Posted by Roxanna McDade on Thu, Jul 15, 2010 @ 07:16 AM
By Andrea Julian
Many people are choosing retirement in Mexico. If you are thinking about retirement in Mexico but are unsure of where you want to settle, consider the beautiful little beach town of Puerto Penasco in Sonora. Known by locals as Rocky Point, this idyllic little beach town is only 94 miles from Ajo, Arizona and the international border. It is accessible by excellent toll roads and even has a small international airport, making it very convenient for all kinds of travel. Choosing Puerto Penasco for retirement in Mexico is a good choice for many reasons.
Excellent real estate deals. There is no shortage of excellent real estate deals to be had in Puerto Penasco. Whether you are looking for a private home or a condo in a resort style setting you will find it there. Buying real estate is fairly simple and straight forward, as well. Since Puerto Penasco is in the 'free zone', laws for U.S. citizens are simpler there, which is why it is becoming such a popular choice for retirees from the United States.
Incredible year-round fishing. For many people, retirement means more time to spend doing the things they love, and that includes fishing. The Sea of Cortez offers abundant year round fishing, which is another one of the main draws of the area. You can bring your own boat down and spend your days fishing at your leisure. There are several marinas where you will be able to store your boat for a low monthly fee.
Inexpensive living. Your retirement income is sure to go a lot farther in Mexico. For $1,500 a month, you will be living great. That kind of money doesn't go too far in the states, but in Mexico, it is a healthy income. If you buy a house and don't have to pay rent, you could even live on a lot less.
Great climate. Puerto Penasco enjoys about 300 sunshine-filled days a year on average. The weather is much like the weather in the southwestern United States. It is a desert climate, so days can be hot and nights can be chilly. Unlike some parts of Mexico, which have a distinct rainy season, Puerto Penasco gets rain throughout the year in short bursts.
Retirement in Mexico is becoming more attractive as prices for food, gas, and living in general continue to rise in the United States. You may think you can't even afford to retire if you are living in the United States, but before you think of having to go back to work, consider retirement in Mexico. Puerto Penasco, with its convenient location near to the international border, means you can easily go back and forth to visit family and friends. Its idyllic beach side location on the gentle waters of the Sea of Cortez will make you truly feel like you are living the life of luxury you always dreamed about but thought you could never afford. So why not consider retirement in Mexico? With Puerto Penasco's beautiful beaches, scenery, inexpensive real estate and friendly people, its really hard to find any reason not to!
Posted by Roxanna McDade on Thu, Jul 01, 2010 @ 06:30 AM
By: Charles Sipe,
Mexico Real Estate Investment
Just south of Puerto Vallarta is Costa Alegre, or The Happy Coast, a 174 mile stretch of Mexico's finest coastline. With private, beautiful beach coves located off of dirt roads and minimal development, Costa Alegre is fast becoming a popular destination for celebrities and those who want to get away from it all - with minimum interference from the distractions, disruptions and pollution of the modern urban lifestyle.
Also referred to as Costa Careyes (which translates to the Turtle Coast), Costa Alegre is a nature lover's paradise - connecting tropical forests with dramatic sunset vistas and superb nighttime stargazing, free from the glare of city lights. Despite its seclusion, visitors and residents in this beautiful coastal paradise have access to some of the most exclusive and high-end amenities and services, including championship golf courses, polo matches, and high end boutique resorts and spas. The architecture in the area is unique, combining the art and culture of Mexico with styles that complement the region's natural surroundings.
The towns of Careyes, Los Ingenios, Boca de Iguanas, Tamarindo, and Manzanilla are popular areas for visitors and those seeking a second home or retirement community. Despite the area's growing popularity, the global recession has created a situation where many newly constructed homes today can be acquired at very reasonable prices. Buyers can pick up fully furnished and completed ocean front townhomes starting from the high $100K to $400K range. There are more expensive luxury properties as well, but prices here still remain reasonable, when compared with Mexico's other resort areas.
For those seeking to build their own tropical paradise, land prices range from the low $50Ks and up.
It is important to note that this is an area that is still relatively new to development (compared to other parts of Mexico). Buyers and investors should be cautious and vigilant in hiring only reputable public notaries and advisors when purchasing in the Costa Alegre area. Mexican land laws prohibit foreign nationals from directly owning properties within 60 miles of the coast; foreign buyers must purchase the land by establishing a trust with an accredited Mexican bank.
