Real Estate, however, an it is wise to request a written estimate prior to beginning the transfer process.

* The costs mentioned above may require updating given the date of writing of this article

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

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.

You know, I have been living down in Mexico for many years As I have worked in this Mexico Real Estate Market I have had the opportunity to meet many fantastic and fascinating people People from the United States, from Canada, from Europe and South America You learn a great deal by listening to these people, their knowledge, but I have also learned valuable lessons right from people in my own neighborhood here in Mexico Some of the best advise comes from ordinary people with years of living experiences I was listening to a story the other day….

A fishing boat pulled up and tied up in a small Mexican fishing village There was a well dressed gentleman watching and complimented the Mexican fisherman on his catch and began up a conversation asking how many hours he spent to catch his fish.

“A little bit of time, not much” replied the Mexican.

“So why not stay out longer, and catch more of these good quality fish” asked the foreign gentleman.

The Mexican responded, “Those fish are enough for feeding my family, I didn't need to catch any more.”

The Gentleman then asked, “What do you do on a usual day”

“I sleep in, go out fishing, I play with my kids as much as I can, and enjoy spending as much time with my wife as possible. At night, I will go out to see my neighbors and friends, play the guitar, sing a little… I have a busy life.”

The foreigner interrupted, “I am a very smart business person with an MBA degree out of Harvard I can help you! First thing is you need to become more productive while fishing Spend more time on the ocean and catch some extra fish, sell these extra fish.With the extra money that you raise from the extra fish, purchase a bigger and faster boat.Then you can increase the amount of fish you catch and keep improving the performance of the boat which should increase your catch per day even further.Soon the increases begin to multiply and you can start to reinvest into a second boat, and then quickly into a third boat.Then with a fleet of boats, you can begin selling your fish straight to distributors in other countries instead of selling to wholesalers and middle man here in Mexico Then you can move your family to Mexico City, Los Angeles, Vancouver and set up office in these cities.”

“How long will all of that take” asked the Mexican.

“Could take about fifteen or twenty years,” replied the Harvard Graduate.

“Then what happens”

“Then is when the interesting things begin to happen” laughed the foreigner. “Your business will soon be ready to go public, you can start selling stocks and make a lot of money!”

“Great! Then what happens” the fisherman was becoming excited

“Well… then you can retire….you can retire to Mexico, live in a tiny fishing village along the coast, sleep late, play with your children, go out fishing and catch a few fish, spend more time with your wife, and have time to relax and socialize with your neighbors and friends!”

If you stop and listen, there's good advise all around us.

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

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.

I have had many buyers from United States, Canada, and Europe purchase their Mexico Real Estate Property, and then it suddenly dawns on them “how do I bring furniture down to Mexico or is it possible to find the style of furniture I like in this Mexican town”

I met a good friend of mine who has a business in Mexico and has been offering a very practical service to many of my first time Mexico real estate buyers. Several of my buyers have used their service and they have been extremely pleased especially with the efficiency of the delivery and with the quality of the goods. Below is a good introduction of how this group was founded and works to help you furnish your property in Mexico.

MEXICO FURNITURE OPTION

Living in Canada or the United States, and trying to set up a house in Mexico is to say at the least, a challenge. Don't get me wrong, this is a challenge where the benefits absolutely outweigh the negatives…BUT, it is difficult to see those benefits when the task is at your door step, you are driving around in circles, you can't speak Spanish (other than knowing how to order a beer), unable to find a parking spot, getting lost, getting more lost, crying, going over budget, waiting on deliveries that never come, crying again, sweating in the heat, not being able to use your credit card, hating everything you see, and everything you like being out of stock AND all you really want is to get to the beach and actually enjoy all the money you just spent on this dream.

The founders of our company went down to Mexico in 2002, fell in love with the country, and bought their first Mexico Property. Back then, there was no assistance in furnishing homes, Costco had not even opened yet. It was a very difficult undertaking at that time and it caused a lot of stress and frustration. When they built their 2nd home in 2005 the thought of furnishing again was overwhelming.

We are a Canadian Company that assists Americans, Canadians and Europeans in furnishing their vacation homes in Mexico. We have 4 employees in Canada, 1 employee in Kentucky, 25 craftsmen in Mexico. All our Mexican partners are all located in various areas throughout the Puebla area

We are a small but growing company that helps make furnishing in Mexico easier for foreigners. We do not have a fleet of trucks, and endless funding to build an empire. What we do have is a lot of HEART and DRIVE to build a business based on trust and expertise. Our mission is to always try to do the right thing for each and every customer.

Our furniture is all handmade in Mexico, we import nothing. It is important to us to give back to the community and country that affords us these dream homes. Our wood is kiln dried and bug and termite treated. We have an array of styles and finishes that will appeal to pretty much everyone s tastes. We use a dense pine imported from Chile and each piece of furniture is hand-made so sizes can vary slightly. All our wood products come from responsible, sustainable providers. We can send you via UPS, fabric and wood samples to assist in your choices of finishes and wood types We stand behind everything we make. If your furniture shows up and is wrong or is damaged during shipment we will replace it. We want all our customers to be happy and satisfied and will bend over backwards to make that happen Our experiences can aide in helping you make decisions.

Often times, homes in Mexico are not only bought for our enjoyment, but they are also an investment that we plan to rent out to gain income and offset costs. Most of us have not experienced furnishing an entire house all at once or have experience in what we need to buy for a rental property. There are specific needs rental homes have and you only gain this knowledge from having done it.

Many times, our homes in Canada and USA are furnished bit by bit, room by room over the course of years. But when these vacation homes in Mexico are also investments, the need to furnish them all at once is imperative so you can get that rental income ASAP Buying a vacation home as an investment is different than buying a home to live in. The emotion needs to be taken out of it and replaced with a practical mind set. You need to consider what beds will be best for renters, what kinds of mattresses to choose and consider what will hold up best over time. We have now furnished not only our personal homes but also 500 other homes across Mexico, so we know how to help you make the right decisions We help and guide you through the whole furniture buying process. You can call us anytime on our toll-free number for assistance. Many people even send their floor plan ahead of their phone call in an email detailing certain objectives for their Mexico condo/villa. When you call we will have your floor plan in hand and will walk through each room with you and help you decide what is best for your new vacation property The alternative to using us is to go to Mexico, rent a car and shop for days/weeks on end. We are experienced and know what your needs are and can help you overcome any apprehensions of buying online.

As mentioned, this is a very practical option for many new real estate buyers here in Mexico given the fact of distance and time constraints. Feel free to contact us for more information on this Mexico Furniture supplier.

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

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.

f you own a Mexico Real Estate Rental, you will need to learn how to administer the security deposits.The security deposit is any advance of money, other than a rental application deposit or an advance payment of rent that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant. 

In Mexico, there are no limits on how much you can charge for a security deposit. For long-term rentals, many Mexican Landlords charge an amount equal to one month s rent and this amount is standard practice.

MEXICO SECURITY DEPOSIT

The security deposit is held by the Landlord, sometimes in an interest-bearing account, until the Tenant fulfills the obligations of the lease agreement. Some areas of Mexico require that you pay the Tenant the interest earned on the deposit and some areas do not. However, the security deposit does not belong to the Landlord it belongs to the Tenant. I always recommend that the Property manager in Mexico hold onto the security deposit in a trust account so that there is no confusion on disbursement of this deposit when the Tenant vacates.

When the Tenant vacates, do an inspection of the property. Some landlords prefer to do this inspection with the Tenant and some prefer to do it without the Tenant present. The choice is yours. To avoid potential disputes, make sure that if you are going to deduct any charges for property damages from the Tenant s security deposit, you take pictures of that damage for future record. Do not deduct for normal wear and tear or if the damage were there prior to move in. You can deduct for unpaid rent, late charges, etc.

Send a full itemized report to the Tenant outlining charges and deductions within 30-days of move out.

If you hire a property manager in Mexico, they will handle all aspects of the security deposit for you. If you choose to manage property yourself, familiarize yourself with the Mexico Real Estate laws for the local region so that you know what can and cannot deduct from a security deposit.

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

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.

This past Sunday, we took a family “Sunday drive” to relax from our past week of work in Mexico Real Estate, and to prepare for the coming week of work The difference of our normal Sunday drive was that it was on a boat and we went cruising along in my search for the best beach of Playa del Carmen Real Estate My husband said he had a craving for Ceviche, so his search was to find the best tasting fish in Playa del Carmen to make his best ceviche.

Off in the distance, we saw a beach that appeared to fit my description Solitaire with no other people except our party, soft white sand, and blue blue transparent water Our two kids were playing with their Canadian friend who was explaining or showing them how he would play in the snow back north Sledding and sliding down hillsHere in the Mexico Caribbean, the kids had to imagine snow, but they got the idea of what it is to slide on a small slope This is living in Mexico, this is living on a Mexico Beach side community!

My husband in the meanwhile, was trying his hand at net fishing on the shore After an hour or so, he got pretty good and was able to catch a small variety of fish for some sample ceviche and for bait for larger fish on the ride back to port After walking, exploring, some snorkeling on the nearby reef, it was time to head home

The small fish that my husband caught turned out to be pretty good lure As they were trolling, they hit two barracudas and reeled them both in which would be enough fish meat for a small family for a week

We made it back around 5:00 pm, cleaned the fish, washed the salt off of the equipment and off of us And we could not wait to see how the barracuda would turn out for the ceviche. Hmmmmmm good Yes, what they say about small fish for ceviche is correct And, we also recommend barracuda very highly for this dish too.Whether your living in Mexico, thinking of retiring to Mexico, or just coming down to get out of the cold, the beaches and fishing are fantastic.

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

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

As I review the real estate market reports for various US regions from my friend`s blog Joe Manausa I am placing close attention on the Real Estate Market activities occurring here in Playa del Carmen Real Estate I will be compiling a report at the end of the month but I can share with you that one developer has just sold approximately 5 units from 3 of their different projects.

In another interesting topic, the theme of this post, Playa del Carmen Real Estate will soon be introducing a new museum This fishing village, well at least 7 years ago, today this city continues to grow every quarter If you remember several days ago, we did a short post on the new avenues that were being constructed to bypass the downtown 307 route Today you will find an extra stop light as you pull into Playa driving in from the north.

Playa del Carmen City Hall

Once the new City Hall building is completed, which will be located on the west side of the highway 307. Some of you may not have even visited this side of Playa del Carmen but it is growing and is amazing at the velocity I remind you that Playa del Carmen Real Estate has been registered as the fastest growing community in LATIN AMERICA! So the growth is expanding westward In the neighborhood called “Cruz de Servicios”, near to the recently opened shopping center of Las Americas, you will find the new location of the Playa del Carmen city hall

The construction is planned to occur in three phases with a total investment estimated at $5,000,000 usd The timeline is projected to be realized in 10 months for the first phase The funds for this Playa del Carmen project will be sourced from the local government including some support from the private as well as state organizations

PLAYA DEL CARMEN MUSEUM

Once the city has moved their offices from the old city hall, the city will convert the remaining structure into a new museum for Playa del Carmen The theme of the museum is presently focused on “THE CITY HISTORY OF PLAYA DEL CARMEN” Located on the corners of 20th avenue, 25th avenue and between the streets of 8th street and 10th street, it has a very centralized location Only 3 blocks from the world famous 5th avenue, and next to a large park and outdoor auditorium, the museum is projected to be a central tourist point for the city.

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

Fair housing may or may not be a term that you ve heard before, and probably even less so in Mexico. Unless you ve been exposed to real estate then you probably never thought twice about what this term truly meant and chances are, it has not affected you I have been writing about several “Mexico Real Estate Rental” themes including (Pets and Rentals) and (How to Land a Good Tenant), so I thought this would be a good subject to include.

As a Landlord, your must educate yourself with the fair housing laws as there are severe penalties associated with violating these laws in the US In Mexico, this is less regulated, however, as a Landlord in a foreign country, it is recommended that you adopt these fair rental practices too.

I m not going to give you a lesson in Fair Housing but will only outline the basic protected classes of people. When deciding on whom you will rent your Mexico Property to, NEVER, EVER, make a decision based upon the following:

Race

Color

National Origin

Religion

Sex

Familial Status (including children under the age of 18 and pregnant women)

Handicap

There are many, many variables to the Fair Housing Laws. I encourage each of you to familiarize yourselves with these laws and make it a practice, regardless of which country your rental property is located in, to treat everyone the same and do not discriminate against the below protected classes. This is Federal Law in the US and good ethics in Mexico.

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

I just wrote a post on Where you can advertise your Mexico Property to obtain rentals.  As I stated in this previous post, regardless of what avenue you choose to take, whether one or all, there are a few key elements that you should always consider placing within the advertising (adapted from the National Association of Realtors).

1. Start with a strong opening statement about the Mexico home as 80% of the value of the ad is in the headline.

2. Mention the key one or two benefits that will attract the buyers’ attention and spark their interest in the first 10 words of the ad.

3. Include the salient facts about your Mexico property, such as the number of bedrooms and bathrooms and the asking price.

4. Include your name, your telephone number, your e-mail address, and your Web site.

5. Use words that appeal to the emotions and senses (e.g., feel, see, enjoy).

6. Avoid abbreviations and real estate jargon that the average consumer won’t understand.

7. Be accurate. Prospective buyers in Mexico Real Estate are bound to feel disappointed or manipulated if the home doesn’t match your description.

8. Focus on the Mexico home’s strongest selling points, instead of packing your ad with too many details.

9. Close with a statement encouraging the prospect to contact you (e.g., “Call today.”).

10. Keep a notebook of attractive home descriptions from remodeling magazines and other property ads so you’ll have a ready reference for writing your own blurbs.

Once you have adopted this plan of action, your phone should start ringing with prospective Tenant inquiries. However, all advertising efforts are wasted if you do not follow up with those that call or email you for information. Remember time kills all deals so the faster that you can respond to someone, the less likely that they will call on the next ad.

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

Advertising your Mexico Rental Property is a very important step in working toward your goal of securing a rent-paying Tenant. Before you begin advertising you will need to start with an effective advertising plan.

There are several viable sources in which to announce to the public that you have a property for rent in Mexico Real Estate.

Mexico For Rent Signs

placed at the property with a phone #, email address, a brief description of the property such as number of bedrooms, bathrooms and rent amount. This source works best if you are in a location that a lot of people walk or drive by and is not as effective if you are located in more of a remote area.

Mexico Online Avertising  

is typically the best source as most people go online first when searching for anything.  There are countless other online resources but my personal favorite is Craigslist.com. More and more people are turning to this website for real estate rentals and it’s free! Online advertising also allows you to post pictures and detailed descriptions of your property.

Mexico Real Estate for Rent Flyers

distributed throughout the community, neighborhood, or surrounding area. This is generally a great source of advertising, especially in the small town of Playa del Carmen Real Estate but it requires a little more work. There are many local restaurants and retail shops that will allow you to post flyers on their bulletin boards. However, in an effort to make the most out of this type of advertising, you want to make sure that you include the address, phone #, email address, rental price and a very descriptive outline of the property. You will also need to check on your posted flyers about once per week to insure that they are still there. This is where it would be advantageous to pay someone to post these for you if you are not always in the area in which the property is located.

