When you hire a Mexico agent to work with in your Mexico real estate search and purchasing process, you are hiring a professional to represent you and carry out certain duties for you.  You should have clear expectations of what they can and should do for you, and what they won’t.

The following are items which you should expect from your agent:

• Professionalism – Your agent should be qualified to work as a real estate agent.  This is not required in most of Mexico, but training, certificates and even degrees are available.  There is also a professional association (AMPI.) Expecting these is certainly not too much to ask.

• Honesty – You can and should expect your agent to be forthcoming with you about the knowledge they have of properties, opinions and their own experience and credentials.  It is better to work with an agent who honestly tells you, “I’m not sure about that, but I can find out,” than one who knowingly provides misleading information.

• Knowledge of the Market – Your agent should know the area, what kind of Mexico homes for sale are available, typical prices, etc. and advise you on these items.

• Commitment to Your Needs – Since you are hiring an agent to represent your needs, they should use their knowledge to focus on your needs and preferences during the search process and represent your best interest during the negotiation process.

• Thorough Property Search – Your buyer’s agent should search all suitable properties and present you with the best of these options.  They should not be limited by a commitment to selling a certain property or in a certain complex, etc.  If the properties they show you are not the right ones for you, they should continue to search for your ideal property free of conflicting obligations.

• Good Communication – Since many of the preliminary steps in searching will be long-distance, Mexico agents should be efficient and effective in communicating quickly and getting you the information you need.  Quick replies by e-mail or by phone can be expected – even if they don’t have the information yet, simply to let you know what stage the process is at.  If there are any changes relevant to your search or purchasing process, you should find out quickly.

• Commitment to Service – In addition to good communication, the right agent will help arrange viewings, etc. in a way that will make things a little easier for you coming from a distance.  For example, if you head down on a little vacation or just to view properties, those dedicated to service will pick you up at your hotel to take you on your property tours.

• Knowledge of the Purchasing Process – Your agent, or the broker of the office, should have a thorough knowledge of the purchasing and closing process, and guide you through this, safely, minimizing unnecessary risks.

• Suggestions for the Services of other Professionals – Your agent’s job is to know the area, help you find a good, suitable property and to guide you through the purchasing process.  Certain tasks, however, should be and even must be carried out by other qualified professionals.  What you can expect of your agent is that they advise you when you need the services of others, and suggest experienced professionals.

The following are items which you shouldn’t expect of your agent:

• Know Everything – As mentioned above, it’s actually better that they acknowledge it when they don’t know.  What you can expect is that they will do their best to find out, or point you to someone who does.

• To Advise You on Your Budget – Again, a bank can advise on the possibility of financing, etc., but it will be your job to determine what is realistically within your budget, and advise your agent.  You can expect them to find you the most suitable properties within this budget.  It can also be helpful to you that they make suggestions if there is a property which is slightly above the budget you told them and has exceptional value, or if there is an excellent deal for less.  Your agent should also advise you on probable closing costs so you can plan for this.

• To Do the Work of Other Professionals – If an agent or broker has experience and qualifications to guide buyers through a certain part of the process that is normally not within their tasks (i.e. your agent is also a certified lawyer,) this can be helpful to you; however, if they don’t, it’s better for you that they recommend someone who does.

While it is not good to expect too much, it is also not good to expect too little.  If you don’t feel your agent is meeting your expectations, talk with them; remember your gut feeling is an important factor in being sure that you are working with the right people.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

The Mexico real estate guide from TOP Mexico has helped thousands of people over the past couple of years.  The ebook was written from the experience and tips from people in the industry.   The book speaks about the process here in a Mexico real estate transaction, the key players, the types of contracts you will expect to review and execute during the transactions.   Below you will see one of the latest readers to download the guide and his opinion and suggestions on using.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

The Mexico real estate e book

We put this book together to help people new to the process of buying real estate in Mexico understand the steps and documentation.  What is interesting about this book is the fact that it is a collaboration and collection of opinions and tips from people with many years of experience in supervising property transactions in Mexico.  Below in the video,  you can hear the comments from a new Playa del Carmen real estate owner discussing his experience using the TOP Mexico real estate guide.

CLICK HERE TO GET A FREE COPY INSTANTLY

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

While being able to predict 100% which market (anywhere in any investment) will grow is virtually impossible, in Mexico real estate, it is possible to find excellent real estate deals in healthy markets; this means that you as a buyer can be fairly confident the property they just bought can have substantial margin for growth.

There are two main approaches to take; one is to buy preconstruction condominiums during the discount period – an excellent option, dealt with in detail elsewhere.  The other is to find “fire sales” or drastic price reductions resulting from pressure on the buyer to sell quickly, which is the kind of opportunity we will examine here.

Motivation

In most market areas, Mexico properties retain and appreciate in value healthily; with a given amount of time, a seller will be able to find a buyer for whom both property and price are ideal.  However, in some cases sellers have personal motivations to sell quickly and don’t have the time to wait and sell their property closer to the actual value.  Perhaps they have already moved with their family, and the second property is just a maintenance expense; they have less need to gain a return from the property in resale than to sell it quickly and move on with their lives.  Similar cases can be true for a developer’s unit when the developer is moving on to a new project, and he has already gained what he needs financially from that property.  Other owners may have urgent financial pressures back home.  In all these cases, sellers will tend to list on the lower end of “normal” and even make subsequent large price reductions if the sale doesn’t move quickly.