Posted by Roxanna McDade on Sat, Jun 26, 2010 @ 07:38 AM
By: Charles Sipe, Mexico Real Estate Investment
With its moderate tropical climate and more than 40 different local beaches, the Puerto Vallarta area of Mexico has become one of the top destinations for American and Canadian retirees and tourists seeking the laidback beach lifestyle.
Known as the Friendliest City on Earth, since the 1990s, the Puerto Vallarta area has become one of the fastest growing regions in the Americas. Recently, expanded development has extended to areas just north of Puerto Vallarta, which offer both the benefits of proximity to the popular resort destination but offer substantial attractions of their own and diversity of price ranges to suit any budget.
Marina Vallarta
Just a short 15-20 minute drive from downtown Puerto Vallarta, Marina Vallarta offers an affordable and amenity-rich marina lifestyle. In recent years, the area has seen a growth in the number of American and Canadian residents.
With luxury shops, fine dining, a golf course, and malls all within easy walking distance, Marina Vallarta offers an ideal lifestyle for retirees. Both tourists and residents boast that the area offers the best views of the mountains and ocean in Puerto Vallarta and the El Faro Lighthouse is a popular local hang out.
The global recession has created a drop in housing prices in this area, making buying a home in Marina Vallarta (which is technically considered part of Puerto Vallarta) very affordable. Prices range from under $200K for an oceanview or golf course condo to just under $500K for homes with 3500 or more square footage in gated communities.
Punta de Mita
Offering world class, luxury amenities set in a tropical bay setting, Punta de Mita is fast becoming a popular destination for wealthy jetsetters.
Located in the northern peninsula of the Bay of Banderas just 40 minutes north of Puerto Vallarta, Punta de Mita features a Jack Nicklaus signature golf course, Four Seasons hotel, lush jungles and beautiful white sandy beaches. Originally a quaint fishing village, Punta de Mita today is a quiet but amenity rich oasis for ex-pats and tourists seeking luxury and an unparalleled level of service.
An abundance of outdoor activities are available - from watersports (like surfing, fishing and snorkeling) to mountain biking, hiking and horse back riding. Most recently, zip line tours have been added.
Shopaholics can find handcrafted treasures from all over the world in Punta de Mita's village shops and art galleries. Seafood aficionados will love dining in Punta de Mita's restaurants which offer Mexican, Mediterranean and European fine dining fare. While dining options are limited, what's available is top notch.
Punta de Mita's housing values have demonstrated some of the highest growth in the Puerto Vallarta region in recent years and many expect prices to grow as the area becomes more widely known. Price ranges start at around $700K for golf course condos and townhomes and $1.5 million small casas/villas to just under $20 million for larger estates.
Posted by Roxanna McDade on Fri, Jun 11, 2010 @ 07:00 AM
By: Charles Sipe - Mexico Real Estate Investment
Once named La Ciudad Mas Amigable en el Mundo or the friendliest city on Earth, Mexican resort Puerto Vallarta’s 40 different local beaches and moderate tropical climate have made it one of the top destinations in recent decades for American and Canadian retirees seeking the advantages of a beach and ocean front lifestyle.
Since the early 1990s, the Puerto Vallarta area has seen rapid and substantial increases condo, rental apartment and hotel construction, making it one of the fastest growing regions in the Americas. Recently, expanded development has extended to areas just north of Puerto Vallarta, which offer both the benefits of proximity to the popular resort destination but a more relaxed and quieter environment.
Nueva Vallarta
Located just 30 minutes north of downtown Puerta Vallarta and at the center of the Bay of Banderas, Nueva Vallarta has experienced a surge in its popularity in recent years.
With beautiful, sandy beach fronts, two champion golf courses, a multitude of watersport and other activities nearby, a wealth of modern amenities, and very low crime rate, Nueva Vallarta has become a popular destination for families and retirees. In 2010, Nueva Vallarta was the winner of TripAdvisor’s Travelers Choice Award for family vacation destination.
Established originally as a destination to increase foreign tourism, recent years have seen a shift in development towards permanent homes and lifestyle communities. In 2010, the first American-developed beachfront community for retirees in Mexico, Luma, was completed in Nueva Vallarta. Condo and home residence prices range from the mid $200s to as high as $2 million. While this may seem high, many expect that as the global real estate market recovers that Nueva Vallarta’s popularity will continue to increase.
