Real Estate Investments

Real Estate Investments

In the past, the stock market has always been the number one choice for North American investors as they have trusted the stock market with their hard earned income, but lately there are clear signs that this is changing to real estate investments due to the continued uncertainty of the global economy, which is why people are searching for secure investment choices.

Secure investments

One secure investment that you can feel and visibly see is a real estate investment. It is becoming very clear that the real estate market is a safer investment than the stock market for many different reasons, but only if you purchase property that is in a region that will grow and generally in these areas the property will be affordable. Many times when one invests in real estate they are required to put a large down payment for the property, but the returns is very positive and real estate investment properties are for smart buyers who are wanting a property that will provide income and these type of properties would include; apartment buildings, vacation homes, retail properties, and multi-family buildings.

How to invest in real estate

There are a few different ways that you can invest in real estate as you can purchase a (REIT and FIBRA) real estate investment fund or you can purchase a private home, vacation home for rentals, retail locations, office spaces, and apartment buildings. As you can see real estate investments options are endless.

By just glancing, one may think that the stock exchange is the better investment for people over real estate investments, but once inflation is added in along with the cash flow that you would receive annually with the real estate property investment, then it is crystal clear that the better investment opportunity is with real estate investments. One should also consider the appreciation on the real estate as with it you will be earning money every year just by being the owner. One excellent real estate investment is purchasing real estate in locations that is not fully developed, but on the way to emerging, and doing this will provide an immediate appreciation when the location is fully developed. Another excellent real estate investment is purchasing properties that will provide you with income as this is a large return on your real estate investment. Vacation homes and multiunit apartment buildings are two types of properties that you will receive a large return and income for your investment.
Real Estate Investments vs. Stock Market

Here are just a few of the top reasons why real estate investments are better than the stock market:

  • Larger Control Personally
  • Many Advantages with Taxes
  • Real Estate Investments are Secure and Stable
  • Easy to Analyze
  • The Property is Yours to Use

As you can see, real estate investments are the better option over the stock market and it doesn’t matter how old you are. You will receive a constant return and income that is secure, safe, and steady. Real estate investments will always be a safer choice for many, many years and if you select a property that produces income in an up and coming area, then your investment could triple.

Vacation Rentals in Mexico

Real Estate for Vacation Rentals in Mexico

There are plenty of real estate opportunities available for prime locations in Mexico that include Los Cabos, Puerto Vallarta, and Cancun in case you think that you have missed out on an amazing real estate opportunity. For foreigners it is easy to invest in real estate for vacation rentals in Mexico, especially now that there are websites, which include Craigslist and Airbnb where vacation rental properties are advertised.

Real Estate for Vacation Rentals in Mexico Investing

Today, foreigners can easily purchase real estate throughout Mexico even though there may be different regulations on buying property that is located in the restricted zones (50km from the coast and 100km from the border). After you have bought Mexican real estate you can start the task of letting the real estate work for you by renting it out short term or long term. Investing in vacation rentals are very popular for vacationers in Mexico and the demand is only increasing yearly. Last year there was an increase of 9% in the real estate industry for the best destinations in Mexico, and the occupancy rates are only increasing in these areas as well.

Vacation Rental Income in Mexico

Why purchase Mexican real estate for vacation rentals? One of the main reasons is the great income that you will receive. Once you have purchased Mexican real estate for vacation rentals you can advertise the rentals in Mexico at US rates, which means you will receive a stable income at a premium price, especially if you plan on renting your vacation rentals during the peak season, which in Mexico is during the winter months. You will be charging the rental in US dollars, but your maintenance, expenses, and all running costs can be paid in Mexican pesos, which means you will make a great return, even if the property appreciation is considered throughout the years.

Paying Income Tax on your Vacation Rentals in Mexico

During the past few years, any income from vacation rentals in Mexico often went unnoticed, but the new tax laws state that all property owners and investors must pay taxes on any income received from vacation rentals. You should always consult with a tax attorney in Mexico, so that you don’t get in any trouble with the law for not paying tax on vacation rentals in Mexico.

