01.
What
are the differences between buying property in USA and
Cancun?
Buying
a condo, home or lot in Cancun, Playa Del Carmen or anywhere
on the Mayan Riviera is similar to buying property in the
US or other places with a few of important differences.
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Cancun
Mortgages from US mortgage companies are relatively
new, less |
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than
2 years old. Mortgage rates are higher than US rates
due to the higher cost for a US company doing business
in a foreign country in many cases without having
a local office and having to fly their representatives
back and forth. Further in the event of a default
it is more expensive and time consuming for the mortgage
company to recover their property.
Below
are some of the US mortgage companies that will finance
a Mexican property.
Finance
North America
Collateral
International, LLC
Wall
Street Associates
GMAC
Mortgage
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-Title
insurance is available from US companies such as Stuart
Title. |
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02.
Has Cancun and Playa real estate peaked?
No,
I think Cancun real estate will continue to increase another
50% within the next 10 years until Cancun prices reach prices
equal similar US properties. Why do I say this: There are
65 million 'baby-boomers' reaching retirement-many are looking
for Cancun beachfront condos, Cancun is one of the most desirable
cities in the Caribbean, it is the 3rd. most traveled world
destination, Disney is #1, Las Vergas #2 and Cancun is #3.
Cancun has incredible natural beauty a modern city, great
health care, low crime and great security.
03.
Can
a non-Mexican buy beachfront property?
The
bank trust system is a mechanism that facilitates the purchase
of beach front property for non-Mexicans. A bank (like Banamex,
owned by U.S. Citibank) olds the property title in trust for
foreigners. You have full rights of ownership. This system
has worked well for over 25 years.
04. Is
Cancun and Playa del Carmen a good investment?
Property
investment specialists noted several years ago that the Yucatan
Peninsula offers some of the best investment opportunities
in the world. Why Location, Quality of Life, Peace and Security,
Modern Infrastructure, and proximity to the U.S. are just
some of the reasons that make uniquely desirable.
The
Caribbean is one of the most beautiful and peaceful places
on earth. Freedom from terrorism and violent crime are the
basis for this peace. Cancun has a very low crime rate (much
lower than any US city of similar size). Cancun is a young
city only 30 years old with modern pure water purification
systems, cheap, efficient public transportation and a state-of-the-art
hospital that ccepts US health insurance.
05.
Can
I really make money renting my property?
Yes, studio condos rent from $55-$75 per night in Cancun and
Playa and typically are rented at least 60% of the year.
06.
Is
Property and rental management available?
Every Condominium complex has an onsite rental/management
company that typically rents the property 50% of the year
and charges 20% of the rental fee for their services.
07.
Is
Mexican investment safe?
Mexican-American political and business ties continue to strengthen.
Wal-Mart, Ford, GM Hilton and 4-Seasons have invested billions.
These companies don't risk investing capital in risky, unstable
countries. Real estate investment guides note that the Yucatan
(where Cancun and Playa del Carmen are located) is one of
the best areas in the world to invest in. The Yucatan offers
the one of the safest, most livable, and convenient places
to live in the Caribbean.
The Caribbean is one of the most beautiful and peaceful places
on earth. Freedom from terrorism and violent crime are the
basis for this peace. Cancun has a very low crime rate (much
lower than any US city of similar size). Cancun is a young
city only 30 years old with modern pure water purification
systems, cheap, efficient public transportation and a state-of-the-art
hospital that accepts US health insurance.
08. What makes Cancun,
Playa del Carmen and the Mayan Riviera so
special?
Location, Location, Location.............The Yucatan (where
Cancun is located) is home to the 2nd. largest reef in the
world. The crystal clear Caribbean waters are unsurpassed
for visual beauty and great for all water sports. The people
who live here are known for their warmth and hospitality.
Cancun is one of the fastest growing cities in the world and
is close to many other interesting travel destinations including;
Cuba, Puerto Rico the Caymans and Belize. The Yucatan is rich
in Mayan history and home to some of the largest pyramids
outside of Egypt..
09.
Do I need an attorney?
In Mexico, real estate closings are handled by Notaries rather
than attorneys. A Mexican notary is not a clerk (like the
US) but a powerful government appointed lawyer (specializing
in property transfers). The notary has the responsibility
and authority to handle the complete closing transaction.
Before closing the Notary will prepare all necessary documentation.
The bank trust officer will be on hand to create a bank trust
in your name. Like any legal transaction you may choose to
have your The Notary is independent and is dedicated to legal
honest transfers.
