Mexico Real Estate

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.

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

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

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

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

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

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

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

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.

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.

Below is an interview by an international property magazine, VENTANA, talking with our newest TOP Mexico agents & Brokers member from the Ixtapa real estate market, Tim Sullivan Tim is the owner of TICAR Real Estate company in Ixtapa-Zihuatanejo Guerrero.This beautiful oceanfront city sits on the Pacific Ocean, north of Acapulco and south of Puerto Vallarta.Tim arrived to Mexico back in 1987 and has been here ever since.In 1994, after having worked various years with local brokers and developers, Tim along with his beautiful wife of 15 years, Carmen, started their brokerage company Ticar, S.A. Mr. Sullivan will be joining the panel at the Mexico Real Estate Blog, TOPmexicorealestate.com where he will be sharing his expertise and development updates in this regional market of Mexico

Why did you choose this market in Ixtapa Zihuatanejo as your destination in Mexico

In actuality, I do believe that Ixtapa-Zihuatanejo chose me. Back in the autumn of 1987 circumstances conspired to allow my then partner, Linda Fox, and I to take a six-month long sabbatical and travel to Zihuatanejo where Linda had lived sporadically since the early 1970 s I had never been to Mexico before and had only some erroneous preconceived notions of what Mexico was all about. My concept of Mexico I d harvested from westerns and Saturday morning serials As soon as the plane landed at the Zihuatanejo airport all of those old stereotypes went right into the waste can.

What sets Ixtapa Zihuatanejo apart from other real estate locations in Mexico such as Puerto Vallarta or Los Cabos

The Ixtapa-Zihuatanejo market has a unique flavor which distinguishes it from the other destinations in Mexico whether they be beach resorts or colonial towns. The distinction is analogous to one of this area s most famous dishes;tiritas , which is a recipe calling for strips of locally caught fish marinated in lime juice, onions and sliced Serrano chile. This simpleplatillo is exquisitely satisfying and uniquely particular to the Ixtapa-Zihuatanejo area.

How large is the expatriate community here How many Canadian and American expats are living here

The use of the termexpatriate is one which I tend not to promote given that some of its synonyms areexile andoutcast . Certainly there are some of those but the vast majority of the 3,000 or so yearround and seasonal inhabitants are average citizens of their respective home nations who have chosen Ixtapa-Zihuatanejo and the surrounding areas as their home or home away from home.

How do expats assimilate to Ixtapa-Zihuatanejo s Mexican society and culture

By and large the non-Mexican visitors and residents have immersed themselves in the culture and rhythms of the Ixtapa-Zihuatanejo experience. There is any number of charitable organizations such as Ni os Adelante and S.O.S Bahia, S.A. to name just two, which receive bountiful donations of both time and money from the foreign and local communities alike. Social events are equally polycultural as lassos between individuals create expanding webs of interdependency.

Has real estate grown here over the years If so, what has detoned it

In the twenty plus years that I have lived in this paradise, Ixtapa-Zihuatanejo has experienced a slow, steady growth both in the permanent population as well as in the number of short-and long-term vacationers. Over the course of this steady expansion there have been two very strong booms: 1991-1995; and, 2005-2008. In each of these boom periods the prime stimulus for the growth in the specific area of Ixtapa-Zihuatanejo was the real value investors found in the local real estate in comparison with other destinations in Mexico where rapidly rising prices had out paced the demand. In contrast, in Ixtapa Zihuatanejo supply had always lagged behind a increasing demand.

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.

Your success as a Mexico Land lord will require that you are a good Landlord and reduce potential costly mistakes that many first time Land lords can make I have written several posts regarding Mexico real estate rental property, and how to best administer such properties, click here to see my previous articles on Rental Properties.

Based on my experiences, I've compiled a list of mistakes often made by land lords.

• Errors on the lease agreement that cause uncertainty in expectations
• Not enforcing rent collections as defined in the lease agreement. If you allow your Tenant to pay at random, your setting a precedence to continue to allow this type of behavior
• Not knowing the specific laws relating to Tenant-Landlord relationships
• Poor response to Maintenance and Service requests
• Not practicing good customer service
• Not conducting a written, detailed move in inspection with their Tenant
• Not maintaining a professional relationship with their Tenant

In most cases, Landlord and Tenant will have some communication, especially if there is not a Property Manager involved. However, it's easy to defy the balance of a Tenant-Landlord relationship if mistakes are not kept to a minimum.