Real Estate Property that You Can Use

The real estate property that you purchase is an investment, but it is also a vacation property that you can use too. You will have an amazing vacation property in Mexico available for you that is your very own. One good thing about purchasing real estate property in Mexico is you can rent it out and get the extra income along with having a great vacation property that you can use too. Real estate for vacation rentals in Mexico is a great investment for foreigners.

Villa la estancia real estate cabo san lucas

Cabo San Lucas Prime Real Estate

Cabo san Lucas is one of the most beloved vacation destinations in Mexico, and an area in which real estate is in high demand! If you have discerning tastes and are considering a property in the area Villa La Estancia, Medano Beach, should be at the top of your list!

Villa La Estancia in Cabo San Lucas

The Villa La Estancia resort offers real estate that overlook the sparkling waters of the ocean and the iconic El Arco landmark, found at Land’s End. Better still, however, they offer these properties in both Full and Fractional ownership options.

Cabo San Lucas prime real estate

Villa La Estancia in Cabo san Lucas offers a tranquil setting, sophisticated lifestyle, and truly world class service and amenities to people who choose to do business with them. What they offer is a dream come true for many, too, as it has put the opportunity for ownership in Cabo san Lucas firmly on the map. The elegant villas are hacienda style, and decorated to the highest standard. Your friends and family will be champing at the bit to visit you here!

Furthermore, this is the only real estate option on Medano Beach which offers both full and fractional deeded ownership opportunities at the same resort.

Location of Prime Cabo real estate

This real estate is impeccable not only in form, but in placement; Villa La Estancia properties are only a short walk from the water and Medano beach (where the waters are safe for swimming), and a moderate walk, or short taxi trip, from the downtown area.

Real estate for sale

The residences in question are varied, but consistently high quality. Villas range from 2 and 3 bedroom units to large, luxurious penthouses. All villas come in a sophisticated hacienda style and are fully furnished and decorated. You will find that each has double glazing, steel cabinets, maple cabinets, walk-in closets, and marble floors. There are also whirlpool tubs, gourmet kitchens, and elegant gourmet kitchens and dining areas in each villa.

You Need to Buy Mexican Real Estate

Four Parties You Need to Buy Mexican Real Estate

Are you planning to buy Mexican real estate? If your preferred land is within the restricted zone (within 50 km of the coastline and borders), it is important to know that there are 4 important parties involved in your transactions. Each of these parties will provide assistance according to their expertise. With their help, the process of follow to buy Mexican real estate is easy.

  • Notary Public
  • Buyer’s Attorney
  • Bank (Fideicomiso)
  • Real Estate Company

Notary Public

You need an official and unbiased representative of the government of Mexico whenever you transact in real estate business. You cannot buy Mexican real estate without the services of a notary. A Mexican Notary (Notario Publico) is a licensed attorney duly certified by the state and Federal government. A notary in Mexico acts the same as those in Canada and has greater responsibilities than notaries in the US. A Mexican Notary has gained the position as a government official after passing stringent exams given by the Mexican government. All records they provide must be original and must be recorded in the Public Registry of Property. A Notary can be held liable in both civil and criminal terms, that is why a notary’s role in Mexico is very serious. Aside from these expectations, a notary is also tasked to authenticate legal documents, calculate capital gains tax, and ratify all real estate transactions in Mexico. A real estate transaction which is not ratified before a notary and rightfully recorded in the Public Registry is considered invalid and non-enforceable. In any real estate transaction, the notary is highly responsible both to the buyer and the seller, as well as to the Mexican government.