San Pancho
Originally envisioned and planned to be an “ideal Mexican village” by Mexican President Echeverría in the 1970s, San Pancho is the nickname for the Mexican town of San Francisco. Located 45 minutes north of Puerto Vallarta, the quaint beach front town has a population of little more than 2000 and serves as the cultural capital of the state of Nayarit.
Echeverria’s Utopia remained a unknown paradise until the 1990s when the first expatriates began to arrive. While the town maintains a close proximity to Vallarta’s modern amenities and shopping, local zoning and planning requirements have continued to allow San Pancho to retain its quaint, serene lifestyle. None of the buildings are more than three stories high and most of the town’s population are descended from the original four families that built the community.
In addition to the usual water and ocean sports, the town is situated just west of the beautiful Sierra Madre mountains, an attraction for jungle and forest lovers. Other local activities include horseback riding, polo, soccer, bird watching and several great golf courses are within easy driving distance. A performing arts center is currently under construction and the town’s plaza already is home to art galleries and exhibits from both local and international artists.
As expected, recent years have increased San Pancho’s popularity and real estate prices. Lot prices start at under $100,000 and home prices can range from the high $100K to over one million. Still, for investors seeking the next “hot” area near Puerta Vallarta — with small town appeal and cultural attractions – San Pancho is the place to be.
Posted by Roxanna McDade on Thu, May 27, 2010 @ 07:05 AM
By: Stephen Slater
Mexico Real Estate Investment
The old saying, “The three rules of real estate are – location, location, location” is tried and true. To do even better, I suggest you consider “location, quality and scarcity”. The foregoing will serve you well in selecting any property, but particularly so if you are operating in a foreign market like Mexico.
LOCATION
Consider “location” from both a “macro” and a “micro” perspective. Macro location applies to the region of the country, urban vs. suburban, within tourist zones vs. outside tourist zones, beach vs. inland, small city vs. large city. Much like selecting a college, working from general to specific will pay dividends later. Micro location pertains to specific site alternatives, down to a specific street, within a condominium complex or in an existing single family neighborhood. You may want to be in a development with other North Americans, you may want to live in a colonia that has no North Americans.
Micro analysis goes even further: be sure to check the property at night (Friday if possible) to see what noise levels are like. Understand who the neighbors are, whether that means next door or on the floor above. If you have shared walls with another unit, understanding not only noise, but repair and alteration rights is critical. Figure out the sun and shade patterns, determine the importance of a designated parking location and always check on security.
Your list of macro and micro location criteria should be very long; the longer and more extensive, the better.
QUALITY
Quality will add to long term value, much like location does. Quality of construction, especially relative to price, will enable you to ascertain the ability of certain properties to retain value after many years of use. Quality is not only in the cost of materials, but also in the design of a property. Characteristics, such as ceiling height, material selection and finish, electrical and plumbing, wood-marble-tile choices, views, landscaping and windows, doors and appliances will all contribute to or erode project quality.
In multi – family projects, the ratio of units to common area amenities reveals use volume. The higher the use volume, the higher maintenance requirements and associated costs will be. High quality projects may cost more at purchase, but they will last longer, retain value and perhaps even cost less (relatively speaking) to maintain and operate over time.
Poor quality will patronize you with a lower up-front price, and bite you later once you are an owner.
SCARCITY
Scarcity is a very specific site selection criteria and it has perhaps the greatest indirect and unapparent influence on property value. Think of scarcity simply as being what makes gold and diamonds so valuable. Real estate that benefits from scarcity cannot easily be replicated.
A property in a unique location, where only one of its kind can ever be built, due to topography or land availability, will have scarcity. A project that has a unique unit mix, such as a limited number of large units only, all with views, will have scarcity. A home that is designed by a unique architect, on a fully developed street, with abutting properties of equal or higher quality, will have scarcity.
Scarcity is your friend, it takes time and research to identify and quantify, but it will never let you down in the long run.
Mr. Slater has rendered site selection services in Mexico for corporations and private individuals. He personally located and acquired the land in Baja to build the studio where the movie Titanic was filmed and he searched and acquired the perfect home in Jalisco for his own family. He can be reached at s.slater@blucroix.com.
