Nice and ample residence, quiet zone, good located, panoramic view, full serviced.4,133 sq. ft. of surface, 78.7 ft. of wide, 52 ft. of deep. 4,628 interior sq. ft., 4 bedrooms and 5 bathrooms.
Showing posts with label information. Show all posts
Showing posts with label information. Show all posts
Saturday, December 6, 2008
Vista del Lago
Patzcuaro, Michoacan, MX
House For Lease $5,000 MXP / $365 USD
Nice and ample residence, quiet zone, good located, panoramic view, full serviced.4,133 sq. ft. of surface, 78.7 ft. of wide, 52 ft. of deep. 4,628 interior sq. ft., 4 bedrooms and 5 bathrooms.
Thursday, October 2, 2008
Zirahuen Lake View
Zirahuen, Michoacan, MX
Land For Sale $60,000 MXP / $5,400 USD
Located at small neighborhood, beautiful Lake View.1,862 sq. ft., 32 ft. of wide, 55 ft. of deep. Ideal to build a weekend or rest house.
Vasco de Quiroga
Patzcuaro, Michoacan, MX
House For Sale $730,000 MXP / $65,000 USD
Located at quiet zone, ample spaces. 1,205 sq. ft. of land surface, 1,722 interior sq. ft.3 bedrooms, 2 bathrooms, 2 cars garage.
Monday, June 23, 2008
Americans can buy property in Mexico with Dollar Credit
The BBVA Group in coordination with Laredo National Bank (LNB) and Mortgage Banking-Bancomer Hipotecaria Nacional, the first market to offer credit in dollars to American and Canadian citizens from acquiring property in Mexico.
This is Your Dream Home in Mexico, a mortgage collateralized trust created in order to meet the interests of Americans and Canadians to acquire a house for rest or as investment anywhere in the Mexican territory, including the restricted zone.
Characteristics:
Deadlines: Term (years) 25, 20, 15
Taxes: Taxes defined by the Libor + margin. *rate subject to the exchange rate
Committees: Open: 2%
Report credit: $ 17.70 dollars.
Fee anchoring: $ 125.00 dollars.
Credit Rating: $ 150.00 dollars.
Cost of appraisal: For houses up to 150 m2 building will be charged $ 400.00 dollars.
For every 50 m2 surface more, the cost will increase by $ 50.00 appraisal dollars.
Value of housing: USD 100.000 in Forward
Funding: 70%
Minimum amount of credit: USD 70.000
Minimum amount of housing: USD 100.000
Insurance: You have the option of buying insurance through Bancomer at a cost premium of 3.6 thousand, which include:
• Resposabilidad civilian family.
• Damage to property.
Alternatively, the customer has the option to contract these insurance on their own.
Requisites:
From 18 years.
Score minimum credit: 650 (FICO Score).
They must hire a certain damage to property.
Insurance damage to property and shares of the Trust included in the monthly payment.
Providing the following documents:
1. Credit Application signed.
2. Photo identification.
3. The last 2 annual tax statements with W2 form.
4. Receipt of payroll last month.
5. States bank in the last 2 months.
This is Your Dream Home in Mexico, a mortgage collateralized trust created in order to meet the interests of Americans and Canadians to acquire a house for rest or as investment anywhere in the Mexican territory, including the restricted zone.
Characteristics:
Deadlines: Term (years) 25, 20, 15
Taxes: Taxes defined by the Libor + margin. *rate subject to the exchange rate
Committees: Open: 2%
Report credit: $ 17.70 dollars.
Fee anchoring: $ 125.00 dollars.
Credit Rating: $ 150.00 dollars.
Cost of appraisal: For houses up to 150 m2 building will be charged $ 400.00 dollars.
For every 50 m2 surface more, the cost will increase by $ 50.00 appraisal dollars.
Value of housing: USD 100.000 in Forward
Funding: 70%
Minimum amount of credit: USD 70.000
Minimum amount of housing: USD 100.000
Insurance: You have the option of buying insurance through Bancomer at a cost premium of 3.6 thousand, which include:
• Resposabilidad civilian family.
• Damage to property.
Alternatively, the customer has the option to contract these insurance on their own.
Requisites:
From 18 years.
Score minimum credit: 650 (FICO Score).
They must hire a certain damage to property.
Insurance damage to property and shares of the Trust included in the monthly payment.