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.

Yucat n has been the attention of many international real estate investor in recent years With the many Haciendas, the old colonial architecture, and the increasing amounts of non-Mexican buyers, where can people begin their process into buying property here in paradise We asked Mitch Keenan, a Yucatan Real Estate broker, very well known throughout the entire Yucatan Peninsula, and with many years of on hand experience in Mexico Real Estate to help us out with this post and blog.

This post is about real estate in the states of Yucat n and Quintana Roo The author, Mitchell Jay Keenan,CRS is the general director and the operating broker for Mexico International Real Estate.

Keenan has been living and selling real estate in Yucat n for over 10 years. He has been a licensed broker in the USA since the 1980's. He holds a GRI (Graduate Realtor Institute) and a CRS (Certified Residential Specialist) certifications from The National Association of Realtors (NAR). He currently lives on his Quinta between M rida and Progreso with his partner and their four companions; Wazer, Lover, Lucky and Miri.

Yucatan Real Estate Brief History

Understanding the dynamics of the real estate market in Mexico requires a reflection on the socio-economic conditions that have developed in Mexico over the last several decades. The large middle class that has emerged in the last 30 years has provided for a more robust market. Additionally, with the growing foreign interest in living and investing in Mexico, the market is becoming more dynamic and secure for investment and ownership.

Historically, Mexico was a country of basically two large economic groups; the rich and the poor. The poor rarely owned real estate and the rich tended to subdivide what real estate they had and pass it on to their heirs.

The current real estate market (where two previously unknown parties come together to buy/sell real estate) is still a relatively new business in many regions of Mexico. This is the reason why, in most of Mexico, there is no MLS, no real estate licensing requirements for agents, no governmental oversight, limited institutional financing, and few large, organized real estate companies or real estate professional organizations.

The exceptions to this current scenario are Mexico City, Monterrey, Guadalajara, and many of the coastal resort areas, where there are limited MLS's, large brokerage firms, and functional professional organizations like AMPI.

It is important to remember that Yucat n has been like an “anonymous region” separated from Mexico for decades. Yucatecos tend to think of themselves as Yucatecans first and Mexicans second. Rules, regulations and new businesses practices have tended to evolve here more slowly than in other regions of Mexico.

Mexico Real Estate Purchasing Process

Historically, in Yucat n, when two individuals come together in an agreement to buy/sell real estate, the parties have utilized a “promise to buy/sell” real estate agreement. The agreement is typically drawn up by the Buyer's notario.

Note: the buyer is responsible for paying the notario and closing costs. The seller is responsible for paying their capital gains taxes.

Upon signing, the buyer gives the seller a deposit to hold as earnest money to seal the deal. In return, the seller provides the notario with current and notarized escrituras (title documents), cedulas (tax statements), planos (lot plan), personal data, and corresponding information.

This “promesa de compra/venta” is a vehicle still popularly used in Yucat n, and it is not unusual for a seller that is not represented by a real estate agent to require this contract with the understanding that the seller will hold the earnest money deposit.

Should the buyer fail to buy, at no fault of the seller, the buyer will forfeit the deposit. Should the seller for no fault of the buyer, refuse to sell, there is a penalty clause in the contract penalizing the seller to return the amount of the original deposit and pay a penalty equal to the amount of the deposit. If the seller does not return the deposit and pay the penalty, the buyer will have a very strong case for filing a lien against the property and pursuing legal action against the seller.

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.

By now you should have determined if you are hiring a Property Manager for your Mexico Real Estate rental. You've interviewed and have chosen a Property Manager that you are confident with. The Mexico Property Manager that you've chosen has sent you the Property Management Agreement (PMA) and you notice a clause that states that you must deposit funds into a Trust Account with the Property Manager and you wonder

what this sum of money is for…

Many Property Management Companies require a specific amount of money deposited into what's referred to as a Trust Account. This amount can be as little as $100 or $1000 and will vary by Management Companies. Most companies I've had experience with require $250-$500.

Mexico Property Management Trust Accounts

Trust accounts can be complicated but the primary details that you should know are:

• Funds are the property of someone other than the Property Manager
• Funds in a trust account cannot be comingled with personal funds of a Property Manager
• Funds in a trust account are used for property repairs, taxes, insurance, utilities, etc.
• Funds in a trust account can earn interest which can sometimes be kept by the Property Manager
• When a Property Manager pays expenses from an Owner's trust account, there must be enough funds in the account to cover the expenses.
• The Property Management Company will/should provide a detailed accounting report outlining how funds have been disbursed.

