“Real Estate can not be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
– Franklin D. Roosevelt 32nd American President
We agree! that’s why we are in the business of helping others live their dream of owning real estate in Mexico: a vacation home in Riviera Nayarit, investment property in Puerto Vallarta, or perfect place to retire.
Unparalleled Personalized Service
It’s all about your needs and how our team can help you make your dream a reality. The first step is to learn about you. What is the driving force behind your purchase: vacation home? Investment? Future retirement? What is on your wish list? What are your parameters, time frame, and preferred lifestyle amenities? Your answers will send us on different paths to find the best property for you.
Next we comb through all available listings listed by every agent and hand select the top choices that meet your needs and provide the best value. You can spend forever on the internet reading websites, articles, and blogs on real estate in Mexico. Some of it is true, some it is inaccurate, and some of it is outdated. As your chosen professional Buyers Agent, we will send you current resources and info to understand the typical costs involved, purchase process, financing options (if applicable) and answer any questions you have. We will pick you up at your hotel, show you around, tour your selected properties, and make note of your preferences / pro’s and con’s for each property. Using our agent access to the real estate systems, we can provide you statistics on comparable sold properties, and negotiate the purchase price and terms that will work for you. Choosing a Global Real Estate agent as your buyers agent typically has no cost to you, we are paid when the listing agent from any property you choose to buy shares the commission from the sale with us.
Not going to be in town when you are taking possession of your new condo or house? No problem. We will assist you to provide a power of attorney so your agent, lawyer, or whomever you choose can take possession on your behalf.
Need to know where you can buy your favorite brand of shampoo or how to hook up internet? No worries, just ask us. We are here to help in every way we can.
Choosing the Right Community and Property
The right property depends on intended use. For investment choose high demand areas walking distance to the beach, restaurants and shops. If the purpose of your purchase is for personal use (vacation home / future retirement / full time living) then first decide on what area is right for you. Do you like to walk to a café? Be in nature with privacy from any neighbors? Lie on the beach? Workout every day? Want to be within 30 minutes from the airport, malls, hospitals, etc? All this affects where you want your location to be.
How much time will you spend here? If you will come for a few weeks to a month at a time, you may choose a different area than if you’re living there full time. People coming for shorter periods of time sometimes prefer to be in a busier area with more activities or nightlife and can be OK with a smaller living space. People coming for several months typically prefer a larger living space with a guest room, second bathroom, and may keep a car so they are fine with being outside of town. Many Canadians and Americans start out coming for a short time, renting it out when not in use, and then spending more time each successive year in Mexico once they retire.
Click here to view information on the most popular cities in the region.
Once you decide the city that feels good for you, what neighborhoods do you like? Walking distance to the beach? On a hill is OK or do you have any health challenges that needs a level area to walk? Do you want to be in a mix of Mexicans and Canadians / Americans and other foreigners? Do you want to just be in a foreign community where everyone speaks English? Do you want to be immersed in a Mexican community?
Next decision should be if you prefer to be in a condo or house inside a gated community or a single family residence. Properties in Mexico are typically built very different from other countries: there is no wood frame. Most condos in this area are commonly constructed of concrete block, rebar, steel beams, or brick. Usually exterior walls of a condo are layers of concrete and insulation so there is more of a sound barrier. Also, being in a vacation destination there will be some neighbors that live full time, but most will come for the winters, or when they can and rent it when not in use. Some developments restrict rentals and pets, so advise your agent of these needs to assist in your search.
What construction style do you prefer? A modern building with lots of glass, smooth lines, humidity resistant drywall, or Mexican contemporary with concrete walls, bright colors, and hand formed tiles?
Yes! You can own real estate in Mexico. The land titles system is as strong as Canada or the USA. Be aware though: there are several types of property ownership and foreigners should only purchase properties that are deeded properties.
The process for purchasing a property in Mexico can be very straightforward. Similar to Canada or the USA, you would make an offer, negotiate and sign contracts, make a deposit, and then close on the property and take possession.
- Prices can sometimes be very negotiable, ask your Buyers Agent for a recommendation on what to offer, based on what similar properties have sold in that area recently and their knowledge of that property.
- The deposits are typically 10% to 30% of the purchase price and held in Trust with an insured Escrow Agency.
