Short Term vs Long Term Rentals

One of the things to consider after you have purchased property in Mexico is whether you´d like to rent it out. Earning some money from your new investment can go towards paying off any funds that were borrowed to make the purchase or simply serve as a profitable side business. So the question invariably leads to whether you should look at short-term rental (also known as a vacation rental) or long-term rentals as the way to go. There are a lot of things to consider when deciding which one is best for you, and below I have provided some information outlining the differences between the two, which I hope will aid you in your decision making process.

When you are renting out your house or condo for a few days at a time (or even a weekend) this is referred to as a short-term rental, or vacation rental. In general this would usually apply to tourists or visitors from out of town who are looking for an alternative to staying in hotels or purchasing a vacation package. You will likely rent out on a weekly basis, or even offer nightly rates. In Playa del Carmen it´s common to charge double or more during peak holiday seasons like Christmas and New Years, where demand is quite high. This also applies to popular festivals like BPM in January which tends to draw groups of people who are looking to save on expenses by sharing  a house or condo.

In the case of long-term rentals you would be renting your place for an extended period of time, with tenants typically signing contracts for 6 months or 1 year . There are many advantages to this, the most obvious being that the monthly payments become a source of steady revenue that you can rely on. As an owner you would obviously be limited in the amount of use you can get from your own property, so when it´s your time to enjoy vacation and are hoping to get some time in your home you might be out of luck.

As you can see from the above information there are many pros and cons to either rental option, so you´ll have to make some decisions on just how much time you want to spend in your home and whether earning income is a top priority. Your new home in Mexico has great potential as an investment the way you earn money from it depends on your own particular lifestyle and goals.

Now if you have any question about how to purchase property in Mexico or about any of the TOP MEXICO REAL ESTATE properties we have listed anywhere throughout Mexico, please feel free to contact any of our Top Mexico Buyer’s Representatives and we will be glad to help you find your very own piece of paradise.

And remember, here at Top Mexico Real Estate…

We make it happen!

4 Basic Facts About Bank Trusts in Mexico

As mentioned in the Mexican constitution, no foreigner can acquire land directly in Mexico. If you are a Canadian who wishes to acquire land in the region called the restricted zone it needs to be done through a trust.

Here are the four basic things you need to know about a bank trust here in Mexico.

If you are a non-Mexican, Canadian or American and you wish to buy property within 50 km of any coastline here in Mexico or 100 km within the boarder of a neighboring country you will be required to have a bank trust.

In the region called the restricted zone no foreigner can acquire land directly in Mexico. In this zone meant nobody other than Mexican nationals were allowed to invest in lands located here. The situation has changed and the coastal and border areas that were restricted from foreign investment have opened to foriegners. This is thanks to the issuing something called a ¨fideicomiso¨, which is a bank trust. The fideicomiso was created to allow foreign investors to participate in Mexico´s rapidly expanding sectors. They can exercise complete and legal control over their investments and also comply with Mexico´s investment laws.

Trusts are normally for specific period of time and can not exceed 50 years

Except under certain specific cases when such term can be exceeded. Also, there are certain types of trusts that can be extended, for instance land trusts which are discussed below. Furthermore, trusts can terminate under various scenarios including the trust reaching its purpose, when such purpose becomes impossible to satisfy, by agreement of the trustor and beneficiary, or when revoked by the trustor, if the trust allows for such revocation, to name a few. After it´s expired, and unless otherwise provided by the trust, the trust assets will be distributed to the beneficiary.         

The trust or fideicomiso normally consists of three parties: the trustor or settlor, the trustee, and the beneficiary 

The trustor or settler can either be an individual or an entity, and it’s the party that usually transfers title or management of certain assets, rights and benefits to the trustee, who holds them in trust. The trustee is the party that holds the assets in trust, and the party that is given the responsibility of performing and complying with the specific purposes and goals of the trust. The beneficiary is not a party that appears in all trusts. They stand to benefit from the assets and trust by having privileges or special rights to the assets such as a security interest, or by receiving income from the assets, to name a few.  

When you own a property here in Mexico underneath a bank trust you have all rights to that property

You can extend on it, you can make modulations, and sell or take a lease out on the property.