Mexico Real Estate Online Forums

There are many local forums online that typically only pertain to a specific area and some have classified sections that you can advertise on. have members that have a love for Playa del Carmen,  are locals to the area or are people that are looking to make their move to the Playa del Carmen area and seeking information. This is a great online source and I highly recommend this site.

Mexico Real Estate Offices

are a great way to advertise your property, especially if you are willing to offer compensation to the Broker for bringing you a Tenant. Be careful with compensation as local, state and federal laws may limit how much you can pay someone, especially if you are not a licensed Broker.

Word of Mouth.

Everyone knows someone that rents a home, apartment, or condo. What better way to advertise than to ask your neighbors to pick their neighbor!

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

The Mexico Real Estate market is going through an exciting transition to improve the processes of buying properties here in this country.  The national realtor association called AMPI, sister association with the NAR association of the United States, has been working for various years on a project to regulate or to license the people practicing in the industry of Mexico Real Estate.  

Fernando Gonzaez Salazar and Laura Flores Araiza of the national offices of AMPI have been coordinating these activities in conjunction with the federal educational organization called CENEVAL (Centro Nacional de Evaluacion Para la Educacion Superior = National Center for the Evaluation of Superior Education).  This organization is authorized and recognized by the FEDERL EDUCATION SECRETARY and Academic Schools and Institutions of the Mexico country for their evaluations and exams.

MEXICO REAL ESTATE PROFESSIONAL LICENSE

With the federal regulation 286 (Acuerdo 286) and published in the (Mexican Diaro Oficial) equivalent to the United States Federal Register , this official document outlines and regulates the process for individuals to obtain a new federally issued license and degree for the profession in the Mexico Real Estate industry. 

There are two methods available to obtain this degree: the traditional method which is going to an Academic Institution public or private.  There are now several universities throughout the country of Mexico offering this college degree.  The second method of obtaining the official license and degree is through the process regulated and outlined according to REGULATION 286 mentioned above.  This includes applying and taking a nationally applied exam and then if passing exam, presenting a portfolio of documentation demonstrating years of experience and knowledge in the industry.

MEXICO REAL ESTATE LICENSE BACKGROUND

AMPI was first introduced to the Mexico Real Estate industry in 1956.  The organization is a national association of real estate professionals who have been gathering under laws and a code of ethics to establish a reliable and trustworthy environment within this industry.  Today, AMPI is made up of more than 4,000 afiliates and associates, and over 25 separate and autonomous sections.  Each section has their own board of directors who decide for their areas, and is governed by the national board of directors who elects a national president for two year terms.  The state of Sonora was the first state government to introduce a process of regulating and licensing the real estate industry in Mexico in 2004.  Although no exams were applied, the Sonora state sponsored an extensive 110 hour course of in depth real estate studies.  The themes covered in the licensing process included taxation issues, city development, bank trusts, appraisals, marketing & sales, and issues regarding ethics pertaining to the real estate industry.  The course and licensing process has been applied during the past several years with close observation and analyzation by the AMPI organization, state and federal government officials, and the federal educational boards in order to expand and introduce a similar process on a nationwide level.  In September of 2008, the first national exam was applied in Mexico.               

MEXICO REALTOR LICENSE FIRST EXAM

Last year, in September of 2008, the first national exam regulated and outlined by the ACUERDO 286 was applied.  The exam was applied in several cities throughout the country under close scrutiny of the CENEVAL officials.  The exam was applied nationwide precisely at 8:00 am on the 28th of September in all the participating institutions.  The exam was a historical event as this was the first exam for licensing in the Mexico Real Estate industry.   Aspiring Mexican realtors prepared many months and years in order to partake in the strenuous 5 hour long test.  The Mexico Realtor exam was only the first step and process required by the CENEVAL organization.  Those who passed the first process were then required to deliver extensive files,  and documentations to deomonstrate education, experience, knowledge amongst other requirements in the real estate industry.

One important note to make, it is NOT a requirement by any regulation to have a Mexican real estate degree in order to practice in the Mexico Real Estate industry.  The ultimate goal and the steps that AMPI is embracing and promoting is to have a guideline, such as the regulations in the United States and Canada requiring realtors to be licensed and brokers to have licenses in order to practice such professions, but today the license is a voluntary procedure and documentation.   The licensing and obtaining a degree as a Mexico Realtor is being introduced and educated to the industry with the succesful efforts of people such as Fernando Gonzaez and Laura Flores and their departments at the Mexico national AMPI offices.

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

THE GOVERNOR OF THE STATE OF QUINTANA ROO AND THE DIRECTORS OF SECTUR AND SEMARNAT ANNONCED THAT IN THE FIRST STAGE, $80 MILLION WILL BE INVESTED

The governor of the state of Quintana Roo, Felix Gonzalez, along with the secretary of tourism and the secretary of ecological conservation announced today that after several months of meetings and studies, in the first weeks of January, the licitation of the project for the recovery and maintenance of the beaches for Cozumel, Playa del Carmen, and Cancun will be realized.  

The announcement was made in conjunction with the three levels of the government(federal, state, and municipality), representatives of the tourist industries, and representatives of the business sectors of Quintana Roo.  The governor made special emphasis on the fact that this project was approved after intensive studies were realized by experts and various groups, as well that several proposals were evaluated before selecting the most viable project based on the environmental impact as well as the economic factors.       

The secretary of federal tourism, Rodolfo Elizando Torres, assured that “without the support of the State Government, the project would not have been consolidated.”  Apart from making the Mexican Caribbean beaches more attractive for Cozumel, Playa del Carmen, and Cancun, it will have a positive affect upon the tourist traffic and new private investments.  It has been estimated that nearly $80 million will be invested in the project, of which it is projected that Banobras will deliver a financial package loan to the three municipalities.  

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

Tulum, as a new Municipality is trying to gather as many funds as possible in the shortest time period possible.  With this goal in mind, the Tulum Real Estate authorities have extended the Tulum property tax discount, which is a deduction of 25% off of the total fiscal amount due. 

The new Tulum administration is trying its best to collect tax money and correct previous year´s involuntary mistakes.  The procedure of paying the property taxes is by taking the last property tax receipt from Solidaridad (this is the municipality of Playa del Carmen where taxes were previously paid) presenting this document to the Authorities, they will make the proper adjustments onto the record of the new Tulum municipality, and capture your payment.

Once paid, the authorities will deliver a receipt.  This property tax receipt should be organized and filed with all of your other Mexico property documentation. A digital copy is useful and wise as well.  Keeping these copies and backups gives you peace of mind and avoids unnecessary stress.  Remember that your payments are best valid if you can prove with proper documentation and receipts.

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

There are generally three reasons why a property in Mexico will not rent. We call this the “3 P’s in Real Estate”.

People, Product or Price and Their Affects on Mexico Properties.

Today we will look at how to determine a rental price for your Mexico Real Estate investment in hopes to eliminate or minimize any potential losses from pricing your property wrong.

Let’s say that you’ve just closed on your new property in the tropical area of Playa del Carmen Real Estate or any other Mexico resort city. You’re experiencing the excitement of owning here but you are unsure on what to charge potential renters. Rental pricing is one of the single most important aspects of rental investment ownership. If you price too high then you experience unwanted vacancy because no one wants to overpay. If you price too low then you will end up feeling like you, the investor, are getting the short end of the deal. This is why it’s important to do your due diligence prior to marketing your Mexico property.

Grab some paper and a pen, hop online to the internet and see what the market says that we should rent our property for.

MEXICO REAL ESTATE FEATURES

Write down exactly what features your property has. At a minimum, you should know the following:

                Location

                Size in both meters and sq feet

                # Of bedrooms and bathrooms

                What appliances provided for the Tenant

                Pool?

                Any other amenities that may or even may not be attractive to a renter

Now that you have the basics of your property written down, we will need to do a little research about our competition. Because the Playa del Carmen and the majority of the Mexican regions do not have MLS options, we will seek out other sources for our information.   

The first place to start would be to go to your favorite search engine such as Google or Yahoo.  Find a good web site on rental properties for the city where you own your Mexican property.  

Here you will be able to look at many properties that are already on the market for rent. You will need to narrow these properties down to only those that are within about a mile radius (further if you are on the west side of the highway or if you are outside of Playa del Carmen’s city limits). If you are in a specific neighborhood, it may be beneficial that you start by looking only in that neighborhood. If there is nothing or a very limited number of properties available, then you will need to expand your search. You will also only want to look at those that are truly comparable to yours in age, amenities, and size. A property that was built in 1980 will not be comparable to one built in 2008.

Once you have a list of comparable properties, write down the rent amount for each one.

Let’s say that you’ve found five properties with rents ranging from $1000 per month to $1500 per month. Our first instinct would be to think that our property would rent on the high side at $1500 per month. Makes sense…there’s another one out there at that price. WRONG. If your goal is to secure a Tenant quickly with minimal vacancy loss, you do not want to price your property anywhere near the highest on the market as it is typically better to price on the mid to lower side of the spectrum.

If your goal is to get as much rent as possible for your property then it is still better to price on the mid to low range. Confused yet?

Look at it this way…

People, by nature, are price conscious. When most people do a search for something such as a rental property or a property to purchase, they already know what their budget is and usually will not waste a lot of time searching for properties to rent that they know that they could not afford. If a prospective Tenant is looking to rent and their budget is $1200 per month, they will usually search for properties up to $1250 per month.  Let’s say your property is priced at $1300 per month but you know that you would take $1200. However, you wanted to test the market to see if you’d get any activity by advertising at $1300. You just lost a potential renter because your property did not populate within their search criteria of $1250 maximum per month.

If you know that you would accept a particular price point for your rental property, do not advertise it for a higher amount. It’s a waste of time. You lose prospective applicants. You incur additional vacancy.

But you say that if you charge more in rent then you make up for the extra time that it took to rent your property? Take that philosophy out of your head. Here’s what happens:

Let’s say that the market dictates that your property should rent for $1200 per month but you advertise it for $1300 per month and you end up waiting an additional 60 days before a Tenant is found at this higher rate. 60 days of vacancy equates to $2600 in lost rent PLUS utilities that you had to pay for. Let’s say you were lucky and found a Tenant that was willing to pay $1300 per month for a one year lease. The most that you would recover would be $1200 for the year; leaving you in the negative of $1400 for the year PLUS utilities. That doesn’t seem too smart does it?

Let’s say that you are okay with having that loss for the first year because you will make it up on year two when they renew. Chances are, your Tenant has talked to neighbors and has realized that they are paying too much for rent. You’ve increased your risks for a vacancy at the end of the year because you charged your Tenant rent that was over market. The cycle then continues…

Any successful rental property investor, regardless of the property location, knows that vacancy is hard to financially recover from. It is better to realize a lesser amount of rent, especially to keep you aggressively competitive with the market, than to wait it out for a higher price. 

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

Playa del Carmen
Caros M. Joaquin Gonzalez, the director of the Quintana Roo state offices of Tourism spoke at the 36th annual national AMPI congress last Saturday afternoon. He shared words with the audience stating, “I wish to thank the organizers of this congress for choosing the Riviera Maya for this year`s site, which has allowed us to demonstrate our beautiful tourist attractions as well as Riviera Maya`s Real Estate products which is converting this region as one of the most dynamic if not the most dynamic of Mexico Real Estate”.

Mr. Joaquin went on to include “As a matter of fact, with the succesful tourist results of Quintana Roo, via tourist destinations such as Cancun, the Riviera Maya, and Cozumel, another industry has exploded and has positioned itself as the second most important state activity thanks to its dynamics and economic contribution…I am referring to the real estate industry of this state.”

“Nearly four decades since its initiation, Cancun, our anchor tourist destination, is in the process of consolidating and maturing with a very high positioning in the tourist markets. It`s produts are very well diversified to attend the wide range of preferences expected from our tourist visitors.”

Mr. Joaquin also mentioned that “The Riviera Maya has taken advantage of the success of Cancun, to introduce itself and grow to become a multi-destination region which today, is quite popular in the international market. Today, the Riviera Maya has more than 35,000 units which has surpassed the quantity of rooms offered in Cancun. Today, the quantity of hotel rooms in the state of Quintana Roo has surpassed 75,000 which represents 14% of this country’s total hotel rooms.”

“As the tourist industry started to boom, the Real Estate market was following qutie similarly. Since then, the supply of residential properties and of hotels have evolutioned in its first stages of growth. This growth came from the strong demand and low supply of real estate which was quite similar to the markets experienced in Europe.”

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

After a long week of working the Playa del Carmen Real Estate market, nothing sounds better than getting together with friends and family for some good food and spirits.  What better time than the week end to chill wine, throw some juicy meat on the grill, and enjoy the Caribbean ocean and company.  Wait… the propane gas tank is empty, where in Playa del Carmen can you fill up a propane gas tank for the barbeque?

Did you know that in Playa del Carmen, off of Avenida Benito Juarez there is a refilling station.  This station is located way off to the west towards the jungle on the outskirts of town.  This makes sense given that this is where they store hundreds of liters of propane gas and if any accidents were to occur, less injuries and damage would be inflicted.  So, if you are driving, go to the intersection of highway 307 with Avenida Benito Juarez.  Turn towards the jungle away from the beach.  Drive for approximately 2 or 2.5 miles until you see a baseball field off to your left, and then you will run into the Zeta Gas refill station.  You can take your tank, have it filled within 15 minutes and be back to the patio before your ice melts from your drink. 

Another convenient tip for your week end Playa del Carmen Condo party; door to door tank filling services.  Call up Zeta Gas a couple of days before.  They will send a truck to your condo or home, pick up your empty tank, come back the next day filled and ready for grill heating.  No worries, be happy!

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

Are you contemplating the option of buying Mexico Real Estate, or maybe re adjusting your portfolio to add alternative investments such as the appreciating Mexico property markets?   If the answer is yes, some guidelines will ensure a safer and more profitable Mexico Real Estate Investment.

There are many Real Estate Investment Options in Mexico, but understanding the Purchasing Process, the risks, and the payoffs are very important in your decisions.  One of your first decisions is choosing the area of interest for your investment or of your resort home.  What are your dreams and goals of this Mexican second home?  If the purpose is for obtaining rent returns and investment, then begin analyzing the market area growth patterns and tourism factors.  If you are purchasing the real estate for personal reasons, then it is a high probability that you already have fallen in love with the area and region.  Then of course, as in many cases, the choice of what area of Mexico to invest is derived from a combination of both of these previous reasons written above.