Mexican Real Estate Buyer’s Attorney

It is not compulsory to have a buyer’s attorney when you buy Mexican real estate, but it is recommended. It is also important to get a Mexican attorney instead of a foreign one since foreign attorneys are not licensed to practice law in Mexico. Getting the service of a licensed Mexican attorney will provide you with advice on the laws related to the real estate. The attorney will represent you and protect all your legal transactions. It will also be the attorney who will draw up contracts and review the terms and conditions of the sale. Aside from these, an attorney can help you save your money as they have lots of contacts including banks, notaries, and the Mexican politics.

Mexican Bank for your fideicomiso trust

Your authorized bank is your Trustee Bank which will act as Trustee (fideicomiso). The bank must be a Mexican registered financial institution. As a buyer, you must choose a qualified bank which will ensure a legal and appropriate transaction. The bank will provide a trust for the real estate which you own and control on your own. The bank trustee is not allowed to transfer ownership of the property, change the beneficiary rights, or do anything about the property without the owner’s written instructions. With the government protection against bankruptcy, the trust is guaranteed by the government indirectly.

Real Estate Company

When you choose to buy Mexican real estate, the procedures will be different from what you may be familiar with. It is important to have the right people for your business transactions. Having these people and a team of experienced, knowledgeable, and dedicated real estate agents will make your experience not only different, each step is ensured with guidance, and the outcome is a smart and secure buy.

Mexican Real Estate Q&A

Mexican Real Estate Q&A – Fideicomiso

Foreigners who are interested in purchasing Mexican real estate should continue to read below as the top questions and answers are provided about Mexican real estate and fideicomiso trusts.

What is a Fideicomiso?

A fideicomiso is a real estate trust that you can apply for at a Mexican bank of your choice when you purchase real estate in Mexico. The bank is the trustee to the fideicomiso, and you (or anyone you designate) are the beneficiaries of the trust. The beneficiaries have control over the real estate. The trust is not a lease, but it is equal to a Living Trust in the United States. You can sell it, mortgage it, use it, enjoy it, will it, and inherit it. The Mexican bank will represent you on your behalf, and be the administer

Do you need a Fideicomiso?

If you are a non-Mexican, you will need to use a fideicomiso to legally purchase any real estate in Mexico that lies in the ‘restricted zone’, which refers to any real estate that is within 31 miles (50 km) of all coastlines and 62 miles (100 km) from the borders of Mexico. Foreigners will not need a fideicomiso if they are purchasing real estate that is not located in the restricted zone, although many foreigners still choose to use the trust.

Does my property become an asset of the bank?

The bank has no rights to your property, the bank is merely a steward to your trust. Your property does not become an asset of the bank. No legal action against the bank or bankruptcy will affect your trust.

What is the Fideicomiso trust time period?

The fideicomiso trust time period is 50 years and at any time the trust can be renewed for a fee. The fideicomiso trust is always set for 50 year increments, which is also guaranteed for renewal.

What are the costs involved in getting a fideicomiso?

The current fideicomiso cost is $500.00 (USD).

Does the Mexican Government have the right to take my Property?

At no time can the Mexican Government take your property. Under the NAFTA – North American Free Trade Agreement states that Mexico cannot directly retrieve your property unless it was for a public purpose, such as building roads or highways, and then this can only be done through the correct legal action. The government will give you the fair market price for the trust along with any interest that may accrue.

Can I have a fideicomiso trust for any ejido land?

You cannot get a fideicomiso trust for any ‘ejido’ land as only Mexican nationals can own the ejido land legally. This type of land in Mexico is not considered real estate as it does not come without a title or deed.

Moving Abroad

Will you Miss your Family Too Much Moving Abroad?

If you are considering moving to a new country and starting a new life or retirement abroad, you might find yourself challenged with how to cope with missing your family. The idea of having to leave your elderly loved ones or your young ones might keep you from relocating. Here are some good tips to stop you from missing your family too much when moving abroad.

