Real Estate, the best investment
Currently, when investments offer low rates of return and the stock market is unstable, the real estate market distinguishes itself as a safe investment that pays good dividends to investors.
Return on investment in terms greater than one year
There is the possibility of acquiring a real estate on credit, which would pay itself renting, due to the high demand for houses and apartments in areas of the beach such as Vallarta because it offers the buyer more comfort and privacy.
Real estate can be rented and represents an investment that, using the interest rate as a guage, is much better than what a bank pays for a traditional investment. And in case of an emergency settlement, it can be mortgaged at a relatively low price.
Easy guide to buying a property in Vallarta
We all dream of one day owning our property on the beach inasmuch as it, without a doubt, offers a refuge for a weekend, a vacation, or an occasional or total retirement after long and arduous years of work. However, it is very important to define what you want to buy (house or apartment), your budget, if you are going to need some kind of financing, who will be the advisor, and finally, a good number of relevant aspects should be reviewed. To acquire a property, especially in the case of foreigners, it is essential to know the laws in order to protect your investment.
For foreign investors
Mexican law establishes that the way to acquire the rights of a property is through a trust contract created through a national banking institution.
What is a trust contract?
It works as a basis when making a purchase-sale contract, selling a property, making investments, buying a real estate or giving guarantees. The function of a Trusteeship is to protect the rights of trustor (national or foreign), to acquire collateral or administrative property rights. In case of foreigners, the trusteeship due to the established restrictions that exist with respect to the acquisition as direct owner of an inasmuch land as foreigners may be rightful owners of the property. It also guarantees legal security in relation to the possession of the real estate. It is a requirement that the protocol of this contract must be done before a notary licensed by the Ministry of Foreign Affairs.
A Trusteeship has a validity of 50 years, which can be extended.
Fiscal aspects of buying-selling a real estate
When a taxpayer, resident of the country in question, sells a property is subject to Income Tax, (ISR) according to the benefit, which is the difference between the original price of the purchase and the sale price, a technical mechanism established to determine the correct tax. For the sale of houses there is an extension of payment of this tax, with the condition that it is actually used as a house.
It is very important to analyze this document, which is proof that the current seller is really the owner. It also contains the measurements of the land and the description of the property of the public registry.
Construction permits, land plans and tax payments
It is necessary to ask for a permit to build, the plans of the land and verify that there are no outstanding tax payments or debts of any of the services and that it is free from embargo. The properties in the federal maritime zone, with swimming pools, bedrooms, retaining walls and walkways, must have a concession title that authorizes the construction or proof that they have authorization from the Environmental Procurator, to avoid fines, closures or demolition .
The steps to acquire a property in Vallarta
Currently, the acquisition of a real estate is not only about taking into account the style of the house, but also taking into account the important decision from a financial and investment perspective.
1.- It is advisable that not only the seller but also the buyer have a valuation made by a licensed lawyer specializing in real estate.
2.- Consult a real estate professional. Carrying out the procedures with the AMPI seal guarantees a more extensive legal review and saves many headaches, making the transaction relatively simple, a step that at the time of closing the sale is essential.
3.- Define the appropriate type of property, depending on your budget.
4.- Analyze all the possibilities of financing. Currently there are direct short and medium term financing available for domestic and foreign buyers in this way buyers from the United States have mortgage loans to acquire or build vacation homes in Mexico. This type of traditional financing is available from
Homes & Living.