 MEXICO REAL ESTATE TEAM

Once your market has been chosen, and as many people from first hand experience advise including several books about buying property in Mexico, surrond yourself with a good Real Estate team.  The coordinator of a good team is a good realtor.  Interview with several realtors before making your decision.  Study their credentials, their education, how long have they been practicing Mexico Real Estate?  In Mexico as stated from the book “CASHING IN ON A SECOND HOME IN MEXICO” by Mitch Creekmore, it is always recommended that you work with a realtor with experience in Latin America and a member of AMPI.  Your realtor will be able to give you options on each of the other key positions making up your real estate investment team.  Your Mexican lawyer, escrow companies, bank trustees, notary publics, property management companies all of these and a few more will be key players on your team.  Do your due diligence when selecting your realtor and when interviewing for your Mexico real estate team.

ALTERNATIVE INVESTMENTS IN MEXICO REAL ESTATE

 Pooling offers is an option that several investors have excercised to realize extra discounts when purchasing from a major development complex.  Investors can be pooled together so when the offer comes on the table, with the volume purchase, the sellers will be more excited to realize the multiple sale and open to reduced offer prices.  Another option is to include a friend on your investment.  This will allow for a sharing of the costs, sharing of the expenses, and of course dividing the revenue returns.  Such leveraging can be an alternative to borrowing money from the bank given the current financial situation in the markets.   These are several of various methods that can be used to save you money when buying Real Estate in Mexico.  

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

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.

There are several articles about the Mexico Bank Trust “Fideicomiso” and how Mexican foreigners can acquire Mexican Oceanfront Real Estate.  My post below is an attempt to explain some of these TIPS ON ITEMS TO REVIEW IN YOUR MEXICO BANK TRUST.

MEXICO REAL ESTATE BANK TRUST

MEXICO REAL ESTATE TIPS  

1) Study, review, and learn a little more of the bank you choose as the holder of the Bank Trust.  What is the name of the bank and is it in the “Asociacion de Bancos de Mexico”?  Do they have offices or a branch in the Mexican town where you plan to purchase your property?  For various reasons you will need to be in contact with your bank for payment of annual fees, for questions or interviews, notifications and having the bank in the same city is quite convenient for any of these unplanned visits.

4) Finally, don’t forget to review and compare set up fees and annual service fees that the bank will charge for holding your trust. If you don’t need a full package, then ask your lawyer if he can get a better rate with a particular bank; sometimes for the volume of clients the lawyer sends to the bank he can obtain special discounts that you as an individual would not qualify. These small discounts add up.

There are many details surrounding the theme of Bank Trusts and their contracts, so please feel free to contact me if you have any further questions.

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

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.

What factors to consider before choosing a long-term rental property location

Most of us have heard throughout our lifetime that the one way to financial security is through real estate. Typically, we invest in real estate because it equates to low risk with a nice return on our money. Many of us believe that the way to financial freedom is to buy real estate, whether you purchase one property or multiple properties, with the sole intention to flip or sell quickly, at an increased price.

We’ve all seen the shows on cable that promote how easy it is to buy fixer uppers, do a little work to them then put the property on the market for sale and instantly have a huge profit. This way of investing is not a realistic option for most of us, as we’d have to dedicate ourselves to seeking out properties on a fulltime basis then doing our due diligence to assess if the property can potentially be profitable. We all want to believe that we can overcome these challenges but unless we are a seasoned real estate investor for these types of opportunities, the obstacles can sometimes far outweigh the benefits.  This is one of the multitude of reasons why I am an advocate of investing in real estate with the anticipation of being a long-term holder of the property for at least five to 10 years. 

 The concept of investing in rental property affords us the ability to purchase at or just slightly below market value but continues to allow us make a good return on our money. So the question arises, how do you know where to buy a rental property for investment purposes?

 We should consider many factors before choosing a location to invest in rental property. We must look at the future job growth and how many people will be coming to the area to fill those jobs? What is the social economic demographic of the population? What is the economic stability of the area? Is the current market saturated with long-term rentals or is there a demand for more?

 Let’s take Playa del Carmen Real Estate as an example. Although the economic structure of Playa del Carmen is very diverse, the common denominator of tourism is the actual driving force that dictates this economy. With the increased tourism year after year, the demand for workers on all ends of the economic spectrum has also increased. The population of the Riviera Maya is, on a conservative level, slated to double within the next several years.

 There are so many contributing factors as to why Playa del Carmen is the ideal location for investment of long-term rental properties. The number one reason is this influx in population. People are moving to Playa because of the growing number of opportunities and the realization that they can sustain wages that will allow them to live their desired lifestyle. However, many just seek to lead a simpler way of life.

As tourism continues to increase, the demand for long-term rentals also increase. We are have begun to witness a need for long-term housing for those that begin to call the Riviera Maya home, whether they are Mexican Nationals or Expats alike. We, as real estate investors, need to go where the demand is. That demand is in Playa del Carmen Real Estate.

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

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

I have several Canadian clients who are in the process of closing upon some Mexico Real Estate Properties here in the Quintana Roo area.  Over the past 60 days, “the foreign currency markets have been extemely volatile” goes without saying.  Several Mexico home buyers from Canada and US have written asking how this will be affecting their Closing and final payment obligations.  So, how does the Canadian dollar fluctuations affect the purchase process down in the Cancun Real Estate Market or even a property up in Baja California? 

To be brief in the explaination.  Prices of Mexico properties listed within markets with a high concentration of international buyers are normally quoted in United States Dollars.  Why is this?  The reason is that normally the USD gains in strength against the Mexican peso.  Although the gains in the past 8 years have been quite stable, most Mexico home owners feel safer in quoting in the more affluent American currency.  So, Canadians buying here in Mexico, when Making Deposits (See Blog), must pay the equivalent of a price quoted in USD.  Now a little history: A few two years in the fall of 2007, the Canadian dollar had gained important strength against the United States dollar to a record level.  Where as before, the exchange rate was hovering around $1.00 Canadian dollar per every $.65 - $.70 USD, within a short time span of several weeks $1.00 Canadian Dollar could then buy $1.05 usd.  This was an increase of nearly 30% which many people of this country took advantage and investd into Mexican Oceanfront properties or similar assets.  Recently though, within the past 30 days, the Candians lost a good percentage of this gain as it returned to near $.75USD.   In the past day, the Canadian dollar began gaining back ground when a surge from $.7680 upto $.8100 against the green back was registered.  Nathan Barcic, senior business development at HiFx Inc.  stated “this move alone of 7% can save Canadians nearly $6750 CAD per every $100,000 CAD investment”  HiFX Inc. has several tools that are quite interesting for people investing into latin american or even international countries such as “lock in rates” for upto 60 days or so.  Feel free to call me if you want to discuss this topic further or if you have any other questions regarding How to buy Real Estate in Mexico.

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

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 amount of people moving down to Mexico from other countries is growing at a good clip.  The Mexico Real Estate market had been receiving a great quantity of buyers looking to invest into rental properties over the past 4 or 5 years, but this profile seems to be shifting towards non-Mexican buyers who are looking to make a permanent move.   If you are looking to move here full time and get a job, you will be required to get a Mexican Visa in order to work.  The resident professional fm3 visa and the resident executive fm3 visa are widely used for these non-Mexican people looking to continue working. As the requirements require for the other visas listed out in my previous posts, the Inmigration Offices will request:

Resident Professional Visa

a)     The application form filled in

b)     Your official ID and your FMT card

c)     A letter to the Inmigration Offices stating the reasons you wish to live in Mexico full time

d)    If you plan to work professionaly and independently, you will need to include a signed, sworned statement atesting to this fact outlining where you plan to work and what you plan to do.

e)     A letter from your employer on a letterhead document.  This document will specify the nature of the work, your renumeration, and where you plan to work.      

f)     Documents from your employer including:  Articles of Incorporation, last taxes paid, and proof of registration into the National Registry of Foreign Investment

Mexico Resident Executive

If you are planning on working for a Mexican Entity, then the following docs will be required:

items A thru C listed above,  a copy of your job offer (this should list out the position and the name of the entity.)  A letterhead document will be required listing out position and location of the employer. The same documents requested by the Government for the Resident Professional listed in section F, will also be required for the Resident Executive visa.

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

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

In a few previous posts, I wrote about the various options available for non-Mexicans to obtain residence status here in Mexico.  In my line of business, Mexico Real Estate industry,  I meet many Mexican foreigners who are estabishing a new life concept, moving from their native country to set up a business in various regions of this emerging country.  I have also met a tremendous amount of people with a life plan of purchasing their retirment getaway here in distinct parts of Mexico, whether it be in Cancun, Merida, Puerto Vallarta, San Miguel de Allende or even in Oaxaca.  No matter the case, when you invest into a real estate here in this country, one of the frequently asked questions heard from the ex pat communities is

“How do I Establish Legal Residency in Mexico, and Do I need to Give up My Native Country Citizenship?” 

The answer to the question of needing to give up Native Country Citizenship is ,  NO.  When obtaining legal residency status in Mexico you are not required to forfeit your home country citizenship.  I will write a future post on obtaining Mexican Citizenship and how this affects your native citizenship.  But, you can hold onto 2 citizenships in the majority of the cases except for a handful of countries in the world which restrict duo citizenship status.  As mentioned in the previous posts, there exists several visa classifications outlined in VISA CLASSIFICATIONS.  In this post we are outlining Resident Investor visas.   The main criteria of qualifying for this VISA is an investment into a Mexican corporation, a Mexican industry, Service, Commerce for an amount greater than $150,000 usd.  Such investment may include the purchase of Real Estate.  The requirements for application inlcude:

a)  official identification such as your passport  

b)  FMT or current Mexican visa 

c)  A letter addressed to the Mexican Institution of Migration outlining the reasons why you are asking for residency.  In this letter you should address in what industry you are investing, the type of investment such as stock shares, equity certificates, or trust beneficiary rights in the case of buying a Mexico Real Estate through a bank trust. This letter must be written in spanish.  

d)  Accompanying these documents you will also be required to show proof of this investments such as the documentation with the Mexico National Registry of Foreign Investment offices of Mexico City.  Or, in the case of investment into Mexico real estate, proof of acquistion via copy of deed or copy of the bank trust if purchasing within the restricted zone here in Mexico. 

As I mention before, our team has much experience in assisting people just arriving to Mexico in establishing themselves and starting the process of obtaining legal residency.  We do recommend that you retain the services of a professional lawyer expert in residency and citizenship laws to guide you in selecting the most convenient visa and to coordinate the activities during the process of registration.

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

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

Last week I received several questions regarding the availability or the types of windows that are available here in Mexico for residential homes.  Ten years ago and more, the options for glass types were quite reduced.  Today, the variety and combinations of glass here in Mexico may reach near 100. 

The glass that is now available in Mexico Real Estate, in its combinations, is used for energy savings, protection, design to name a few.  For example some people may choose a dense thickness of glass that will help reduce the noise if living near highly transited roads or near restaurant and bars.  Low E glass has to do with the technology used on the glass to decrease the amout of sun that enters into a room, or decreases the amount of heat that escapes a room.  Tempered glass helps increase the resistence from impact, flying objects.  UV blocking glass does exactly as the name says, reducing upto 99% of these UV rays.  Glass staying after breakage helps reduce little pieces of glass from scattering if the glass does break on impact.  Laminated glass is basically 2 sheets of glass with a thin plastic covering sandwiched between these two panes.  The strength increases exponentially giving a window that can resist several blows of objects before shattering. 

The window combination that the user chooses are molded together in a 5 step process.  First the glass is washed thoroughly.  The next step involves bending the spacer to mold around the glass.  Third step is filling the spacer with desicant to absorb the humidity within the space vacuum of the two windows.  In step four, Butil is applied as a vapor barrier and as a sealant.  Fifth step involves joining the two panes of glass.  A secondary sealant is then applied to give further structural properties for the final process.   

Laminated glass features two layers of glass with a special plastic sheet or film in the middle. When impacted, the tiny pieces of shattered glass adhere to the inner layer, eliminating the chance of flying glass and, most important for coastal areas, keeping the opening intact.

Of course, the main deterrent of having or selecting a wide variety of windows and their combinations are the costs.  We will talk about this in a later post.

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

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

Last July, Francisco Armand, from the Quintana Roo offices of Economic Development delivered a presentation on some statistics and results of the hotel and real estate sectors of this state`s economy.

“It is flattering the distinction that Quintana Roo has earned as the Mexican state with the highest Gross Domestic Product per capita “  Opened up Mr. Armand.  He quickly outlined though,  that there are still many regions and industries within Quintana Roo that are extremely poor and lacking much developmet and investments.   “With this reality, us quintanarroenses know, that as we prepare strategic projects to combat these obstacles, it will require the wills and efforts of many people to demonstrate a spirit of change and a notion of progress.” -  added the subsecretary.  The real estate sector plays a pilar role in the development of many southern states here in Mexico Real Estate.  This industry following tourism, is the second most important sector in regards to the Gross Domestic Product.  Cancun Real Estate and Playa del Carmen Real Estate lead the growth in this state`s real estate industry.

According to the figures released recently by INEGI, the GDP of Quintana Roo arrived to $114’238,197,000.00.pesos, for this same time period the contribution of the tourist industry which includes activities such as commercial, hotels and restaurants summed up a total of $61’609,601,000.00.pesos, equivalent to 53.93%  of the GDP of the state.  In this same time period,  the real estate industry which includes the activities such as construction, sales and administration of properties arrived to a sum of $17’935,397,000.00.pesos, equivalent to 15.70% of the GDP of the state.

Mr. Armand went on to divide the real estate industry into the following segments:  Lower Income housing, Middle Income housing, Tourist and Luxury, Mega developments, Marines,  Shopping Centers amongst other segments.  His comments on each segment listed below. 

Lower Income Housing.  This is the segment with the most development of Quintana Roo.  In the past year,  over 12,500 units have been constructed especially in the Cancún zones, the Playa del Carmen zones, and recently in Chetumal.  With the new federal programs being introduced to help lower income families obtain credit, this segment of the market has exploded in Quintana Roo.  By the end of 2009,  it is estimated that more than 2,000 hectares will be developed translating into 11,000 new units to be introduced. 

Middle Income, Tourist and Luxury.  This segment has come to life in the last 2 years especially in Cancún and Playa del Carmen, with approximately 3,000  new units constructed and sold. This includes small closed gated developments such as Villas  Magna, Isla de Fuego, Punta Cancún in Isla Dorada, Las Olas, Bay View Grand, Lahia, Las Olas, Bellavista Towers, amongst others; in Playa del Carmen and Puerto Morelos: El Cid, Playa del Secreto, Punta Maroma, Saknité, Playacar and various complexes in the area of Coco Beach, Puerto Aventuras and Akumal, to mention a few. 

Mega Development.  For the period of 2009-2010 there will be developing over 2,500 hectares of properties Middle Income, Tourist and Luxury.  These will be introduced in areas such as Playa Mujeres in the northern part of Cancun, Puerto Cancún, Malecón Cancún, El Cid in Puerto Morelos, Playacar, Puerto Aventuras and the new projects being constructed in Mayacoba such as Viceroy, Rosewood, Fairmont Heritage Place, Banyon Tree, La Casa Que Canta, and other locations throughout the Riviera Maya, Aldea Zamá will be heading up the projects in Tulum amongst others.

