Post from November, 2009

Do I Really Need a Fideicomiso to Buy Real Estate in Mexico?

Tuesday, 17. November 2009 13:58

So why do I need a fideicomiso, when this nice real estate agent told me there are other ways to own property in Mexico?
Well my first answer to that is another question. Why would you consider anything but the safe, sane and legal way to own your Mexican dream property?

First let me explain, the fideicomiso or ” bank trust” is an instrument used in Mexico to hold assets in a trust and administered by the bank, for safety and security and accountability for that asset.

The Mexican government changed their constitution in 1973 to make it safe for you to own property in Mexico. The fideicomiso was adapted for use by the foreign buyer to hold their Mexican property.

Not all areas of Mexico require fideicomisos for cash transactions. But in areas 31 miles from a coastline or 61 miles from an international border, foreigners can only own their personal residence or vacation property in a fideicomiso. This is called the Restricted Zone. All of the Baja Peninsula is in the restricted zone.

Take note: The Mexican government CHANGED their constitution and adopted the fideicomiso so the foreign investor (you) would be 100% protected when buying your Mexican dream home. It is SAFE to buy property in Mexico. If you do it right!

If you are getting a mortgage for your Mexican dream home, then no matter where your property is located in Mexico you will need a guarantee fideicomiso that names the lender, and gives them the right to foreclose.
The fideicomiso costs between $400 and $600 depending on the bank. There is also an annual renewal fee of the same amount of money. This is a small fee to ensure that your property is yours, legally and safely.
And the fideicomiso gives you the same rights over the property as if you had a fee simple title:

1. You can mortgage it
2. You can rent it
3. You can bequeath it
4. You can sell it
5. You can make improvements to it

The fideicomiso is valid for 50 years and you or your heirs can renew it time and again in 50 year chunks forever. When you die, just like in a living trust in the US, your heirs receive the keys and ownership of the property, there is no probate.

There are always people trying to circumvent the system, and there seems to be no earthly reason why you would do this. To save a few thousand dollars upfront when you purchase? This can come back to bite you later and cost you hundreds of thousands or the loss of the property.

As you have read in my book, or will find out if you haven’t read it, if you cannot get a fideicomiso on the property you are looking at, stop looking at it, and move on to another property.
Repeat after me: there is no legal, safe way to own a residential property in the restricted zones of Mexico other than with a fideicomiso! Make this your mantra.

In case you are still not convinced go to these links and read about Punta Banda:
Punta Banda Story

Punta Banda ll

I go into a lot of detail about Punta Banda in my book.

There are many gorgeous beach communities throughout Mexico, and most of them are safe for you to buy. But even in the safe areas, there could be properties that cannot be put into a fideicomiso…walk away. I know it may hurt, but there are other homes or lots that you can buy with a fideicomiso.

My manta: do it right the first time, pay a little now, or pay BIG TIME later.

Watch for updated posts every Monday afternoon,.
And hey, leave me a comment!

Category:for Buyers | Comments Off on Do I Really Need a Fideicomiso to Buy Real Estate in Mexico? | Author:

Margarita Mind is NOT a Joke!

Sunday, 15. November 2009 10:00

Margarita Mind, it really is not a joke. I almost succumbed while looking for property, and have seen friends, neighbors and clients fall under its spell.

When we pulled up stakes and headed south to La Paz, I was filled with dreams of writing about my new life, my old life and making gorgeous quilts!

