TOP Mexico Real Estate

Tips on How to Begin a Property Search in Mexico

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Mon, 09 Nov 2009 10:18:34 -0600

I remember when I first started looking for property for myself down in Mexico. I will admit that I was pretty confident and made…quite a few mistakes mainly by trying to do various things on my own I was a strong believer in my own investigative abilities, I knew how to negotiate in Mexico, and I had seen my good share of various types of business contracts in Latin America But soon, after my solo property search adventures, several late nights of worrying about my money deposits, and various headaches from that first dreadful Mexico real estate purchase experience, I suddenly remembered that good old simple advise that my father and some business teachers had shared with me, “DONT STUMBLE OVER YOUR OWN PRIDE…ALWAYS SURROUND YOURSELF AND LISTEN TO PEOPLE WITH EXPERIENCE”.

When I started looking for properties down in Mexico. I started on the internet. Back then, I thought that when a property was listed on a web page in Mexico, the only Mexico real estate agent who could deal with that property was the listing agent that appeared on the web site! So here I was, surfing the internet, calling 5 different web sites, sending 8 different emails trying to collect information and data on various Mexico real estate options Some agents called back, some never responded, I had messages from Juan, messages from John, incorrect data from Pablo, it became complicated quite quickly.

OK, so what do the EXPERIENCED Mexico real estate experts recommend

Linda Neil with 35 years of experience in the La Paz real estate market suggests -

Her article Purchasing Your Mexico Dream Home states, “Step one in your property search is to find a Mexico Real estate agent who will represent you the buyer…an AMPI member…a buyer agent…interview….ask for credentials”

TIP 1) Interview and find a Mexico real estate agent who will represent you the buyer Most real estate transactions have two agents involved One to represent the interests of the selling party, the second to represent the interests of the buying party

Continuing with my adventure during my first experience in searching for real estate in Mexico was the investigation phase I finally was able to identify about 7 properties that were rescued from my mess on my desk from my first phase of investigation on the internet These seven properties looked as if they could fill the criteria points I was searching So I called back to each of these different offices for further information I did not think it would be “business smart” to tell the real estate offices that I was also collecting property information from other agents I was searching for the best prices and thought the best way is to have each send me their best options they had in their office I did not know that agents in AMPI work together sharing all information amongst their database.I was doing my own analysis, collecting my own information, preparing my own comparison tables.Watch out Mexico, with my analysis you wont know what hit you when I get off of that plane

What do THE Experts and Mexico real estate blogs suggest on solo investigations.

Mitch Keenan with over 15 years experience in the Yucatan real estate region adds the following.Buying Property in the Yucatan Market article lists the following advise”A good real estate agent will build a solid relationship with their clients, helping them with a range of issues that the foreign buyer would never be aware about” (History and credibility of the builder, the neighborhood and its safety issues, the price trends of similar properties throughout the market) “If you are out of town and even more so if you are out of the country, how can you expect to study the many factors and history that goes into a good market opinion on the value of a property You need a point man on the ground to look out for your interests.”

TIP 2) Work as a team with your buyer agent If you find a property on the internet, share the property with your buyers agent, let him investigate, let him give his in put and his knowledge,ask him to take pictures, ask him to investigate the legal status. Even though it is a listing from another agent, your buyers agent can call up the listing agent on your behalf, investigate the property professionally before your trip to Mexico saving you much time and much money.

In my first round with property searching, I was excited to physically visit and see with my own eyes the various options I had selected.A good start early in the morning sounded like a good plan for my first appointment I arrived sharp and a few minutes before with all the excitement of the full day of activities that awaited me The agreed and confirmed hour to meet had arrived and the agent had yet to show up.15 minutes later, no one yet 30 minutes ahhh finally.But I either had to rush quickly to see this first option or else call up my second appointment and tell him I am was running late I rushed through the tour, took some quick notes and scribbles, forgot a couple of questions and off I went to the next visit Second visit went ok, but then trying to find my third house, the street numbers jumped from 104 up to 188 What happened to 122 This is more common in Mexico than you can ever imagine of inaccurate street addresses So after driving back and forth about 5 times, I decided to scratch that option completely off of the list An hour later, I have an agent who is not happy asking why I stood him up With only three hours into operation “Mexico property search” I have a splitting headache and am ready to go to the beach and call it quits

Once again, lets see what the good old EXPERIENCED PROFESSIONALS sayWhat advise does a TOPMexicoRealEstate expert Jim Scherrel have on this topic

Jim Scherrel from the Puerto Vallarta real estate market points out the following items that your buyer representative will deliver when working with you as a team His article Mexico Buyers Agent How Important are Their Services lists the following, “your buyer representative will help you by a) unbiased and shows all properties available in the market b) thoroughly researches properties pros and cons c) conducts a comparative market analysis amongst many other activities”

TIP 3) Don't waste valuable time trying to coordinate property visit meetings in a foreign country.

people arrive late, fighting to find properties on unknown streets, focus your time on collecting data, taking photos, organizing and evaluating Use your time wisely.

Its the simple advise that many times can be the most valuable It applies in Mexico too “Surround yourself with Experience” and enjoy Buying property here can be exciting, fun, and profitable

"Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"
Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate

Tips on How to Begin a Property Search in Mexicoyucatan real estate , purchase , Puerto Vallarta Real Estate , mexico real estate agent , Mexico Real Estate , la paz real estate , investing , buying

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Mon, 09 Nov 2009 10:17:37 -0600

OK, so what do the EXPERIENCED Mexico real estate experts recommend

Linda Neil with 35 years of experience in the La Paz real estate market suggests -

What do THE Experts and Mexico real estate blogs suggest on solo investigations.

Once again, lets see what the good old EXPERIENCED PROFESSIONALS sayWhat advise does a TOPMexicoRealEstate expert Jim Scherrel have on this topic

TIP 3) Don't waste valuable time trying to coordinate property visit meetings in a foreign country.

people arrive late, fighting to find properties on unknown streets, focus your time on collecting data, taking photos, organizing and evaluating Use your time wisely.

Its the simple advise that many times can be the most valuable It applies in Mexico too “Surround yourself with Experience” and enjoy Buying property here can be exciting, fun, and profitable

Mexico Earnest Money; Would You Give Thousands of Dollars to a Stranger in Another Country

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Fri, 06 Nov 2009 09:54:36 -0600

Find out how to protect your good faith deposit and Mexico Earnest Money.

Your ready to buy your piece of paradise, but handing money over to someone you don t know in a foreign country is a scary proposition. So how do you protect yourself from a fraudulent situation

Purchasing property in the Cancun real estate market and even in all regions of the Mexico real estate market is a quite different process than in many other countries. And when it comes to handing over deposit money, many buyers make the mistake of leaving their good judgment at home; thinking this is Mexico and this is how business is done here.

