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!

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.

And remember, here at TOP MEXICO REAL ESTATE…

We make it happen!

 

Turquoise blue water and warm tropical weather are just a couple of the things that attract people for all over the world to Playa del Carmen. Have you ever thought of owning a vacation home in Playa del Carmen? Well now you can at the new pre-construction development Zenith. Zenith is situated on The Fives beautiful property, located just 15 minutes from downtown in the Zona Diamante area. Which is home to the Xcalacoco Beach, one of the most beautiful beaches in the area.

Zenith owners will be able to enjoy all the luxury amenities at The Fives. You can enjoy relaxing at one of the multiple large swimming pools which snake through the property or enjoy the Beach Club and beachfront infinity pool or grab a drink at one of the many swim up bars. There are multiple restaurants, lounges and snack bar throughout the beautifully manicured property. Owner can get their work out on at the fitness center or play a game on the tennis court. Relax in the spa while your kids have fun at the Kids Club. Owner also receive housekeeping service, allowing you to truly be on vacation while enjoying your condo.

One of the things that makes Zenith such an appealing condo to invest in is that it is designed to operate as a 5-star condo-hotel that also makes you money. There is a guaranteed return on your investment thanks to the remarkable maintenance and administration program in which your property is managed for you by the very reputable hotelier, Karisma. When you are not using your condo it will continue to generate revenue for you.

Zenith offers superbly crafted condos featuring spacious two or three bedrooms, luxurious bathrooms and fully equipped kitchen with beautiful details such as granite countertops. Zenith’s outstanding condos come fully furnished and equipped ready for you to start enjoying your vacation home.

The luxury residences at Zenith start at just $199,000 USD with up to 3 years financing and 0% interest.  You will also be able to enjoy all the delightful amenities at The Fives immediately when you purchase a pre-construction condo. During the financing plan The Fives is offering you 4 weeks of free usage a year and including their gourmet inclusive food plan during the financing plan.

Thanks to the excellent financing program this is a great time to buy at Zenith and enjoy the benefits of vacationing in Mexico and making money as well. Mexico´s cheap cost of living can make your money go very far indeed while you escape the cold winters back home.

If you have any questions about The Fives, their new project Zenith or you would like to learn more about this great financing deal, please feel free to contact any of our Top Mexico Buyers’ Representatives. It´s a great time to invest in a condo at Zenith.

And remember, here at Top Mexico Real Estate…

We Make It Happen!

For over 10 years, Top Mexico Real Estate has been helping Americans and Canadians safely purchase their dream home in Mexico.  During this time I often get asked, ‘What is the best way to move and retire to Mexico?’.  That question prompted me to start working on an education webinar series. This series will allow me to answer Mexico real estate questions on a much larger scale.  So on March 31st Top Mexico Real Estate will be presenting its first FREE, live Webinar.

The first webinar in the series, ‘You can own property in Mexico and make your retirement savings go further’ will breakdown and explain in 8 simple steps how you can make that dream of owning property in Mexico a reality!

Don’t face the daunting task of purchasing Mexico real estate alone… have Top Mexico Real Estate by your side. You will be able to put into practice these 8 simple steps and feel safe knowing that you are on the right path of making your dream of owning Mexico real estate a reality.

The Webinar will take place on March 31^st at 1 pm EST.  The live Webinar will last approximately 40 minutes and then conclude with a 20 minute Q&A session, so have your Mexico real estate questions handy.  To sign up for the webinar please click here.

All Webinar attendees will be entered in a raffle to win a free 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.  The one lucky winner will be drawn at the end of the Webinar. Good Luck!

Make your calendars… we hope to see you there!

Are you planning on visiting Playa del Carmen and looking for an interesting way to spend an afternoon? Then consider visiting the new three-dimensional museum that officially opened on February 12. It´s located in downtown Playa on 10 calle norte, inside the Pelican Plaza and a short walk from the beach and ADO bus station. The 3D Museum of Wonders will displaying more than 60 pieces of work on by artist Kurt Wenner, a talented designer of  architecture, fine art, and advertising.

There are only five other museums like this in the world, and the unique thing about it are the optical illusions and various other visual effects, along with two theaters inside that have 3D screenings. With the numerous pieces of three-dimensional art works it provides a two-hour interaction with various works by the international artist. The 3D Museum of Wonders was created with a private investment of one million US.

Upon entering the gallery you will have to remove your footwear, so make sure you have a pair of socks with you to avoid walking on the floor. The great thing about this art gallery is that you are encouraged to take pictures. The 3D effect of the artwork is seen through a lens, so don´t forget to arrive with your digital camera or cell phone fully charged. Don´t worry if you are having difficulty in getting the photos to come out correctly, there are guides  available to help you out if you have questions on how to best capture the images.

This museum is the perfect way to enjoy an afternoon your family or loved ones in downtown Playa Del Carmen amidst your shopping and beach activites. If you go on Sundays you´ll find that it tends to be quieter and the admission is half price. So what are you waiting for? The 3D Museum of Wonders is a must-see experience that you cannot miss while passing through the Riviera Maya

If you are looking to purchase a property in the downtown Playa del Carmen please contact one of our Top Mexico agents who will be happy to show you available properties nearby. 