Well I did and do make gorgeous quilted pillows. Frankly making an entire quilt would bore me. And back in 2000 they did not have pre cut squares of all sizes in gorgeous color runs.
And my writing? Well I got caught up in renovating the first house we bought down here.
When that was done, I was tired, and wanted to be out and about and not only walking on the beach!I started writing for the local English language newspaper. I met lots of people, learned a lot, and had more than one “divorce” with the smart, but crabby publisher.
Then we sold our first house, and built one on the beach in the same neighborhood.
“I am going to experience the process, and not let the stress get to me” I said. Well that was a short lived attitude. Our builder took us to the cleaners, so the nice cushion I was going to have left over so I could finally write was gone, and then some.
So I went to work. I took a job with a cross-border mortgage company. I traded my time for money. We needed the money, they needed me. Talk about meeting a lot of people and learning a lot, this job opened doors, and piled on the work and stress.
I traveled to almost every resort in Mexico. From my beach house in La Paz, I worked with Realtors, escrow agents, buyers, sellers and notarios in every market in Mexico.
In September 2008 I left the mortgage company. Within weeks I was offered a writing assignment for a magazine I dreamed of writing for. I went back to writing for the newspaper, and had my final divorce from the publisher.
So with nothing left to do, I decided to get serious about writing.
And so my first book, Margarita Mind: How to Avoid It; A Guide to Buying Mexico Real Estate Safely & Sanely was born.
And now this blog is here to support you, my readers. I will update info about buying, renting and other issues .
When my next two books come out, I will announce them here.

When you are ready to enter the waters of home buying in real estate send your questions here. I’ll personally answer them.
And in the future I’ll have some webinars to talk to you about buying your dream home in Mexico.
Thanks for stopping.
Leave a message!

Category:Margarita Mind | Comments Off on Margarita Mind is NOT a Joke! | Author:

Margarita Mind! Do You Have IT?

Friday, 13. November 2009 10:56

Hola! I have finally achieved a long-time goal of writing an ebook for you, the future buyers of real estate in Mexico.
Now my mind is full of ideas, and they are all aimed at you. You need to be informed, prepared and confident that when you come to Mexico to buy a vacation home, a retirement home, or an investment property, you are going to do it right and avoid the pitfalls, quicksand and other problems that could snare you. After all Mexico is a foreign country.
But it is a foreign country that CHANGED its CONSTITUTION to enable you to safely and securely buy your dream home in Mexico.

My first book is ready for you to buy, you can click on the “order now” button under the picture of the book and it can be yours instantly.

Not sure you are ready to buy? Well to whet your appetite, I have pasted in my first chapter.
Read on and enjoy:

Margarita Mind: Please leave home without it! What is Margarita Mind and why do you have to be inoculated, prepared, and ready to resist it?

Chapter 1―Margarita Mind Defined

Let me relate a conversation with a friend of mine, an insurance broker and Realtor that has lived in Mexico for over 20 years.

“I have a great idea for a business: I am going to set up a locker system at the border crossing in Tijuana. You know like they have at bus stations and train stations? Well, my lockers will be small, about the size of a melon, a cantaloupe or honeydew. Foreigners coming down to buy real estate can check their brains and then go happily south and muck around, listening to every Juan, Jose, and Maria about the “way around” the rules of buying property. When they have parted from their money and signed away their rights, if they can find the locker key, they can retrieve their brains just before returning back to the US or Canada.”

“What a great idea,” I said. “Those people can wander around in a daze, and since there are no brain waves and no lights on upstairs, we can identify them as fools and work with only those with their brains intact.”
That’s Margarita Mind―doing things in a foreign country you would never do at home. Buying a house when all indicators say it is a bad deal because you love it. Last I checked, you can’t bank love.
It makes me crazy!
People spend more time choosing a toaster or microwave, doing the research, and comparing prices than they spend on a property purchase of hundreds of thousands of dollars in Mexico.

And then, when they are on the verge of losing their money or already have, they come to me or my friend or others like us and ask for help. For free, of course!
This is not going to happen to you!
You are smart, savvy, and after reading this book, well prepared to buy property in Mexico.

No matter what the guy on the next bar stool or the sweet woman in the tropical print dress and straw hat tells you, there is only one way to buy real estate in Mexico, the right way.
So fasten your seat belts, we are on a ride. I am going to tell you how to do it, who to avoid, and what keywords should be warnings to run the other way.
Just remember, buying property in Mexico is safe and legal for foreigners to own their dream property on the beach, as long as they do it right. And of course, since you are reading this book, you will do it right.

Category:Margarita Mind | Comments Off on Margarita Mind! Do You Have IT? | Author: