Hello--I have an interesting opportunity to get my hands on a STR in Puerto Vallarta Mexico, however the seller is looking for all cash. What is the most tax-efficient and cost-effective way to make a cash purchase of a home in Mexico, with minimal tax implications and low interest rates on any type of loan? I have about half available liquid. I would appreciate any advice or insights from those with experience in the Mexican real estate market.
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
3y
Hello Jonathan,
The taxes you're going to have to pay are the same whichever way you pay for the property. You can't get a low interest rate loan in Mexico. The exception would be developer or seller financing, which aren't very common and not applicable here.
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
3y
Hello Jonathan,
The taxes you're going to have to pay are the same whichever way you pay for the property. You can't get a low interest rate loan in Mexico. The exception would be developer or seller financing, which aren't very common and not applicable here.
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
@Jonathan Lauren Montgomery most sellers are looking for all cash. Very few are open to carrying notes. If a buyer gets a loan the seller still gets the cash it just comes from more than one source.
Don't get hung up on what people say but more or less on what they mean.
The taxes you're going to have to pay are the same whichever way you pay for the property. You can't get a low interest rate loan in Mexico. The exception would be developer or seller financing, which aren't very common and not applicable here.
@Mike Lambert there are ways to finance properties in MX for US Citizens including STRs. Rates are very comparable to the Non QM Mortgage market here in the US, and still in the single digits. Terms going all the way up to 30 YR Fixed rates as well.
I was talking about getting a mortgage on a Mexican property. Of course, anybody can finance a Mexican property with a US loan if they take a mortgage on a US property.
If that is true when the mortgage is on a Mexican property, it could interesting for many people, including myself. Would you mind sharing who gives these loans?
I've been investing in Mexico for years and I know pretty much everybody who does any sort of lending activity there. I reached out to my contacts and I'm quoting the typical answer: "This isn't true. These are lies purposefully spread by people to attract customers and then they try to sell them other kinds of products." Their words, not mine.
I was talking about getting a mortgage on a Mexican property. Of course, anybody can finance a Mexican property with a US loan if they take a mortgage on a US property.
If that is true when the mortgage is on a Mexican property, it could interesting for many people, including myself. Would you mind sharing who gives these loans?
I've been investing in Mexico for years and I know pretty much everybody who does any sort of lending activity there. I reached out to my contacts and I'm quoting the typical answer: "This isn't true. These are lies purposefully spread by people to attract customers and then they try to sell them other kinds of products." Their words, not mine.
Mike, I sent a PM happy to discuss further but there are certainly ways to finance properties and put the lien on the property in MX now.