Now if you have any question about how to purchase property in Mexico or about any of the TOP MEXICO REAL ESTATE properties we have listed anywhere throughout Mexico, please feel free to contact any of our Top Mexico Buyer’s Representatives and we will be glad to help you find your very own piece of paradise.

 

April Special at Encanto Este

Aldea Zama the only preplanned community in Tulum, is exclusive eco-friendly living at its finest. This residential neighborhood features a pedestrian only commercial zone, walking paths and beautiful greenery throughout. Aldea Zama is also just a short bike ride from the world renowned breathtaking Tulum beach.

The new development Encanto Este is located close to the commercial area in Aldea Zama. Encanto Este is what its name suggests: Charm. This elegant boutique development features 27 condos infused with Italian inspired design. This design creates a beautiful living spaces that go hand in hand with Tulum’s eco-friendly nature.

Encanto Este features spacious 2 and 3 bedroom condos over 3 levels.  The first and second floor condos have spacious balconies. The penthouse showcases a private rooftop solarium with a gazebo, Jacuzzi and bar area. The luxury finishes include marble flooring, granite countertops and regional wood cabinetry throughout. The fully equipped and ecological kitchen comes complete with a laundry room that already has a dryer and a washer. The common areas feature two amazing swimming pools and lounge areas with tropical gardens.

Condos at Encanto Este start at just $219,500 USD. During the month of April, Encanto Este’s is offering a complimentary furniture package included in the current sales price for all condos purchased on the second floor. Encanto Este is practically ready for you to start calling it home.

Sophisticated Italian design meets eco-friendly tropical jungle living. Encanto Este, designed for those who appreciate comfort with a relaxed tropical lifestyle. The showroom is available for viewing.  Don’t miss out as these gorgeous Condos are selling fast!

If you have any questions about Aldea Zama, Encanto Este or Tulum real estate, please feel free to contact one of our Top Mexico Buyer’s Representatives who will gladly walk you through the process of becoming a stylish eco-chic homeowner in Tulum

And remember, here at Top Mexico Real Estate…

We Make It Happen!

Sign Up for the Free Mexico Real Estate Webinar

We are just a few short days away from the free Mexico real estate Webinar called “You Can Own Property in Mexico”.

I would like to share with you the knowledge I have gained over the past 20 years in this free Webinar. This Mexico real estate Webinar will break down the process of finding your dream home into 8 simple steps. After the seminar you will be able to put into practice these steps and feel confident that you are on the right path of safely purchasing a property in Mexico.

Our 60-minute webinar will give you all the insider tips to help you make the dream of owning a property in Mexico a reality!

Join the webinar. Some of things you will learn about are:

* How to Creating a Wish List
* Available Financing in Mexico
* The Purchasing Process
* How to Move to Mexico

There will be also be a 20 minutes question and answering section at the end of the presentation.

For over 20 years I have been helping Americans and Canadians make their dream of owning a piece of Mexico a reality. I can help you to. Let me share my extensive Mexico real estate knowledge with you.

You still have time to reserve your seat! Sign Up here! The live Webinar will take place on March 31st at 1 pm EST, so make your calendar.

All attendees will receive a free gift and be entered into the raffle.  One lucky winner will win a 7 day Riviera Maya Live It, Compare It & Buy It Tour. This all-inclusive real estate tour for two is valued at $1,199 USD. All you have to do is attend the live Webinar for your chance to win.

Closing Costs

If you´re buying real estate in Mexico you have the obligation of paying closing costs during the closing of your real estate transaction. These closing costs are divided in multiple parts which are listed below.

Notary Public

The Mexican notary public has a completely different role from the one in the United States. In Mexico a notary public is an appointed official of the government, unlike in the U.S. or in Canada where their only obligation is to witness the execution of a document. Here they are responsible for formalizing the legal act through a deed, which will contain thr transfer of title through a purchase agreement or a trust. They calculate, retain and pay taxes on behalf of buyer and seller

You have to involve the notary public during your real estate transaction, and he has a schedule of fees that is authorized by the government.

Transfer of Property Tax

You as a buyer have the obligation of paying taxes and a certain amount of duties. On the date of closing when the transfer of title occurs the buyer must pay transfer of property tax. In the Playa del Carmen region it is 2% of the purchase price, whereas in the area of Cancun it increases to 2.2%.