A Healthy Market

In a healthy market the majority of properties will be listed at “normal” prices.  Significant price reduction may show up regularly, but will disappear quickly.  (Some notable investment experts, like Jim Cramer, will even suggest buying “out of favor” real estate in Mexico, simply because of the country’s growing strength in tourism, and emerging economic strength.)  In general though, it works better for most buyers to have a way of tracking the best price reductions in moving markets.

Where to Look

Online resources, such as TOPMexicoRealEstate.com’s Top real estate deals page, allow you as a buyer to be notified when new price reductions show up.  This tool in particular is excellent for keeping on the ball with e-mail notifications, tracking new price reductions and comparing  similar properties.

Making an Offer

If you see a listing with the word “urgent” or a similar idea tagged onto it – like the majority in the TOP Real Estate Deals page – it’s a good indication that the owner is more interested in selling quickly than getting the exact price they are asking.  If it’s the first listing price, or a modest reduction on the listing price, make an offer; the seller may take the offer to sell quickly rather than waiting it out.  On the other hand, if it’s already the 2nd price reduction at 35% below the original price, another buyer may beat you to the punch if you are still trying to bring the price down.

Like in any real estate purchase, it’s important to balance waiting (for the lowest price and ensuring that the property is right for you) and moving quickly enough, to make sure you get that ideal property.  While you’re waiting for the right deal to show up, take some time and review “normal” prices of the kind of property that you’re interested in, and talk to an agent to get a feel for what price will make for an over-night sale. Also know what your ideal price is.  When the right property shows up at that price, it may be better to move and pay a little more than the “bottomed out” price than loosing your dream home in Mexico to another buyer.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

One of the best ways to generate income from your vacation property is through Mexico rentals. When searching for a Mexico condo for sale or home for this purpose, you will want to consider your goals and your rental strategy carefully ahead of time to ensure that you are getting the most out of your property investment.

The first concept to consider is your purpose for renting out the property. Are you looking to cover the expenses of you vacation property with little bit of an income on top, or are you making your first go at a purely investment property entirely dedicated to rental income? If your purpose is to balance expenses you might balance your personal tastes and needs with rental demand, etc. On the other hand, if you are only renting out the property, you should do a little more research to focus your property search on market demands.

Another factor to consider is the rental type. Will it be a Mexico vacation rentals, a medium-term rental or a long-term rental? Each of these will also have to be considered in terms of other factors, such as location, your personal use of the property. For example, vacation rental would be more appropriate if you intend to use the property for a week several times a year. Long-term rental would be more appropriate if the property is in a quieter residential neighborhood back from the beach, lakefront or main tourist area.

Many buyers looking for vacation rentals tend to look for a property in a complex setting (such as Playa del Carmen villas) because of the ease of maintenance, and the inclusion of extras such as pools, etc. (which can be available in homes, but at a higher price,) as well as the ease of maintenance. However, homes can also be rented out successfully. Other variations to consider are condo-hotels or resort-style developments.

Directly tied to this choice is the rental method. The most hands-off approach is a condo-hotel; for example certain Playa del Carmen condo sales offer complete resort services, as well as maintenance, rental and promotion services. The most involved approach is a single family home which is not a part of a complex. Both have their advantages which must be weighed against how much time you have to invest on an ongoing basis.

Perhaps the most important factor to consider is visibility of your property; you may be able to save money and invest the time by having a stand alone property, but it is also very important to consider visibility of your property. You could have the best property in town at the best price, but if no one knows about it, you won’t see any income. A good rental agency can help with this. You may also wish to consider a variety of outlets for advertising your property.

Finally, you will also want to consider the balance of monthly expenses. Whichever kind of property you decide to invest in, you will want to make a complete list of expenses to be covered each month, weather its the condo fee or the cleaning lady and compare these against your potential rental income.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

When investing in Mexico condos for sale, it’s important to consider whether you will be buying a resale condo or a new preconstruction unit. While the main disadvantage is that buyers will have to wait longer to use their Mexico property, there are many advantages to this kind of purchase which usually outweigh this point. The advantages of investing in preconstruction include:

Pricing – The key advantage of buying preconstruction is the pricing. Often new developments are competitively priced, and in the early stages the developer will even lower these prices making them very attractive for purchase. This is currently the case in one excellent new development of Playa del Carmen condos. Developers use this strategy to sell the first units quickly, offering the advantage to subsequent buyers that X many units have already been sold. This is a normal strategy and offers an advantage to buyers.

Flexibility – Buyers must also remember that although these are new sales from the developer, prices are not fixed; in some cases, buyers can make a reasonable offer. However, in cases where the preconstruction discount already makes for a very low price, lower offers may not be accepted, since there will be plenty of other buyers ready to take the discount price. Observing the market and consulting with an experienced agent will allow buyers to determine if it is a advantageous to make a lower offer.

Automatic Appreciation – As units are sold and the preconstruction discounts become less and eventually disappear, the value of your property has automatically appreciated in value; for example, if you bought a unit with a listed price of $250,000 for a preconstruction discount of $210,000, once the later units are being sold for the full $250,000, you already have an increase in value of $40,000 or almost 20%, and this is before any subsequent rise in market value.