Marines.This is a segment which is not maintaining rhythm with the demand.  In the past two years, only 500 slips have been introduced with services, however, with several of the Mega Developments under construction,  and these having slips within their plans, 2009 should satisfy the majority of short term slip seekers. 

Shopping Centers.  This area is in plain expansion.  It is projected that more than 95,000 square meters of comercial areas to be introduced in the years 2009-2010.  These will most likely be seen in the zones of Cancún, Playa  del Carmen, and Chetumal.

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

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

I visited to Casa del Mar condos located in Coco beach which is in the quickly developing north end of Playa del Carmen.

These condos have many wonderful perks, obviously being practically oceanfront is one of them. Another thing we feel comfortable with, this developer has had incredible experience (10 years) in Playa, and has constructed several impressive condos in different levels of quality and price ranges.  If you compare with other condos in the area, these stack up very well.  To see and compare other condo options click to this web page Mexico Real EState and click onto the region of the map where you wish to do your comparison.

There are 42 units in 3 levels with a common area rooftop pool and there are 5 units on each level that are facing the ocean, with a public street access to the beach which means that nothing can be constructed in front. Of these there are 2 choice options still available: WE HAVE TWO PREMIUM UNITS LEFT, UNIT 311 (PENTHOUSE) OCEANVIEW AT 515,500 USD AND ANOTHER GROUNDFLOOR OCEANVEIW RIGHT INFRONT OF THE BEACH ACCESS NO OBSTRUCTION TO THE VIEW AT 523,500 USD.  These are quite amazing prices for being this close to the beach. Check with us and we can give you comparisons to other beachfront / view projects in the zone.

The showroom is completed and has some pretty amazing views looking south at Coco beach.

Here’s the list of amenites for this project:

· 2 BEDROOM

· 2 & 2 ½ Bathrooms

· Wood closets

· Crema Maya Marble floors

· Air Conditioning

· Ceiling fans with lighting

· Electric water heater

· Pneumatic hydro system

KITCHEN:

· Italian design kitchen
· Granite counter tops
· Refrigerator
· Electric Stove
· Washer
· Dryer
· Reverse Osmosis Water Purifier
· Laundry Room

SOLARIUM (private for penthouse units):
· Aticato floors or synthetic grass
· Pergola
· Jacuzzi

With all the great features, the developer is also quoted very low maintenance fees at an estimated $1 / m2

Reservations are just $10,000 and of course, fully refundable. Contact us for more information the pricing and details of this fantastic property before they are all sold out!

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

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

If you are selling your Property here in Mexico, the Mexican notary public will require several documents to be present for the closing process. 

If you are a buyer and new to the operations of purchasing property here in Mexico, it is also good to know and understand what documents are involved during the ownership transfer process.  There are many different properties that can be purchased here in this country, condos, single family homes, fractionals, oceanfront lots (If you want more information on properties in a particular city of Mexico, call up an expert or visit this web site to see some excellent options (Mexico Real Estate),  all of these properties use the same basic documentation.

SELLING MEXICO REAL ESTATE AND THE DOCUMENTATION REQUIRED

The notary public has several key functions in the process of transferring the legal ownership from the selling party to the buying party.  Collecting taxes, witnessing the signatures are a few of these functions but today we will be talking about the documentation that is required to be delivered to the notary from the selling party of the property.

Identificacion Oficial - Official Identification

This would include for Mexicans IFE or passport.  For foreigners it basically includes only the passport.

Cedula Catastral - Cadastral Certificate

This document basically lists out the quantity of meters of the property, the government assesed value of the land and building for the basis of the anual property tax, and other information regarding the property.

Ultimo Pago Predial - Last Property Tax Receipt

Property taxes are paid on an annual basis.  These are due by April of each year. Most states in Mexico give incentives for early payments with discounts such as 25% if paid in December, 15% if paid in January, 10% if paid in February for example.  The Mexican notary public will require the copy of the last property tax receipt which should correspond to the present year of the sale of the property.

Certificado Libertad de Gravamen - Certificate Free From Liens and Encumbrances

TIME:                   approximately 3 days

COST:                  $169 pesos

REQUIRED DOCS:     last property taxes paid and current, official id of land owner, copy of the cadastral certificate 

Cerficiado de No Deudo Predial -  Certificate of No Liability Property Taxes

TIME:                   approximately 7 days

COST:                  $285 pesos

REQUIRED DOCS:     folio number of the property  

Certificado de No Deudo Agua - Certificate of No Liability Water Services 

TIME:                   approximately 3 days

COST:                  $72 pesos

REQUIRED DOCS:   copy of your last water bill paid and current.

Certificado de No Deudo Obra Estatal - Certificate of No Liability State Works

TIME:                   approximately 2 days

COST:                  $201 pesos

REQUIRED DOCS:   last property taxes paid and current

Certificado de No Deudo Obra Municipal - Certificate of No Liability City Works     

TIME:                   approximately 3 days

COST:                  sum of your last property tax paid   plus     $380 pesos

REQUIRED DOCS:   copy of the cadastral certificate, copy of your last property tax paid and current 

 These are the main documents which the notary public will request in order to execute the legal transfer of the property from a seller to the acquiring buyer.  If you need help in realizing any of these procedures or have any questions regarding these themes, feel free to contact me or my offices. 

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

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

Many Americans and Canadians choose to drive down to Mexico for their vacations, or to have a set of wheels for maneuvering while they stay at their Mexico Second home.  A common question that we receive quite often   “How can I get my car down to Mexico?”.

I did some researching on this subject, and this is what my report reveals. The Mexico Law has allowed for permits and a regulated process for Americans and Canadians (any Mexican Foreigner) wishing to drive their Mexican foreign owned vehicles south of the border into Mexico.

GENERAL INFORMATION ON TEMPORARILY IMPORTING A CAR INTO MEXICO

Mexico law does not allow for automobiles to be imported and nationalized into this country if they are less than 10 years of age.

Mexico does allow for nationalization of cars imported over 10 years of age, whereby taxes will need to be paid.  * There may be a new law that will only allow cars made in 1998 to be legally imported.  Cars newer than this date is competition to the manufacturers and cars older than this date may be seen as an environmental and safety hazard. 

Mexico will allow for the TEMPORARY IMPORTATION of automobiles for Americans and Canadians whose importation permits will be valid during the same period as the importer’s tourist visa FMT, or using your resident’s visa, the FM3 or FM2. 

Maximum amount of time allowed on a FMT  =    6 months
Maximum amount of time allowed on a FM2/3 = 12 months

DOCUMENTS REQUIRED TO TEMPORARILY IMPORT A CAR INTO MEXICO

There are basically 2 methods for individual people to bring an automobile into Mexico.  Either driving across from the US border, or having your automobile shipped into Mexico at one of the several Mexican ports.  Each area of entry will have a module or office where you the importer, can register for your FMT tourist documentation  and  fill out the documentation for your temporary automobile permits.  The documentation you bring needs to have the original, and a set of copies to deliver to these offices.  Remember, that first the importer needs to place his personal documentation in order (FMT or FM2 or FM3) before importing his automobile.  The National Institute of Migration has offices on all borders and terminals of entry into Mexico.    

The importer of the automobile must bring (one of the following) to prove citizenship:
1) Mexican foreign passport or Birth Certificate (the Birth Certificates may no longer be allowed due to changes in international policies)
2) Valid drivers license

Afterwards, the importer must present either of the following documents to prove ownership of the automobile.
1) Vehicle Title
2) Valid vehicle registration certificate
3) Invoice
4) Credit contract from the financing institution or an invoice letter with a validity not older than 3 months.  (for automobiles that are not paid for in full)

If you are not the owner of the automobile
1) Family Vehicle: proof of ownership of the family member
Family Relation: proof of relation between owner of the automobile and the importer.  (eg.  Marriage certificate or Birth certificate)
2) Company Vehicle: proof of ownership of the company
 Company employee: proof of work relation employer – employee
    (eg.  Letterhead document stating this fact)
3) Rented Automobile: proof of rental agreement
Authorization: proof of rental company authorizing that automobile be taken out of country. 

MEXICO AUTOMOBILE TEMPORARY IMPORTATION SERVICE FEES

The importer of the automobile must pay a SERVICE FEE with either of these 2 methods. 
A)  CREDIT OR DEBIT CARD

1) credit card must be in the name of the importer
2) card must be valid internationally
3) card must be issued from either USA or from Canada
4) card must be activated to accept charges internationally
5) a charge of $39.60 at General Consulates
a charge of $29.70 at modules at the crossing points

B)   CASH

1) You will only be able to pay cash at the border crossings (double check this fact given that some ports will also accept cash)
2) If you pay cash, another DEPOSIT AMOUNT, will be charged apart from the SERVICE FEES.  The DEPOSIT AMOUNT will be returned to the importer when the importer returns the vehicle to the country of origin.  Also note that the return needs to be realized within the time period allowed on the permit, otherwise the DEPOSIT AMOUNT will be forfeited by the importer.
3) The DEPOSIT AMOUNT is determined according to the automobile’s date of manufacture.
1995 and older = $200 usd
1995 – 1999 = $300 usd
2000 – present = $400 usd

MEXICO AUTOMOBILE CROSSING THE BORDER OR PICKING UP YOUR VEHCILE AT THE PORT

Always bring the original documentation and at least 2 copies for delivering to the offices.  The automobile will be physically inspected at the border as well as at any port.  It is also normal, especially along any border state, to have several required inspection stations to review your documentation and to verify correct ownership and permits.  When you import the automobile, the officials will give you the permit, as well as a sticker to place within your vehicle for such inspections.

WHO IS ALLOWED TO DRIVE THE TEMPORARY IMPORTED CAR

• Foreigners: the importer, his spouse, ascendants, descendants or siblings, even if they are not foreigners; foreigners that hold migratory status authorizing them to do so or a national, as long as any of the authorized persons travel on the vehicle

THE RETURN TO THE ORIGINAL COUNTRY OPERATION ON A TEMPORARILY IMPORTED CAR INTO MEXICO. 

When you leave the country with your Mexico foreign owned vehicle, locate the module for temporary importation to register your automobile of its proper exit.  You will be required to present the vehicle and the temporary import permit.  The officials will then capture the automobile as having returned to the country of origin.  A Return Certificate will then be presented to you for your files.  The DEPOSIT AMOUNT will also be returned as this time. 
NOTES:
On some occasions, you can re-register the automobile for an extended time period without physically taking the vehicle across the border.  This can be done at the nearest module located within Mexico.  This is normally done by first obtaining an extension or renewing your FMT tourist VISA for another 6 months, or by obtaining a renewed  FM2 or FM3 residence card.  You will register your car at the nearest official module, they will capture your car as exported, and they will then deliver another TEMPORARY IMPORT PERMIT based on your new FMT or FM2/3 visa.  Such renewal will require another SERVICE FEE. 
You can obtain insurance on your Mexican Foreign automobile.  These companies will cover your foreign vehicle for the same accidents which can occur in your home countries.  

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

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 director of the Riviera Maya fedeicomiso, David Ruiz Cuevas gave a few words during a breakfast meeting in Playa del Carmen.  Tourism is one of the strongest and most rapidly growing business sectors here in Mexico. 

It is projected that within 5 years it will become Mexico`s number one revenue source for jobs and incomes, for the country, not just for this state.  Here in Quintana Roo, the government is poised and preparing for this continued boom in the Mexican Caribbean.  The Playa del Carmen real estate market, investors, developers, and many Mexican foreign business people are also closely monitoring the indicators within this industry. 

The director of the Riviera Maya fedeicomiso mentioned that Quintana Roo has created approximately 5 trusts or organization dedicated to the promotion and implusing the tourist activities in the region.  Such a trust exists for Chetumal, Cancun, Isla Mujeres, Cozumel and the Riviera Maya.

The Riviera Maya fedeicomiso started in 1996 whose funds are captured from taxes paid by the hotel rooms.  A portion of the monies are designated for the administration but the majority of the monies go towards the promotion and advertising of this world known tourist destination.  If you are one of the tens of thousands of Mexican foreigners who have invested in Playa del Carmen real estate, this organization and their functions are very important and quite interesting.  Rentals can jump 15 - 25 percentage points or more annually with a succesful marketing campaign from this organization which also plays positively with Playa del Carmen real estate appreciation, if the trends can continue on a constant basis.

The Riviera Maya trust basically promotes the Playa del Carmen market to USA and Canada, to Europe and Asia, and to Mexico and Latin America.  These are the division of the markets which the trust administers.  The organization is in charge of administering and promoting annual events such as the Jazz Festival.

Because of the incredible and beautiful natural attractions such as the Caribbean beaches and cenotes, and the strong projected growths of visitors to this area in the 10 years, multi national companies have been investing in record quantities money and construction of mega resorts.

This brings up a few questions.  What are the Playa del Carmen trends for the occupany rates and trends for Playa del carmen tourist volumes given this boom in hotel room inventories?  For example, in the year 2007 the volume of tourists visiting the Riviera Maya zone was 2,800,000 people!in the year 2008, the volume of tourist visiting record was 3,000,000 visitor record!  Projection is for the zone to reach 4,000,000 per year within 5 years.

Will the Cancun airport have the capacity to support such strong projections?  This is why the government is closely supporting and initiating the introduction of a new international airport to the region designated for the Tulum region.  As well, the Cancun airport is also gearing up for all of these visitors by expanding their operations.  In my opinion these are some of the main factors that has made the Real Estate market here in the region some of the hottest in the Americas and maybe even some of the strongest markets of the world.  Yet, a few factors that we need to watch closely and which are hampering the growth,  US economy and the oil prices.  Which, opens up opportunities as well,  WRITE TO ME to discuss and learn more of investment potentials during the world downturn and how this has created some opportunities in the Riviera Maya region.   

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

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 majority of the people coming to visit Mexico either arrive by plane or by driving across the border. After filling out the correct documentation for yourself, your family and friends, your next decision is “choosing the lane to DECLARE ITEMS being imported into Mexico or choose the lane of NO DECLARATION”.

What does this mean?

In the lane of NO DECLARATION, you will be asked to press a button, if the green light turns on, you will pass on through into Mexico, if the red light turns on, a physical inspection will be realized by the customs officer on your luggage and carry on items. The majority of the time, the inspection is quick and efficient, and then you will proceed on into Mexico.

If you choose to DECLARE ITEMS, then please read the last paragraph on how much you will need to pay in duties on your excess items being brought into Mexico.

WHAT ITEMS CAN WE BRING INTO MEXICO WITHOUT PAYING DUTIES?

Basically the items that can fit in your luggage and which are listed below are duty free when travelling into Mexico.