- Properties in Mexico are usually paid for in “cash” (wire transfer) – very few have mortgages.
- Properties within 100 km’s of the borders and 50 km’s of the beaches must use a real estate Trust if being purchased by non-Mexicans. What does this mean? Your name goes on the deed, a Trust is created with you as the beneficiary that holds the title to the property. This is a safe, reliable method of ownership that over a million Canadians and Americans have been using for decades to own property in Mexico. Real estate Trusts are used by the wealthy in Canada and the USA as an asset protection and wealth management tool. For this you pay a yearly fee of about $500 USD. Some Mexican nationals also own property with a Trust, as it has 3 big benefits: no probate, no death taxes, and it is creditor protected.
Note: this overview is provided for informational purposes only. Global Real Estate Vallarta is not providing financial advice, accounting or legal advice but we certainly can put you in touch with these certified professionals so you can hear it from the horses’ mouth and discuss your personal situation. For additional information, please contact us.
Here is some information on tax advantages for Canadians owning property in Mexico (contact us if you are American).
- Interest from a Mexican mortgage is tax deductible
- If you want to move here you can claim Canadian Citizen non resident status and pay 0-15% flat taxes to Canada on investment income in Canada!
- Canada and Mexico have a tax treaty – you will never pay double come taxes if you are renting your place out (Ex: taxes paid on rental income in Mexico can be listed as a Foreign Tax Credit on your Canadian taxes)
- Subtract your expenses from your Mexican property and report a net loss on your tax return to reduce your Canadian taxes
- For those who wish to stay part of the year in Mexico, part in Canada and rent out their property while away, you may be able to write off 1 trip to Mexico a year to check on your property (if you are managing the rental)
Please note: this is for informational purposes only. It is not guaranteed to be accurate, we are not accountants and we are happy to connect you with an international tax accountant that is certified, and can answer your questions and liaise with your accountant. Contact us to be connected with an accountant to learn more.
There are a variety of options for financing your real estate purchase in Mexico. Here are the most common:
- Peso mortgage starting at 3.5% with 40% downpayment (60% financed)
- USD mortgage starting at 9% (most properties in Mexico are sold in USD, you can be Canadian and get a USD or peso mortgage). Typically want to see 40% down, 60% mortgaged. If you put more down, your rate may be lowered. Put less down and interest rate goes up. Credit score should be 680 or higher.
- Developer or owner financing: varies per development / owner. Ranges from 6% interest and 40% down, 60% carried for up to 4 years at libor + 5% (around 9-10%). Typically no application fees, no pre-payment penalties. The best deals are obtained by cash buyers since owners selling now are selling because they need the money.
- Get a Home Equity Line of Credit from a residence you own in your home country. This typically gives you the lowest rates and fees.
Your Agent can assist you with financing options tailored to your needs. Our financing partners offer a variety of lending options to suit whether you are purchasing or refinancing or need cash-out equity. Our Mexico mortgage programs include 25 year terms with as little as 25% down, and our mortgage banking resources can handle loans up to five million dollars for real estate transactions throughout Mexico.
Our financing partners offer the widest portfolio of lending products Mexico has to offer.
Here are a variety of loan programs with some of the basics of each outlined below.
- Residential purchase / refinance
– 15 yr peso loan starting at 3.5% with 40% downpayment – 25 yr USD loans starting at 8.5% with 40% downpayment
- Cash out refinance
Clients can now cash out 50% of appraised value with a maximum loan
amount is $1,000,000
15/20/25/30 yr adjustable and fixed rate loans with rates from 9%
Our financing partners are now lending at 65% Loan to Value utilizing the land as collateral. Rates from 8.5% with approved builders. Construction to permanent loan with a 1 time close and no max loan amount.
- Raw Land Financing
Available to US and Canadian citizens
15yr note with rates from 8.5%
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Here is the best way to get to our wonderful office. We are located two blocks North of the Royal Decameron Hotel in Bucerias, near the corner of Lazaro Cardenas and Agustin Melgar. Turn right at the Royal Decameron Hotel, onto Lazaro Cardenas street. Go 2 blocks, turn right on Agustin Melgar street, and the office is on your left.