Most of those trustworthy buyers have purchased without problem, but there is always a risk. It is not necessary to have a Mexico Real Estate license to sell propeties So it is important to know who you are dealing with and how to protect your interests.

Mexico Escrow Services

Although not widely used in Mexico, escrow services are available through well know US companies and should be your first choice. There is a fee, but the protection it offers is well worth the extra expense.

Escrow is mostly used for re-sales but the property owner must be in agreement This can sometimes be an obstacle as some Mexican owners do not understand the concept of escrow. In most cases the listing broker can convince the owner if it is properly presented.

Mexico Broker

This would be the next option only if the property owner will not accept escrow deposit. Either the listing broker or the buyer s broker holds the deposit. This is more of a risk, so ask for references and DO CHECK THEM.

Mexico Developer

Most developers will not accept escrow deposits as they use incoming funds for construction. Deposits may be refundable or non-refundable (before the contract is signed) so do ask. It is important to work with a broker that you trust to present you with projects by developers with a proven track record.

The Mexico Property owner

It is customary for the initial deposit to go directly to the owner in the case of a re-sale. This is very risky and I do not recommend this situation. If unavoidable, do so in conjunction with your OWN Mexico real estate lawyer, following his advice so he can make sure you are legally protected.

Too Little Too Late Mexico Tourism 2009

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 05 Nov 2009 09:51:43 -0600

This summer I have been seeing news stories and large amount of articles of the dangers and risks of coming to Mexico to visit or to vacation The majority of the stories have spoken of the entire country of Mexico in general, and unfortunately did not speak of regions or neighborhoods where the incidences were occurring whether it was some neighborhood of Mexico City, or some region of the state of Baja California

I also noted the misfortuneate timing of these news events being in the summer time which is basicallyeffecting Mexico's tourist high season and which is also effecting my area of work, the Mexico real estate industryLately though, I have starting to notice some articles that are becoming aware of the spilling over effects and have started to correct or attempt to report the data with a little more investigation and detail My question, “Is this too little too late”

This morning as I read through various articles I came across one that caught my attention inside of the Wall Street JournalThis article reported that many of the Mexican resort cities that are more than 1,300 miles away from the violent clashes, are witnessing cancellations and having their businesses effectedThe article is more complete by reporting more details so travellers are not making travelling and cancellation decisions based on partial informationThe link to this article http://online.wsj.com/article/SB123931839488506787.html#articleTabs=article

One of the quotes which I found interesting,

” Despite the travel alert, “we are not advising people not to go to Mexico,” says Heide Bronke Fulton, a State Department spokeswoman. She adds that the main areas of concern are cities and towns near the U.S. border. Travel alerts, which can caution against everything from cyclone season to terrorism threats, are far less severe than the State Department's “warnings,” in place for countries like Iraq and Sudan, which essentially advise against traveling to a country altogether. ”

After speaking with several visitors down here in Mexico this past week I realized the importance of passing this information and these types of articles and updates through channels such as Mexico real estate blogs and other mediums on the Internet The visitors from up north advised that the news being heard on the television and many news sources is quite harsh “Very bad and negative People and my family have come to me and asked me to cancel my trips down to Mexico I had to pull out a map and show them where I was going and where the problem areas were occurring” Even the Mexico tourism department has become very alarmed at the generalization of the reports up north and their effect on their economy They have published a map on the internet to help visitors understand the locations http://mexico-update.com/index.jsp

Unfortunately, the messages of pinpointing locations and distances may have missed the high season period The Mexico tourist department is rushing trying to correct this mishap It is April, a good portion of the high season has already been incorrectly effectedThe year for tourism in Mexico was starting strong, but now several hotels and businesses are now concerned in the cancellations that have occurredLets hope that this other message continues to be transmitted effectively to help recover some of the drop in reservations and travel plans for the rest of the year

Q: Do you Pay Mexico Capital Gains Taxes in Your Home Country Too

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Wed, 04 Nov 2009 11:02:14 -0600

A couple of weeks ago, we had an interesting question be sent to our panel of experts The seller of a property wrote to ask,

Q. “What happens when I make some profit on the sale of Mexico real estate, we paid the Mexico capital gains tax, do we still need to pay taxes on the capital Gains in my home country too

A. Linda Neil from Linda Neil Properties in the La Paz real estate region advises the following “If you have property in a Mexican bank trust it is necessary to file a form annually with the US IRS and, yes, the profits or losses from the sale of your Mexican property must be declared on your US return. It is important, however, to obtain the tax declaration made in Mexico to be presented with your US return to obtain a credit or deduction for the Mexican tax paid.”

A. Ivan Castillo regional director and practicing Mexico real estate lawyer from Stewart Title answers” I m not an expert on taxes out of Mexico, nevertheless I don t think there is double taxation. If you pay Capital Gains in M xico and it is properly documented, the receipts can be used in the US in order to avoid paying taxes again.”

A. Cozumel Capital broker/owner Rita Sheese who works in the Cozumel real estate market outlines the following about these taxes “If a property in Mexico is sold, the capital gain realized by the seller (whatever nationality) is subject to Mexican capital gains tax. Then, the American seller when declaring that income in the states, would also declare the taxes that were already paid on this capital gain in Mexico Formal tax treaties exist between the US and Mexico to avoid the taxpayer paying double tribute, and so what you have already paid in Mexico will essentially be deductable from what is due in terms of US capital gains tax.

For more reading material click here Mexico Real Estate Questions and Answers

Or to read another Question to the Experts click hereMexico Bank Trust

Mexico Real Estate; When to Use a Bank Trust and When to Use a Mexico Corporation to Hold Title

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Tue, 03 Nov 2009 12:13:57 -0600

THE MEXICO REAL ESTATE BUYING PROCESS PART II (Fideicomiso or FOMC)

This is a continuation of my previous post- Buying in The Yucatan Real Estate Market

While touring Yucatan properties with your agent, you will want to engage in a conversation about Fideicomisos and FOMC (Foreign Owned Mexican Corporations) to determine which is the best vehicle for you to utilize to hold title. Both have advantages and disadvantages.

The Fideicomiso (bank trust) is a trust agreement that you establish with a bank to hold title of the property with you (you and the bank are both named in the title documents). The bank has a fiduciary responsibility to represent your interest in the property.

Advantages of the Fideicomiso:

* The Fideicomiso gives you the rights and the vehicle to hold the property in perpetuity. It is a 50-year trust agreement that is renewable every 50 years by you or your heirs.

* You may also transfer your rights in the Fideicomiso to another foreign buyer

* You may rent, sell, remodel or dismantle the improvements on the property.

* Your heirs may inherit the rights to the Fideicomiso, effectively by-passing probate, should you depart without a proper will

* There are tax advantages pertaining to Mexico capital gains taxes when you sell

* The Fideicomiso is easy to maintain by paying the annual fee to the bank

If the title papers, property dimensions and corresponding documentation are not in perfect agreement, the bank will not issue the Fideicomiso. A rectification of the property measurements will be required We will discuss this in a moment.