10.What
are the closing costs for a Mexican Home purchase?
| Closing
Costs= Bank Trust Fees + Notary' Fees+Optional Title
Insurance and Escrow Services |
BANK
TRUST "Fideicomiso Commission" |
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Creation & 1st Year Bank Trust Fees |
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Notary's
Charges |
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1 |
Permit
to Department of Foreign Relations |
$1,200
USD |
Bank
Trust Account Creation |
$2000
USD |
2 |
Mexican
Government Transfer Tax |
2% |
First Year Trust Payment |
$0600
USD |
3 |
Title
Registration |
0.9% |
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4 |
Appraisal |
0.3% |
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5 |
Notary's
Fees |
1.25%
to 1.75% |
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6 |
Certificate
of no-lien |
$
300 |
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7 |
Miscellaneous |
$
300 |
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8 |
Certified
Legal English Document |
$
300 |
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Translation |
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Total
fees $4,700 + 6% in Notario Fees |
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For
more information contact: Stewart Title Riviera Maya |
Title
insurance Alone |
0.85% |
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Phone
011 52 984 879 4387 or 879 4388 |
Escrow
Services Alone |
0.19% |
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Fax:
879-4345 |
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Title
Insurance + Escrow Service Together |
0.94% |
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Manager:
Isacc Castillo |
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customerservice@stewartrm.com |
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These
are the fixed closing costs, if you finance your purchase
there will be additional expences, approximately 2% more.
Title insurance is available at a rate of $7/$1000 coverage.
11.
What
are the Mexican Property Taxes I must pay for my new Mexican
Home?
While
Mexican Property Taxes Vary slightly depending on which Mexican
State your new home is located. The average is .020% or approximately
$200/Year for every $100,000 property value of your Mexican
Home. The other Mexican Tax is the Beach Tax for properties
on a beach. This varries with the price of the property as
well. But in general averages about $500/ Year.
12.
Is
it possible to buy a fraction of a Mexican Beachfront Property
with other US owners?
Yes,
we help coordinate prospective buyers that want to buy a fraction
of a Mexican property with other owners. THIS IS NOT A TIME
SHARE. THIS IS THE PURCHASE OF REAL PROPERTY WITH YOUR NAME
ON A LEGAL DOCUMENT THAT DESCRIBES YOUR OWNERSHIP OF SHARES
OF A US COMPANY THAT HOLDS THE TITLE FOR THE MEXICAN PROPERTY.
YOUR NUMBER OF SHARES IS RELATED TO THE NUMBER OF WEEKS YOU
PURCHASE. AS AN EXAMPLE THERE ARE A POSSIBLE 52 WEEKS IN A
YEAR. SUBTRACT THE 2 MONTHS OF PEAK STORM ACTIVITY, SEPTEMBER
AND OCTOBER AND YOU ARE LEFT WITH 44 WEEKS. The minimum purchase
is 2 weeks, one in high season and one in low season. Price
varies with the property in focus.
Using a property like Aqua Marina where the present price
is $145,000 a two week fraction would cost $12,000 to $15,0000.
This would give you your choice of 1 week in the high season
(from December to May 30) and one week in low Season (June
to December). You can choose to use both weeks, swap with
other owners or rent your weeks.
13.
What
if I am considering retiring in Mexico ?
So you have decided
to buy a home south of the border in Mexico. Should you retire
and live there only 6 months at a time a simple tourist visa
issued as you enter Mexico is all that is needed.
FM3 and FM2 DOCUMENTS
Should you desire to live in your Mexican Home year-round
or more than 6 months at a time you should consider applying
for a document know as FM3 papers.
FM3 documentation is easy to obtain by yourself at the local
immigration office in Cancun or any large Mexican City. Mexican
attorneys are happy to do the work for you and will charge
anywhere from $800 to $1,500 for filling out the simple documents
needed.
An FM3 document grants you nonimmigrant status and must be
renewed on an annual basis. Once you have had your FM3 for
5 years you can then apply for FM2 status or immigrant status.
You should seek the assistance of a Mexican attorney for this
legal work.
If you have a Mexican Consulate near your US home city you
can apply locally for your FM3 in the US.
You will need the following to apply for your FM3: You will
need original or certified copies of your birth certificate
and marriage license (if applicable). You will also need to
document the minimum income requirements. You will need to
show $1,000.00 U.S. dollars monthly income for each month
you stay in Mexico. You can provide paycheck stubs, or 3 months
bank statements showing reserves or a letter from social security
showing your retirement benefits. This will prove that you
have the ability to sustain yourself financially. You will
need a proof of Mexican Residency, such as a utility bill
or your deed.
Your US documents will need to be translated to Spanish by
a legal approved translator.
Why should you apply for an FM3 or FM2. These documents will
help you avoid paying excessive Capital Gains taxes. Expect
to wait up to 8 weeks for FM3 papers and be sure to extend
your tourist visa if you are in Mexico awaiting your FM3.