Financing Options – Preconstruction payments typically start with a relatively low deposit (usually significantly lower than a mortgage downpayment, for example) and the remainder is paid according to construction progress. (Of course, no interest is charged on these amounts.) This means that while you enjoy the benefit of the lower price from locking in your purchase early, you’re not required to come up with the full payment immediately. In some cases at the point that the total is due the remainder can be transferred to long-term financing, either through the developer or through a bank, after the condominium regiment has been granted. This possibility should be discussed ahead of time. In any case, it’s almost like making a profit on money you haven’t spent …

Rental time vs. Preconstruction Savings Of course, as a condo investor, you are probably also considering income from rental income. Depending where your focus is, you may wish to research what rental rates are and compare this to your savings from the preconstruction discount. While some rental properties are sold furnished and ready to use, you may also need to consider whether it is currently the high season or not. Also, if you are buying in an area which is not the prime vacation rental area, you will need to compare your savings to the long-term rental rates. In most cases, the preconstruction savings are worth the time.

Overall, in normal market conditions buying with preconstruction discounts offers excellent savings, or, from an investment perspective, very good appreciation and potential for return.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Playa del Carmen land for sale has always been monitored closely by speculators because of the rapid growth rate experienced over the past decade.   Here below in this video, I chat a little about the growth of the demand as it continues heading north along the ocean of this beachfront community.  Fifth avenue, in spite of the economic slowdown, still attracts the attention of investors both large and small as you see continuous development creeping towards the new high end hotels of the Nick Price Golf course.  Check out the video, and call me if you want to discuss some alternative investment opportunities in this zone of this Playa del Carmen real estate region.

Doug Morgan

512-879-6546

www.TOPmexicorealestate.com

THE TOP Mexico Real Estate NETWORK; “Mexico’s leading specialists for finding and purchasing Mexican properties safely !”

An Agreement is defined by Mexican Legislation and the Mexico law as a voluntary pact to create, transfer, modify and/or extinguish rights or obligations; furthermore The Federal Mexican Civil Code and legal doctrine establishes that an agreement is binding when the following elements are met:

Existence Items.- These are the most primitive and essential elements which any legal Mexico real estate contract or agreement must be provided with: a) Consensus.- The express or tacit will of  the parties to execute an agreement; b) Object.- The agreement’s goal must be determined or determinable from a physical and legal point of view (i.e. transmission of rights and obligations, to grant, to refrain from doing, to do).

Validation Elements.- These items must be considered in order for the Agreement or Contract not to be affected by partial or total nullification: a) Capability.- Attribution that an individual or entity has, which allows him/it to be responsible from the legal acts performed (exercise capability and inherent capability). I.E. A child has inherent capability but no exercise capability, ergo, is not allowed to sign and/or execute any contract or agreement. B) Form.- The shape of the contract, it’s wording, syntaxis and semantics. c) Lack of vice.- The contract or agreement must not be subject to bad faith, violence, duress or injury. d) Legality.- The contract or agreement must be executed accordingly to the enforceable Mexico laws and will never be performed against public order or good customs.

Existence items must be present in order for the agreement to produce any legal effect whatsoever, and validation elements must be closely observed, otherwise a party could have a legal recourse to challenge the efficiency of the contract through court.

Juancarlos Pelaez has been helping non-Mexicans with their real estate contracts and activities for over 10 years in the Yucatan Peninsula region. A graduate from the prestigious Mexican University of Monterrey Technologico and a Masters Degree from Madrid Spain, JuanCarlos has ample knowledge in the regional laws and obstacles that most Americans and Canadians experience. You can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

When buying Mexico real estate, what is the first step you would take?  Looking for a property?  Finding financing?

Let’s try this question another way; if you were to invest $150,000 in the stock market, what is the first step you would take?  Finding an experienced, reliable broker, of course; this is a large amount of money we’re talking about.

Most of the time, when buying a Mexico property for vacations or retirement, you’ll be spending similar amounts of funds, sometimes considerably more.  Even you are on a smaller budget, looking for a less expensive property, it’s still a good chunk of your savings or income you’re considering.

So, why not apply the same logic as with the stock market?  Buying real estate, especially in a different country with different laws and business culture, is an investment and a risk; it’s very advisable to minimize unnecessary risks as much as possible, and ensure that you are buying safely.

Your Mexico real estate team is the key to this.  Considering this point, your very first step should be to build your team of professionals who will guide you through the process.  The central figure in this team will be your agent.

Your Mexico agent.   Together with the broker of his office, the agent will act as your “point guard,” helping not only to identify properties that fit your criteria, but also to qualify property options, and recruit the remainder of your team.  Take your time in selecting your broker, ask for credentials (degrees, certificates, membership in Mexico’s professional real estate association [AMPI]) and references from past clients.

Notary Public. There distinct differences between a notary public in the U.S. and a notary public in Mexico. In the U.S., a notary public might be a bank clerk, secretary at the office, or practice any other occupation.  In Mexico, the notary public must have a law degree, verifiable experience, and pass a rigorous exam. They are appointed for a lifetime term by the governor of each state.

The notary public is the only authority able to transfer the domain from one person to another. No one else can assure that you own a piece of real estate.  Your agent will be able to refer you to the notary public office, and help you ensure that all your documentation is properly notarized.

While these two are the key figures in your team, others include:

• Escrow officer
• Trusted Mexican attorney
• Mortgage officer from a bank (if a loan is needed)
• Attorney

Not all are necessary in every case (except the agent and notary public) but your agent will advise you on which professionals you will need to work with, and recommend reliable professionals with whom previous clients have worked.

Once you’ve started forming this team through your agent, you are ready to begin searching for the property you will buy – 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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Every transfer of Mexico real estate property MUST, by law, be made before a Mexican notary public.

The Mexican notary public is required to have a degree in law.  He must have a minimum of five years of legal practice, pass a rigorous examination and then be appointed by the governor of the state in which he/she resides.   The notary is legally responsible for the review of the prior deed and the tax and lien certificates.  The notary must draft the new deed, calculate the Mexico property taxes due and pay them.  Also very important, the notary is accountable for his/her actions through the state and national notary associations.