The main disadvantage of the Fideicomiso is that it is restricted to a property of NO MORE THAN 2000 square meters.

Note: There are exceptions and you can request a permiso for acquiring a Fideicomiso that allows for a property larger than 2000 square meters. This is a complicated process requiring an investment plan, time line, inspections, architectural renderings, business plan and plenty of governmental red tape. The exception is designed for an investor that plans to make a significant investment in the property.

Another disadvantage of the Fideicomiso is that it is limited to one specific property. Sometimes you can put two adjoining properties into the same Fideicomiso. But, generally speaking, the Fideicomiso is only designed for an individual property.

The FOMC (Foreign Owned Mexican Corporation) is a vehicle that allows foreigners to open a business and work in Mexico. The corporation is a Mexican entity, and as such, has the right to hold title to real estate. An attorney or Mexico notario can help to set up your corporation It is important to know what your goals are in respect to the property, business and type of Mexico real estate investment prior to setting up the corporation.

Creating the corporation requires a minimum of two individuals (stockholders), of any nationality, that are at least 18 years of age. One of the stockholders will be required to be the managing partner. The managing partner will be required to acquire and maintain a Mexico FM-3 visa. The visa must be renewed every year. Additionally, the corporation is required to make monthly reports to HACIENDA (the Mexican Department of the Treasury) reporting income and expenditures. The reporting needs to be done by a certified accountant.

Advantages of the FOMC:

* Allows for the purchase of properties larger than 2000 square meters

* No limit to the number of properties it may own

* Allows for one or more of the stockholders to legally live and work in Mexico year round.

Disadvantages of the FOMC:

* The corporation requires more hands on attention than the Fideicomiso.

* Does not have the ability to avoid capital gains taxes when it sells property

* Requires a managing partner with an FM-3 visa

* Monthly reporting of financial activity is required through a certified accountant.

"Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate

Lake Chapala Real Estate area benefits from stable water levels

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Fri, 30 Oct 2009 10:44:35 -0500

For most Americans and Canadians who own a Lake Chapala Real Estate, the late summer and fall seasons are the favorite time to spend in their Chapala or Ajijic homes to enjoy the higher lake levels, and to enjoy the refreshing climate brought by the rainy season. During the rainy season, warm sunny days are balanced by rainy late afternoons, which cool the temperatures.

One of Lake Chapala Real Estate's main attraction is, of course, the lake itself, offering boating activity to the residents of area, and a beautiful view to those living in the towns of Chapala and Ajijic. While the water level was somewhat low in the spring, the good news is that due to recent rainfall, Lake Chapala has maintained the benchmark of 95.83 cm for four straight days, including the 39 cm which it has recovered since June.

Since June 27, when the rainy season in the Lake Chapala Real Estate area started, the lake has been steadily recovering the water to reach its current level. The 39 cm in the water level represent 433 million cubic meters of water volume in the lake.
Lake Chapala has a total capacity of five thousand 664 million cubic meters and is at 71.73% of total capacity, according to the National Water Commission (CONAGUA).

"Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"

Message of Peace arrives Cozumel Real Estate Community to Spain

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 29 Oct 2009 10:50:54 -0500

We pleased to announce the Cozumel Real Estate area's messenger of peace, "Zamna" arrived in Santander, Spain, on the afternoon of Saturday, October 3. The ship was received with a joyous celebration of about 4500 residents, attended by city officials, thousands of flags waving Peace and especially enjoyed the presence of Angel Garcia Rodriguez, winner of the "Prince of Asturias Award for Peace", who immediately associated himself with the actions taken in Cozumel to promote Peace and announced his interest in the organizing First International Congress for Peace in the Cozumel Real Estate area.

The ship arrived at 5:10 PM, and on the dock of Calderon, Santander, fireworks were heard to greet the trimaran that had sailed across the Atlantic to reach the old world, with the single mission of bringing a message of Peace through the voice of a child from Cozumel, Juan Pablo Tec Chim, who joined the crew, which did not stop ringing the ship's bell to announce his arrival to the homeland of the ship's captain, Vital Alsar.
Led by the Mayor of Santander, Iñigo de la Serna, officials, businessmen and the media gathered in the pier to be part of this story that began in Veracruz, Mexico, and made its way pas the Yucatan Real Estate area, through Cozumel, to Miami Beach Florida, to New York and now finally Santander, Spain; so far the ship has visited three ports in the U.S. and Europe. Meanwhile the spectators listened to the notes of the song composed by the Sergio Esquivel of Yucatan Real Estate area especially for this journey, "The Child, the Sea, Peace and Cozumel."

As soon as "Zamna" landed, the signs of joy were evident and the crew was warmly received by all people, who showed their appreciation fro the commendable work undertaken by the crew who had traveled more than 4 thousand 600 nautical miles during the 70 days that the voyage has lasted since it was launched in Alvarado, Veracruz.

During the welcoming ceremony Iñigo de la Serna brought attention to Cozumel in a special way, acknowledging its effort for peace through actions undertaken by the Mayor, Juan Carlos Gonzalez Hernandez, to appoint the various educational and government institutions in promoting the peace and ensure that Santander and Cozumel will continuously promote harmony.

The mayor said that the city unconditionally supports the actions undertaken by the only island that has been named "Island of Peace" in the world to further promote the value, and he asked his counterparts in the other Spanish ports where "Zamna" will arrive to join this project.
Meanwhile, Vital Alsaro Ramirez, visibly moved by being in his native Santander, expressed his affection for Cozumel and the Mayan culture that motivated him to make this dream real. The operator of the vessel , Manuel Diaz Rubio, excited by the acceptance which "the child, the sea, peace and Cozumel" has received, referred to this island as "a people of peace," who through their actions and their Peace Committee is an example for Mexico and the world.

At the given time Juan Pablo, who now has the responsibility of being the messenger of peace in all the ports of Spain where the boat arrives, said: "Thanks to Santander, Spain, on behalf of the Cozumel, Mexico, the Island of Peace Island; we give thanks for this affectionate greeting. We will take the message of peace to children all over the world."
Once the welcome ceremony was completed, the crowd that attended this event approached 12 years old from Cozumel - ambassador of Peace from Mexico for all the world - to talk to him, to have them take photographs to remember this special day, which was really emotional for those who were witnesses of this episode of the journey for peace.

The community of Santander showed signs of admiration for the global messenger of peace and offered the child congratulations and good wishes on his journey errand, and asked him to take their congratulations to the people of Cozumel for this undertaking, in which the residents of Santander who came to greet "Zamna" participated.