Start socializing asap

Start socializing as soon as you can upon moving abroad. Gain new friends and widen your social circle by joining as many groups as possible. Get involved with community activities such as taking Spanish lessons, joining dance, cooking, or yoga classes etc. Be sure to create excuses to invite your new friends to other events so that your circle starts growing. Making new friends who are in the same position as you will certainly help when you miss your family.

Get in touch with new technology

There is actually no excuse not to communicate with your far-off loved ones with so much new technology. Through Internet, webcams, and services like Skype, Facetime, and others, you get to talk and even see your family and friends face to face with just a few clicks. Don’t be shy of new technology; if need be ask your younger family members to show you how to use it so that staying in touch is easy.

Stay regular

You can also use your gadgets to set up a regular schedule when you are going to make your calls or do your video chats. A weekly, monthly, or whatever schedule that will make up your routine calls is more convenient. You won’t have to blame yourself when you realized a long time already passed by without any word from you or your closest back home. The best way is to not let too much time go by. Get into the habit of sending regular messages and calling frequently.

Choose an attractive location

When you make your move, choose a place where direct flights are available for your family and friends back home to take advantage of. Cities served by budget airlines will encourage friends and families to come and pay you a visit. You will be amazed at how many of them will come over and cheer you up.

Choose a place where the cost of living is low

You might also find it more convenient if you stay in a place where the cost of living is less expensive. This will motivate more vacations from for your family and friends. You will also have enough to save for your yearly visits back home or you may want to treat your dearest by buying tickets for them when they want to come over.

Buy or rent property that is big enough for visitors

Prepare for your guests when moving abroad by making sure you have plenty of rooms to accommodate them and additional bathrooms. Make it comfortable when people visit and you will see they will come and visit more often.

Moving abroad can be the best decision you ever make!

Purchase Real Estate in Mexico

How Can Foreigners Purchase Real Estate in Mexico?

It is very possible for foreigners to purchase real estate in Mexico. Foreigners can purchase real estate that is located near the popular beaches despite the fact that these areas are Federal Zones and are limited to certain restrictions. It is not uncommon for individuals to hold on to the misconception that foreigners are unable to own or purchase real estate in Mexico, but thankfully, the opposite is true.

Mexico’s laws for foreigners wishing to purchase real estate in Mexico’s federal zones

Mexico’s laws and constitutional limitations have set forth special laws for foreigners who may wish to purchase property that is within 50 km (31 miles) near the coast or 100 km (62 miles) near any international borders. These areas are considered Federal Zone areas and to purchase real estate in these parts foreigners must get a land trust. The official name of a land trust is in Mexico is a fideicomiso in Mexico. A fideicomiso is necessary when purchasing real estate in Mexico in the federal areas, making the purchase totally legal. This process is a common procedure in Mexico and there are numerous banks in Mexico that provides this service. On another note, there are moves to remove the need for fideicomiso, although this could take some time to become a legal reality.

Bank Trust Fideicomisos

All non-citizens to Mexico have to go apply for trust deed when buying real estate in Mexico’s federal zones. This is easy to do through Mexican banks. The Mexican bank will then represent the foreigner and will become the trustee on the foreigner’s behalf. The bank will act as the intermediary only. Ownership and all rights will belong to the foreign buyer. In easier terms, the foreign investor is the beneficiary and they control all rights to the trust and the Mexican bank is the trustee and will essentially manage the trust and oversee anything that involves the trust. As the foreign buyer you have the right to rent, transfer, sell, or occupy the property fully. You can also leave the property to someone in a will in case of your death.

Bank Trusts are Renewable

The Fideicomiso bank trust provides foreign buyers purchasing real estate in Mexico with a term that is 50 years and at the end of the 50 year term the foreign buyer has the right to renew the bank trust for another 50 year term. If you have selected to sell the property later on to a national resident of Mexico, then the bank trust and term can be terminated, but if you select to sell the property to another foreigner, the bank trust and terms can be transferred over or they can decide to start their own fideicomiso.