It is commonly believed that an attorney, in addition to the notary public, is required when buying property in Mexico.   This is not necessarily the case.  In fact it may make more sense to seek out a CLOSING AGENT to handle the many details of the transfer, such as ordering and reviewing the title investigation; obtaining the certificates and trust permits, interfacing with the buyer and seller, answering their questions and concerns in their native language, explaining the nuances of the transfer process; overseeing the payment of funds for these services and expenses; reviewing the deed to be sure names and addresses are correct; being sure it is registered in the public registry of property; making sure it is delivered to the buyer; providing tax receipts to the seller………….and more!

When these matters are left with the Notary Public to handle, they may not all get done, or get done slowly due to the work load of most Notaries.   When these matters are handed to another attorney to perform, they may be sandwiched in between criminal complaints, court appearances and other more remunerative activities.

A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues.   More and more there are closing agents throughout Mexico.   They are specialists in titles and transfers.

The role of the Mexico closing agent

An experienced Closing Agent is a key person in the real estate purchasing process. Hiring a good Closing Agent who understands the ins and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother.

The closing agent should be involved in drawing up a promise contract and reviewing all documents including title, certificate of no encumbrances, and  permits. A closing agent can also order a complete title search before the transaction reaches the notary public, which will save the buyer valuable time and money should there be a problem with the title.

The prudent buyer will always insist upon using a neutral third party closing agent to protect his or her interests.

Professional Closing Agents will have bi-lingual and experienced closing officers on staff to review the legalities of the transaction and to ensure that all the documents received are in order. Prudent buyers also enlist the help of the Closing Agent, who can oversee the permit process, review the draft of the deed being used in the transfer of title and order the title investigation, identifying any problems before the title has been transferred and money exchanged.

Finding a Trustworthy Closing agent

Clients should never hesitate to ask for details of the professional experience and references.  This is even more important when the real estate agent in the transaction is representing BOTH buyer and seller.  This is dual agency which is still common in Mexico.   In this case the buyer should definitely seek out his/her closing agent.

Questions to Ask a CLOSING AGENT: What exact services will you provide? What areas of law or real estate are your specialties? Can you provide an estimate of taxes and closing cost expenses? Will you order or conduct a title search? Can you provide at least three references?   Do you have experience with transfers to foreigners, Mexican bank trusts and foreign investment? How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?

Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and do the same homework as when researching a real estate agent. Ask for credentials and references. The more experienced the staff and in-house counsel the company has in handling foreign investment transactions, the more protection and safety the buyer should have in a Mexican property purchase.

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

I have been receiving the following question quite often in the past several weeks about the Mexico real estate market and my region where I work;

“With so many negative stories on the news about Mexico lately and the recession occurring in the world economy,  shouldn’t I wait to buy and invest in the Playa del Carmen real estate market until things become better?

I will share my opinion on this question little later down below in this post….

First, because of the situations stated above and their possible effect in our market, our agents are out there searching with eyes wide open for any deals that appear.   We have been compiling a TOP DEALS LIST updating and searching for any reduced priced properties in Mexico.  If you want to be the first to have notifications of any NEW TOP DEALS listings that our team runs across,  sign up right away by clicking here (real estate deals).

One of our agents arrived about two months ago where a person had a condo for sale on the beach.  The buyer had cash and willing to pay about 8% below the listed price.  As I became involved in the transaction, I had a conversation with the seller who was asking my opinions.  “I have been talking with some people and feel that I should probably try to get another $20,000 or $30,000 dollars for my property, what do you think?”
I reviewed the situation, there were several other condos for sale in his building, last sale had occurred over 8 months ago and several other factors that I compared before coming to a simple recommendation.      “If you want to make money in today’s market,  make it when you buy…. it will be easier to cash out now, and reinvest into a TOP DEAL and that is where you can make your money”

Mexico’s real estate market has been shielded from the strong downturns faced by many of the real estate markets of their northern neighbors.  Much of this shield can be attributed to the less dependency on financing from the buyers when buying properties here in Mexico.  In other words, the majority of the demand for real estate here in Mexico is more acid… more liquid versus the demand for real estate in the United States which is generated to a greater extent from borrowed money.   So overall, the downturn did not hit this market to the same degree as the current situation in many states such as Florida, Arizona, Michigan and many others up north.

With that said, there are deals to be found.  Since TOP Mexico Real Estate specializes in clients who are Americans, Canadians and Non-Mexican,  we do meet a larger amount of people who may have  an urgency to sell then our normal market.  With the recession going on for a second year, we have found several quite interesting properties for sale.

Here in this site you will find a list of properties that have been reduced over 15% from their original asking price.  (link)   Most of the properties are in the Riviera Maya region, and over the next various weeks you will also see an incrase in properties from the other zone as the other Top Mexico Real Estate brokers begin completing their lists.

And keep your eye open for more stories here on this blog to explain how you as a TOP DEAL  subscriber,  can learn how to identify, how to review the documents, and some helpful strategies to exercise on these purchases to avoid excessive taxes which will only add more onto your bottom profit line.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

This is important news for all Playa del Carmen real estate owners; starting NOW, there are large discounts available for early payments of 2011 Playa del Carmen property taxes.  The discounts and dates are as follows:

NOW until December 15:                 25%!!!

