Can I own real estate property in Mexico By Alfonso Davalos The Agency?
This is the common question I received on my webinars or when I have clients in my car. Hi there, I am Alfonso Poncho Davalos, Real Estate Agent in Puerto Vallarta and Riviera Nayarit. So I thought this short article would love to explain and talk to you about buying Real Estate in the area.
Since I started my Real Estate career, I heard this question a lot, and the reason is that it is a lot of misinformation on Facebook groups, and everyone has their own opinion. A non-Mexican can purchase Real Estate in the restricted zone, around the coastline and the border, through a Fideicomiso or Trust. In this case, you will be represented by a bank that will hold the trust, and you will be the beneficiary of the trust or Fideicomiso. The trust is suitable for 50 years, and what happens after those years, it is easy you will renew it; the annual cost for a Fideicomiso is between $464 USD to $600 USD depending on which bank holds the trust. Most of my deals have the fideicomiso with Banco Monex and Banco del Bajio, those two banks have a presence in Puerto Vallarta.
For example, I took a friend of mine to pay his trust fee to Banco del Bajio; I expect that they will have him waiting in the bank, BUT guess what, that did not happen. That bank has a particular area to pay the fideicomiso, located on the 2nd floor of the bank with an independent entrance. Another thing you must be aware of is that your first annual fee is including in your closing costs. Therefore You may need the next payment on the anniversary of your closing, for example, if you close your property on June 5th.2021, your next payment has to be done on June 5th,2022. Be aware that not all the banks send you a notification to pay; just put it in your annual
reminders to know and be aware; each bank has its policies about interest to be charged if you don’t pay on time or with a delay. I recommend you ask your closing coordinator about it.
If you have any question, feel free to reach me via e-mail: [email protected] Feel free to sign up on my Newsletter and follow me on my social media and don’t forget to hear my monthly podcast available on Spotify.