Mexico Real Estate

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.

A couple of weeks ago, we had an interesting question be sent to our panel of experts The seller of a property wrote to ask,

Q. “What happens when I make some profit on the sale of Mexico real estate, we paid the Mexico capital gains tax, do we still need to pay taxes on the capital Gains in my home country too

A. Linda Neil from Linda Neil Properties in the La Paz real estate region advises the following “If you have property in a Mexican bank trust it is necessary to file a form annually with the US IRS and, yes, the profits or losses from the sale of your Mexican property must be declared on your US return. It is important, however, to obtain the tax declaration made in Mexico to be presented with your US return to obtain a credit or deduction for the Mexican tax paid.”

A. Ivan Castillo regional director and practicing Mexico real estate lawyer from Stewart Title answers” I m not an expert on taxes out of Mexico, nevertheless I don t think there is double taxation. If you pay Capital Gains in M xico and it is properly documented, the receipts can be used in the US in order to avoid paying taxes again.”

A. Cozumel Capital broker/owner Rita Sheese who works in the Cozumel real estate market outlines the following about these taxes “If a property in Mexico is sold, the capital gain realized by the seller (whatever nationality) is subject to Mexican capital gains tax. Then, the American seller when declaring that income in the states, would also declare the taxes that were already paid on this capital gain in Mexico Formal tax treaties exist between the US and Mexico to avoid the taxpayer paying double tribute, and so what you have already paid in Mexico will essentially be deductable from what is due in terms of US capital gains tax.

For more reading material click here Mexico Real Estate Questions and Answers

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.