Foreign Beneficiaries for real estate in Mexico

You can choose to appoint a beneficiary once the trust has been completed, and this means that the substitute beneficiary will claim all the trust rights, and the beneficiary that you have appointed for the property will claim the property if you pass away before the end of the 50 year trust. This benefits you. Your beneficiary will not have to go by any probate hearings with the courts in Mexico and this will also save you time and money too.

Ownership Opportunities in Cabo

Traditional Ownership Opportunities in Cabo

Foreigners and Mexican nationals alike can enjoy a number of traditional ownership opportunities in Cabo, from full ownership of family homes, to condos to apartments, all of which are suitable for those seeking to relocate permanently in Cabo San Lucas or San Jose del Cabo, wanting to buy a vacation home or looking to invest in property to rent. For almost every kind of vacation homeowner, there are many different options available in Cabo.

The Real Estate Market in Cabo

Over the last 5 years since the economic slump, most real estate ownership opportunities in Cabo have been re-sale properties, however, we are seeing a rise in new properties coming on the market as developers are building again. These new homes are attracting a different type of buyer looking for properties that are smaller and more cost effective. Most people looking for ownership opportunities in Cabo are looking to purchase something new, so this is a good time for the real estate market in Cabo.

Second home ownership in Cabo

Second home ownership in Cabo is very appealing for those wanting a vacation home to bring coworkers, family, and friends. You can come anytime you want and use it anytime. There really is nothing like owning your own place. However, remember that when you purchase a second home, you are responsible for all repairs and maintenance, so this will require that you hire someone to take care of your vacation property like a property manager.

Is it safe to buy in pre-sale in Cabo?

Unfortunately, there are downsides to purchasing a new product as you really don’t know what you will end up with and the risk that the developer actually finishes the project is very real. Nevertheless, you can get a great deal when buying during the pre-sale stages, meaning that your profit is much greater. Likewise, when purchasing a brand new property in Cabo, you can be sure that the designs are modern, built with the latest building products and ready to use.

How about building your own home?

It may be safer to purchase a property that has already been built, but there is something magical about building your own home, because you will be involved in the design, so you know what you are getting. Speaking Spanish will help you in this process but it not essential if you work with a reputable architecture firm and construction firms.

Condominium Living

Condominium living is the first choice for most people wanting a second home in Cabo. It is just easier, because you can maintain a condo with ease, then when it is time for you to return home you just lock up the condo and go home. However, there will be neighbors you will have to deal with. Neighbors could be on both sides of you or below or above you, so think about this when you are picking a condominium. You also are responsible in the upkeep, repairs, and maintenance on the condo inside, although the common areas are maintained with your HOA fees. An added plus to condominium living is they stand tall, so you will have great views.

Read: How to choose the best Real Estate in Mexico
Villa La Estancia Real Estate Investment in Cabo

A Real Estate Investment in Cabo

When looking for a vacation home you want somewhere that is both beautiful and functional, somewhere that will continue to hold your interest and admiration for years to come. Cabo San Lucas could be such a place; this is a perfect fusion of the time and wind created natural environment and the creature comforts that man brings with him. The Cabo desert is flanked by rolling mountains and the sparkling Pacific, but in the midst of this is Cabo san Lucas.

People may come here to see the iconic arch-shaped rock formations, but they stay for the city and all it has to offer.

A real estate investment in Cabo

Cabo has long been a vacation hotspot and real estate investment, but it can be so much more! The urban expansions of the last few decades were well-planned, and this has paid off quite spectacularly. An extensive selection of properties can be found here from charming condominiums to vacant lots, to city apartments, and of course beach-front homes.

Here are some of the most important factors to consider when you think about moving to Cabo San Lucas or making a sound real estate investment in Cabo.

What’s the weather like?