December 16 – December 31:           20%

January 1 – January 31:                     15%

February 1 – February 28:                 10%

While there is plenty of time to take advantage of some of the smaller discounts, the first half of December is by far the best time to get this payment out of the way, and enjoy the biggest discount available.

Property taxes in Playa del Carmen are already very accessible, and these discounts make them even more so.  The discount dates apply to the entire municipality of Solidaridad which includes Puerto Aventuras and many of the nearby gated communities and resort areas.

If you are in Playa del Carmen during December, you can take advantage of these discounts by paying in one of the following locations:

• City Hall, located downtown, at the intersection of 20th Ave. and 8th Street (next to Walmart.)
• Automatic Payment Booths in the city’s two malls (Plaza Las Americas and Centro Maya)

If you own a Playa del Carmen condo or home which you use only occasionally on vacation, and you will not be in Playa del Carmen during the discount days, or you will be arriving later and wish to take advantage of the full discount, contact us so we can help you arrange having a professional accountant here take care of the payment for you.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

We have seen a significant increase in buyer interest and sales activity this year as compared to 2009 in the Puerto Vallarta real estate market.   One well established office in town reported that they have almost doubled sales this year compared to last year.  I am cautiously optimistic about the coming year; cautious because of the extremely disappointing 2009, but optimistic because of the strong recovery that has characterized 2010 so far.

Going into 2011, I see Canadian and Mexican buyers staying quite active and American buyers returning after a two year absence thanks to economic turmoil and overhyped media reports of drug violence and swine flu.  The buyers that were here last year made extremely low offers that sellers were not willing to accept.  Recently, it appears that buyers have begun to realize that the Real Estate market in Puerto Vallarta is strong, stable and offering excellent bargains for retirement and mid to long term investing.  The vast majority of sellers here paid cash for their property and are not in a panic to sell.    There was never “subprime lending” here in Puerto Vallarta and consequently there is no mortgage crisis or foreclosure market here.  With $USD financing now readily available (typically with a down payment of 25-30%) a vast new market is poised to emerge as rates become more competitive and qualifying and closing become more streamlined.  One of our most experienced loan brokers reports that 2010 has already been his best year ever with still two months to go in the year.    The world economic turmoil has undoubtedly trimmed the nest eggs of most new buyers entering this market.  Therefore, I see a “return to affordability” as one of the primary drivers of the market next year.  Properties priced from $150k to $300k are right in the sweet spot for most buyers and this market will be active.  The $300k to $600k market has also seen a lot of increased activity, especially with $USD financing now available.  Luxury properties of Puerto Vallarta homes priced over $1 million USD have never been a large percentage of the overall market; however we are seeing more showings and interest in these properties as well and expect numerous sales of well priced properties in this market as well.  Existing properties that are well priced and well located are in high demand; as buyer’s really like to see, feel and experience the property first hand before buying.  New developments with great location, excellent price, superb design and a proven track record from the developer are also doing well. One new south side development of 50 units is already over half sold out prior to breaking ground.  But developers beware; if you only have three of the above items you are in for a battle, if you only have two, you are in real trouble, and anything less will not sell at all in this market.  In summary, I see a fairly strong Puerto Vallarta real estate market recovery over the next year.  It will not be a straight line upwards, or be the frenzy that epitomized 2006 and 2007; as there are still buyer concerns and excessive inventory, but it will be strong and it will be stable.  I believe that the market hit bottom in late spring/summer 2009 and anyone who purchased a property at this time should be commended for their guts and market timing.  This is not to say that there are still not good deals available in the market.  There are.  And there are sellers who still willing to negotiate on terms and price.  However I definitely see the tide turning, so if you are buyer and just found your “perfect place”, you better make your offer today, because the property may not be available tomorrow.  We will check back in May 2011 and see how clear my “crystal ball” was.

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

If the US taxpayer has deposits in foreign banks, stock brokerage accounts or other foreign financial accounts and when the highest balance in those combined accounts equals or exceeds $10,000 USD, during a calendar year, form TDF 90-22.1 must be filed by June 30^th following the end of each calendar year. This form is not filed with taxpayer’s personal tax return and cannot be extended beyond that due date.

1. The IRS has never issued any written ruling or opinion whether or not  a fideicomiso is a foreign trust and IRS sources state it  has no intention of doing so in the near future.

1. Under US tax law, an oral decision made in an individual’s tax matter CANNOT be cited as authority by another taxpayer in a similar factual situation.

1. No one has received a private letter ruling that the Mexican fideicomiso is not a foreign trust nor have any court cases so decided.

1. A representative of the IRS General Counsels Office has said that since the IRS has not yet (nor may ever) issued a ruling that a Fideicomiso is not a foreign trust, it is not advisable to rely on an opinion on that requirement that does not come in writing from the IRS.

1. The fact the IRS will not issue a written opinion on fideicomiso filing requirements should be cause to worry. It would be easy for them to issue written guidance if they really were certain that the beneficiaries of fideicomisos did not have to file the foreign trust forms.

1. Currently in almost all situations, anyone who has filed these forms late and included a late filing excuse, has not been assessed penalties. Those who have filed the forms late and did not include a late filing explanation have been assessed penalties, but have subsequently  been able to get the penalty abated after appealing.  This could change in the future.

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

The beach in Playa del Carmen is unmistakeably one of the most attractive things about retiring here.  It’s wide, it’s soft, it’s beautiful, and the water’s warm.  Once you live in your Playa del Carmen home, you will enjoy it as part of your life.

But here’s a little tip for you that may not surprise you, but you probably didn’t think of; it’s not the place where you’re going to spend most of your time!