Playa del Carmen Real Estate celebrates 35 years since the creation of Quintana Roo

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Wed, 28 Oct 2009 10:39:35 -0500

We celebrated a milestone in the history of Playa del Carmen Real Estate. 35 years ago, the state of Quintana Roo was created in order to facilitate the area's growth towards being one of the world's top tourist and real estate destinations. 35 years later, the Playa del Carmen Real Estate industry, along with the rest of the state, is moving ahead in a clear direction, and remains firm and strong despite adversity.

Although the Playa del Carmen Real Estate boom occurred between 2002 and 2005, the creation of the State of Quintana Roo was an important step towards bringing more visitors, and later international investment to turn a little fishing village into prime real estate destination.

As the state reached 35 years, Quintana Roo and Playa del Carmen remain positioned as a privileged destination with great natural attractions, economic diversity. With a high level of tourism, the state has made progress with a comprehensive and sustainable development.

As part of the celebration of 35 years of existence as a state, various founding state representatives were interviewed about the progress they have seen in Playa del Carmen Quintana Roo. Mario Ramirez Canul said that Quintana Roo, at its 35^th anniversary, continues to show steady and rapid growth as a real estate and tourist destination because of its major attractions, which have earned themselves a worldwide reputation and have generated a large number of jobs and foreign investment for Mexico Real Estate.

Likewise, he indicated that at 35 years, the political moments and world events which have shaped and affected this state must be considered in order to keep moving ahead and continue steering the state in a firm and definite direction.

For his part, Abraham Martinez Ross said Quintana Roo remains a very relaxed state, where peace and harmony prevail among the citizens and their customs and roots have allowed people to maintain a high sense of humanity.

He commented that the state has experienced rapid growth in real estate and accelerated development in healthcare, agriculture, social infrastructure and services which did not exist in the past; this, too, has allowed it to become a leading entity in tourism.

Sebastian Star Pool, explained that Quintana Roo has been characterized by its different regions. Cancun in the north, for example, represents the state's potential, the Playa del Carmen Real Estate area in the center represents its identity and in the south, Chetumal is the political capital. As a result of the distinct characterizations, the state has made giant and firm strides forward.

He noted that Quintana Roo maintains permanent and decisive progress. Thanks to the people's unity has always come out ahead from any adversity.

Gilberto Pastrano Novelo, said that 35 years after its creation, Quintana Roo has established itself as a strong state, and additionally it has developed an impressive real estate industry and a comprehensive system of health, public works and justice that have allowed it to be privileged on a national level.

Tourism on the rise – a good sign for Puerto Vallarta Real Estate

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Tue, 27 Oct 2009 10:36:02 -0500

Puerto Vallarta Real Estate slowed down considerably because of the global recession, then by the lull in tourism triggered by the swine flu travel advisory. Although the global economic situation continues, Puerto Vallarta´s resilient charm and beauty are bringing the tourists back again. This is good news for Puerto Vallarta Real Estate, showing that the city’s key industry is resilient and will continue to be strong.

Among the good signs are that hotel occupancy in Puerto Vallarta is rising weekly. This week has seen a 5.7% increase over the last week. Several factors have played a role in this. While tourism has been on an increase throughout Mexico, specific initiatives for this area have also had an impact.

One example of these initiatives is the “Jalisco en Vivo” concert which was held in Puerto Vallarta. The concert, which was planned with the primary goal of rebuilding tourism, attracted a local, national and international audience. Among other factors, this concert helped the effort to slow down and eventually reverse the drop off of tourism; the week before the concert had seen a 14.3% decrease in hotel occupancy, while the weak of the concert felt less of an impact, with an 8.6% decrease. Now, the during the third week after the event, hotel occupancy has increased 5.7%.

There is hope that the initial success of the concert will be repeated on as the concert is aired on T.V. throughout Mexico, Latin America, parts of the U.S. and some places in Europe. The program received strong ratings on Mexican T.V., and the concert should continue to draw tourists’ attention – both Mexican and international - to Puerto Vallarta.

Another program, this time on the state level, is giving free guided tours and excursions from Guadalajara. These program includes 40 destinations of the state’s 11 main tourist destinations (including Puerto Vallarta), offering 120 excursions for more than 5000 tourists. The trips include transportation and guided tours. The program will be promoted in over 60 information booths, and has seen an investment of about 1,200,000 pesos. Although the focus of this program is local tourism, the presence of more tourists will support tourist based businesses in areas entirely dependent on this industry, helping to boost the industry while international tourism continues to rise.

These and other factors are helping tourism in Puerto Vallarta, the city’s main industry, move upward again, and quickly. Those interested in Puerto Vallarta Real Estate will see this as a good sign, as we wait for the global recession to turn around.

Tulum Real Estate Market Delivering Legal Possession of Land

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Mon, 26 Oct 2009 11:02:38 -0500

We had a client close on some lots in Tulum last week A new project called Aldea Zama This is an exciting new neighborhood in Tulum because of its' location and of the region

Many of you readers are quite familiar with Cancun and how this city was basically a project that was conceptually designed by the federal organization called FONATUR Success; the city today is nearing 1,000,000 in population and along with being the number one tourist destination, it is also one of Mexico real estate markets best successes.Then south of Cancun, a little fishing village called Playa del Carmen started to grab the attention of many visitors from all over the world Many Europeans, South Americans began to discover this little stepping stone village towards their main destination of the island of Cozumel Playa has had a growth rate that has surpassed Cancun and in the past 7 years has been cited as the fastest growing community in Latin America Some people say they missed the boat on an investment opportunity for Playa..but hold on to your horses, now there is Tulum Mexico. Keep a close investment eye on this spot!

Mexico Beaches are some of the finest in the world and the Tulum beach is definitely one of its' top 5 Population growth potential Some officials are stating and preparing for some serious inflow of people again from Europe, Canada, US, South American and from the Mexican nationals In the new project of Aldea Zama, in the commercial section, several business owners who have current successful businesses on 5th avenue in Playa del Carmen are taking title to their properties in the new “downtown” development of Tulum “Build it, and they will come”.It appears that in Aldea Zama, various Italian business owners appear to have seen the movie and believe in its' quote And from their success on 5th avenue, they have a good knack of identifying these tourist opportunities.The point is that a large quantity of these foreign business men have already reserved their commercial corners and areas within this project Do they know something we should

Back to the Legal status of the properties in Tulum, I was very happy to have my good friend and clients receive their legal title to the property Tulum is absolutely gorgeous withthe beaches, and the opportunity is definitely in the air when you travel to this up and coming little village But, invest with caution, don't over risk with properties that are not properly titled and a promise that such legal rights will come shortly If you live out of country, the amount of money or extra points on return you think you can earn,may very quickly be eaten up by having to pay lawyer's fees to sort through a un-secured title mess and nightmare Surround yourself with Mexico real estate experts and people with experience on representing the buyer When my client received his legal title in the Tulum lot, this was worth celebration I am very bullish about Tulum and am happy to say I have another client now who is in the front edge of the wave that will come.

