Investing in Mexico

[Mary M.]

I am going on a trip to Puerto Vallarta and will be checking out investment opportunities while I'm there. I've done a bit of research on the legalities of owning property as a US citizen but would love BP input. Please post if you have direct experience on the process, not just an opinion of Mexico because I know they are across the board. As far as my direct experience in Mexico-last year I spent 4 months traveling all over Mexico by bus and have spent time in PV for the last 3 years in a row. I speak Spanish but not completely fluent.

I am looking to invest in a condo with low HOA dues in the Old town or Zona Romantica area. I know tourism in Mexico has suffered which is the reason RE is down by what seems like over 50% so my strategy is not for immediate cash flow. I am looking for a place to live maybe 4 months of the year and then potentially rent out for the rest. Also, I won't need to apply for a mortgage.

Would love to hear your recent experience in investing in Mexico, preferably Puerto Vallarta. Any referrals would be appreciated as well.

Thank you!

[Mitch Kronowit]

Hey Mary,

I just spoke with my friend who owns a property in Baja in partner with some of his buddies. They all went in together and purchased the place for cash, so they didn't have to deal with Mexican bank loans (that run 18% or more he said) and US banks won't lend down there (heck, they won't lend up HERE!).

He said similar to here, they located a real estate agent and found the place they wanted. Then they hired a notario (kind of like a specialized lawyer) to write up the trust for them. Apparently, a trust is required for Mexican property in the vicinity of the coastline, i.e., inland properties have no such requirement. He said the whole process took about a month and cost somewhere between $1,200 - $1,500 for the paperwork. He also said there's an $800 annual maintenance fee for the trust.

I hope that helps some. Good luck.