Buyers need to pay a commercial appraisal because the Mexican government likes to cross-reference information. Because the payment of taxes are calculated based on the highest of 3 factors- the purchase price, the commercial appraisal and the assessed value, the value that is appointed by the government. So based on those 3 factors the government will calculate all those taxes that the buyer needs to pay.

The closing costs will include certain amount of certifications that are required by the government to record the deed, including some that describe or indicate: the current status of the company regarding payment of taxes water and sewage, if the property is beachfront, and that the property is current with the taxes regarding federal maritime zone, among others.

Trustee Bank

If you are a foreigner you cannot aquire land directly, so you need to engage a trustee bank. which will require a certain amount of fees as well. They are for:

#1: A permit issued by the Ministry of Foreign affairs. The trustee bank will include their annual fees and another fee which they call an acceptance fee, through the bank will accept to be your trustee bank.

#2: Escrow and legal fees. You paying your escrow and the closing legal support so that we can guide the customer from beginning to end until the transaction closes.

For more information about purchasing property in Mexico subscribe to our blog, or contact us.

And remember, at Top Mexico Real Estate…

we make it happen!

The Winner of the Holiday Live it Tour

We have a winner of our Holiday Raffle. The lucky person had their name drawn and will soon be on his way to the Riviera Maya. He is the winner of a free 7-day real estate vacation tour- the “Live It, Compare It & Buy It Tour”! The video below shows his name being drawn from our collection entries.

Bryan Popkey will enjoy 5-star all-inclusive accommodations and visit properties in the Riviera Maya when he takes part in the Live It Tour. Our team of qualified Top Mexico Buyers’ Representatives will be awaiting his arrival, ready to educate him on the local real estate market. They will show him a wide range of property choices available here and he will visit all of the best neighborhoods in the area.

Have you ever thought about buying a home in the Mexican Caribbean? Then you should join one of our tours yourself. Top Mexico Real Estate BlogWe have workshops and classes conducted by the leading experts because we know how important it is to make informed decision when you buy Mexico real estate market. The Live It Tour covers a wide range of topics and is the perfect way to start off your new year!

Click here for more information.

And remember, at Top Mexico Real Estate…

We Make It Happen!

Free Mexico Real Estate Seminar in Stamford Connecticut

On February 19 the FREE Mexico Real Estate Seminar series continues. Our specially designed in-depth presentation about the process of buying real estate in Mexico will be at The Hampton Inn & Suites in Stamford, Connecticut. Joining us will be a team of real estate professionals whos combined knowledge will help answer any questions you might have about becoming a home owner in Mexico .

I have been working professionally in Mexico since 1995 and founded TOP Mexico Real Estate in order to help non-Mexicans purchase and invest in real estate in Mexico. My 20 years of experience will help those of you attending get insight on the Mexico buying process. At the seminar I will present the Live It, Compare It & Buy It Tour, which features online real estate buyer’s classes and an education on the “ins-and-outs” of the buying process in Mexico. This was made for people who are looking for a vacation or retirement home Mexico. I will also be including a cost of living comparison with Mexico and various United States retirement destinations so that you can see how affordable it is down here.

Jose Romero, Assistant Director of Federal real estate sales for FONATUR-Ministry of Tourism, will be joining me to share his knowledge of Commercial and Industrial Real Estate. He has 12 years of teaching experience in the field of economic integration law, economic theory and law and his work experience includes Corporate Manager of Real Estate Development for Grupo Chedraui and Commercial Director for Sare Commercial.

Ivan Castillo, Mexico Real Estate Attorney and Regional Manager for Stewart Title in Mexico, will also be with us to talk about how a foreigner can own real estate in Mexico. His presentation will walk you through the Mexico buying process, including comparisons between Bank Trusts and Mexico Corporations and the role the play in the buying process. He has been with Stewart Title for 11 years, making him an expert in closing services, title insurance and escrow services.

For those of you who want to hear about the experiences of previous buyers we will have Client Testimonials  from past clients. Our Q & A session with our expert panelists will let you ask about investment and real estate in all matters related to Mexico real estate and the buying process. Pre-registered guests receive a special complimentary gift and all guests will receive a free entry into our incredible raffle, giving one lucky winner a 7 Day Riviera Maya Live It, Compare It & Buy It Tour for two valued at $899 USD.

