Everything you need to know about Mexico's Commercial Real Estate Market and Owning Coastal Property in Mexico.
|Posted on March 1, 2014 at 11:30 PM||comments (0)|
Foreign Ownership of Property in Mexico; by law, can only be acquired through a corporation.
The Mexican Constitution regulates the ownership of land and declares that ...within a zone of 100 kilometers from the border or 50 kilometers from the coast, a foreigner cannot acquire the direct ownership of the land. These areas are known as Restricted or Prohibited Zones. However, the latest Mexican Foreign Investment Law, which was ratified on December 28, 1993, allows a foreigner or foreign corporation to obtain the rights of ownership through a fiduciary trust known as Fidelicomiso, the equivalent of a US beneficiary trust.
Alternatively the purchase of non-residential property can be achieved through a Mexican corporation which, under certain conditions, can be 100% foreign-owned. An agreement is signed that says the corporation is subject to Mexican law and the owners will not invoke the laws of their parent country. Also, the real estate must be registered with the Foreign Affairs Ministry and be used for non-residential activities. In other words under the above conditions foreigners can directly acquire properties for tourist, commercial and industrial use.
Now this may change in the near future.
Americans Might Soon Get To Buy Mexican Beachfront, Border Land Without Using a Corporation.
For the first time in nearly a century, Mexico is considering letting foreigners own land outright along the coast and near international borders.
As this blog post by Carrie Kahn reports: http://www.npr.org/blogs/parallels/2013/11/13/245036897/americans-might-soon-get-to-buy-mexican-beachfront-border-land
Is offering a Referral Fee In The Amount Of 1.5% of The Final Negotiated Sale Price To Anyone Who Refers a Buyer Who Completes A Final Closing On:
2,200 Acres Of Prime Oceanfront Property.
Listing Price: $600 Million Dollars "USD"
That's $272,727.27 Per Acre
Located in a strip of solid land between the Acapulco Ixtapa highway in the State of Guerrero, Mexico & having more than 9 miles of beach, lagoon and estuary front of soft white sand.
Contact: Calvin Butler
Email: [email protected]
|Posted on March 1, 2014 at 10:15 PM||comments (0)|
There are many misconceptions regarding the
purchase of ocean front property in Mexico. As a Commercial Real Estate
Consulting & Public Relation's Firm , 1st Choice Financial Inc is well informed about your rights to own property in Mexico, and would like to share the following with you:
Myth # 1- I am a foreigner; therefore, I cannot own ocean front property in Mexico.
Fact- Beginning in 1994, the Mexican Government has allowed foreigners to own ocean front property in Mexico, via their own Mexican Corporation. The Corporation, being a legal entity, holds title to the property, and you own the Corporation. You need at least two people as stockholders, you and a colleague; attorney; accountant; family member; etc. Your Mexican Corporation can own ocean front property, even if, its owners are foreigners to Mexico.
Myth #2- I need to have a Mexican National as a shareholder, to own property in Mexico.
Fact- This is no longer true. Non-Mexicans can now own 100% of a Mexican Corporation, and this Mexican Corporation can own 100% of the purchased ocean front property.
Myth #3- I need to have a Bank Trust, and pay high annual fees to purchase property in Mexico.
Fact- Before the Mexican Corporation system was passed into law, the only way to own property on a Mexican beach was to form a Mexican Trust. The Bank is the Trustee and you are the Beneficiary.
You would then need to pay the bank $300-$700 a year to administer the trust. In addition, in the trust system you need to hire a lawyer to do the paper work. The lawyer will charge about $2,000. U.S. for the paperwork, and then the bank will charge you another $2,000 U.S. for the creation of the Trust. If you wanted to sell your land, you need specific permission from the bank to do so. Once again, you would need to hire a lawyer, pay him/her again, pay the Bank, etc…
If you wanted to purchase another piece of land, you would need to form another Trust, and go through the same process. It is time consuming and costly. You no longer have to go through all of that. Today you can form a Mexican Corporation, this method is simple and affordable.
Hi there! I am a Coatimundi. My scientific name is Nasua narica, but you can just call me Coati. I am extremely cute, harmless, and I really love to hang out with my family. I live on the Costa Beautiful Guerrero, Mexico, among other tropical areas of Mexico. Keep an eye out, because you may see me strolling through your ocean front property with my family, in groups of 3 or more. See ya soon on the BAHIAMAR Oceanfront!
Myth #4- The Mexican Government can take my land after I purchase.
Fact- Not true. The Mexican Government can only
take your land, if you fail to pay your real estate taxes for an extended period time. Just like in the United States, there is due process.
Foreign investment is a major part of the Mexican economy, and is so, because land ownership in Mexico is very stable.
Myth #5- The properties in Mexico do not have a clear and transferable Title and I cannot build on the land I purchase.
Fact- Having a clear and transferable title is very important, not only in Mexico, but all over the world. We guarantee this in our transactions.
Myth #6- The seller of the property will get my deposit before the closing of the property has taken place, and if this happens I lose my entire deposit.
Fact-There are many sellers who conduct business in this manner. This is not the case with “1st Choice Financial Inc.”,. The buyer’s deposit is held in an escrow account. The transfer of the deposit is given to the seller once the property has gone through closing, and a clear title is transferred to the buyer. We do request a 10% deposit to take a property off the market. In the case of BAHIAMAR a minimum of $1 Million Dollars "USD" is required. This is to show the seller your good faith in purchasing the property.
"Our policy states, that if for any reason you do not wish to complete the purchase of your property, we will refund to you the entire amount of your deposit."
Myth #7- Closing costs are very expensive in Mexico.
Fact- Closing costs can be very expensive in Mexico, but it depends entirely on who handles the closing. We work to make closings as efficient as possible. We negotiate with the sellers, to have them pay a portion of or the entire closing expense including the formation of your Mexican Corporation. In most cases; The price you are quoted on a property, is the price you pay. We want you to have no surprises.
Myth #8- I am only leasing the land, I don’t actually own it, and after 99 years I have to give the land back to the Mexican Government.
Fact- This is not true if you form a Mexican Corporation. The Mexican Corporation is the system we recommend to our clients.
Myth #9- I have to build a structure on my ocean front property within five years.
Fact-There is no time limit for construction on property in Mexico. Typically, an area which requires construction within a certain time period, is trying to artificially boost the value of the property with these improvements.
Mexican Caribbean ocean front property, does not need help to increase its value, it stands on its own merit. The value is on the location, not on what is built on it.
Be wary of areas that tell you that you must build within a certain time period. It can mean that the value of the land is not very high and is not expected to increase, unless you place a structure on it.
Myth #10- Annual taxes are extraordinarily high in the State of Guerrero, Mexico.
Fact- Real estate taxes are remarkably low in the State of Guerrero, Mexico.. At least we think so. The tax rate is about $50USD for an average ocean front lot. So, if you have a double lot, the taxes would be about $100USD, or the cost of taking your family out to dinner. What do you think?
Now that we have cleared up all of those doubts about owning an ocean front property on the Mexican Caribbean, what are you waiting for? Become part of Beautiful Guerrero, Mexico Oceanfront today!
Who Wants To Earn $9,000,000.00
Refer us a buyer on The Bahiamar Oceanfront Property and We'll pay you 1.5% of the final sale price.
1st Choice Financial Inc and A Principle Shareholder in The Bahiamar Oceanfront Property
Email: [email protected]