Owning Your Place in the Sun
 Nicole Feenstra - Canoe.ca
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Dismal December days often fill my head with thoughts of selling off all I own in Canada and heading off to an island to waste away the rest of my days on beachfront property with all-I-can-drink coconut and pineapple refreshments.
A common dream, right?
But, how does one acquire property abroad? What are the legalities? Costs? Implications for the future?
While the steps may be different in every country, here's a small primer highlighting 10 things you didn't know about owning property in Mexico, a favourite sunny getaway spot, until now...
Property in Mexico can be purchased with a self-directed IRA (Individual Retirement Account) with no penalty, because buying foreign real estate is the same as buying a stock or bond. The only catch is the property must be treated as an investment.
Property values in some Mexican markets have doubled in the last five yearsand continue to appreciate. Even markets experiencing a slower appreciation are still steadily rising. For example, properties in Mazatlan, Mexico, have appreciated an average of ten percent per year for the past ten years.
Of the 4.1 million Americans who reside in other countries, approximately one million reside in Mexico.
Some of the larger groups of Americans and Canadians can be found in Mazatlan, San Miguel de Allende, Puerto Vallarta, Guadalajara-Lake Chapala and Los Cabos.
The top ten fly-in destinations in Mexico are: La Paz, Mazatlan, Manzanillo, Ixtapa-Zihuatanejo, Cancun-Riviera Maya, Acapulco, Mexico City, Los Cabos and Puerto Vallarta.
Banking institutions like Wachovia (NYSE: WB) and Deutsche Bank (NYSE: DB) offer fixed-rate mortgages for properties in Mexico.
Mexican property can now be insured by U.S.-based title companies, such as Stewart Title (NYSE: STC) and First American (NYSE: FAF). The cost for title insurance is estimated at about $5 per $1,000.
Non-nationals can now securely own Mexican real estate on or near a coastline or border with another country. The property is purchased through a bank trust (fideicomiso) or a Mexican corporation for foreign purchasers.
Properties in Mexico can be purchased with a reverse mortgage.
For a $140,000 investment, a buyer can own a view lot with a 900 square-foot home, a 1,200 square-foot patio and all household necessities (i.e. furniture, kitchen fixtures, etc.). |
Vallarta Weddings
Puerto Vallarta Real Estate | December 2008 
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