Posted by Roxanna McDade on Thu, Apr 08, 2010 @ 11:47 AM
(I-Newswire) March 31, 2010 - Baja Land Bargains is your opportunity to own ocean view property in Southern Baja for prices not seen in years. They have now launched a new site at www.bajalandbargains.com that allows users to learn more about buying property in Mexico and the land available.
Offering incredible ocean views and beach front properties on the Sea of Cortez and the Pacific Ocean in Baja Mexico, Baja Land Bargains makes it easy to purchase land in a fast growing area. All properties are free and clear of liens and encumbrances, each lot can be legally transferred, and our team of experts will ensure taking title is simple, safe and secure.
Diversify your portfolio. In today’s uncertain economic times it is hard to find a safe place to put ones money. Ocean view property, in the path of growth, purchased at wholesale, is an excellent investment and one that should be seriously considered not only for the potential quality of life it can offer, but also as a tangible, secure investment.
With properties along the Sea of Cortez as well as the Pacific Coast, buying property in Mexico has never been this affordable and this easy. You will work directly with a Baja Land Bargain representative that will answer all questions and concerns you may have.
Baja Land Bargains is offering a $300 travel voucher toward travel expenses when you view either of the Properties for Sale on the Sea of Cortez or on the Pacific Ocean.
Baja is Booming. Owning property in Vista del Cortez provides buyers with an excellent opportunity to benefit from getting in on the ground floor as the area is experiencing an unparalleled surge in development. The East Cape, which primarily attracted windsurfers and fishermen, is now evolving into a destination resort community to North American artists, retirees, investors and families seeking a more relaxing pace of life.
Visit Baja Land Bargains on the web today at www.bajalandbargains.com to learn more.
Posted by Roxanna McDade on Fri, Mar 12, 2010 @ 07:03 AM
By Charles Sipe and Mexico Real Estate Investment
In the past, it was easier for foreign investors in the Mexican real estate market to get tax exemptions on the sale of their Mexico properties. Proving residency required only one to two years and many foreign sellers found it easy to qualify for tax exemption.
Not any more. Recent changes in tax laws are expected to make it more difficult for foreign investors in Mexican real estate to avoid paying taxes on the sale of residential property. Under the new rules, only homeowners who can prove five years of primary residency can qualify for the tax exemption.
With a new emphasis on enforcement of the new tax laws, foreign buyers should exercise caution when investing in property in Mexico to take the appropriate steps to minimize future tax liability:
- Don’t declare a lower property value. Buyers in the past often were encouraged to record a lower property value than what they paid. Nowadays, it makes sense to declare the full value paid in your deed – so that when you sell, any taxes will be on the real profit you’ve made on your property.
- Hire a reputable and experienced notary public. Some aspects of the new tax laws are still confusing and open to interpretation. Often times, the application of what constitutes a residency status can vary from jurisdiction to jurisdiction. An experienced and reputable Mexican notary public can assist you in determining whether you can qualify for residency status and any tax exemptions.
- Talk to your tax advisor. US and Canadian residents may be able to declare the taxes they pay in Mexico on their home country income tax filings, so its worth it to discuss issues regarding your Mexico property holdings with your tax advisor.
Posted by Roxanna McDade on Thu, Mar 04, 2010 @ 07:39 AM
George Chamberlin of San Diego NBC's Money Matters interviews Larry French of Baja Real Estate Group and Brian Flock of Flock Dream Homes in Baja, Mexico on home ownership in Mexico, safety concerns, expedited border crossing and healthcare in Mexico.
Posted by Roxanna McDade on Tue, Mar 02, 2010 @ 08:00 AM
Retrieved from Calgary Herald.
Cary Mullen of Vivo Resorts has tips on avoiding seven common mistakes when looking for properties in Mexico:
- Be sure not to choose a location that is considered a medium-or high-risk hurricane zone. Do the proper research into which areas are low risk.
- Don't select a highly popular area that has already boomed. Find spots that are growing in popularity, but where the current lifestyle is also at a much slower pace.
- Don't settle for an area where the weather is good, but not great. Look at things like average monthly temperatures, rainfall patterns and humidity indexes.
- Beware of bad advice about old ownership laws, infrastructure and crime that discourage buying property in Mexico. Get all the facts and then make your own decision.
- Make it a point to plan far enough ahead. Don't purchase a condo unit that will be too small for future additions to the family or visiting friends.
- Don't avoid a purchase in fear of not being able to afford travel to other desired vacation spots. Mullen recommends that buyers act now and purchase the great value while it's available at a development where the property or resort has an exchange program.