Yes, you are going to be down on the beach frequently, and yes, it will be well worth it buying a home  near one of the the world’s most loved beaches (as opposed to just about anywhere else.)  This is true of any Mexico home in an attractive place to live – whether a beautiful beachfront, or next to an old colonial downtown.  You may go once a week, sometimes more often, sometimes less often.

The point here isn’t that the beach (or other attractive item) isn’t worth – on the contrary, it’s very worth while! – but rather that there are many other strong points to a Mexican retirement community like Playa del Carmen that you will want to consider.

The sense of community you will find living in Playa del Carmen is one of the key factors.  Cafes and bars on Fifth Avenue – the main tourist street – or even some little hidden gems that you discover for yourself will become places to meet with the friends, shoot some pool and share a few drinks while enjoying good conversation.

Two new malls are also a place you’ll go now and then; there are large theaters with English movies.  Just like on Fifth, you’ll bump into neighbors and chat for a bit.  You’ll probably go to the beach more often than the movies, but that depends on how many good movies come out.  One of them is just starting up a project for a bowling alley!

Nearby golf courses, marinas and eco-focused theme parks offer other great ways to enjoy the outdoors.  Mayan pyramids and colonial cities nearby are great for short trips.  (You’ll definitely visit the beach more often then these!)

One concern for people, especially moving down full time, is that they’ll begin to miss those little conveniences from back home; this is not a big issue in Playa del Carmen.  The real problem will be that you’ll find yourself scratching your head and asking, “Should I go to the movies, the beach, or golf today?”  The good thing is, it will be your mood that will help you decide, not a lack of things to do.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

How would you compare the cost of utilities in the Yucatan real estate region to the cost of the same utilities in the United States? Electric, gas and water?

Electricity in nearly all of the Mexico real estate regions are controlled by the government owned CFE “Comision Federal de Electricidad”  The amount you pay for electricity is based upon usage and is billed on a three level tier -  Basic, Intermediate and High.  The lowest level is generally subsidized to provide cheap electricity to the poor.  However, as soon as you get into the higher levels, electric usage can be expensive.  There is ample motivation to use energy efficiently.

Mexico generates electricity by utilizing thermoelectric, hydroelectric, coal-fired, geothermal, wind powered plants and a nuclear power plant.  For more information on CFE see their website at: http://www.cfe.gob.mx/Paginas/Home.aspx There are a few pages in English.

Natural Gas in Mexico is basically the same price as it is in Texas.  In 1997, the Comisión Reguladora de Energía of Mexico implemented a netback rule for linking the Mexican natural gas price to the Texas price. At that time, the Texas price reflected a reasonably competitive market.

Most residential user of natural gas purchase it by the tank.  Some homes have tanks on the roof others use smaller tanks that are mobile.  There are several gas companies that sell natural gas in Yucatan and they provide service directly to your home or you can refill your tanks at the operations facilities.

The Yucatan real estate region is truly blessed to have an abundant supply of sweet water.  Water in Yucatan and the cost associated with it’s house hold use is very inexpensive.

Can I get a mortgage to finance my purchase of a house in the Yucatan?

Mortgages are available in Yucatan for Mexican and Foreign home buyers.  Scotiabank, Banamex, Bancomer and several other international banks and mortgage banks will provide mortgage backed funds for a home purchase in Mexico.

HOWEVER, the loan process is expensive, time consuming, brain damaging and very rarely utilized in Yucatan.  There are numerous difficult issues that will confront a home buyer wishing to use institutional financing to purchase real estate:

*  Most lenders will not make loans for purchases of less than $100,000.00-usd.

*  Down payments run 30% or higher.

*  Interest rates are generally much higher than what a buyer would pay in the USA.

*  The law requires that all transactions be recorded at actual sales price or an appraised value determined by the Office of the Catastro. The Catastro is  concerned with establishing a valuation, the valor catastral, used as the basis of property taxation.  Since this value of property in Yucatan is frequently much less than the actual sales price, a host of problems emerge for a financed purchase.  It is very difficult to find reliable Comparables.  There can be significant tax issues that  severly impact the Buyer and Seller financially.  Sellers who are not able to avoid capital gains taxes (ISR – Impuesto Sobre la Renta) face a 30% taxable rate on their gain.  Buyers pay a 2% (in Yucatan) transfer tax based upon the purchase price or valor catastral of the property.  To issue a mortgage, banks will require that the actual purchase price be recorded at the sale and an independent appraisal that supports the purchase price will be required.

*  Most lenders will not make a loan for raw Mexico land, raw beach, properties that are in very poor condition or located in industrial or business type areas.

Where do most of the expats live in Merida?

By far, the majority of expats living in the city of Merida, live in the Central Historic District, known simply as “Centro”.  Centro is a very large geographical area.  In fact, Mérida has one of the largest centro historico districts in Mexico (surpassed only by Mexico City). (note to Ellen – maybe this is a good place for a link to google map of centro)  Generally speaking, Centro is a couple square miles and it is populated by thousands of colonial homes, shops, restaurants, parks, squares, theaters, schools, businesses, government offices, markets, art galleries, sidewalk cafes, stunning  architectural treasures and a few, unfortunately ugly buildings like the Telmex box.

Most expats love the ability to walk to the theaters, parks, squares, markets and businesses located in Centro.  There are cultural events nearly every night of the week in Centro – folkloric dance, concerts, poetry and musical recitals, ballet, the symphony orchestra, comedy, lectures, home and garden tours, The Merida English Language Library, cantina’s and much, much more!