1. Goods for personal use, such as clothing, footwear and personal toiletries and beauty products, as long as they are appropriate for the duration of the trip, including wedding party items.
2. Two photographic cameras or video recorders, 12 rolls of film or videocassettes; photographic material; two cellular telephones or radio phones; a portatil typewriter; an electronic calendar; a portable computer (laptop), notebook, omnibook or similar items; a copier or portable printer; a portable projector, and their accessories.
3. Two sports equipment, four rods, three speedboats with or without sails and their accessories, trophies or recognitions, provided that they can be transported normally and commonly by the passenger, one stair climber and bicycle
4. A portable radio for the recording or reproduction of sound or mixed tapes; or a digital sound reproducer or portable reproducer of compact discs and a portable reproducer of DVD’s, such as a pair of portable speakers, and their accessories.
5. Five laser disks, 10 DVD disks, 30 compact disks (CD) or magnetic tapes (audiocassettes), for the reproduction of sound and five storage devices or memory cards for any electronic equipments.
6. Books, magazines and printed documents.
7. Five toys, —included those that are collectible— and a video game console and videogames.
8. One device that permits measurement of arterial pressure and one for glucose, as well as medications of personal use; in the case of psychotropics the medical prescription should be shown.
9. One set of binoculars and a telescope.
10. Valises, trunks and suitcases necessary for the movement of goods.
11. Passengers over 18 years of age, may introduce a maximum of up to 20 packs of cigarettes, 25 cigars or 200 grams of tobacco and up to three liters of alcoholic beverages, and six liters of wine; in excess of the above, cannot be imported without complying with applicable regulations and restrictions.
12. Baby travel accesories, such as strollers and baby-walkers
13. Two musical instruments and its accessories.
14. A camping tent and camping equipment, as well as their accessories.
15. Handicapped or old travelers may introduce items for personal use, useful to have a better performance of their activities, such as walkers, wheelchairs, crutches and canes.
16. A set of tools including its case, it might have a hand drill, wire cutters, wrenches, dices, screwdrivers, current cables, among others.
17. Beddings, that will be able to include a set of matching sheets and pillowcases, a set of towels, a set of bath, a set of table linen and a set of kitchen.
18. Up to two dogs or cats, maybe introduced as well as their accesories, provided that the corresponding zoosanitary import certificate issued by (SAGARPA) is presented to the customs officials.

What if I Bring an Item That is Not Within the Luggage and Not Outlined in the List Above?

Up to $75 USD per person is permitted on goods, or its equivalent in other currencies. Passengers traveling with family members (spouse and children) may combine their personal exemptions only when arriving together on the same vehicle or same plane.  In order to claim this additional exemption, passengers must have the corresponding commercial invoices or receipts available
If the amount is greater than the $75 exemption permitted yet less than US$3,000, you must pay duties and taxes. There is a flat 15% rate of duties and taxes and you must fill out the payment form intended for it, which is available at the Customs counter.

If the amount of the goods is over the US$3,000, then you must hire the services of a customs broker, who will present the legal forms to pay the duties and taxes (you can ask where to reach one at the Customs Office).

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

Travelling to Mexico can be very memorable, exciting, and adventurous.  But let the adventures start in Mexico and not at the border by informing yourself of the correct documentation and procedures beforehand.

DOCUMENTS NEEDED WHEN ENTERING INTO MEXICO

The Mexico government requires proof of citizenship and a photo i.d. for visitors into Mexico.    A passport is the recommended ID but other documents such as a certified copy of a birth certificate, a Consular Report of Birth Abroad, a Naturalization Certificate,  or a Certificate of Citizenship will also be allowed by Mexico immigration. Canadian versions of these documents are as well required by Mexico; notarized affidavits must be executed in Canada . The “Canadian Identification Card” is accepted by Mexico as proof of citizenship document as well.  Bring the originals and practice keeping copies on hand.  A tourist card issued by Mexico, better known as the FMT, is the third document needed to travel and visit within Mexico.

PASSPORT REQUIREMENTS IN THE FUTURE 

Mexico does not require a passport, but USA citizens do require this document on re-entry since January of 2007.  This applies only to Americans returning to the states by Air.  For those returning to the states by land, this passport requirement will start in June of 2009.    

HOW TO GET A MEXICO TOURIST CARD

You can obtain a FMT document from Mexican consulates, Mexican border crossing points and from most Mexican tourism offices.  If travelling by air, the airlines usually hand these formats out during the flight.  This is basically a document where the traveller states his/her purpose of visit to Mexico being as a tourist.  You can request that the quantity of days allowed for the visit to be for a maximum of 180 days.  For those who are planning to travel or work in Mexico for periods longer than 180 days, link here to review the FM3 and FM2 visas.

SAVE YOUR MEXICO TOURIST CARD

Always keep your FMT card well filed while you are travelling in Mexico.  This simple ticket proves your legal presence in Mexico for any type of circumstance and is required when exiting the country.  If you are travelling to Mexico to purchase real estate, the FMT is required when signing any legal documents to prove legal status of a party within the country when entering into contract.  Such contract can be the Promissory Contract or the Purchase Sales agreement.  A good tip is to keep it filed with your passport, or with your other original legal identification documents.

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

OK, now you have your Mexico Paradise Real Estate.  You have either received physical possession or have received legal possession or maybe both, and your next challenge… How do you get your Mexican Property Set up with an account in your name at the Electric Company?

CFE (Comision Federal de Electricidad) is the institution where you will set up your account for electricity.  The electric company here in Mexico is a federal institution and it is not private.  Obviously the first thing you wish to do once you have your Mexico Property is to set up the accounts for electricity, set up the Mexico water accounts, gas, telephone and television.  But the first question;  is the property a new construction where you will be ordering a new meter (new account), or is the property a resale, where you the new owner will be requesting a change of residence owner?

Mexico Electric Contract; Setting Up a New Meter and Account

Before contracting the Mexico Electric account, the company requires a few items listed below (as listed out by the company):

1)  Electric Cables must exist in the street

2)  The nearest electric pole must be within 35 meters of the meter

3)  The internal electric installation must be complete and safe for the residence

4)  The exterior panel and base for the meter must exist and be properly prepared for insertion of the meter.

The  CFE will require a few documents and charge a fee to set up your new Mexico Property Electrical Account. 

a)     Name of the new resident and address

b)    $502 pesos.

c)     copy of the new resident owner’s identification (official id, passport)

d)     copy of the of the purchase/sales contract

e)     proof of address for the Mexican property (Developer may have previous electric bill, or phone bill etc)

f)     Phone number     

Once these documents are delivered and fees paid, it will take approximately 8 - 15 days for the Electric Company to visit your Mexico home and connect. 

Mexico Electric Contract;  Changing the Registered Owner Name on an Electric Account

If you have purchased a residence that already has an existing meter, you will want to update your name to appear on the Mexico Electric account and bills. 

The electric company will require the following documents and fees.

a)    copy of the purchase / sales contract

b)    copy of the official Identification of the new owner

c)    proof of address for the Mexican property such as recent telephone bill, recent gas bill, or better yet the last electric bill with name of the previous owner.

d)   $300 pesos. 

*  It is important to ensure that your name is captured completely and as what appears on your official identification and as it appears on your new Mexico Title.  These electric receipts will be documents necessary for filing when you selling your residency.  See the post, Mexico capital gains taxes.

**  The fees charged by the Electric Company may vary from state to state.

More Information on Mexico Electric Company

Once you have your electric set up and operating, some other side notes that might be helpful;

 The standard here in Mexico for electricity is 110 volts.  Three prong outlets are not common on older structures, but the newer buildings have these redily available.  Adapters are easy to find in major office supply outlets such as Office Depot and Office Max as well as in Home Depot and Home Mart supply outlets.  It is always wise to buy a surge protector and electrical no-break aparatus for your computers.  

Most meters here in Mexico are either a 5 digit or a 4 digit reading.  The hand will point between two digits, the lesser value of the two digits is what is captured on the bill between readings.

In Mexico, 23% of the total electric consumption is consumed from residences.  Of this amount, 43% is calculated for ilumination purposes. 

Payments can be realized by internet for the electric bills.

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

Region:  Playa del Carmen Real Estate     

On the southern part of Quintana Roo, following highway 307 towards the Beliz border, you run across a beautiful quiet little town nestled along the lagoon called Bacalar.  Bacalar has various oceanfront real estate properties that are for sale which have caught the attention of many northerners.  The majority of Mexico oceanfront real estate in Quintana Roo is located in Cancun, the Riviera Maya, Cozumel, and of Costa Maya.  But Bacalar’s oceanfront properties are unique in that the water is not salty, but fresh water fed from underground springs.

Mexico Oceanfront Real Estate: City Bacalar

We made this road trip with the final destination being Chetumal, the state capital to do some business for my husband Thomas.  On the trip, we decided to stop for a bite to eat in the beautiful oceanfront town of Bacalar. 

In all fact, the city does not sit in front of the ocean, but it is a lagoon that feels like a summer lake.  Many buildings still have the Mayan style thatched roofs like the restaurant that we visited pictured to the left.  The afternoon was calm all day, we saw one boat skimming along the waters and the rest of the water movement came from the birds and winds. 

The town is small with about 15,000 people, a very quaint downtown center, with a fort that hosts a local museum.   The town attracts visitors mainly because of the beautiful turquoise waters known as the lake of 7 colors. 

The water is fresh water and can be very attractive site for small sail boat or motor boat frequenters.  Many of the homes built along the waterfront put in docks for lounging and for tying up their boats.

Mexico Oceanfront Real Estate:  Chetumal

 15 or 20 minutes away from Bacalar, you find Chetumal.  Chetumal is the state capital of Quintana Roo along the Mexico Caribbean ocean.  It is the furthest city to the south, bordering the southern country of Beliz.  Chetumal is about 250,000 in population and borders on the Chetumal bay.     

 The bay is known for the natural life and especially the manitee marine mammels (sea cows).

It is a very peaceful capital.  Many state buildings and offices throughout each corner of the city, and museums that are located on the main avenue called Heroes. 

A new shopping center is operating on the northern part of the city with movie theatres, department stores, and food courts with various franchise establishments.

Downtown, one of the famous museums is the Museum of the Mayan Culture.  This is a great place to start to learn about the Mayan Culture and history for all of the Yucatan peninsula.  It shows and introduces the visitors to many ruins and important sites throughout the Mayan zone. 

The pyramids at Oxtankah were an amazing and memorable visit.   One of the few pyramids in Quintana Roo that is completely engulfed by the jungle. 

 Alongside the Chetumal Bay these ruins are also one of the last few that the officials actually allow the visitors to walk up the structures to explore and learn. 

This site was believed to be inhabited during 200 upto 600 AC.  There are basically 5 structures all believed to be either administrative and ceremonial in their functions.   The body of one of the city’s rulers was placed in this pyramid tomb. 

The Mayan would lay his arms and legs outstretched and his head would be pointing northward.    Here in the sacred buildings, priests would carry out ceremonies which would strengthen the rulers ties with their gods.   I know that many people when searching for a second home investment down here in Mexico, choose the location on basis of nearby attractions or cities to visit.  The cities found along the Mexican Caribbean are fortunate to have many nearby attraction points to visit and explore.  Merida, Campeche, are gorgeous colonial cities full of history and culture.  Hundreds of miles of beaches to explore and cenotes to discover.  Mayan history and the ruins are found in practically every village and who knows, as many experts state, hundreds of Mayan structures have yet to be uncovered.  You might end up discovering a new pyramid yourself!

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

Region:  Playa del Carmen Real Estate     

Homarus Americanus has arrived to Mexico.  And how delicious it is.  If you are wondering what exactly is this Americanus thing,  well maybe this photo will clue you in.

Yes, this is lobster or better known as the Northern Lobster found on the north Atlantic coast of Canada and USA.  Did you know this lobster can vary in weight from 1/2 a kilo upto 4 kilos, yet have been seen to reach upto 20 kilos!  Well, these lobsters are now available in some of the top quality Cancun restaurants, Playa del Carmen restaurants, Tulum restaurants, and various Riviera Maya restaurants here in Mexico!

The lobsters are being imported “live” from Canada.  They are being delivered to various internationally famous restaurants along the Riviera Maya coast with all care and attention to  quality to ensure a delicious lobster meal.  Did you know that when a lobster takes on a posture of a jet, as seen in the photo to the right,  it means that the lobster is happy of his environment and in good health?      

We spent the afternoon riding along the coast tasting and visiting with some of the region’s, some of the country’s, and I would say some of North America’s top chefs to review this delicous sea food plate. 

To the left we see one chef and the suppliers discuss methods of preparing the seafood platter.  Did you know that the delicous lobster tail that we eat is not actually the tail but his abodomen? 

 Finally, at the end of the afternoon, we get to sit down alongside the Mexican Caribbean Ocean to enjoy a fresh lobster platter that I won’t forget for years to come I am sure.   

Did you know that non-Mexican citizens can be 100% owners of a Mexican corporation?  And with such a Mexican Corporation, you can purchase and sell Mexico Oceanfront properties under such entity?  Write to us for more information on this subject or for a list of restaurants where you can experience a memorable fresh North American Lobster dinner.

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

Region:  Playa del Carmen Real Estate     

Playa del Carmen real estate, and the Riviera Maya has been the attention of major five star developers over the past 2-3 years.  With the natural beauty of the Mexico Caribbean beaches, the crystal blue Cenotes, and thick green jungles,  Mexico Oceanfront condos and Mexico Oceanfront properties have become …. a hot item for Mexico Luxury real estate buyers.  The team of lloyd's real estate was invited and were very impressed and fell in love with the developers and the Mayakoba Banyan Tree Mexico Luxury Real Estate project they were constructing.  See the blog that I wrote.  Mayakoba Playa del Carmen Real Estate Banyan Tree  If you need help on any type of information about Playa del Carmen Mayakoba golf or Mayakoba real estate for sale… please feel free to contact me, or you can continue reading to learn little more of my own experience earlier this afternoon. 

Mayakoba Banyan Tree

Sunday afternoon my family and I were invited out to the Mayakoba Golf Course, “El Camaleon”.  I took the opportunity and took my kids along for a few lessons to see if we could detect any future promises or natural talent potential.

I was pleasently surprised!  Both of my kids have talent!

The afternoon was gorgeous.  The golf course, the Mayakoba grounds, holds an annual PGA tournament which is in February of each year.  The next tournament is in February 2010.  Playa del Carmen real estate, and the Cancun real estate market is finding many new golf courses being introduced up and down the coast.  These new professionaly designed courses has brought yet another wonderful passtime for visitors and for people who own property here in the Riviera Maya.

Who REALLY needs lessons and a pro to fix his swing is the old man.      

 There are nearly 15 Mexico golf courses here in the Mexican Caribbean.  You can click onto this link to find some further information on location, description of the golf courses, and fees.  Riviera Maya Golf Courses.

After the warm up, a quick round at the Mayakoba Banyan Tree course.

Can you imagine owning a Mayakoba real estate property and waking up to these fairways on the Mexican Caribbean ocean.  The entire enclosed grounds here in Banyan Tree are surronded by canals of transparent blue waters which have electric boat taxis to transport you from your private residenct docks to the club house, to the beach clubs, to the restaurants. 

Right after hole 14 we took a stroll along the Mexico Caribbean Mayakoba Oceanfront. 