Climate is a big deal for many people when they look for a vacation home and real estate investment; if you’re used to shovelling snow from October onwards then warmth and sunshine are pretty high on the priorities list, right? Well, Cabo San Lucas will not disappoint! The temperatures here range between 50 and 95 degrees Fahrenheit, and even on the hottest days humidity is manageable. The Pacific breeze takes the edge off even the hottest day, and you can bank on a wonderful 15 days of rain per year… just enough to stop all the plants dying off! In Cabo san Lucas barbeque is always on the menu.

Golf courses

For many retirees a second home is all about the lifestyle it can offer them rather than the minutiae of the home itself. This is yet another area where Cabo comes out on top; the medical facilities are world class, the cost of living is lower, and all the modcons you could ever want are here. But it’s the golf courses that really set it apart; courses designed by the biggest names in the business can be found here.

Rub shoulders with the rich and famous

For those who fancy their chances at rubbing shoulders with the rich and famous there is no better spot in Mexico to call home. Cabo San Lucas sits in close proximity with California and as such has long played host to Hollywood elite and the big .com’s of Silicon Valley. Weekends are when it really kicks off; cocktail parties with elite guest lists are hidden behind every other door… just imagine who you could be living next to when you join them in with a real estate investment in Cabo.

Red tape of real estate investments in Cabo

A good realtor can make the process of buying in any place relatively quick and simple, even if you yourself are hundreds of miles away. To ensure that you get a good realtor be sure to choose a reliable name and check all references that are given to you. A notary public will still be required to validate your real estate purchase by confirming the validity of your legal documentation. This process is different to the one you’re no doubt used to, but it’s no better or worse – simply different.

Cabo San Lucas could be your dream home; a place to start again.

Alternatives to Full Ownership in Mexico

What are the Alternatives to Full Ownership in Mexico

For those who are interested in alternatives to full ownership real estate, who only want to invest in the amount of time they actually will be vacationing rather than full ownership, there are alternatives that involve purchasing just a portion or fraction of the property in weeks’ or months of the year. This can involve receiving actual titles or deed, or it can be a right-to-use, commonly 25 to 30 years.

Timeshare / Vacation Ownership

Timeshare ownership includes right-to-use properties or a more flexible points-based program. Owners purchase a condo or villa for one or more weeks use within a fixed or “floating time” system, which allows scheduling each year’s vacation during the most convenient week within a specified season. With timeshare, consumers have the opportunity to purchase time at resorts offering a wide range of amenities at different destinations. While most vacation ownership villas have two bedrooms and two baths, floor plans range from studios to three or more bedrooms. Ownership is usually a one-time purchase, which often is developer financed, owners then pay an annual maintenance fee based on the unit size, location and amenities.

Fractional Ownership / Private Residence Clubs

A step above timeshare is fractional ownership, which usually comes with fully deeded titles to your fraction. Fractional ownership has the benefits of second-home ownership, but for a fraction of the cost and without all the responsibilities. Considering the average vacation-home buyer uses the property just three to four weeks a year, fractional ownership tends to be more in line with the actual use of the vacation home. Additionally, fractional properties are generally affiliated with high-end hotel companies or high-end boutique operators, so owners have the benefits of personalized services and amenities. In addition to the purchase price, there also are annual maintenance fees to consider.

Destination Vacation Clubs

Members of a destination club are not buying a specific property, but rather the right to use any of a portfolio of homes owned or operated by the club company. With few exceptions, they offer a non-equity-based membership emphasizing a broad selection of vacation-home experiences. Most destination clubs also offer members concierge services. The average length of stay at destination clubs ranges from one to nine weeks, and costs include a one-time fee, although the club may also charge a nightly fee while guests are in residence.

Condo Resorts and Hotels

Condo hotels and resorts offer a portion of their hotel room inventory for sale to the public. The owner may use it for vacation or corporate housing needs or place it in a rental program, typically managed by the hotel. Owners then receive proceeds from the rentals. Buyers enjoy the benefits of owning real estate in a desirable location coupled with hotel amenities and services. Annual dues also apply. Condo hotel pricing varies by real estate market trends.