The Hampton Inn & Suites are located at:

26 Mill River Street,

Stamford, Connecticut, 06902,

USA

The seminar runs from 6:00 – 9:00 pm, follow the link below to see the map.

https://goo.gl/maps/6ZPYA935ons

Once you have attended our seminar you will see how easy it is to own your very own piece of Mexican paradise.

Pre-register for the FREE Mexico Real Estate educational seminar here.

We will see you in Stamford on Feb 19!

Top Mexico Holiday Raffle: Enter to Win

Top Mexico is giving away a big gift this holiday season. We are holding a raffle! So what´s the prize you ask? A free 7-day real estate vacation to the Riviera Maya, and here is your chance to enter! If you own a passport and have free time in the new year to travel we will take care of all the details of your trip. Expect 5-star accommodations with transportation to a variety of local properties as we help you familiarize yourself with the real estate market here. The raffle runs from Dec. 8 – Jan 5th. There will only be 1 winner. Will it be you? The draw takes place on Jan. 6th, so enter now.

Spending time with the Top Mexico team of buyers’ experts is a one of a kind opportunity. You will educated on the local real estate market, and you´ll learn about the various regions in the Riviera Maya where you can buy. There´s a wide range of property choices available here and the visit will take you to all of the best neighborhoods.

Have you thought about owning a home in the Mexican Caribbean? This tour and all of our workshops and classes are conducted by experts who can help make your home buying dreams a reality. Buying real estate in the Riviera Maya requires making informed decisions about the Mexico real estate market. The Live It Tour will help you do that.

Click here for more information, And remember, at Top Mexico Real Estate…

We make it happen!

How to Get to the Beach From Palmares Condos

This outstanding video series showcases new Playa del Carmen real estate property. It shows the viewer how to get to the beach from those properties, giving you an idea on how close each property really is to the beach.

Enjoy life in the beautiful Mexican Caribbean, be part of the growing number of foreigners investing in a property in the heart of the Riviera Maya: Playa del Carmen.

Once a sleepy fishing village, Playa del Carmen is now a cosmopolitan city with exciting real estate opportunities. If you have ever dreamt of owning a vacation property in the Riviera Maya here is your chance.

One of our favorite Playa del Carmen real estate developments is Palmares, a condo complex located only a 10 minute walk from the turquoise blue waters and white sandy beaches shown in the video. Palmares offers one, two and three bedroom condos for those that want to live in the middle of downtown Playa del Carmen.

Palmares has all the amenities and services needed to live in comfort such as elevators, business center, lobby, gym, swimming pool with a rooftop lounge and underground parking.

This condo will also have commercial spaces. The unbeatable location is close to schools, shopping malls, grocery stores, and most importantly… the beach. Only 5 blocks separate your condo from the beach! A prime location like this will be hard to find somewhere else.

Owning Playa del Carmen real estate is a sound investment. You can own a 1 bedroom condo at Palmares for only $175,000 USD. Palmares, a beautiful condo with an excellent location, close to the beach!

If there are any Playa del Carmen real estate properties that you would like us to feature in this video series please feel free to drop us a line.

Top Mexico Real Estate…

We Make It Happen!

Why the Smith’s Chose Top Mexico Real Estate

Have a look at this great testimonial from our clients, the Smith’s. They just purchased the home of their dreams in Mexico and list a few of the reasons why they chose Top Mexico Real Estate as their representative during the purchasing process.

1. Easy to navigate website, with maps for every property.
2. Updated listings on their website, all the information you need is there: description, photos, map, contact information for the agents and so on. They even provide information regarding where the nearest beach is to each property!
3. Support and help every time we needed it, our agent went above and beyond just selling me a property; they were there for me in every step of the way.
4. Top Mexico Real Estate also offered us a list of trusted lawyers, notaries and other services we might need when purchasing a property in Mexico.
5. Easy and straightforward communication with the Top Mexico Real Estate team.

So, if you are considering purchasing a property in Mexico, contact us!

Here at Top Mexico Real Estate…

We Make It Happen!