The most incredible aspect of the Mayakoba Real Estate….is the layout.  You get lost completely in nature.  You never notice the structures or the buildings, they seem to be hidden in the canals, behind the jungle, beyond the dune.  It is you and your family and the beauties of nature.  This is a place where in the afternoon memories are created.
(If you would like a copy of this post please contact me, I will be very glad to work with you).

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

Region:  Playa del Carmen Real Estate     

The majority of the real estate news you hear over the past 6 months touches upon how the prices are readjusting downwards in many markets of the US, and even several regions of Canada.  Here on the Coast Mexico  Real Estate, in the Riviera Maya, this region either seems to have a long lag time of affects or we may be in a region which is strongly independent of the northern markets such as what is being witnessed in China and Brazil.  Tulum real estate is one such exceptional region that has been Bullish over the past year.  At a initiation party given last night, I had the chance to chat with one of the principal investors developers of a major new Tulum Closed Gate Community project.

TULUM REAL ESTATE FACTORS

What are some of the factors creating this positive confidence in the Tulum Real Estate? 

a)  The first factor is coming from the strong appreciation results realized over the past 5 years in Playa del Carmen, a city just north of Tulum.  Playa del Carmen Real Estate has seen an incredible population growth in this period from an estimated 70,000 population upto 180,000.  Such increases in population logically have given appreciation marks above 20% +  on several periods.  Playa del Carmen Real Estate prices.

b)  The private and public monies being invested into infrastructure projects for the region.  If you recall about a few months ago I wrote a short post regarding the Tulum and Cancun Airport expansion projects and some brief updates.  

c)  Foreign investment into the region.  Many of the Tulum real estate, Playa del Carmen Real Estate, Riviera Maya real estate projects that are being developed, on the beach or near to the beaches accesses, are targeted to foreigners.  The growth of the population in the region is coming primarily from Mexican nationals, but the engine that is initiating the growth comes from the large international resorts being constructed, the international second home buyers, and ex pats who are moving full time to the beautiful turquoise coastline here on the Mexico Caribbean.

 TULUM REAL ESTATE MARKET INTRODUCES A NEW CLOSED GATE COMMUNITY

Last night, the developers of a new project in Tulum real estate invited people from the industry to participate in their latest milestone achievement which was to obtain construction approval from the newly formed municipality of Tulum.  The location of the project is the interesting factor.             

 The city of Tulum is built about 2 kilometers back from the Mexico oceanfront.  And on the oceanfront of Tulum to the north, the government has the famous Tulum ruins which is one of the top 2 most visited archeological sites of Mexico.  

 The project is just initiating, and plans are to be delivering single family lots, multi-family lots, and commerical lots for construction in approximately 6 months on several fases within the closed gated community. 

The Tulum closed gate community will have underground electric, water and utilities.  Bike and jogging path will surrond the park.  And a commercial area to service the closed gated community as well as the Tulum community.

The project is opening its doors to phase 2 and the commercial phase of the development.  If you are interested to learn more information or investment opportunities, feel free to contact us.

I will follow up this post with another section or two as this is quite an interesting Tulum real estate project which might be amongst the top Mexico real estate projects with strong potentials.

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

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.

I have been involved in hundreds of Mexico Real Estate transactions.  Hardly any of the Mexico Real Estate Purchases have had the same procedures, or the same situations to occur.  As in any real estate transfer, there are many factors and parties involved, and when dealing in Mexico, with Mexican foreign buyers or sellers, the variables only increase. 

Thus, there is a high probablity that when you go to buy Mexico Real Estate transaction, it will be unique in itself, have its unique obstacles but following a common and legally protected Mexico Real Estate process.  I have written an introductory guide from my many years of Mexico business experience outlining the steps involved in How to Buy Real Estate in Mexico which I have shared with many first time Mexico buyers and sellers.

MEXICO REAL ESTATE DEFINITION

Lets start with the definition of Mexico Real Estate.  Click here to see a general  DESCRIPTION OF MEXICO REAL ESTATE.  As outlined in this web page definition, Mexico’s Purchasing Process has several EXTRA steps if the buyer or seller is a Mexican Foreigner.  There exists a Mexico Restricted Zone where the buyer will need to establish a bank trust.  Or, if you purchase outside of the restricted zone you can hold the property out right but just need to receive a simple permit from the Mexico Foreign Affairs department. 

MEXICO REAL ESTATE PURCHASING PROCESS 

a)  MEXICO REAL ESTATE AGENT

First tip,  surrond yourself with a very well qualified Mexico Real Estate agent and broker.  When you are hundreds of miles away back in your home country,  simple obstacles can easily become headaches if you have not taken the first intelligent step of surronding yourself with professional agents.  Ask for certificates, diplomas and credentials.  Are they members of any associations, if Mexican foreigners how long have they lived in Mexico and working in the real estate industry?  Do they speak spanish?  AMPI link.   

b)  MEXICO REAL ESTATE FINANCING 

Second, define the amount of money you plan to invest in your Mexico property investment.  If you plan to Mexico financing the purchase, begin to study and see if you qualify for such resources.  Do you plan to finance using the Mexican property or raise money from your home country.  Define these issues before investing time and money on your Mexico property search.    

c)  DEFINE THE MEXICO REAL ESTATE CLOSING COSTS

Third, understand all the costs that will be involved in the real estate acquisition.  Mexico closing costs include several extra items that most people are not accustomed or aware.  Although the entry costs may be a little higher, the carrying costs (property taxes, maintenance fees etc) are on average much less here in Mexico than in other parts of the world.    

With the above three items defined and understood, put your agent to work on collecting qualified properties that match your criteria search.  Review the options, have your agent prepare visits to the properties, do your comparison evaluations and ….have fun. 

There are various more steps involving preparing the offer to purchase, the contracts, notary publics and other issues for the Mexico property purchasing process which are outlined in several of my articles.  To see these articles and to learn more, please click here.  Mexico Real Estate Purchasing Process.

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

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 question on “How do I transfer money into the Mexico Real Estate seller’s bank account during closing?”  is very common.

There are various options available for making money transfers into Mexico and delivering checks to the sellers.  But, of all options, some are the most efficient and safest for both the Mexico Real Estate buyer and the Mexico Real Estate seller.

How to Transfer Money to Mexico for a Real Estate Transaction:

First we should define some of the tools available to transfer money and to guarantee payments between Mexico Banks and Mexico property buyers and sellers.

a)  Mexico Bank Draft:

as explained in investopedia, Mexico Bank Drafts are normally used when involving large sums of Money and trust is a factor.  In wikipedia, the definition is little more vague for the Mexico Bank Drafts 2 stating that such a Draft is guaranteed by the bank but the definition does not distinguish any differences between the Mexico Bank Draft with a Mexico Certified Check. 

b)  Mexico Certified Check:

In their definition for a Mexico Certified Check, this web page states that the bank will freeze the specified money amount within the holder’s account.  The depositor will normally not be able to put a stop order on the check which is why this is usually a preferred payment method by Mexico sellers.   

c)  Mexico Cashiers Check:

 The difference between the Cashiers Check and the Mexico Certified Check is:
that the money is drawn from the financial institution’s account (Mexico Cashiers Check) vs. money drawn from the owners account (Mexico Certified Check).  This is explained in detail at this link for a Mexico Cashiers Check.

d)  Mexico Wire Transfer:

The layman’s term is stated very well here at the wikipedia web site Mexico Wire Transfer.  And as explained here in investopedia, the Mexico Wire Transfer definition   are the most efficient methods for international movements.  The Mexico money wire transfer is the simplest method for having money arrive quickly to the Mexico Real Estate sellers account.  Most Mexico money transfers are prepared beforehand by the buyer at the bank from his home country specifying the quantity and the planned date of transfer execution for final approval.  At the notary public, once documents have been signed, the buyer will place an international call to his bank giving the authorization and within a few minutes, seller can confirm reception of deposits into their accounts.  The downside of this method might include the fact that some banks may take as long as 2 hours for wire transfer to appear internationally.  This will require all parties to wait patiently at the Notary Public’s offices for execution and confirmation.   

e)  Mexico Money Exchange House:

On some occasions, if during a volatile exchange rate period,  the Mexico Real Estate buyer may want to analyze and compare the exchange rates given by their home bank versus a Mexico foreign exchange company.  Most Mexico currency exchange services offer various support items which are outlined at the following link.   Definition of currency exchange services.  Most of these businesses may have a bank account within Canada, USA, UK, and most European countries allowing for an efficient national wire transfer to be executed by the Mexico buyer in their home country currency.  They can then give instructions to the exchange home to pay X amount of pesos to a specified Mexico Bank account (Mexico Sellers account).  Other businesses may allow for you to pick up a check made out to the Mexico Sellers name as a certified check giving the Seller ease and confidence of reception of monies.  

f)  Mexico Escrow Account:

Our last option that we discuss in this post is the Escrow Account.  Here the buyer pays an escrow agent to administer and coordinate the payments once all documents and signatures are safely collected.  You can listen to a video introduction to this Mexico Real Estate tool by clicking onto this link.  Listen to video introduction on Mexico Escrow Accounts
  
The payment of deposits, balances and overall Mexico Real Estate transaction process are outlined in greater detail in another post.  If you are interested to see when such payments are normally due and payable, learn more by clicking and reading more at (the purchasing process).  At a future date,  I will write some information on how to legally get monies above $10,000 usd into this country to buy or invest into Mexico Real Estate. 

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

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.

There have been several articles and news clips throughout various countries about the world wide inflationary pressures.  Inflation on the basic goods of everyday living including the obvious which is the cost of oil, but also the cost of Rice, Milk, and other food products.

A little more than a year ago, I collected some prices from the grocery store here in Playa del Carmen and I put them up on the web page to give new buyers an idea of the Mexico Costs (MEXICO COST OF LIVING FOOD COSTS year ago).  Today, on my visit to the grocery store, I thought it would be interesting to see todays prices vs. those of last year, and also to compare with the readers prices from their home country.  Below are some costs on everyday food items.

Mexico Cost of Living Food Costs

Carrots                  1 kg.                          $2.00 pesos
Sugar                     1 kg.                         $10.00 pesos
Beer Sol                  12 pack/355 ml/unit   $92.50 pesos
Coke Light               2 Ls                          $15.50 pesos
Coke                      3 Ls                           $17.40 pesos
Cloth Detergent       2.7 kgs                      $52.50 pesos
Dish Soap               1 kg.                          $14.20 pesos
Bananas                 1 kg.                          $8.80 pesos
Lemons                  1 kg.                          $3.00 pesos
Rice                       1 kg.                          $10.00 pesos
Salt                        1 kg.                         $6.90 pesos
Spaghetti                450 grms.                  $8.00 pesos
Watermellon            1 kg.                         $3.70 pesos
Mango                    1 kg.                          $8.80 pesos
Hunt`s Catsup         680 grms                   $13.30 pesos
Tuna Water             170 grms.                  $7.40 pesos
Nescafe                  200 grms                   $49.70 pesos
White Bread            770grms                    $24.00 pesos
Corn Flakes             660 grms                  $27.50 pesos
Milk                         1 liter                       $11.70 pesos
Hot Dogs                  16 units                   $43.50 pesos
Bar of Soap              1/unit                      $4.00 pesos
3ple Action Colgate   1/unit                      $14.55 pesos

I think it is very interesting to note that the prices here in Mexico have not jumped tremendously.  I hope this trend remains.   The food costs from our first collection, were already less expensive than many of our home country food costs.  If the prices have increased sharply in other countries, than the cost difference gaps will only widen with that of Mexico.   These daily costs of living have been some of the attractive factors which have brought and is bringing many Americans and Canadians to consider Mexico as full time retirement home or winter getaway home.

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

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.

Mexico Real Estate investments can have great returns and strong appreciation as it is a developing country with a rapidly growing tourist infrastructure.  But as you invest into this Mexico Real Estate Market, it is wise to study all costs and prepare a Mexico investment strategy.  Below I have put together a list of various taxes and fees due on a simple Mexico Real Estate operation.  As in my previous articles, I always recommend updating and verifying all quoted costs with your local Mexican Notary Public, Professional Accountants and Professional Lawyers to verify and confirm the figures and factors below mentioned. 

List of Mexico Closing Cost Items 

Below you will find a brief introduction and description of the line items.  If you click onto this link ARTICLE AND SPREADSHEET OF MEXICO REAL ESTATE CLOSING COSTS  an excel spreadsheet is provided with formulas to allow you to drop in your actual commercial values to give you estimated closing expenses. 

* Mexico Commercial Value

The commercial value is the amount of the actual agreed purchase and sales price.  This amount is captured on the title or in Spanish called “escrituras”.  Many of the costs are calculated based on factors against this dollar amount.  In this article, I am assuming a Mexico Real Estate transaction of $100,000 usd. 

A. (Mexico Lawyer Real Estate Contract)

I recommend having a regional Mexico lawyer to counsel, and supervise your Mexico property acquisition.  The Mexican lawyers charge from $300 usd up to $5,000 usd for activities such as elaborating a contract, or reviewing a contract on behalf of the buyer.  The costs of course depend on the complexity of the property and or of the operation.  

A-2 (Mexico Lawyer Closing Coordination)

There are many pieces and people to the closing puzzle.  Coordination of the Mexico Bank trust officers, the notary public, obtaining the correct property documentation is a heavy task.  Such activities and services can be quoted by your Mexico legal representative.  Click here and WATCH A VIDEO VIDEO introduction to Mexico Real Estate coordination services offered by lawyers.

B (Mexico Title Research)

Title research activities will generally cost from $500.00 to $1,600.00 usd depending on the region.  In depth searches are recommended on lots and areas outside of main municipalities and such searches will expose any existing liens, history of the property, and any other details pertinent to the property. Title research to the chain of transfers are the legal responsability of a Notary Public, but a few buyers choose to have an additional review executed.  If title insurance is retained,  the private title research is a mandatory task. 

C (Mexico Real Estate Title Insurance)

There are various private companies offering Title Insurance for Mexico Properties.  Title insurance generally will cost $6.00 to $9.00 per $1000.00 of the purchase price.  Mexico title insurance is normally required if you are obtaining a loan on your Mexico property by the lenders.  A few companies that offer such tools:  Stewart Title    and First American     Click here and WATCH A VIDEO VIDEO Stewart Title Mexico Title Insurance products.

 C-2 (Mexico Escrow )

Although a new tool for Mexico, the escrow account is slowly being introduced and utilized here in the Mexico Real Estate industry. Costs for setting up these accounts range from $500 usd up to $1,250. Again this depends on the complexity of the operation and the dollar amount to be held in Escrow.  Click here and WATCH A VIDEO introduction to VIDEO Mexico Escrow services.

 D (National Registry of Foreign Investments Mexico)

Any non-Mexican citizen will need to register their investments with this Mexican Government Registrar. If the property being purchased is in a Trust with a Mexican bank, and the seller has a beneficial interest in the property which has been registered under the trust, the buyer will pay only the costs for Assignment of those beneficial rights, bank transfer fees and registration in the Foreign Investment Registry. A permit will be required only if so stipulated in the Seller’s Trust. If not stipulated there is no charge for a permit. The charge for registration is the National Registry of Foreign Investments (RNIE) is approximately $ 380.00 dlls. and is required for all transfers of trust properties. These fees are normally included within package deals offered by the bank.