Providing the following documents:
1. Credit Application signed.
2. Photo identification.
3. The last 2 annual tax statements with W2 form.
4. Receipt of payroll last month.
5. States bank in the last 2 months.
Tu opción en México - Mexican residents in E.U.A. can hire mortgage credit to buy property in Mexico
Do you have relatives in the United States interested in buying property in Mexico? They can hire a mortgage to purchase new house or used in any city in the Republic of Mexico, through the offices of the Mortgage Banking Bancomer in the United States-Mexican Mortgage-where for more than two years, have been granted a multitude of mortgage loans to our countrymen.
Through this credit, the Mexicans who live and work in the United States can acquire a mortgage in pesos or in minimum wages, fixed interest rate and no penalty for prepayment, with the following characteristics:
Deadlines: Term (years) 5, 10, 15, 20
Committees: a) Opening: 4% for housing values to $ .00 and $1'000,000 MXP
b) 2.25% for housing values greater than .00 $ 1'000000 MXP
c) For Prepayment: no fee for advance payment.
Cost of appraisal: 2.5 thousand + $ 500.00 or $ 1200.00 MXP whichever is greater.
Expenditure on Research: $125 USD
Factor payment (including insurance): $ 22.68 MXP (5 years), $ 14.88 MXP (10 years), $ 12.66 MXP (15 years) and $ 12.18 MXP (20 years), $ 10.80 MXP (25 years, this term applies only to minimum wages)
Minimum amount of credit: $153,000.00 MXP
Minimum amount of housing: $170,000.00 MXP
Insurance: Living and total and permanent disability: ($ 0.32 MN pesos monthly for every $ 1000.00 pesos MN credit).
Damage: ($ 0.49667 pesos MN monthly for every $ 1000.00 pesos credit. Includes VAT), includes Liability insurance up to $ 100000.00 weights and contents insurance latter up to $ 70000.00
Through this credit, the Mexicans who live and work in the United States can acquire a mortgage in pesos or in minimum wages, fixed interest rate and no penalty for prepayment, with the following characteristics:
Deadlines: Term (years) 5, 10, 15, 20
Committees: a) Opening: 4% for housing values to $ .00 and $1'000,000 MXP
b) 2.25% for housing values greater than .00 $ 1'000000 MXP
c) For Prepayment: no fee for advance payment.
Cost of appraisal: 2.5 thousand + $ 500.00 or $ 1200.00 MXP whichever is greater.
Expenditure on Research: $125 USD
Factor payment (including insurance): $ 22.68 MXP (5 years), $ 14.88 MXP (10 years), $ 12.66 MXP (15 years) and $ 12.18 MXP (20 years), $ 10.80 MXP (25 years, this term applies only to minimum wages)
Minimum amount of credit: $153,000.00 MXP
Minimum amount of housing: $170,000.00 MXP
Insurance: Living and total and permanent disability: ($ 0.32 MN pesos monthly for every $ 1000.00 pesos MN credit).
Damage: ($ 0.49667 pesos MN monthly for every $ 1000.00 pesos credit. Includes VAT), includes Liability insurance up to $ 100000.00 weights and contents insurance latter up to $ 70000.00
Wednesday, June 11, 2008
How Foreigners can Own Real Estate in Mexico
Foreigners can Own Properties in Mexico, here we post the information about. Send your questions to us...
1. ALTERNATIVES
It is common misconception that foreigners cannot own Real Estate in Mexico, but reality is that they can. However, there is a restrictive zone, as described below, and we have to consider the following alternatives:
Outside the Restricted Zone, a foreigner or foreign corporation can acquire any type of real estate as any Mexican National, holding the property as a direct owner complying with Mexican law.
Within the Restricted Zone, a foreigner or foreign corporation may obtain all the rights of ownership but it must be in a bank trust, known as Fideicomiso.
Another alternative is to purchase non-residential property through a Mexican corporation which can be, under certain conditions, 100% foreign-owner, with a provision in its by-laws that the foreigners accept to be subject to Mexican laws and agree not to invoke the laws of their own country.
Also, that the real estate acquired be registered with the Foreign Affairs Ministry and is used for non-residential activities. In other words, under said conditions, foreigners can acquire, directly, properties destined for tourist, commercial and industrial use.