Paying Taxes from Mexico, It's That Time of Year Again

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Fri, 23 Oct 2009 11:13:03 -0500

If you have been living in Mexico in 2009 or if you earned income while in Mexico, chances are that the April 30th deadline for filing a Mexican tax return applies to you.

Income in Mexico is broadly defined and includes wages from an employer, income from personal services, rents, dividends, income and other items If you have received income, then it does not matter if you are considered a Mexico resident or non-resident, the law says you must file a return.

Requirements for residents are different There are several ways to determine whether or not you are a resident The easiest way is to see how much of the year you have spent in Mexico If you were here for 183 days or more, you are considered a resident You can also be considered a resident if you maintain your primary residence in Mexico or if you receive more than half of your income from Mexican sources When in doubt, the Mexican government will consider you a resident Bienvenidos!

Residents are required to pay taxes on their worldwide income, just as the US requires you to do This means that any income you receive from the US: social security, pensions, interest and so forth; will be taxed under Mexican law Similar to the US, you are allowed deductions for medical expenses, charitable deductions and the like You receive an exemption for the first MXN 125,000 Income from 125,000 to 1,000,000 is taxed at a 15% rate Above one million pesos, the rate is 30%.

If you need to file a tax return (for more information) While many have neglected to pay taxes in the past, it might be wise to start paying attention to this issue As the economic situation worldwide has deteriorated, governments are eager to seek out additional tax revenues US President Barack Obama has been putting heavy pressure on Swiss and other European banks to release information on Americans with accounts there There is no telling what goverments may do to maximize their tax revenues should economies continue to deteriorate

Keep in mind that if you pay taxes in Mexico, as a US citizen, you must also file taxes in the US More about this issue in Part II drop me a message or a quick note by CLICKING HERE (Mexico Real Estate Contact us) along with any questions you may have I ll be more than happy to send it to you immediately and respond as best I can on any tax questions you may have.

Bargain Hunting for Real Estate in Cancun & the Riviera Maya

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 22 Oct 2009 09:37:39 -0500

Will you find slashed prices on Cancun real estate properties just like in the suffering US market Find out the reality of the current Mexico real estate market conditions.

Every day I am receiving more and more inquiries aboutdistressed property scenarios. Many savvy investors have shifted their interest from Mexico pre-construction flipping since we are no longer in a profitable market for that type of investment. Now those with keen vision are looking for properties priced under market value. Those sharp investors know that now is the time to buy. Experts in Mexico real estate know the rule.. the best time to buy is when every one is selling and sell when everyone is buying.

We are truly in a buyer s market since we are seeing price reductions on many properties in the area, reflecting the current market conditions. However, the situation here in the Mexican Caribbean is very different from the troubled US market.

Since financing in Mexico has not been easily obtained to purchase real estate, most owners have paid cash for their properties. This means that we do not have foreclosure situations on these properties. There are definitely owners who are motivated to sell and are pricing their properties accordingly, but don t expect the slashed prices like in the US market.

If you are looking for a great investment or a second/retirement home, now is the perfect time to buy real estate in Cancun and the Riviera Maya. Since there are many new developments in the area, some developers have started to roll back prices to reflect the slower market. Also we are seeing price reductions on re-sales. This is certainly an opportune time to get great deals on properties here in the Mexican Caribbean. In other words, bad markets offer great opportunities if you know what you are investing in. If you are looking for a good value vacation/retirement home that doubles as an investment you can't go wrong. And considering the poor options for investments in the US, it may be the best time to park some of your money in real estate in Mexico.

Q: In the Mexico Real Estate Market, Can we Use One Bank Trust to Own Several Properties

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Wed, 21 Oct 2009 09:35:13 -0500

A common questions we have in the Mexico Real Estate market when assisting non Mexican investors or buyers is

Q.) “Would we be able to use the same Mexico bank trust for multiple purchases or does each property have to have its own trust”

A good question. Our panel of Mexico Real Estate experts will answer below

A.) Rita Sheese of Cozumel Capital covering the Cozumel Real Estate Market answers:

“Each property will need to have it's own separate trusts, each established for a specific property.

A Mexico bank trust, or fideicomiso, is established for a Property…so trusts are property-oriented, not people-oriented. A specific property is the object of each trust contract, and the reason for the trust being established As an example: when a property held in trust is sold, the trust stays in place, only the beneficiaries in the contract change — the original beneficiaries of the Mexico bank trust (sellers) cede their beneficiary rights to the buyers, who become the new beneficiaries of that same trust.

A.) Linda Neil from the La Paz Real Estate region adds “A Mexico bank trust is required for each property since the trust (fideicomiso) is actually a deed to the rights in a specific property. A permit from the Secretary of Foreign Relations is required for EACH property and the text of the permit is included in the fideicomiso deed. The only exception to the one deed per property rule is where two lots are contiguous. Then both can be put into one deed but usually will still require two foreign relations permits.”

A.) Ivan Castillo,regional director and practicing Mexico real estate lawyer from Stewart Title responded: “One Mexico bank trust must be used for each property. Each trust contains particular information of the transaction, such as: purchase price, trustee, substitute trustee, own SRE permit, appraisal, amongst other items.”

Interview with Ixtapa Real Estate Expert Tim Sullivan – Part 1

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Tue, 20 Oct 2009 10:44:10 -0500

Below is an interview by an international property magazine, VENTANA, talking with our newest TOP Mexico agents & Brokers member from the Ixtapa real estate market, Tim Sullivan Tim is the owner of TICAR Real Estate company in Ixtapa-Zihuatanejo Guerrero.This beautiful oceanfront city sits on the Pacific Ocean, north of Acapulco and south of Puerto Vallarta.Tim arrived to Mexico back in 1987 and has been here ever since.In 1994, after having worked various years with local brokers and developers, Tim along with his beautiful wife of 15 years, Carmen, started their brokerage company Ticar, S.A. Mr. Sullivan will be joining the panel at the Mexico Real Estate Blog, TOPmexicorealestate.com where he will be sharing his expertise and development updates in this regional market of Mexico

Why did you choose this market in Ixtapa Zihuatanejo as your destination in Mexico

In actuality, I do believe that Ixtapa-Zihuatanejo chose me. Back in the autumn of 1987 circumstances conspired to allow my then partner, Linda Fox, and I to take a six-month long sabbatical and travel to Zihuatanejo where Linda had lived sporadically since the early 1970 s I had never been to Mexico before and had only some erroneous preconceived notions of what Mexico was all about. My concept of Mexico I d harvested from westerns and Saturday morning serials As soon as the plane landed at the Zihuatanejo airport all of those old stereotypes went right into the waste can.