E (Permit from Mexico Minister of Foreign Affairs )

The permit to invest into a Mexico territory will incur an expense due by the buyer.

If the property is not held in a Mexico Real Estate Trust by the seller, it will be necessary to acquire a permit from the Secretary of Foreign Relations to establish such a trust. The application for the permit must indicate the proposed purpose of the property.  If the property is a vacant lot, the request should include a general development plan; the amount of money being invested and the time frame in which the investment will be made. The permit to establish the 50 year trust is approximately $1,300.00 dlls.  This expense may be included within package deals offered by some banks.

F ( Mexico Bank Trust / Fideicomiso)

Your Mexican Bank is the organization which the Mexican Government has authorized as being a Trustee for properties held in Trusts. These institutions include multi-national corporations such as  CITIBANK, BANCOMER, HSBC, SCOTIA BANK, BANORTE
amongst others.

Banamex has recently been purchased by the CITIBANK group.  Citibank

Bancomer has recently been purchased by a financial institution from SPAIN Bancomer

Bital was purchased by the HSBC group.  HSBC

Scotia Bank has recently been established in Mexico by the Canadian Banks.  Scotia Bank

Banorte is one of the last remaining Mexican institutions to exist.  Banorte

 The average set up fee for a trust ranges from $800 up to $1,300 usd.

The normal annual trust fees are approximately $500 - $800 usd.

 * please note some banks offer packages that include the set up and first year fees in one price

 G (Notary Public)

A Mexican Notary Public “notario” is an attorney who has passed various rigorous examinations  …….

Read this complete article by linking here  ARTICLE AND SPREADSHEET OF MEXICO REAL ESTATE CLOSING COSTS.

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

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.

 A few days ago, Doug Payette from Connecticut took a trip down to Mexico to begin introducing a new program of Mexico Mortgages and Mexico financing for Americans, Canadians, and for the British. 

He took several days of introducting and training the Lloyd`s Real Estate team of these new tools that are now available.   What are the Mexico interest rates?  What are the terms?  What type of loans can the Mexican foreign buyers utilize?  CLICK HERE to see a video interview, VIDEO Mexico Mortgage and Mexico Financing Questions and Answers Very interesting conversation with Doug,  and the exciting news is that he will also be a guest blogger here at TOPmexicorealestate, writing and receiving comments and questions from readers regarding these financing themes for Mexico.

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

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.

Many people are unaware that Non-Mexicans can OWN property in Mexico.  For many, it is a surprise that Mexican foreigners can actually own property that is right on the beach, or that such an option is available to own Mexico Ocean front real estate.

  Yes, Mexican foreigners can own a beachfront home and live full time very comfortably in Mexico!  This question and a few other Frequently Asked Quesitons are covered in my previously prepared articles.  You may want to review some of the anwers to these common questions on How to Buy Real Estate in Mexico at this site. Mexico Real Estate  FAQ   

As to a Mexico Bank Trust, also known as a Mexico Real Estate Trust, and in spanish known as the FIDEICOMISO:

MEXICO RESTRICTED ZONE

the Mexico 1917 Constitution outlines clearly that no Non-Mexican Citizen is allowed to own Mexico Real Estate within 50 Kilometers from any Mexico Coastline.  The restriction also included any areas wihtin 100 Kilometers from any Mexico Border with neighboring countries.  (this would describe the US/Mexican border and the Belize/Mexican border and the Guatemala/Mexican border)  see Mexico Map        BUT………

DEFINITION OF A MEXICO BANK TRUST, THE FIDEICOMISO

 Many things have changed since the 1920`s, 30`s and so on.  The world has been opening up their markets in nearly 80% of all countries.  Including Mexico.  As Mexico inteligently realized over the past several decades, foreign investors with their foreign investments were and are very attracted to the beautiful natural coastlines of the Mexican Pacific, the Sea of Cortes, the Mexican Caribbean, Gulf of Mexico.  There were even many Americans who preferred to live in the less expensive Mexico neighborhoods, but within driving distance of their jobs on the American side.  It was too complicated to change the Constitution….so amendments were established.

The Mexico Foreign Investment Law mandates the process for owning property in this restricted zone.  This was first introduced in 1971, adjusted in 1993, and once again updated in 1998.  The main theme of these regulations:

1)     Non-Mexicans CAN OWN property within the Restricted zone if for residential purposes using a Mexico Bank Real Estate Trust

2)     Non-Mexicans CAN OWN property within the Restriced zone if for non-residential purposes using a Mexican Corporation

*Please note,  non-Mexicans can invest and own 100% of a Mexican Corporation.  The Mexican Corporation requires a minimum of 2 shareholders (both can be foreign),  only a few minute industries do not allow 100% foreign ownership such as the oil industry and communication.

The fideicomiso is an agreement set up between the Mexican foreign buyer and a Mexican bank.  The bank acts on behalf of the buyer.  The bank will have title, but has a fiduciary obligation to follow the directions and wishes of the foreign buyer.  The non-Mexican buyer can enjoy, use, rent out, improve upon the property, expand, build and sell the Mexico Real Estate and reap 100% of the profits. 

other facts:

fideicomitente =  seller of the property

fiduciary = the bank acting as the trustee and holder of the title

fideicomisario = beneficiary of the property

Term of 50 years, and it is renewable for another 50 year term

second beneficiaries can be established within the trust to establish automatic inheritance of the property in case of deaths of the first beneficiaries

The buyer, can choose which banks he wishes to establish his Bank Trust.  There are various multi-national banks in Mexico including Citibank, Scotiabank, HSBC, Bancomer, as well as several Mexico national banks which include Banorte

One last note which will be covered in further depth at a later post, in regards to Non-Mexicans buying property outside of the Restricted Zone.  Mexico Real Estate Bank Trusts are not needed in these regions and property can be held simple and straight title.

To see the total article and to learn more on Mexico Bank Trust and Mexico Fideicomiso click here: Articles on Mexico Real Estate. 

A NEW POST EXPANDING ON THIS THEME HAS BEEN POSTED FOR YOUR FURTHER READING AND EDUCATION.  AS ALWAYS, WE ARE EXCITED TO RECEIVE YOUR CALLS AND HELP ANSWER ANY SPECIFIC QUESTIONS YOU MAY HAVE REGARDING THIS THEME AND RELATING SUBJECTS OF HOW TO BUY REAL ESTATE IN MEXICO.  CLICK HERE FOR THE NEW POST.  More information on Mexico Bank Trusts

 Thomas Lloyd     www.TOPmexicorealestate.com 

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

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.

When buyers start searching here in Playa del Carmen oceanfront condos , 30 meters, 50 meters or even 100 seem quite large for the protection of the treasured oceanviews.   But 200 meters oceanfront is a lot of private ocean swimming and laying out areas for this region!                                            

What is putting Mareazul as one of the real estate leaders here in Playa del Carmen?  

Top reasons:                                                         

a)   large oceanfront lot (great views)              b)   within a golf course.                                          c)  great financing plan for foreign buyers.   d)  amenities, great pool and a zen garden, wow. 

At the top of the list of questions, when people tell me they are looking to invest into condos, is “how are the views?”  Mareazul condos take the cake with spectacular views out onto the Caribbean Ocean.                                           

Here you see Andy Welbourne from Lloyd`s Real Estate interviewing and looking out at one of these views.  As they explained to us, the designs have been laid out so that you hardly notice, feel, or see that you have neighbors.  Each tower, consisting of 2 condo units per floor and 4 floors share an elevator.  Meaning that on your floor, you will share your elevator with only one other unit. 

 Are you a golfer?  World famous celebrity and company, Nick Price has designed the course that will be on the back side of these Mareazul condominiums.    The 1.5 km. road leading down from highway 307 will weave gently through the lush green fairways and greens as you approach your private condo on the ocean.  

As many Mexico Real Estate future buyers have discovered, financing into Mexico properties is now available throughout many states of Mexico.   Yet, there still is a great maze of papers and requirements from the Mexican Banks that disqualify the majority of such foreign buyers.  In house financing is another story though, as the sellers have a greater incentive to ensure that the buyers have greater chance of qualifying for the loans in order to secure a sale.  The downside of Mexico in-house financing is the higher charged average interest rates.          BUT…..  take a peek at this:  

Libor + 2%.  70% financed!   Meaning 30% paid at the signing of the hard copy, and 70% kicks in when the unit is complete.   That is why I mention this is the best in the market for in-house financing.  Pull up the excel sheet, take out the pencil, and do some numbers.  Also, as you project future growth….check out this last post I did about latest developments on the Cancun airport.   

One last point for your review of a Playa del Carmen Condo option.  Green areas, gardens, pools, common area amenities.   Take a look at these extras.

Zen gardens for meditating, incredibly large pools overlooking the caribbean.  (with 200 meter oceanfront you can imagine the open view)  Ok,  the project has some “Wow” factor it is hard to hide this fact,  but review the numbers, I suggest you look at the financing option as well (very interesting) and remember…. the property is in the middle of the Riviera Maya, on the mainland of the Caribbean ocean, and within the most stable country of these options.   Growth in this region has been breaking records over the past 4 years, most likely will continue for next 4 or 5.  Check it out, compare with other like properties in Mexico Real Estate, see what you think? 

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

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 Cancun Airport continues its aggresive investment into its installations and infrastructure preparing for the future. 

The Federal government and private companies alike have been investing into Mexico real estate's infrastructure in preparation for the projected inflow of tourism and visitors into high tourist destinations such as Cancun, Playa del Carmen, and the Tulum real estate region.  As I arrived to the terminals a week ago, I was amazed at how fast this project was being constructed.  The project consists of a second runway being located on the north side of the present runways.  The location of this runway will allow for simultaneous take offs and landings which will increase the overall capacity. 

The undergoing project includes a new air tower and a bridge that will connect one runway to the other allowing for the jets to taxi to terminals one, two, and three.  The airtower will be over 100 meters in height which will place it as the highest tower in Latin America and one of the top 20 of the world.  The bridge will expand over 64 meters in length with a width of 60 meters allowing for the largest of Airbuses to cross with safety and efficiency.

The project will have a cost of roughly 67 million dollars.  Is this expansion of the Cancun Airport a sign of a cancellation of the Tulum airport that has made headlines over the past 4 years?  Juan Molinar Horcasitas   Secretary of the Communications and Transportation Department of Mexico assures that by the end of 2009,  plans continue and bids will be taken on the Tulum Airport. 

Two international airports to support the Riviera Maya, Cancun, Playa del Carmen real estate regions?    Do you think the real estate markets will go up in price along with all of the new tourist traffic and airlines being introduced into the region?       It sure does point in that way.

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

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.

A while ago I had the opportunity and pleasure to meet with Richard Lapper, Latin America Editor for the FINANCIAL TIMES.  Richard was visiting  from Brazil, to do a report and analysis on the Mexico Real Estate market, in particular the Mexican Riviera. 

What did we talk about?  

Real Estate. 

Puerto Aventuras has the attraction of   being a closed gated community, golf course, and a marina here in the Middle of the Riviera Maya.  If you are a boat lover, this is paradise.  With the new expanded highway being constructed from Playa del Carmen south towards Tulum, it makes all road travel safer and more comfortable.  People are only 15 minutes from a Sams Club, Walmart, Mega Comercial, Soriana shopping centers, and the same distance to visit the famous 5th Avenue for their 100s of restaurants.  Hospitals… again on the south side of Playa del Carmen only 15 minutes from this community.  The marina, is the only residential marina in all of the Riviera Maya.  Tulum,  approximately 30 minutes to the south, which allows for easy access to their ruins and amazing beaches.  Cenotes, many beaches, other golf courses and a new airport in Tulum…..Well, this community definitely needs to have a flag placed next to it for investors, for second home buyers, and for people planning on retiring to these parts of the country.  Other closed gated communities in the region may include Puerto Cancun, up in Cancun, which you can read a little more details from another post. See Cancun Real Estate Condos

 The average pricing on properties here in Puerto Aventuras runs for condos on the golf course approximately $1,800 - $2,000 usd per m2.   Condos on the canal run approximately $2,000 - $2,300 per m2

A home would run at an average of about $450,000 usd on the golf course, and $900,000 usd on the canal.  (Canal lots have their own private slips and quite popular for boaters)

You can see and look up ACTUAL PRICES of properties in Puerto Aventuras Real Estate at our site of Mexico Real Estate.

So who else is buying in Puerto Aventuras?

Well, the demand is coming from second home buyers, but also from people who are working and living down here year round.  These people can be Mexican as well as foreigners (ex-pats).  Playa del Carmen is not only one of the fasted growing communities in Latin America,  but also the entire region.  Tulum has on their plans a new international airport.  The amount of hotel rooms existing today run a rough 3,000,  but is projected to reach near 18,0000.  We all know that population growth is the major factor for increase in pricing, so this has a major influence on the future pricing of this unique community.   It is a lovely community, small restaurants, little cafe, general store, drug store all exist within this “Mexico Retirement Community” setting.  You can even swim with dolphins and visit the sea lions and a family of manatees (sea cows). 

What has been going on during the past seasons here in mexico?   

Mexico has traditionally been a cash market,  unlike the USA, Canadian, and British markets, here in Mexico nearly 95% of all real estate transactions occur with cash, no financing.  (Side Note:  during the President Fox administration, new programs to help the working class people here in Mexico have been introduced and established to give credit for the purchase of homes, the industry has boomed throughout the country)   But, as my readers and people who my team and I help in Real Estate investments and purchases are Mexican Foreigners…… I normally research and study programs available for Non-Mexicans.  Over the past 2 years, several financial institutions have begun introducing credit available on Mexican properties to Mexican Foreigners.  This is still a very new program, and still has various obstacles to iron out in the process.   My experience has been that the majority of the buyers, finance their Mexican Real Estate Purchase using their home country assets as collateral.    BUT…. once the process of financing is improved,  the quantity of potential buyers will INCREASE tremendously and of course….the pricing will increase tremendously too.  Remember, this is oceanfront and canal front properties.  CARIBBEAN OCEANFRONT.  How much time for financing to be more readily available??  I am guessing… maybe in about 3 or 4 years???

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

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.

As Mexico oceanfront properties become discovered by the world, the demand is
bringing record numbers of investors and buyers to this market. 

Some are coming with their knowledge and their monies which they reaped from their wise investments in other parts of the world such as the Las Vegas and Florida real estate markets. Now, the savy real estate investors, with the slow down and correction of the American markets, are broadening their sites into new developing and rising markets.  In this new century with the more open global market community, international investing does not seem that adventurous as the years before to many of the local real estate experts throughout US, Canada and UK.  Mexico waterfront real estate is a logical top option.

Here in Mexico, the markets are not as mature as those from Canada, UK, nor of the USA.
The same regulations do not apply here in Mexico as those from our home countries.
Some people see this as a half empty glass, others, as a half full glass.
Less regulation, more risk, but much larger potential for greater returns! 

