It’s the moment you’ve been waiting for! Learn everything you need to know about buying property in Mexico as Jesse and Chelsea sit down with real estate professional Damian Bassett of Coldwell Banker La Costa. On this episode, Damian dives into the logistics of buying various kinds of property in Mexico to give you the confidence you need to make the move.
The secret is out: Puerto Vallarta is an awesome place to live! People from all over the world are buying property in PV, and you can too. One of the first steps to buying property in Mexico is knowing the area you wish to purchase property in. The easiest way to do that is to explore! Making multiple trips and checking out new areas will give you the best feel for what Puerto Vallarta and the rest of Mexico have to offer. Although, be prepared to fall in love on your first visit! The next step would be to determine the type of property you want to purchase. How many bedrooms and bathrooms? Is this an investment property? Will the property be used as an Airbnb? What amenities do you desire? Questions like these will help you and your real estate agent find the perfect property in paradise.
The path to Mexican property ownership is fairly straightforward from a legal standpoint. If a foreigner is buying property in the restricted zones of Mexico (50 miles within the border or from the coast of Mexico), they need to make that purchase via a Mexican bank trust known as a Fideicomiso. The trust allows you to invest in any Mexican property and own it as the primary beneficiary. A Fideicomiso gives you all the rights of real estate ownership in Mexico while a Mexican bank holds the legal title to it as your trustee. You may also list secondary beneficiaries so that the Fideicomiso acts as a will in the event of your passing. Fideicomisos are structured as 50-year leases that can be continuously renewed, but don’t let the term “lease” scare you. These trusts give you full ownership over the property just like you bought it in the U.S. or Canada.
After a buyer’s offer is accepted on a property, they have three days to wire 10% of the purchase price to a third-party escrow account. For those unfamiliar, third-party escrow means a company will hold the buyer’s money in trust until the transaction can be completed. They act as a neutral third party between the buyer and seller to ensure the deal’s integrity. Think of the 10% going into escrow as a down payment on the property you wish to purchase. It is typically the buyer’s responsibility to cover the cost of escrow ranging from $700 to $900, but it’s money well spent to make sure the funds going towards the property purchase are protected. Listen to this episode for more information on buying property in Mexico!