2. THE RESTRICTED ZONE
The Mexican Constitution regulates the ownership of the land and establishes that "... in a zone of 100 kilometers along the border or 50 kilometers along the coast, a foreigner cannot acquire the direct ownership of the land". These areas are known as the "Restricted or Prohibited Zones". Nevertheless, the lastest Mexican Foreign investment Law, which became law on December 28, 1993, makes the allowances mentioned above.
3. FIDEICOMISO OR BANK TRUST
Any foreigner or Mexican National can constitute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf.
The bank, as a matter of normal course, obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50 year period. During these periods you have the right to transfer the tittle to any other party, including a member of your family.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her rights to the property to a third party or to a preappointed heir. During this period, the foreigner is considered as a Mexican National.
The trustee is responsible to the buyer beneficiary to ensure precise fulfillment of the trust, according to Mexican Law, assuming full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.
For practical purposes, even in unrestricted zones many foreigners and Mexican Nationals, for that matter, prefer to hold their property under a Fideicomiso
1. ALTERNATIVES
It is common misconception that foreigners cannot own Real Estate in Mexico, but reality is that they can. However, there is a restrictive zone, as described below, and we have to consider the following alternatives:
Outside the Restricted Zone, a foreigner or foreign corporation can acquire any type of real estate as any Mexican National, holding the property as a direct owner complying with Mexican law.
Within the Restricted Zone, a foreigner or foreign corporation may obtain all the rights of ownership but it must be in a bank trust, known as Fideicomiso.
Another alternative is to purchase non-residential property through a Mexican corporation which can be, under certain conditions, 100% foreign-owner, with a provision in its by-laws that the foreigners accept to be subject to Mexican laws and agree not to invoke the laws of their own country.
Also, that the real estate acquired be registered with the Foreign Affairs Ministry and is used for non-residential activities. In other words, under said conditions, foreigners can acquire, directly, properties destined for tourist, commercial and industrial use.
2. THE RESTRICTED ZONE
The Mexican Constitution regulates the ownership of the land and establishes that "... in a zone of 100 kilometers along the border or 50 kilometers along the coast, a foreigner cannot acquire the direct ownership of the land". These areas are known as the "Restricted or Prohibited Zones". Nevertheless, the lastest Mexican Foreign investment Law, which became law on December 28, 1993, makes the allowances mentioned above.
3. FIDEICOMISO OR BANK TRUST
Any foreigner or Mexican National can constitute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf.
The bank, as a matter of normal course, obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50 year period. During these periods you have the right to transfer the tittle to any other party, including a member of your family.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her rights to the property to a third party or to a preappointed heir. During this period, the foreigner is considered as a Mexican National.
The trustee is responsible to the buyer beneficiary to ensure precise fulfillment of the trust, according to Mexican Law, assuming full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary. Fideicomisos are not held by the trustee as an asset of the bank.
For practical purposes, even in unrestricted zones many foreigners and Mexican Nationals, for that matter, prefer to hold their property under a Fideicomiso
Purchase-Sale Process in México
If you want Buy or Sale a property, the process for foreigners is this. Read, and if have a question, please, mail us, we can help you!
1. PROCESS
Most real estate transactions are "opened" after a written purchase offer is accepted by the seller and when a purchase-sale agreement (promissory contract) is signed by both parties. In most cases, a deposit is required by the broker in order to transmit the offer to the seller. If the transaction is being conducted directly with the seller, it is highly recommended that a real estate broker or a lawyer be consulted before signing any papers or handing over any money.
In some areas it is common practice to deliver to the seller, as an advance payment, the equivalent to a 20-50% (including the initial deposit) of the total price upon signing the purchase-sale agreement which should contain a penalty cause applicable in case there is a breach of contract by any of the parties.
Normally, when signing the escritura or official deed, which needs to be certified by a Notario Publico or notary public, the balance is paid and the property is delivered. This should not take more than 45 days. In certain resort areas the custom of using "escrows" is being implemented.
2. NOTARIO PUBLICO OR NOTARY PUBLIC
The Notario Publico is a government appointed lawyer who processes and certifies all real estate transactions, including the drawing and review of all real estate closing documents, thus insuring their proper transfer.
Furthermore, all powers of attorney, the formation of corporations, wills, official witnessing, etc. are handled and duly registered through the office of the Notario Publico, who is also responsible to the government for the collection of all taxes involved.
In connection to real estate transactions, the Notario Publico, upon request, receives the following official documents, which, by law, are required for any transfer:
- A non lien certificate from the Public Property Registry based on a complete title search.