Trust accounting is not difficult and experienced Mexico Property Management Companies know how to handle other people's money with care and consideration. However, it is your responsibility to insure you check your statements carefully and ask questions if you notice anything that you are unsure about.

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.

All too often citizens of the United States, Canada and other countries ASSUME that property purchases are carried out automatically in Mexico in a manner similar to that of their native countries The first law of property purchase in Mexico is DON`T ASSUME anything! Purchasing property is NOT the same as in other parts of the world

Would You Purchase a Property in Your Hometown Which Is Not Registered in the Local Public Registry or Land Titles Office

Would you hand a complete stranger, without an office or an established business entity, a check for perhaps hundreds of thousands of dollars to pay for a property Why do so many foreigners do this when they purchase in Mexico Many do not realize that Mexico has a complex and complete legal system and a court system that is as well organized as any that exists in the United States, Canada or Europe It is essential that you have an idea of how the system works and what to expect when considering a purchase of property in Mexico

Don't Leave Your Brain at the Border!

Article 27 of the Mexican Constitution prohibits ownership by a foreign individual or business entity of real property (real estate) within the “restricted” zone which is an strip of approximately 30 miles from any coastline and 60 miles from any border Recognizing the demand by foreigners for ownership of property and recognizing the importance of making desirable properties available to foreigners for potential positive impact on the economy, the Mexican government implemented a series of Foreign Investment Laws beginning in 1973 The law was modified in 1989 and again in December 1993, to incorporate the provisions of the NAFTA treaty passed in late 1993

For those who are acquiring property for residential usage, the law requires that title to the property in the restricted zone be transferred to a Mexican bank, as trustee, in the establishment of a trust (fideicomiso) in which the foreigner is the beneficiary The bank is the titleholder of the real property and the foreigner is the owner of the rights of usage of the property The bank owns the real property rights and the beneficiary owns the personal rights of usage Ownership of these personal rights is evidenced through a deed prepared by a Mexican Notary Public and signed by a representative of the trustee bank

Currently the term for a trust is fifty years The Foreign Investment Law of 1989 provides for renewal by filing an application Multiple renewals are permitted under the law By requesting extensions every fifty years, a property may be controlled by a family or business entity for generations For those foreign individuals or companies buying property in the interior of the country, not in the restricted zone, no bank trust is required but authorization from the Secretary of Foreign Relations must be obtained and ownership must be registered in the National Foreign Investment Registry located in Mexico City, as well as in the municipality where the property is located

Avoid Mexico Taxes and Extra Costs. Leave the Mexico Deed in the Seller's Name: This is Wrong!

Until the buyer is formally named as the owner in fee simple or in the bank trust in a public document before a Mexican Notary Public, title to the rights in the property remain with the persons named in the previous property deed Their signatures are required to transfer title If the buyer fails to obtain his or her own deed he/she will be required to obtain the titleholder's signature before a sale and transfer to another buyer This can be costly, frustrating, dangerous and time consuming

The Importance of Mexico Registration of the Deed for Beneficial Rights.

The Mexico purchase/sale document signed by buyer and seller is generally legally valid between the parties to a transaction It most likely contains the description of the property, the price to be paid to the seller, and any other special terms and conditions It WILL NOT, however, provide valid notice to third parties unless it is recorded in the Public Registry Office of the municipality in which the property is located Mexico's land registry system functions in much the same manner as the Public Registry offices in Podunk, North Dakota, Los Angeles, California, Ottawa, Canada or places in between

many foreigners purchasing property in Mexico do not understand the importance of registration of their interest in property They believe that it should be left in the name of the property developer, in the Master Trust, or in the name of the previous holder of title What if the developer goes bankrupt What if the corporation and its principals, disappear Who can sign as the representative of the property Who then owns the property What happens if an unscrupulous seller sells the property to someone else While title is in the name of the seller, it is HIS/HER asset; she may mortgage it, he may sell it again, it may be attached in satisfaction of a judgment, she may die without a will

Unless the Deed for the rights of the Beneficiary has been Recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed…his or her interest and investment, may be lost

To obtain the deed an appraisal, a property tax certificate, and a no-liens certificate must be obtained Notarized bank instructions must also be obtained if property is in the “restricted” zone Seller's capital gains tax and Buyer's acquisition tax must be paid The deed transferring rights to the buyer must be registered and stamped by both the tax office and the public registry If this process is not complete, the buyer is not fully protected The buyer's ultimate protection is registration in the Public Registry office record, NOT the Notary Public or the trustee bank!

Financed Properties in Mexico

When property is sold with a down payment and the balance to be paid over a term of years, many sellers prefer to hold title to the rights in their name and transfer title to their rights only upon receipt of payment in full Meanwhile, however, the seller may die, may disappear, may bo bankrupt…again risky situations for the buyer the prudent buyer will insist upon a transfer of title and registration of a mortgage or pledge in which he gives his rights in the property as security for payment of the remaining purchase price

In the event of default by the buyer, the seller must conduct a proceeding similar to a judicial foreclosure in the United States and Canada It is as troublesome as a foreclosure in any country in the world but notably more problematical The registered title and recorded pledge or mortgage provides the buyer a greater comfort level in his investment The lender also enjoys protection in having his loan recorded and will have an established legal proceeding to follow in the event of default by the buyer.

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.

It s been my experience that many people, especially those new to Mexico rental investments, believe that property management is easy. The perceived tasks of a property manager is to collect the rent, deposit the rent then wait until the next month to start the process over again. Sounds like little work. Why in the world should you pay for professional Mexico property management services

Regardless if you have one Mexico rental investment or an entire portfolio, property management is a very hands on business. There are many more details in the everydayness of just collecting rent; details that demand a lot of your time and resources

Mexico Property Management Activities

Details will include:

Giving the Mexico Tenant access to the property at move in

Showing the Tenant how each item works in the property

Addressing any maintenance issues they may experience

Pool and lawn maintenance

Tenant move outs

Cleaning the property

Although every Mexico Real Estate property will have a different list of needs, your Tenant should be viewed as your customer. You need a professional that can cater to your customer and resolve any issues that may arise. After all, the customer ultimately dictates if your Mexico investment property will be profitable or a disaster. A property manager will be the front line person representing you to the customer. Without the customer, you do not have rent revenue and without rent revenue, you are stuck funding the investment yourself.

Questions to Ask a Mexico Property Management Company

When interviewing property management companies, here are a few questions to ask:

What are their fees and when is it paid

How will they handle Tenant issues such as repair requests

What process do they go through to collect rent or what happens if the Tenant does not pay

Will they market the property for rent How

Do they screen the prospective Tenant How

Do they handle all legal contracts between Landlord and Tenant

Do they facilitate any repairs with a contractor Are those contractors licensed in their respective field

What are their hours of operation

What is their accounting method and what reports will they send to you regarding the property

When do they disburse rental funds to you

Who holds the security deposit from the Tenant

What amount of reserve will be required

At what point will they contact you on maintenance or Tenant issues

How often do they inspect the property

Regardless of how many questions you ask, a Mexico Property Manager is your contractor and you must have a comfort level with them. Look for solid credentials, get recommendations and references and make sure they have a good reputation within the community. When searching for a property manager, do your due diligence and pick the one that you feel will be the greatest fit for you and your property.

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.

Akumal Mexico is a quiet, Mexican Caribbean beachside village located between Playa de Carmen Real Estate and Tulum Real Estate Akumal has a rich history and a local mix of residents mainly from Mexico, United States, and from Canada. The people choose to buy property here in Akumal mainly because of its amazing beaches These Mexico Beach properties are probably some of the finest in the entire country.When people first arrive in Akumal, they will notice a statue of the Mayan warrior, Gonzalo Guerrero and his family.

The Founder of Akumal was Gonzalo Guerrero(also known as Gonzalo Marinero, Gonzalo de Aroca and Gonzalo de Aroza), a sailor from Palos, Spain who had shipwrecked along the Yucatan Peninsula and was enslaved by the local Mayans Luckily, the Mayan chief of his captors had a daughter so intrigued by this strange prisoner she chose to marry Guerrero rather than sacrifice him to the gods The daughter of the Mayan chief became Guerrero s wife and the mother of today s modern Mayan Their children were the first mingling of Spanish and Mayan blood.

The modern history of Akumal Mexico begins around 1959 when its' founder Don Pablo Bush Romero, a Mexican adventurer, business man, and archaeologist found this topical paradise.Akumal then was a pristine beach with coconut plantations With no roads leading to this primitive area, it was virtually undisturbed by man. This worldly traveler was so taken with the beautiful bay that he purchased it from a coconut plantation owner and founded a city consisting of a small resort catering to scuba divers.

Don Pablo Bush was also a pioneer in underwater exploration. He united with other distinguished divers and formed CEDAM (Club of Exploration and Water Sports of Mexico) In 1972, Akumal was established as the world headquarters for CEDAM International and CEDAM of Mexico.

Although CEDAM s headquarters has relocated to the United States, the diving exploration organization left behind an innovative underwater museum that is in Akumal bay today. The museum consists of cannons and anchors that once adorned doomed ships of the past.

Akumal an Example of Ecological Sustainability

Today Akumal is the home of CEAKUMAL an organization concerned in the preservation of regional ecosystems and culture Directed by Paul Sanchez Navarro, the CEAKUMAL contributes in the harmonic development of the area and promotes the conservation of the ecology sustainability by promoting among developers the usage of wetland systems to prevent waste water to contaminate the underground water systems that make the Yucatan Peninsula the Mecca for cave diving and a unique place in the world.

The Urban Development Plan for the city of Akumal was approved last year Akumal developers and investors are aware and conscious of the great responsibility that rests with those attempting to preserve and protect the natural resources on and around these properties Promoting eco friendly developments should be a major concern and respecting densities and zoning allotments a common practice.

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

I am sure you have all wondered when vacationing down in Mexico, “what happens to me if I lose mytourist card , also known as a FMT ( Forma Migratoria Turista)” . The tourist visa is the document that you get on the plane or as you drive across, fill out, and then hand to the customs/immigration officer He then stamps it with the date you arrived and the number of days you can remain in Mexico Real Estate.

We recently had a very interesting and yet worrying experience. For the first time ever, we took a domestic flight from Mexico City into Cancun (though our trip started in Canada) We never received an FMT card on either the flight into Mexico City, nor the one into Cancun Real Estate We initially thought that perhaps these visas were no longer required This was until our friends arrived a few days later on a charter flight with tourist cards in hand!

We had thought it extremely unusual that we did not go through customs and that our passports were not stamped in Mexico City nor Cancun Upon arrival in Mexico City we did not change terminals; we just got on our flight to Cancun - bags checked through We have since been told that terminal one in Mexico City is an old terminal and it s possible to completely bypass customs

Advise one:When travelling abroad, your first port of entry will most likely be the area required to present your passports, visas, and travelling documents to obtain stamps from custom officials

Needless to say, we became very worried when we discovered our friends had one. From past experience we knew that you could pay for the tourist cards at a bank, but you had to have the card in hand. On further investigation we found out that we needed to go to the Cancun airport toexplain the situation to the Mexicana Airline people and immigration. As you can imagine, this took several hours and took away from our valuable Beach time.The airline was surprisedthat we did not receive one and immediately suggested we talk to someone at immigration.

At this point I knew we would meet up with either very professional/conscienceous personnel OR we would have topropina our way out of this We discovered the following information.

Advise two: you need proof of citizenship to obtain an FMT card, this can be either a passport or a birth certificate accompanied with a photo identification.

The official gave us the 2 FMT cards once we had shown him our passports We had to fill out the documents which asked where we were born, purpose of the trip, and our final destination.

Advise three: You will need to take your airline ticket if your Mexican FMT is lost, as well as your proof of citizenship

After filling out the documentation, we were required to pay for the administrative fees which have an approximate cost of $250 pesos per fmt

The FMT is a tourist visa, and can be obtained for a maximum period of 180 days Although hardly any Immigration officier will stamp approval for these amunt of days, they usualy will approve a 90 day FMT.

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 -

A few days ago the Secretary of Tourism had come to Playa del Carmen and given a very interesting talk to the AMPI organization regarding the Real Estate industry. Below is the continuation of this talk and by clicking here you can read his first half of the speech.  SECRETARY OF TOURISM VISITS PLAYA DEL CARMEN

In the second half of the speech, the Secretary continued by including “During the 1980´s, the great expansion of the region caused a disequilibrium between supply and demand.  In the hotel industry, the all inclusive and the business of time share began to be introduced to the industry and whose market today comprises approximately 25% of the market.”

In this same period, the hotel zones began introducing properties of the classification of Condominiums, whose final purpose was residential, horizantal and of low density.  The majority of the buyers of these property types were from Cancun Real Estate searching for living condition improvements and to be able to live in the most exclusive zones of Cancun.

These properties began to attract the interests of citizens from the peninsula, and from the north central part of Mexico.  These property buyers were searching for vacation homes.  Some Mexican foreigners decided to invest into the Second Homes to have longer stays on visits and also to enjoy the climate compared to the harsher climates from their own home countries. 

All of this growth required that the Mexico Real Estate operations were conducted under the parameters of quality and professionalism, which propelled the realtors to begin joining associations such as AMPI.  This association through time created a strong solid nucleus for the training, certification, and development of a code of ethics to ensure proper attention and services granted to the clients. 

During the same time period, FONATUR continued their master plan activities of Cancun.  For nearly a decade, the conditions on a macro economic level were not favorable for introducing credit to the markets as well as the need to have a stable population.  The market conditions were finally correct and stable in the first years of the new century and the advancemen was spectacular.  The Kukulkan Boulevard was completed, new superblocks in the urban zones were introduced which caused a rush and hot market in the Cancun real estate market.

In less than six years, FONATUR sold out practically it´s reserve of urban lots and also finished selling Puerto Cancun, and finally finished selling the third phase of mega lots within the tourist zone of Cancun. 

Now the new boom of properties with the classification of TOURIST RESIDENTIAL are being sold throughout the zone.  Such properties are offering unparrallel views of Isla Mujeres, The lagoon, and the Caribbean Ocean.   The growth continued to the point that development has bursted upon the Riviera Maya, Cozumel, and some areas of Isla Mujeres.  The diversity, and the abundance of supply of real estate in Quintana Roo has become a magnate that is attracting new and very important investments.  Quintana Roo is a state that has always welcomed the investments capable of generating employment and development for the citizens of Quintana Roo.

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!"

The Playa del Carmen and Tulum real estate markets have been some of the two strongest regions of Mexico Real Estate in the past five years.  Here you will find several opportunities across a range of property families including single family lots, oceanfront properties, and rental property investments.

The purpose of buying a Playa del Carmen Condo maybe for personal utilization or for investment reasons, but whichever the reason, you should always inlcude the following three items for anzlyzation and comparison;  tourism traffic, the location of the property, and maintenance fees. Below we review these three options.

The Playa del Carmen and Tulum Real Estate markets have returned some of the strongest appreciation figures of all of Mexico.  Due to its growing popularity as a world class tourist destination, and high occupancy rates, opportunities in real estate have appeared on various classifications which include single family lots, oceanfront property, and condo property investments.

Many people envision a dream home on a Mexican Beachfront as a villa or a large vacation home on the oceanfront in Mexico.  A Playa del Carmen condo has many advantages over other property investments which many international owners have discovered.  Below is a short list of items that should be included amongst your decision factors when purchasing a property here in Mexico.

One:  The quantity of tourists visiting the region is one of the strongest factors that will influence the market value of your property.  As more people continue visiting your zone where you have a property, the demand on the hotel rooms and residential rooms also rise.  Indirectly, restaurants and other tourist businesses begin flourishing which also brings support services and opportunities.  This snow ball affect creates growth and incoming population growth which positively influences the property value to increase.

Two:  The location of your condo is also a very important factor you should review when buying in Tulum, Playa del Carmen or basically any real estate market of the world.  What are the attraction areas of interest for the tourists?  Does the condo have a view?  Is it walking distance to cafes and nice restaurants?  Study review and compare these characteristics  with other Mexico condo options before making your final decision.

Three:  Annual expenses on the upkeep of your property is a factor often overlooked.  For example, how much is projected or what is the history of maintenance fees for the real estate.  Various Playa del Carmen and Tlum oceanfront condos have higher maintenance fees than properties located back further away from the beaches.  Other condo option may have larger than normal pools which also affect the monthly upkeep expenses.  These monthly fees will eat away at your revenues, or in the slow season may require that you invest more money into the property awaiting the higher tourist season.

Whatever the purpose of your search or comparison of a Mexican property, your analysis should include several items before making an offer.  Review Mexico condo options in different cities such as Playa del Carmen condo listings or Tulum condo listings.  With the real estate markets identified, don`t forget to  compare several important factors such as the tourist traffic, location of the property, and monthly fees.

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