Has the Yucatan housing market been affected by the downturn in the housing market in the USA?

The mortgage crisis of 2008 and the ensuing global financial crisis of 2009 had a an impact on the Yucatan real estate market.  However, the S1N1 Flu scare of 2009 was more devastating to the Mexican economy and Yucatan real estate market than the global financial crisis.  The double punch of the late 2008 mortgage meltdown and the April 2009 Swine flu pandemic scare lead to the worst real estate market we have witnessed in Yucatan since 9-11.  Most Mexican schools and nonessential businesses were asked to voluntarily close for a week in April.  The resulting negative press and global fear effectively killed the tourism, restaurant and real estate businesses for the remainder of 2009.

2010 was a good year and we saw a number of foreign and local buyers return to the market.  The number of American buyers is still below average which we believe is due to the lingering weak economy and a “shell shocked” American consumer.  Canadians, Europeans, Mexicans, South Africans and South Americans have returned to the market place.  We believe 2011 will be a better year than 2010.

Mitch Keenan has been a Licensed Broker in the United States since the 1980s. He holds a GRI and a CRS from NAR (National Association of Realtors). With over ten years of living and working in the Yucatan real estate industry, Mitch brings American business ethics and Mexico business experience together to give buyers unparalleled service. 512-879-6546

THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

In a previous blog, TOP Mexico real estate interviews with John De Rotache from the Cancun Real estate territory asking him about his background and the trends in his region.  You can see part one of this interview by clicking here, Mexico real estate blog.   Below please find the remaining questions and answers to this conversation;

4)                  What are the normal steps to purchase real estate in Cancun?

The normal steps to find a great residence in Cancun is to ask yourself your greatest interest whether a location close to your children’s school in an upcoming neighborhood.  Or an oceanfront/lagoon front location close to the downtown area to have the best of both worlds.  Or finding a great rental property that you can use as a winter getaway plus a great additional income.

5)                  Is there financing available in Cancun?

Yes, financing is available for foreigners in Cancun with Banks such as Scotia Inverlat, Bancomer,  HSBC.  Plus mortgage companies with representation in the Riviera Maya that work with North American and European lenders authorized to provide loans to various nationalities.  Short term owner financing has become more prevalent depending on the seller as many of these will work with buyers to make it easier for the buyer to purchase while he may have to sell another property of his own to complete the payment here in Mexico.

6)                  Where are most Americans and Canadians purchasing in Cancun?

Previously most Americans and Canadians were primarily purchasing in the tourists zones. Although now many North Americans enjoy getting more involved with the local culture and atmosphere as well as finding a great location at a much more economical price with only a short distance to the beach when desired.  Every year more and more foreigners are finding it easier to acquire property in Mexico and to enjoy the great benefits of a more tranquil lifestyle.

7)                  Why would I work with you versus another real estate agent in Cancun?

The main reason for wanting to work with me as your Real Estate Agent is knowledge and experience of the area combined with integrity and going the extra mile to make sure you find your Dream home or investment.  My commitment to personal service and the ability to answer not just your Real Estate questions but unique questions only someone who has had the opportunity to live here for an extended period of time and understand the concerns and uncertainties of a first time buyer has in a foreign country.

John DeRotache, originally from Saint Louis MO., he has been living in Cancun, Mexico for over 16 years. John completed his University studies at St. Louis University in Missouri and their Campus in Madrid, Spain. With a diploma in real estate from a top Mexico University, John comes well prepared to find and help you with your Mexico real estate needs. MexicoRealEstate NETWORK “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely ! ” (512) 879-6546

A Mexico mortgage has not been a common tool used by real estate investors nor by residential buyers in the past here in the Mexican market.  It was not until President Fox’s administration during 2002 – 2006 were new laws and regulations introduced to help financial institutions offer home loans to millions of Mexican families.  In 2005 loans for non-Mexicans purchasing property in Mexico also became available.  Americans and Canadians investing or purchasing second and retirement homes, and other real estate in Mexico now had alternative financial resources.

This morning, Mr. Jose Pascual Director of International Markets for Compass bank invited TOP Mexico Real Estate to  review projections of the markets for 2010 and 2011.  The focus of the discussion was the American economy for the next several years and how this affects the non-Mexicans searching for investments in the Mexico real estate market.  The recovery in the United States has already begun.  It is estimated that such recovery will not be fast, but it will be a solid recovery given that the market is extremely diverse and adaptable.  Interesting figures to review are the projected growths for 2010 in various markets.

Asia                         5.8%
Latin America     4.6%
USA                         3.0%
Europe                   0.7%

The positive note of a slow and solid recovery is that inflation will have less upward pressure.  In regards to the Mexico mortgages, keeping a steady inflation rate should also help keep loan interests at lower figures making this option… quite interesting.

Now due to the financial crisis that hit the American market,  many people lost a great amount of household wealth.  17.4 trillion dollars of net worth were lost within the years of the crisis and left the consumption curve at a sharp decrease.  So do the next few years look bleak for Mexico Real Estate?   No.   There are actually some extremely good investment opportunities in the Mexican market.  Many Americans are re-adjusting their investment portfolios and are moving capital south into new developing regions which now include Mexico amongst their top choices whereas five and ten years ago, their options were limited to places such as Florida, Arizona and other American national territories. (see the projected growth in Latin America at a robust 4.6%)   There has been a decrease in liquidity.  And the message that Mr. Pascual shared,  “With our financing programs for the Americans and other Non-Mexicans , we can be the financial Gap to reach the newly budding real estate opportunities in Mexico.”