*Do your homework

*Surround yourself with qualified people

*Manage the risk and reap the rewards 

Over the past 10 years, the Mexico preconstruction condo process has changed as more developers have appeared on the oceanfronts.  In the early years, various local developers were the options available to the early international investor pioneers here in Mexico.  Soon, regional and national players started investing into raw plots of land seeing the signs that large numbers of international end users were flocking to the Mexico Beaches.  Today, we are in phase one of large multi national developers placing their footprint signatures along specific neighborhoods throughout Mexico.  You the investor, are in a phase of investment here in Mexico very unique, in that you can find a variety of Mexico Preconstruction condo options.

TRADITIONAL PROCESS TO RESERVE A MEXICO PRECONSTRUCTION CONDO

1)   $10,000 usd to reserve a specific unit

2)   30% - 50% of the total condo unit value is paid to the developer with signatures of the promissory contracts

3)   monthly payments to the developer are realized by the buyer during the construction period

4)   upto 90% of the unit is paid with the physical delivery of the Mexico condo unit

5)   the remaining 10% is paid with the legal delivery of the condo

As outlined above, soon, regional and national players started to give more purchasing options.  The price might increase a few percentage points as the larger developers had greater cash flows, but this would be reflected back into the final price of the unit.  such payment schedules might include:

NEW PAYMENT PROCESS

1)   $10,000 - $20,000 usd to reserve

2)   30% - 40% of the total condo unit value paid to the developer with signatures of the promissory contracts

3)   payments made on construction milestones (first floor complete 20% payment, windows doors inserted, 15% ej.)

4)   upto 90% of the unit is paid with the physical delivery of the Mexico Condo unit

5)   the remaining 10% is paid with the legal delivery of the condo

Finally, with the introducton of several American and European mega developers, their large deep pockets have opened
up the market to more accesible payment schedules.  But as we know, risk controls cost money, and these are transferred
into the price per square meter.

MULTI NATIONAL DEVELOPER PAYMENT PROCESS

1)    $15,000 - $20,000 usd to reserve

2)    30% of the totla condo unit value paid to the developer, and sometimes to escrow

3)    no payment needed during the construction period

4)    the remaining 70% is paid with the legal and physical delivery of the Mexico preconstruction condo.

5)    some developers, will then offer in - house financing to kick in at this point offering from
       5 years upto 20 year financing. 

 
The above payment schedules are all guidelines and we can find a variety of payment plan options, and a variety of developers
throughout Mexico.  Some have conditions set in stone, others are flexible in negotiation.

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

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

Condo hotels have become quite available throughout various regions in Mexico, the options that this Mexico Condo investment offers to you the buyer/investor are focused mainly around the issues of property management and property amenities available.

 The Mexico Condo, has a definition in the Wikipedia as: (See definition).

The “specified part of the real estate” as oultined in the definition would refer to your individual private living area, including your parking spaces and storage rooms for example.  These private areas are listed out in details on the titles.  Rights and ownership of the common areas such as the play room, the pools, the garden area, and elevators are jointly owned by all of the other condo owners, and these are administered by the association of owners. The Mexico Condo Hotel, following through with the example above and again using the

Wikipedia sources states the following: (See definition).

What is important to note in the definition from Wikipedia are the following, 
a)      Each condo unit is fully and individually owned by the buyer/investor.

b)      the buyer/investor can choose to give authorization to an onsite management team
         to administer the rental and upkeep of your individual unit, as well as the amenities
         offered to the vacation rental guests, as well as to the marketing of your rental unit

c)      the buyer/investor, in the majority of the options here in Mexico, has the right
         to choose if he wants to place his unit on the rental pool, or decides to have 100% private use.
I have dealt with many buyers from the States, Canada, and UK with the Mexico investment goal of earning vacation rentals from their units while they are back in their homes.  The condo hotels have been an excellent option for such investors.  Normally the condo hotels will have professional and quite experienced management staff on site.  In such cases, the rental fees, may be higher than contracting out-source options.  Out-source options would be the property and rental managers that exist in the community who have built their businesses from renting condos and Mexico vacation homes in the region.  The higher fees charged to the on-site management team may be beneficial to the buyer/investor if the management team is able to keep the unit occupied on a higher percentage point.  This is normally the case as most managers invited to administer have track records and national and international marketing experience which pays off in the long run to keep the unit filled with renters.

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

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

Resort real estate and oceanfront real estate have always had a strong track record for appreciation.  Mexico is no exception to this rule, and with its close proximity to the US and Canadian markets, the demand has been increasing quite noticeably over the past couple of years for these waterfront properties. 

If you add to this picture the potential of appreciation from buying during the Mexico preconstruction condo phases, the roi can be quite handsome and may repeat some of the spectacular returns that the Florida and Las Vegas markets experienced over 10 and 15 years ago.  Reserving and purchasing at the initial stages allows for discounted prices, and, allows the investor an easier exit channel.  The exit consists of having to sell a brand new Mexican Condo to the market in order to collect his revenue and profits.  Below find a short list of benefits from buying Mexico Preconstruction Condos:

1)     MARKET APPRECIATION.  prices are lower at the initial stages of a construction.  A chunk of land is worth the going market value.  As the ground breaks, Mexico real estate values increase.  Investors can ride the market appreciation as the construction proceeds converting from a hole in the ground to a finished, complete condo. 

2)     DEVELOPER CONTROLLED APPRECIATION.  Mexico Developers usually plan several scheduled price increases during the construction and selling progress.  This strategy is to encourage investors to invest earlier because the prices will increase if they wait till later.  Such strategies adds to your ROI

3)     CUSTOM AND DESIGN CHANGES TO YOUR RESIDENCE. 
When reserving at the initial stages, you have the opportunity to customize your new home.  Choose different flooring, window accessories, and other design elements.

4)     BEST CHOICE OF UNIT.   Reserving in early, allows the investor to choose from the best Mexico Preconstruction condo.  Best floor plan, best view, best location within the community.

5)     INTERNAL FINANCING.     When buying into Mexico preconstruction, the investor does not need to come up with the entire 100% of the value of the real estate.  Many condo units take from 12 months up to 24 months for completion of the unit.  Payments can be made over this time period and not all up front.

Do you have a friend or client wanting to buy real estate in Mexico?
We pay REFERRALS, learn more, click here...

Thomas Lloyd: Founder and current president of TOP mexico real estate NETWORK. "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely !" Visit blog site www.TOPmexicorealestate.com/blog or call (512) 879-6546       for further information.

Todays business world and world economies have increased their relations between economies and markets throughout all countries in the world.  What occurs in China is felt in NYSE, and what occurs in the middle east is also seen on the economic indicators of Europe.  So naturally one would think, being that USA and Mexico are next door neighbors, the financial market and housing market conditions from the north should be reflected in Mexico's markets as well as the Playa del Carmen and Cancun real estate markets.

 But, in the past 6 months, Mexico's financial markets have fared quite strongly to the storms that have been hitting the North American markets.  Not only Mexico, but the majority of Latin Americas markets have been pumping forward.  This is quite an interesting occurence.  The world economy is much greater intertwined than what it was 10 years ago.  Yet,  if a regional market is having a slowdown, should this not be felt throughout the world markets and especially here in Mexico as a stronger affect? 

 Fortunately, various Latin American countries have diviersified their business relations with a number of countries throughout the world.  Such countries will not have such a strong tie to the slow down.  Mexico has done very well over the past decade to bolster their domestic economies, their inflation, their overall exportations.  So the good news is that Mexico`s economy is doing very well this first quarter of 2008.  The tourist sector is going stronger than ever.  And the Playa del Carmen real estate, although not witnessing the incredible rates of appreciation seen over the past 4 years, is still quite positive (see prices in general).   

 My "not so exciting" opinion though, is,  how long can Mexico's financial markets continue to churn on their own?  Mexico's number one destination for exports continue to be the USA.  The quicker that USA can rebound, the better off their country business partners, and the world economy as a whole is better off.  Us here in small Playa del Carmen, continue to monitor closely.  We see how various Mexico Real Estate investors are now comparing Florida Real Estate or even Arizona Real Estate prices versus the Playa del Carmen properties.  I remind the investors of several factors as they do their analysis.  Don't forget the hidden costs of your analysis.  What is the day to day cost of living between the real estate markets.  How easy and inexpensive are the transportation, logisitics of arriving to your second home investment?  Is the tourism projections strong in comparisons?  What is the population growth projections for the area, what is feeding this growth?    Remember, you may want to flip, or re-sale your property in 3 years, 5 years.  Just because the price on a property has dropped 15% - 35%, how long will the local real estate market take to regain this drop and reflect 2007 avg. prices again?

Do you have a friend or client wanting to buy real estate in Mexico?
We pay REFERRALS, learn more, click here...

Thomas Lloyd: Founder and current president of TOP mexico real estate NETWORK. "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely !" Visit blog site www.TOPmexicorealestate.com/blog or call (512) 879-6546       for further information.

Tulum real estate is being transformed in a very quick manner.   As has been the news for several months, a new international airport has been on the plans for this southern Mexican Caribbean tourist destination.   Updates on the Tulum Airport?  The Mexican federal government has many investments planned for the southern states of Mexico.  My old friends from Mexico City have chatted with me explaining that various federal government departments have been closely studying and copying the successful government economical development models from Chile and China over the past 5 years.  Nutshell of these succesful programs...."Invest into the infrastructure and the economies will benefit and flourish".  See articles   TULUM AIRPORT AND THE FEDERAL GOVERNMENT  

How does this affect the Tulum real estate market?   Take note of the expanded highway from Playa del Carmen down to Tulum.  (this may not stop here, may continue on south towards Chetumal).  Also take note on the road expansion and improvement from Tulum towards Coba.  These improvements have increased the awareness and attention to this village, this has brought on many speculators, and of course has increased the demand on Tulum properties. 

In the Mexico real estate, Tulum condos are a type of property that many buyers seek in this area.   Tulum oceanfront condos are the first to be requested, but as the zoning and natural landscape limits the inventory,  people therefore search for their properties in the available downtown zone which lies approximately 2 kilometers away from the beaches. 

Is this bad?

No, it actually brings a unique and maybe a natural ecological protection to the beaches and ocean front properties in the community.  The beaches in Tulum are ....incredible.  They are breathtaking and the downtown area of Tulum is growing in a quite picturesque setting.  During the past 2 or 3 years,  there have been only a handful of Tulum condo projects.  Two of these have sold out quite quickly during preconstruction phases.   Tulum lots and Tulum single family home inventories as well have been quite limited to an area that is south of town, in an area that has yet to have city electric,  city water and other basic utility infrastructures.

Last year, in the early fall,  a new project was introduced to the area.  A closed gate community with a golf course, single family zones, condo lots,  and commercial areas.  

This is the first of its kind in the Tulum area.  Between the village and the only road to the beach, it location is...the best in town.  The lots are not directly on the ocean, but, given the demand and the previous inventory location,  these properties will be highly quoted.  The number one attraction,  INCREDIBLE BEACHES.  People from Playa del Carmen, from Cancun from all the zone make special trips down to Tulum just for their beaches. 

This past Saturday, we were invited to go into the mega lot to visit.  See our video clip on this adventure into the jungle of Tulum.  

Dont wait to invest, invest and wait.

Do you have a friend or client wanting to buy real estate in Mexico?
We pay REFERRALS, learn more, click here...

Thomas Lloyd: Founder and current president of TOP mexico real estate NETWORK. "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely !" Visit blog site www.TOPmexicorealestate.com/blog or call                                 (512) 879-6546                   for further information.

While working here in the Playa del Carmen real estate industry, we come across frequently asked questions by many of our buyers.

I thought a good subject to touch upon this week would be to hit on some of these subjects. Also, this past week, the Riviera Maya real estate organization of AMPI, which I am a member, held a short session to discuss the theme on Condominium Regimens here in Mexico.

In layman's terms, a Condominium Regime is basically dividing one main title of a building and land, into smaller, individual titles. Physically, the Playa del Carmen condos would all be individually measured, have their own individual independence (individual contracts) in regards to their electric, water, and basically all utility needs. A condo regimen will not only specify the private areas of the individual condos, but will also specify what areas and buildings are to be considered in the common areas. By laws are also part of this package which include the rules by which the condo owners must follow while living or enjoying the areas within the complex. The Mexico Real estate Federal law outlines the basic rules that must be included in these by laws, but the sky is the limit in regards to additional rules that the condo owners wish to include in such document.

The regimen of Condominium document is an important certificate that the investors in Playa del Carmen real estate and Mexico Real estate focus upon when purchasing a Mexico pre-construction condo because titles cannot be issued until such document is obtained by the developer.

How long does it take for a Mexico developer to obtain the Regimen of Condominium?

It varies upon the state, but approximately 3 - 6 months.

Now, Playa del Carmen luxury condo developers, need to invest time and money into obtaining the Regimen. But, the requisites are quite logical, and the majority of the work deals with engineering and architectural data. The notary public and documentation paperwork also require additional time. The information and documents that are required to obtain the Regime consists of the following but not excluding additional requirements not mentioned below.

Original application requesting the Mexico Condominium Regime

Property title

Property Tax Registry

Last property tax payments

Zoning permits

Certificate of compliance with city and state regulations

Construction permits

List of building materials being utilized in the building

Performance Bond

Delivery Bond

Condominium By Laws

The application is delivered on the city offices as well to the state. At the state level, the government offices known as the SEDUMA will be the authorizing government body. Once the authorization has been granted both by the city and state, the documentation can then proceed to the notary public.

Once arriving to the Notary Public the lead time may vary from 7 to 14 days. Once notarized, the documents will then need to be notarized. Here, the Mexico public registry will assign individual folio numbers to each of the Mexico condominium units. Finally, the cedula catastral, or the individual property tax registries are assigned. This would be the final step to obtain individual title to Mexico preconstruction condominiums.

A common question that many of my investors forward to me, is

Why do the developers wait so long to begin application for the Condominium Regime when they are aware of a 6 month period?

The main reason of withholding this process, is due to the flexibility to construct according to the buyers requirements. One of the values that many buyers exercise when purchasing into pre construction, is the option of being able to custom design the layout of the interior of the unit. The buyers want the flexibility to decide if they want 3 bedrooms, or 2 Bedrooms with an extra large master bedroom for example. If the Condominium of Regime has already been applied and granted, the construction cannot be allowed to modify unless an entirely new Condominium Regime is realized. Thus, developers will withhold until either 90% of the condos have been sold, or until 90% of the construction has been realized thus definition of the final product has been ensured.

If you want to study more questions and answers to FAQ regarding this subject or other similar subject,I welcome you to click below where you can read on much more details on Mexico Real estate.

Do you have a friend or client wanting to buy real estate in Mexico?
We pay REFERRALS, learn more, click here...

Thomas Lloyd: Founder and current president of TOP mexico real estate NETWORK. "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely !"

Visit blog site www.TOPmexicorealestate.com/blog or call (512) 879-6546 for further information.