- Don't fail to research the property title thoroughly enough -- and be sure to buy title insurance. Mullen suggests hiring a lawyer with expertise in Mexican real estate to research the title.
For more details and information about the seven mistakes, visit www.vivoresorts.com/site/7_mistakes.
Posted by Roxanna McDade on Mon, Feb 01, 2010 @ 03:37 PM
The Capital Gain Tax “ISR” (Impuesto Sobre la Renta), in general terms applies to income, not necessarily gain. Nevertheless, in real estate transactions, usually is applied to profit and in some cases to gross income. Both Mexican Nationals and non-Mexicans are subject to this tax. For non-residents, the law has provided the 25% from gross income (with no right for deductions) or 29% from profit (with right to deductions). For residents in Mexico, the highest rate for this year is 30%, from the gain.
Now, what tax benefits can a resident in Mexico file? On one hand, we have tax deductions; on the other hand, tax exemptions might be applicable. In order to have deductions there are several conditions according to law might be used to reduce the tax base and pay lower taxes. Tax deductions are another subject altogether so for now, we will address the capital gains tax exemption only.
With respect to the capital gains tax exemption, last year, the ISR (capital gains tax) law provided that any legal resident in Mexico (including foreigners under certain conditions) could exempt capital gain tax respecting the sale of their residential property, by providing certain utility bills showing residence for at least 6 months; Before that, there was a 2 year residency requirement. Now in 2010, in order to exempt capital gain tax, still have to be the residential property under the name of Seller, and the new requirement of five years residency applies in order to be exempt from the capital gains tax.
Last year, Sellers could exempt capital gain on the sale of their homes, as long as the transaction amount did not exceed $500,000 USD (1.5 million UDIS, investment units) which is an amount result from applying a certain formula of calculation that the law provides {investment units} that the Mexican government uses to measure the value of Mexican currency according to the national index and that every day have small variations. For the exceeding amount, capital gains had to be paid. Among other requirements, Seller (non-Mexican) had to prove residency for 6 months at least, and have in place the corresponding FM3. However, last year, it did not matter the amount of the transaction as long as seller could prove residency for 5 years.
Now, for 2010, the only way to exempt capital gain tax in a sale of your residential home is to prove with the appropriate documents residency for 5 years, and only allowed once for a period of 5 years. Among other things, now Notarios and Hacienda will review more in detail the immigration aspect of the seller. In other words, a tourist visa or even an FM3 with a category different than residential purposes, will not suffice for this purpose. Therefore, before someone engages in a real estate transaction, make sure to meet all requirements, or otherwise, seller might pay capital gains tax.
Now, the amended law provides that if the transaction amount exceeds from $500, 000 USD (1.5 million UDIS), the profit will be determined and the tax will be calculated. As long as seller did not sell any other residential home within the past 5 years, and it must declare before the Notario such fact. However, this law change is contradictory since the same section provides that there is no limit on the transaction amount, as long as the seller probes residency for 5 years, under the abovementioned requirements. Bottom line, until notaries unify the criteria and Hacienda clarifies this aspect, it is clear about the requirement of the five year legal residency, in order to have the benefit of the exemption.
Notarios shall consult the site of Hacienda (Mexican IRS) to see if the Seller has sold a property within the past 5 years. It will also, inform Hacienda about the amount of the transaction and if it is applicable, the corresponding tax payment.
Capital gains taxes are paid to federal government but are usually collected by Notarios whom at the close of escrow receive the corresponding money from Seller and pays the Federal Government during the recording process. Although the Law is the same for everyone and has a general application, minor rulings can vary from one Notario to another Notario, but all parties in a transaction, (Attorneys and Notarios) have to follow the same law. Now, this benefit of capital gains tax exemption is limited to one sale every five years under same conditions.
If the exemption does not apply in certain transactions, deductions might be applicable. People should be well advised in order to get the maximum benefits of the law, as long as every situation meets the legal requirements.
This article was written by Eduardo Rosales, Real Estate Attorney at Law, with 12 years of experience in Baja Civil Law and Real Estate Transactions coordination. President of “E4” Escrow-Closing, Estate Planning & Escrituras Experts. For legal questions or consultation please call (661) 100 25 72 or send an email to rosalesandassociates@hotmail.com.
Article from Baja Times