If you want to learn more of Mexico real estate and options on how to finance such a purchase…. call or write to me.

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Owning a Puerto Vallarta Beachfront condo, with the amazing views, and the cool ocean breezes is a very fun way for keeping cool on hot blistering summer days.  Another way to keep your temperature down is to lock all the doors and windows, crank up your air conditioner and chill-out in a catatonic bliss as you dream of being in a Puerto Vallarta beachfront condo.   And let’s face it; on the hottest, most humid afternoons in the “dog days” of August, this can seem like a pretty good idea!  However, this solution is not very frugal or eco-friendly, so here are some other tactics that have worked well for me:

Get the air moving. Even a slight movement of 1 mph can make you feel a few degrees cooler.  Ceiling fans are the best; make sure the blades are pointed so the air is directed downward.  Portable fans are great in spaces where ceiling fans will not work.  Either option allows you to raise the thermostat on the A/C and still remain comfortable.

1. Install shades, drapes and blinds. The best way to keep your home cool is to keep the heat out!  There are some excellent blinds out now that cut out the UVA rays, allow for privacy and still let in the view.  Choose lighter colors that reflect the sun’s rays.
2. Keep down the internal heat. The largest indoor heat generators are the stove/oven and incandescent lighting.  Try to cook outdoors on the hottest days and use your range fan to exhaust heat outside the home.  Replace incandescent bulbs with fluorescents wherever possible.  These produce one/fifth the amount of energy and hear for the same amount of light.
3. Plant trees and shrubs. Just several strategically placed shade trees can significantly reduce your energy bill.  Tree shaded neighborhoods are typically 3-6 degrees cooler here.  Avoid landscaping with unshaded rock or cement especially on the south and west sides of the home as this increases temperatures around the house and radiates heat after the sun has set.
4. Dress the part. Avoid wearing clothing made from synthetic materials.  Light colored clothing in natural fabrics such as cotton and linen not only feels cool, it looks cool too.  A nice sprinkling of talcum powder before dressing will keep you feeling cool.  And if this fails, have a couple of gel packs or moist washcloths handy in the fridge.  These feel great behind your neck on hot day.
5. Take advantage of cool places. Do your shopping, take in a movie, or enjoy a meal in an air conditioned restaurant during the hottest part of the day.

When all else fails and you need to use the air conditioner, make sure that the filters have been changed, nothing is blocking the air intakes and the system is fully charged.  Also make sure your Puerto Vallarta home is sealed tightly, there is no point in air conditioning the outside.  And when you are sweaty and grumpy, don’t forget to drink lots of water and think cool thoughts.  October will be here soon enough and you will be here enjoying perfect weather while your friends back home are facing six months of rain, sleet, snow and darkness!

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

We have seen a strong increase in sales in the Puerto Vallarta real estate market in the past several months.  The malaise of last year’s “swine flu” debacle is now just a bad memory as the market returns to a state of normalcy.  One well respected and experienced Puerto Vallarta real estate agent has reported twice as many sales already this year than he had all of last year combined.

It is still readily apparent that buyers have the upper hand in negotiations; however, many sellers have undertaken major price reductions or other incentives and have been successful in selling their properties.  But buyer beware:  another top agent reports, “I have already had two multiple offer situations this year, where a buyer hesitated in his offer and was beat out by another buyer.  Both buyers are still waiting on the sidelines and talking about the ´deal that got away´.”  One strong driving force in the market is the appearance of the Canadian buyer. With the Canadian dollar at even par with the US dollar, and many prices here reduced 20-25%, these savvy investors are reaping the rewards and appearing in record levels.  Another long time Broker here reports that Canadians are now making up almost half of his buyers here in the real estate market of Puerto Vallarta, up from approximately 10% just two years ago.  Another new paradigm of this market is that the “flippers are dead”. Today’s buyer is taking a much longer term approach to investing in Puerto Vallarta Real estate and is doing more research, asking more questions and is more patient than in previous years.  Besides the obvious factor of price, this buyer is keenly aware of cost of ownership, quality of construction and the location and amenities of the property.  Many of these new buyers are taking advantage of readily available mortgage financing on their property here in PV.  One very busy Mexico mortgage broker reports:  “interest rates for US Dollar mortgage loans (available to both Canadians and US citizens) are at historic lows.  We can go as low as 6% on interest rates, and typical rates for 30 year loans with 25% down are from 6.75 to 8.25  Obviously NOW is a good time to buy before rates start to head back up.”  So where are we headed?  One of our most experienced and knowledgeable brokers summarizes:  “I think our biggest challenge going forward will be to provide the market with quality and credible information that will allow both sellers and buyers with the tools in order to make informed decisions. I think that this has in large part been the reason why our actual sales activity has been lagging so much over the past 6 to 12 months. Sellers don’t understand what the value of their property is today and buyers keep seeing prices drop and are reluctant to step up until they see a sustainable base of value. Only after we have a sufficient number of transactions to support these new price levels will we be able to see the transparency in this market which will lead to the return to a more normal level of activity. How long will this process take? I think we are now starting to see the beginnings of this base being formed now and so over the next 6 to 9 months I think we will be back on track – a new track to be sure, but with a much higher level of sales velocity.”  So there you have it, the Puerto Vallarta Real Estate report for winter 2010:  Much better than 2009, but still a ways off the record levels of 2006-2007 and some challenges ahead for the remainder of the year.  We’ll check in again this fall to see how accurate we were.

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!
Michael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”