- A statement from the Treasury or Municipality regarding property assessments, water bills, and other pertinent taxes that might be due.
- An appraisal of the property for tax purposes.
3. CLOSING COSTS
It is common practice that the buyer pays the transfer or acquisition tax as well as all other closing costs including the Notario fees and expenses, and the seller, pays his capital gains tax and the broker's commission.
Since January 1, 1996, the federal law regarding the real estate transfer tax, which was 2% for all the Republic of Mexico, was modified in order to allow each of the Mexican States to determinate its own tax. The range may be from 1-4%, of the tax appraisal value, generally less than the sales value.
The rest of the closing costs, which exclude the transfer cost mentioned above, may vary from 3-5% of the appraised tax value or more, depending on the particular State. These percentages are applied to the highest value of the following:
- The amount for which the property is sold.
- The value of the official tax appraisal.
- The value designated by the property assessment authorities.
4. COST OF FIDEICOMISO
Based on a present tariff, the bank charges the person desiring the Fideicomiso an initial fee for the drawing up of the agreement and establishment of the trust, plus a percentage according to the value of the property. In addition to the bank charges an annual fee to cover its services as a trustee.
5. REAL ESTATE BROKER'S COMMISSION
Most real estate companies in Mexico charge 5-7% commission based on the actual sale price of the property. However, different area broker rates reflecting higher broker expenses may be found, such as in the resort areas.
6. CAPITAL GAINS TAX
In Mexico, the concept of capital gains tax does not apply in the sense in which it is determined in the United States. Here, the gain from the sale of the property is considered as normal income at a tax rate of up to 32%. In order to determine the gain, the following costs and expenses are deducted from the amount for which the property is officially sold:
- The original land cost and the depreciated construction cost, based on the number of years the property was held and adjusted for inflation according to the official consumer price indexes.
- Additions, modifications and improvements, but not maintenance, made on the property (construction), adjusted as above.
- Commissions paid to real estate brokers by the seller.
- The closing costs, including all expenses, taxes and fees paid by the seller.
The Notario will retain the calculated gain after deductions forwarding it to the Mexican tax authorities.
The seller will then deduct this amount against his/her annual tax return, which becomes an adjustable tax credit in the U.S.
On the other hand, there is no capital gain tax in Mexico if there is conclusive proof the seller has had property as his primary residence for the previous 2 years.
1. PROCESS
Most real estate transactions are "opened" after a written purchase offer is accepted by the seller and when a purchase-sale agreement (promissory contract) is signed by both parties. In most cases, a deposit is required by the broker in order to transmit the offer to the seller. If the transaction is being conducted directly with the seller, it is highly recommended that a real estate broker or a lawyer be consulted before signing any papers or handing over any money.
In some areas it is common practice to deliver to the seller, as an advance payment, the equivalent to a 20-50% (including the initial deposit) of the total price upon signing the purchase-sale agreement which should contain a penalty cause applicable in case there is a breach of contract by any of the parties.
Normally, when signing the escritura or official deed, which needs to be certified by a Notario Publico or notary public, the balance is paid and the property is delivered. This should not take more than 45 days. In certain resort areas the custom of using "escrows" is being implemented.
2. NOTARIO PUBLICO OR NOTARY PUBLIC
The Notario Publico is a government appointed lawyer who processes and certifies all real estate transactions, including the drawing and review of all real estate closing documents, thus insuring their proper transfer.
Furthermore, all powers of attorney, the formation of corporations, wills, official witnessing, etc. are handled and duly registered through the office of the Notario Publico, who is also responsible to the government for the collection of all taxes involved.
In connection to real estate transactions, the Notario Publico, upon request, receives the following official documents, which, by law, are required for any transfer:
- A non lien certificate from the Public Property Registry based on a complete title search.
- A statement from the Treasury or Municipality regarding property assessments, water bills, and other pertinent taxes that might be due.
- An appraisal of the property for tax purposes.
3. CLOSING COSTS
It is common practice that the buyer pays the transfer or acquisition tax as well as all other closing costs including the Notario fees and expenses, and the seller, pays his capital gains tax and the broker's commission.
Since January 1, 1996, the federal law regarding the real estate transfer tax, which was 2% for all the Republic of Mexico, was modified in order to allow each of the Mexican States to determinate its own tax. The range may be from 1-4%, of the tax appraisal value, generally less than the sales value.
