Puerto Vallarta Real Estate: The Basics. The real estate industry in Mexico is similar in many ways to that of the United States , which is probably the most advanced in the world. It is developing quickly, taking advantage of today’s technology; however, it seems to be paralleling the system as it exists in the U.S.A. The only national professional real estate organization in Mexico is the “Associación Mexicana de Profesionales Inmobiliarios” (Mexican Association of Real Estate Professionals) or “A.M.P.I.” with 24 chapters in 38 cities. This organization is somewhat similar to the National Association of Realtors (NAR) in the United States.
Licensing – At this time, there are no government license laws regulating real estate brokerage and sales in Mexico. Anybody can, in effect, offer properties for sale. Therefore, caution should be taken to select an established and reputable real estate company. A potential buyer may want to check with the local Chamber of Commerce associations or a prominent law firm.
Financing – Historically, due to lack of capital markets and high Mexican interest rates, most transactions were made in cash. In 1993 and 1994, the Mexican economy picked up to such an extent that annual inflation went down to one digit and interest rates were more or less accessible.
Banks introduced attractive mortgage programs and, consequently, sales proliferated throughout Mexico . Due to the devaluation in December 1994, the situation has reverted and the few banks that offer mortgages do so at such high variable interest rates that very few buyers are in a position to take advantage of them.
However, this is changing. Recently Scotiabank Inverlat introduced long-term mortgages at rates between 15-17%. These mortgages, however, are only available to foreigners with FM-2 immigration status. With the demand of lending in Mexico there are more mortgage brokers opening up offices. The criteria are very strict and at the moment are only offered to American citizens. The interest rates average around 8%. The only programs available at this time is for purchases, in the future we may see programs for those interested in refinancing there current properties located in Mexico.
When long time friends and colleagues Michael Green and John Swanson decided to open Boardwalk Realty it was not an impulse. It was not, as they say, their “first rodeo.” As long-time residents of Puerto Vallarta they were drawn to real estate as both have experienced the joys of owning property in this enchanting city. Each has been living and investing in Puerto Vallarta properties for more than 15 years. Boardwalk Realty Puerto Vallarta represents buyers and sellers of real estate in the entire Bay of Banderas area.