What sets Ixtapa Zihuatanejo apart from other real estate locations in Mexico such as Puerto Vallarta or Los Cabos

The Ixtapa-Zihuatanejo market has a unique flavor which distinguishes it from the other destinations in Mexico whether they be beach resorts or colonial towns. The distinction is analogous to one of this area s most famous dishes;tiritas , which is a recipe calling for strips of locally caught fish marinated in lime juice, onions and sliced Serrano chile. This simpleplatillo is exquisitely satisfying and uniquely particular to the Ixtapa-Zihuatanejo area.

How large is the expatriate community here How many Canadian and American expats are living here

The use of the termexpatriate is one which I tend not to promote given that some of its synonyms areexile andoutcast . Certainly there are some of those but the vast majority of the 3,000 or so yearround and seasonal inhabitants are average citizens of their respective home nations who have chosen Ixtapa-Zihuatanejo and the surrounding areas as their home or home away from home.

How do expats assimilate to Ixtapa-Zihuatanejo s Mexican society and culture

By and large the non-Mexican visitors and residents have immersed themselves in the culture and rhythms of the Ixtapa-Zihuatanejo experience. There is any number of charitable organizations such as Ni os Adelante and S.O.S Bahia, S.A. to name just two, which receive bountiful donations of both time and money from the foreign and local communities alike. Social events are equally polycultural as lassos between individuals create expanding webs of interdependency.

Has real estate grown here over the years If so, what has detoned it

In the twenty plus years that I have lived in this paradise, Ixtapa-Zihuatanejo has experienced a slow, steady growth both in the permanent population as well as in the number of short-and long-term vacationers. Over the course of this steady expansion there have been two very strong booms: 1991-1995; and, 2005-2008. In each of these boom periods the prime stimulus for the growth in the specific area of Ixtapa-Zihuatanejo was the real value investors found in the local real estate in comparison with other destinations in Mexico where rapidly rising prices had out paced the demand. In contrast, in Ixtapa Zihuatanejo supply had always lagged behind a increasing demand.

Buying Property in the Changing Yucatan Real Estate Market

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Mon, 19 Oct 2009 10:24:36 -0500

Buying Real Estate on the Yucatan Peninsula

Today in most of the large communities across the peninsula there are Yucatan real estate agents that provide tailored services to foreigners wishing to purchase property in a safe and secure manner. These services include: bilingual agents and administrative staff, standardized contracts, secure earnest money and Mexico escrow accounts, legal assistance, title insurance, funds wiring, monetary exchange banking, closing statements and continual brokerage services. A good real estate firm will build solid relationships with their clients, helping them with a range of issues that will confront the foreign buyer wishing to do business and/or live in Yucat n.

Additionally, a good real estate firm will have good connections for the best, multi-lingual attorneys, accountants, contractors, architects, etc You can meet many of these qualified brokers right here in our web site at TOP mexico real estate blog.

After selecting a Yucatan real estate agent, the buyer needs to check the various real estate websites (see the web site Mexico Real Estate) and choose the properties that he/she would like to tour. The agent will then need to contact the various owners and agents to schedule appointments.

It is a good idea to try and keep your selections to fewer than 6-8 properties a day. Trying to tackle more will prove to be frustrating and confusing. If you are looking for property on the beach, or in the countryside (ranches, haciendas or quintas), the driving times can be considerable. If you are searching for homes in Merida, keep in mind that traffic in M rida can be daunting and parking is often at a premium.

Invest a few days to do a thorough search of the properties that fall within your parameters. It will not take long for a prudent buyer to establish a sense of value and identify the best buys available. Your agent should be able to help you to know if a property is over-priced or a good buy.

Some agents may charge a small daily fee taking you around to see property. Their time has value. Many foreign buyers are here on exploratory trips, gathering information and getting a feel for the area prior to investing. Many do not buy.

It is only fair to compensate the agent for his/her time and gasoline. Most agents will refund the fee at closing. A knowledgeable agent is worth the fee. They can provide a ton of invaluable information.

After you have identified the property you wish to make an offer upon, your agent will draw up a standardized Mexico Offer to Buy Contract. The offer will be presented to the Seller and they will accept, decline or counter the offer. Negotiating on purchase price, closing date, inclusions and other details is common.

If your offer is accepted and everything is signed, it is time to provide the earnest money deposit and meet with your Notario/Attorney.

Cancun Beach Recovery Project Update

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Fri, 16 Oct 2009 10:19:07 -0500

A good friend and client of mine has asked for an update on the Playa del Carmen, Riviera Maya, and Cancun beach recovery update If you recall we wrote about the Beach recovery project back in September within our Mexico Real Estate blog Today, this is the latest update that I have been able to find:

There are basically six companies that have bought into the bidding process to see which of these companies wins the nod These companies have finished their” on site” visits to the Playa del Carmen, Cozumel, and Cancun beaches Another update is that where before the quotes were to be listed in US dollars, the government has requested a quote in pesos given the Mexico exchange rate variances

The sand to be utilized for blowing up onto the beaches will be drenched from a large sand bank located on or near to the Cozumel island So, at this time, the project continues forward We are not on the same time line, but the phase of physical visits from the bidding companies has completed, and now those companies are sharpening their pencils to see which group wins the contract to begin their services.

Common Mistakes Land Lords in Mexico Make with their Tenants

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 15 Oct 2009 09:55:31 -0500

Your success as a Mexico Land lord will require that you are a good Landlord and reduce potential costly mistakes that many first time Land lords can make I have written several posts regarding Mexico real estate rental property, and how to best administer such properties, click here to see my previous articles on Rental Properties.

Based on my experiences, I've compiled a list of mistakes often made by land lords.

Errors on the lease agreement that cause uncertainty in expectations
Not enforcing rent collections as defined in the lease agreement. If you allow your Tenant to pay at random, your setting a precedence to continue to allow this type of behavior
Not knowing the specific laws relating to Tenant-Landlord relationships
Poor response to Maintenance and Service requests
Not practicing good customer service
Not conducting a written, detailed move in inspection with their Tenant
Not maintaining a professional relationship with their Tenant

In most cases, Landlord and Tenant will have some communication, especially if there is not a Property Manager involved. However, it's easy to defy the balance of a Tenant-Landlord relationship if mistakes are not kept to a minimum.

Purchasing Your Mexico Dream Home; Real Estate Closing Costs in Mexico -Part 2

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Wed, 14 Oct 2009 09:42:34 -0500

Last week, I began discussing the process of how to purchase your Mexico dream home

Please click here to see this first post Mexico Real Estate Purchasing Process

and go here Mexico Real Estate Agents to learn more on this subject.