The rest of the closing costs, which exclude the transfer cost mentioned above, may vary from 3-5% of the appraised tax value or more, depending on the particular State. These percentages are applied to the highest value of the following:
- The amount for which the property is sold.
- The value of the official tax appraisal.
- The value designated by the property assessment authorities.
4. COST OF FIDEICOMISO
Based on a present tariff, the bank charges the person desiring the Fideicomiso an initial fee for the drawing up of the agreement and establishment of the trust, plus a percentage according to the value of the property. In addition to the bank charges an annual fee to cover its services as a trustee.
5. REAL ESTATE BROKER'S COMMISSION
Most real estate companies in Mexico charge 5-7% commission based on the actual sale price of the property. However, different area broker rates reflecting higher broker expenses may be found, such as in the resort areas.
6. CAPITAL GAINS TAX
In Mexico, the concept of capital gains tax does not apply in the sense in which it is determined in the United States. Here, the gain from the sale of the property is considered as normal income at a tax rate of up to 32%. In order to determine the gain, the following costs and expenses are deducted from the amount for which the property is officially sold:
- The original land cost and the depreciated construction cost, based on the number of years the property was held and adjusted for inflation according to the official consumer price indexes.
- Additions, modifications and improvements, but not maintenance, made on the property (construction), adjusted as above.
- Commissions paid to real estate brokers by the seller.
- The closing costs, including all expenses, taxes and fees paid by the seller.
The Notario will retain the calculated gain after deductions forwarding it to the Mexican tax authorities.
The seller will then deduct this amount against his/her annual tax return, which becomes an adjustable tax credit in the U.S.
On the other hand, there is no capital gain tax in Mexico if there is conclusive proof the seller has had property as his primary residence for the previous 2 years.
Leasing Process in Mexico
For Rent a property, the process for foreigners is easy, read and if have a question, mail us.
1. BACKGROUND
Historically, in Mexico, the law favored the tenant, making it harder for the landlord to increase the rents and/or evict the tenant upon the termination of the contract. Consequently, contracts were designed to the protect the landlord as much as possible, but in 1993, the law regarding leases in Mexico City (Federal District) was modified in order to expedite the lawsuits against the tenants, with the resulting benefits for all.
As each state in Mexico has different laws regarding leases, it is advisable that a lawyer or a reputable real estate broker be consulted before signing any agreement.
Some years ago, the housing leasing market in areas such as Mexico City, had a very high demand with minimum supply. Therefore, rents, in general, were relatively high.
Presently, the situation has reverted because property owners, unwilling to sell due to the economic situation are choosing to lease as an alternative to selling, as a result, markets reflect a tendency for lower rents.
2. TERMS
The normal and basic terms of lease agreement are:
- One year contracts are common, particularly in housing. Commercial and industrial properties are normally leased for longer terms with predetermined formulas to adjust the rent annually.
- In some cases a co-signer or a bond is necessary in most cases.
- A deposit equivalent to 1-2 months rent is normally required.
- Generally, refurbishing is responsibility of the tenant.
- All utilities as well as condo maintenance fees, telephone, cable vision and other optional services such as special area security, are usually paid by the tenant.
1. BACKGROUND
Historically, in Mexico, the law favored the tenant, making it harder for the landlord to increase the rents and/or evict the tenant upon the termination of the contract. Consequently, contracts were designed to the protect the landlord as much as possible, but in 1993, the law regarding leases in Mexico City (Federal District) was modified in order to expedite the lawsuits against the tenants, with the resulting benefits for all.
As each state in Mexico has different laws regarding leases, it is advisable that a lawyer or a reputable real estate broker be consulted before signing any agreement.
Some years ago, the housing leasing market in areas such as Mexico City, had a very high demand with minimum supply. Therefore, rents, in general, were relatively high.
Presently, the situation has reverted because property owners, unwilling to sell due to the economic situation are choosing to lease as an alternative to selling, as a result, markets reflect a tendency for lower rents.
2. TERMS
The normal and basic terms of lease agreement are:
- One year contracts are common, particularly in housing. Commercial and industrial properties are normally leased for longer terms with predetermined formulas to adjust the rent annually.
- In some cases a co-signer or a bond is necessary in most cases.
- A deposit equivalent to 1-2 months rent is normally required.
- Generally, refurbishing is responsibility of the tenant.
- All utilities as well as condo maintenance fees, telephone, cable vision and other optional services such as special area security, are usually paid by the tenant.
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