And remember, at Top Mexico Real Estate,

We make it happen!

Notary Public

When you 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.

In Mexico a notary public is an appointed official of the government are responsible for formalizing the legal act of purchasing a property through a deed, which will contain the transfer of title through either a purchase agreement or a trust.

You have to involve the notary public during your real estate transaction. In addition to the above duties they also calculate, retain and pay taxes on behalf of thr buyer and seller.

Transfer of Property Tax

On the date of closing when the transfer of title occurs ypu must pay transfer of property tax, which is 2% of the purchase price here in the Playa del Carmen region you pay.

The payment of taxes are calculated based on the highest of 3 factors:

1. the purchase price
2. the commercial appraisal and the assessed value
3. the value that is appointed by the government

Based on these the government will calculate all those taxes that the buyer needs to pay.

Trustee Bank

As are a foreigner you you need to engage a trustee bank because you cannot aquire land directly. There are some fees involved in that 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!

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. We 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!

February 19 is the date of our next FREE Mexico Real Estate Seminar. It´s a specially designed in-depth  presentation about the process of buying real estate in Mexico. I will be at The Hampton Inn & Suites in Stamford, Connecticut, joined by a team of real estate professionals who´s knowledge and expertise can answer any questions you might have about becoming a home owner in Mexico .

I´ve been working professionally in Mexico since 1995 and founded TOP Mexico Real Estate to help non-Mexicans purchase and invest in real estate in Mexico. At the seminar I will presenting the Live It, Compare It & Buy It Tour, with online real estate buyer’s classes and an education on the buying process in Mexico. Designed for people who are looking for a vacation or retirement home Mexico it includes a cost of living comparison with Mexico and various United States retirement destinations. You will see how affordable it is down here in Mexico.

Jose Romero, Assistant Director of Federal real estate sales for FONATUR-Ministry of Tourism, will also be at the seminar. He has 12 years of teaching experience in the field of economic theory and law and his past 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, his 11 years with them make him an expert in closing services, title insurance and escrow services. He will talk about how a foreigner can own real estate in Mexico, with a presentation that walks you through the Mexico buying process. It includes comparisons between Bank Trusts and Mexico Corporations and the role the play in the buying process. 

The experiences of previous buyers are also important, so we include Client Testimonials  so you acan hear it directly from them. Our Q & A session with our expert panelists will let you ask questions about investment in Mexico real estate and the buying process.

Pre-registered guests receive a special complimentary gift and all guests will recieve 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, the link below has the map of the location.

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

Come and learn 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 hope to see you in Stamford on Feb 19!

 

Top Mexico wants to give you a big gift this holiday season. We will be holding a raffle for a free 7-day tour of the Riviera Maya where you can learn all about real estate. 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.

This is a one of a kind opportunity to spend time with the Top Mexico team. Our experts will educate you on the local real estate market, you´ll learn about the various regions in the Riviera Maya, and see the wide range of property choices available here while visiting all of the best neighborhoods.

If you´ve thought about owning a home in the Mexican Caribbean you will enjoy the  workshops and classes that have been set up make your home buying dreams a come true. The Live It Tour of the Riviera Maya will help you make informed decisions about the Mexico real estate market so you can buy with confidence.

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

We make it happen!

In this exclusive Top Mexico Real Estate video, I chat with you a bit about some of the reasons why it can be beneficial to consider purchasing a pre-construction home in Playa del Carmen vs. a finished home in Playa del Carmen.

One of the biggest reasons to invest in a preconstruction home in Playa del Carmen is from a financial standpoint!  Buying before a project is fully complete can get you great discounts (5%-10% below value) on your purchase.  This is awesome for investment reasons!  You can see a quick return on your investment upon completion of the development.

Purchasing a Playa del Carmen preconstruction home or condo also gives you great payment plan options that you might not otherwise see if you are buying a finished home.

Here in this video, I explain to you a typical payment structure for a pre-constructed home.  You can also get a great sneak peak of the unique beauty and quality of Hacienda del Rio in Playa del Carmen, where I present to you the information.

Here are some highlights of the payment plan option:

• 1st payment – 30% due at the signing of the promissory contract
• 2nd Payment – 20% due at Foundation Stage.  This stage is when tall the floors, walls and ceiling has been completed
• 3^rd Payment – 20% due at Lock up stage.  This is the point where all the windows and doors are in and can be completely locked up
• Final Payment – Final Percentage due at Trim and finishing stage.  This is when all final details and installments such as toilets and appliances are in and ready to go!

Some people feel that purchasing a finished home is easier and comes with less hassle.  But investing in pre-construction can give you many more perks financially and also in creativity.  Buying a preconstruction home in Playa gives you the chance to sit down with the developer and make customized changes to the layout and the details.

For more information about investing in pre-construction in Playa del Carmen talk with your trusted Mexico Real Estate agent!