Rule Number Three:Mexico Real Estate Closing Costs

(Fideicomiso) Closing Costs:

Closing costs will range from 4% to 30% (yes, 30%!) of the total cost of your Mexico property. The higher the price of the property, the lower the percentage of total costs for closing. This is because certain expenses for permits in Mexico,and certificates are fixed, regardless of the value of the property. Costs of transfer include title search, transfer taxes, bank fees, government permits and Mexico notary public fees. Your seller may assist in some of these; especially those related to title search and insurance. Be sure to get a written estimate so that you will not have unwelcome surprises at the date of transfer of title! While your real estate agent may know the procedure, his or her specialty is to identify the correct property for you and to negotiate advantageous terms for the purchase. The technicalities of the transfer; negotiations for permits, registrations and so forth are generally more objectively and thoroughly handled by a neutral third party who does not have a financial interest in the transaction.

A Mexico Real Estate Investment Question Regarding Preconstruction Condos

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Mon, 12 Oct 2009 11:36:12 -0500

Mexico Real Estate Investments have been extremely profitable in this country for the past number of years But the overall consensus with our panel has been “surround yourself with Mexico real estate experts” to avoid unsuspected pitfalls Stewart Title has a team of lawyers that assist non-Mexican buyers, investors, and developers who are coming down in record numbers to purchase properties and develop in this growing Real Estate market

A question was asked a few days ago regarding a property purchase.

Mexico Real Estate Investment QUESTION

“Can you give us an estimate on the amount that would be due on Mexico Acquisition Taxes for a pre construction condo purchase

I entered into a contract for a unit at Mexico Pre construction Condo “X”. They required a 30% down payment with a final payment of 70% at close.

My contract is all in US dollars How do I calculate the amount that should be captured on the deed and how will this affect the amount payable for the Acquisition Taxes In 2007 the Mexico exchange rate was approximately 10 pesos per dollar and in 2009 we are approximately 15 pesos per dollar

Mexico Real Estate InvestmentANSWER

Even though the purchase price was set in US Dollars, the deed by which the property is transferred will mention Pesos. Since 30% of the purchase price was paid previously at an exchange rate of 10.00 Pesos p/dollar and 70% will be paid at 15.00 p/dollar, the most practical way is to determine the amount paid in Pesos at the time of each payment:

Example:

Purchase Price in Dollars in July 2007 = USD$ 10,000.00

30% Down payment at 10.00 Pesos per dollar paid on July 2007= $30,000.00 Pesos.

70% at closing at 15:00 Pesos per dollar paid on July 2009 = $105,000.00 Pesos

Purchase Price in Pesos to be declared in the deed: $135,000.00 Pesos

It s important that the purchase price calculated is well determined, since it could affect the parties when calculating closing costs. The seller could pay more Mexico Capital Gains Taxes or the purchaser can pay more transfer of property tax and deed registration at the Mexico Public Registry if the figures are not registered correctly.

Purchasing Your Mexico Dream Home; Mexico Real Estate Agents & Neighborhood Part 1

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Fri, 09 Oct 2009 09:52:23 -0500

Mexico can be an exciting place to live for those who are retiring to Mexico, for those who are working from home on a computer link with their company, for those who are looking for a vacation home or an outstanding investment… above all, for those who dream of a better quality of life! Home…the word represents security and comfort for the majority All too often the word, when used in conjunction with a purchase of property in Mexico creates stress, worry and, at times has been associated with financial loss This needn't be the case Procedures in searching titles and transferring property are similar to those of the United States and Canada The buyer of a house, condominium or lot in Mexico must ask the same questions, and should receive answers similar to those received when buying a property elsewhere

Rule Number One: SelectA Mexico Real Estate Agent

In considering the purchase of something so important as a home it is necessary to have the right people representing the buyer and his interests This can be accomplished by first selecting the general area where you think you'd like to live Through NAFTA agreements, the Association of Mexican Real Estate Professionals (AMPI), is now affiliated with the U.S. National Association of Realtors (NAR), the Canadian Real Estate Association (CREA), and the International Real Estate Association (FIABCI) These important national real estate organizations are working to achieve standardization of real estate practices and procedures throughout the world The company you select to represent you in your Mexico property purchase procedure should be a member of AMPI Not only is the AMPI member company required to operate under a higher standard of care, and to adhere to a code of ethics, but also it may have access to an increasing number of the properties available for sale through computerized data bases Once the area is selected and a list of the AMPI companies operating there have been obtained – interview the owners and operators of the companies Ask for references, ask for a professional resume Interview carefully the persons that most impress you the person you select should be familiar with the area, with basic real estate principles…and should impress you with his or her honesty and drive to find what YOU are looking for Once you have found the person you feel comfortable with, stick with him or her and let him do his job The sales person who knows you aren't shopping around will generally work harder to find exactly what you are looking for Remember, it is your money and your commitement Do not be pressured by someone who is charming but who does not listen carefully enough to undertand YOUR special needs

Rule Number Two: Examine the Mexico Neighborhood

Once you have selected the right Mexico community, an agent with who you feel comfortable, AND a possible property, check out the neighborhood Is it new Is it old What will it look like in ten years Are highways or other development projects planned for the future Where are the schools, churches, shopping facilities Are there homeowner fees for maintenance of common areas If so, how much are they and when are they paid Are all the utilities in and paid for What does the developer have left to do What building restrictions are there Are there covenants and conditions registered for the usage of the land In many parts of Mexico there is no enforcement of a master plan or building codes This can affect the changing face of the neighborhood you have selected.

With Your Mexico Real Estate Rental, What Does the Lease Agreement Say

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 08 Oct 2009 09:47:46 -0500

Many new Landlords with Mexico Real Estate rentals are unsure what their lease agreement (Contrato de Arrendamiento) really says and if they are truly protected. As with any Mexico legal document, the lease agreement is binding and should be reviewed by all parties carefully.

You will see from my other posts written about rental properties, click here Mexico Real Estate blog, it is important to get correct Mexican legal counsel when working with agreements and contracts Executed leases should be in Spanish with a complimetary English version available.

Key Points on a Mexico Lease Agreement:

Names of all parties to the lease
Lease dates
Rental amount
Location in which rent is to be paid
Rent due date
Late charges
Security deposit amount
How maintenance and repairs are to be handled
Move out notice requirements
Details about Landlord access to the property
Utilities and Services
Condition of the property
Rules and regulations
Pets
Landlord remedies

Although many Mexico Managment Companies use different leases, some are drafted by an Attorney or Notario. Whatever version you or your Property Manager uses, make sure that you have a complete understanding of the document and how it will legally affect you and your Tenant.

Yucatan Real Estate Expert; Mitch Keenan

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Wed, 07 Oct 2009 10:15:38 -0500

Yucat n has been the attention of many international real estate investor in recent years With the many Haciendas, the old colonial architecture, and the increasing amounts of non-Mexican buyers, where can people begin their process into buying property here in paradise We asked Mitch Keenan, a Yucatan Real Estate broker, very well known throughout the entire Yucatan Peninsula, and with many years of on hand experience in Mexico Real Estate to help us out with this post and blog.

This post is about real estate in the states of Yucat n and Quintana Roo The author, Mitchell Jay Keenan,CRS is the general director and the operating broker for Mexico International Real Estate.

Keenan has been living and selling real estate in Yucat n for over 10 years. He has been a licensed broker in the USA since the 1980's. He holds a GRI (Graduate Realtor Institute) and a CRS (Certified Residential Specialist) certifications from The National Association of Realtors (NAR). He currently lives on his Quinta between M rida and Progreso with his partner and their four companions; Wazer, Lover, Lucky and Miri.

Yucatan Real Estate Brief History

Understanding the dynamics of the real estate market in Mexico requires a reflection on the socio-economic conditions that have developed in Mexico over the last several decades. The large middle class that has emerged in the last 30 years has provided for a more robust market. Additionally, with the growing foreign interest in living and investing in Mexico, the market is becoming more dynamic and secure for investment and ownership.

Historically, Mexico was a country of basically two large economic groups; the rich and the poor. The poor rarely owned real estate and the rich tended to subdivide what real estate they had and pass it on to their heirs.

The current real estate market (where two previously unknown parties come together to buy/sell real estate) is still a relatively new business in many regions of Mexico. This is the reason why, in most of Mexico, there is no MLS, no real estate licensing requirements for agents, no governmental oversight, limited institutional financing, and few large, organized real estate companies or real estate professional organizations.

The exceptions to this current scenario are Mexico City, Monterrey, Guadalajara, and many of the coastal resort areas, where there are limited MLS's, large brokerage firms, and functional professional organizations like AMPI.

It is important to remember that Yucat n has been like an “anonymous region” separated from Mexico for decades. Yucatecos tend to think of themselves as Yucatecans first and Mexicans second. Rules, regulations and new businesses practices have tended to evolve here more slowly than in other regions of Mexico.

Mexico Real Estate Purchasing Process

Historically, in Yucat n, when two individuals come together in an agreement to buy/sell real estate, the parties have utilized a “promise to buy/sell” real estate agreement. The agreement is typically drawn up by the Buyer's notario.

Note: the buyer is responsible for paying the notario and closing costs. The seller is responsible for paying their capital gains taxes.

Upon signing, the buyer gives the seller a deposit to hold as earnest money to seal the deal. In return, the seller provides the notario with current and notarized escrituras (title documents), cedulas (tax statements), planos (lot plan), personal data, and corresponding information.

This “promesa de compra/venta” is a vehicle still popularly used in Yucat n, and it is not unusual for a seller that is not represented by a real estate agent to require this contract with the understanding that the seller will hold the earnest money deposit.

Should the buyer fail to buy, at no fault of the seller, the buyer will forfeit the deposit. Should the seller for no fault of the buyer, refuse to sell, there is a penalty clause in the contract penalizing the seller to return the amount of the original deposit and pay a penalty equal to the amount of the deposit. If the seller does not return the deposit and pay the penalty, the buyer will have a very strong case for filing a lien against the property and pursuing legal action against the seller.

"Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"
Thomas Lloyd,graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate

Trust Accounts for Your Mexico Real Estate Rental Property

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Tue, 06 Oct 2009 11:45:57 -0500

By now you should have determined if you are hiring a Property Manager for your Mexico Real Estate rental. You've interviewed and have chosen a Property Manager that you are confident with. The Mexico Property Manager that you've chosen has sent you the Property Management Agreement (PMA) and you notice a clause that states that you must deposit funds into a Trust Account with the Property Manager and you wonder

what this sum of money is for…

Many Property Management Companies require a specific amount of money deposited into what's referred to as a Trust Account. This amount can be as little as $100 or $1000 and will vary by Management Companies. Most companies I've had experience with require $250-$500.

Mexico Property Management Trust Accounts

Trust accounts can be complicated but the primary details that you should know are:

Funds are the property of someone other than the Property Manager
Funds in a trust account cannot be comingled with personal funds of a Property Manager
Funds in a trust account are used for property repairs, taxes, insurance, utilities, etc.
Funds in a trust account can earn interest which can sometimes be kept by the Property Manager
When a Property Manager pays expenses from an Owner's trust account, there must be enough funds in the account to cover the expenses.
The Property Management Company will/should provide a detailed accounting report outlining how funds have been disbursed.

Trust accounting is not difficult and experienced Mexico Property Management Companies know how to handle other people's money with care and consideration. However, it is your responsibility to insure you check your statements carefully and ask questions if you notice anything that you are unsure about.

"Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!", Thomas Lloyd
graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate

How to Determine if You Should Hire a Mexico Property Manager or Manage the Property Yourself

Thomas Lloyd - Mexico Broker Referral Program (Top Mexico Real Estate) — Thu, 01 Oct 2009 09:44:10 -0500

It s been my experience that many people, especially those new to Mexico rental investments, believe that property management is easy. The perceived tasks of a property manager is to collect the rent, deposit the rent then wait until the next month to start the process over again. Sounds like little work. Why in the world should you pay for professional Mexico property management services

Regardless if you have one Mexico rental investment or an entire portfolio, property management is a very hands on business. There are many more details in the everydayness of just collecting rent; details that demand a lot of your time and resources

Mexico Property Management Activities

Details will include:

Giving the Mexico Tenant access to the property at move in

Showing the Tenant how each item works in the property

Addressing any maintenance issues they may experience

Pool and lawn maintenance

Tenant move outs

Cleaning the property

Although every Mexico Real Estate property will have a different list of needs, your Tenant should be viewed as your customer. You need a professional that can cater to your customer and resolve any issues that may arise. After all, the customer ultimately dictates if your Mexico investment property will be profitable or a disaster. A property manager will be the front line person representing you to the customer. Without the customer, you do not have rent revenue and without rent revenue, you are stuck funding the investment yourself.

Questions to Ask a Mexico Property Management Company

When interviewing property management companies, here are a few questions to ask:

What are their fees and when is it paid

How will they handle Tenant issues such as repair requests

What process do they go through to collect rent or what happens if the Tenant does not pay

Will they market the property for rent How

Do they screen the prospective Tenant How

Do they handle all legal contracts between Landlord and Tenant

Do they facilitate any repairs with a contractor Are those contractors licensed in their respective field

What are their hours of operation

What is their accounting method and what reports will they send to you regarding the property

When do they disburse rental funds to you

Who holds the security deposit from the Tenant

What amount of reserve will be required

At what point will they contact you on maintenance or Tenant issues

How often do they inspect the property

Regardless of how many questions you ask, a Mexico Property Manager is your contractor and you must have a comfort level with them. Look for solid credentials, get recommendations and references and make sure they have a good reputation within the community. When searching for a property manager, do your due diligence and pick the one that you feel will be the greatest fit for you and your property.