Cuatro Vientos

Question:  What can I expect from sellers who are willing to carry paper/finance their sale?

Answer: Typically, at Coates/Dolan we see that sellers want:

•    At least 50% down;
•    Terms of between 3 to 5 years, maximum;
•    Interest of between 5 to 7 percent per annum;
•    20 to 30 year amortization periods with balloon payments at the end of the finance period;
•    Credit reports and/or verification of income are helpful to have.

Question:  How do current Mexican laws treat capital gains taxes for sellers of real property?

Answer: Mexican tax laws are always subject to change, so we recommend that sellers speak directly to a qualified “Notario” who can interpret the current law. Our attorney informs us that if a seller has an FM3 immigration status AND the sales price of the property is at or below $6,500,000 Mexican Pesos, the seller is exempt. Sales amounts above the MN$6,500,000 are compared to the original purchase price as shown on the escritura (deed), and the difference between the 2 figures is subject to tax as interpreted by the Notario.  You are exempt if you have owned the home 5 years or more and have not sold a primary residence in the last 5 years.

Question:  As a buyer, what can I expect to pay in closing costs when I close on the purchase of my property?

Answer: Typically, 2% of the actual sales price is levied and payable by the buyer. Due to the volume of business we perform with our Notario, we are able to offer 1.5%. Closing costs includes various things: The actual Notario’s fee, Inscription in the Public Registry, and Verification of No Lien or Debt.

Question:  Is title insurance a good thing to obtain when I purchase my property?

Answer: Generally speaking, the purchase of title insurance is the exception rather than the rule here in San Miguel. The Notario is responsible for ensuring the clarity of title. However, in certain circumstances, a buyer may be more comfortable with acquiring title insurance. For instance, if the property in question has not turned in quite a while, the buyer may have doubts about the title’s clarity. If the property has been owned by a Mexican family, title insurance may be a good idea as well, in order to ensure that any future potential claims on the property have been covered by the insurance.

Stewart Title of San Antonio, Texas offers title insurance to buyers in Mexico at a cost of around USD$1,000.00.

Five-star Rosewood Hotel will be opening their fourth destination hotel/resort in Mexico this December featuring a full-service spa, five-star restaurant, private dining and wine tasting experiences, rooftop tapas bar, and chef-led cooking classes for the ultimate sophisticated adventure in the heart of San Miguel.   Visit the website.

Opening in November, Hotel Matilda promises an exciting boutique hotel experience.  This charming hotel, located near Parque Juarez, celebrates the Latin art scene and contemporary traveler, delivering gourmet cuisine and custom spa experiences.  Visit the website.

Casa de la Espiga

We believe it is a good time to buy in San Miguel, as it will continue to be a popular destination for the large number of Baby Boomers on the cusp of retirement. Mexico offers a much less expensive alternative to life In the US, and the weather and abundance of cultural activities in a place such as San Miguel make it yet more attractive.

Jim Cramer of CNBC’s Mad Money, purchased three properties in San Miguel this summer and rates Mexico real estate as a solid investment opportunity.  “It’s not such a bad idea to diversify away from stocks”, Cramer said. “Mexico properties have no property taxes, are easy to maintain and there are property managers everywhere,” he said.  “I think that out-of-favor real estate in Mexico, that’s easily accessible to Americans, represents a great buy,” Cramer said.

Most buyers of real estate in San Miguel de Allende tend to be North Americans, what happens in the US typically is reflected here. Market prices have been coming down and the demand has slowed considerably since late 2008 but is slowly recovering, as is generally happening in the U.S.

Most property owners here do not have mortgages on their San Miguel homes. Taxes and carrying costs are quite low. Without the pressure of a monthly mortgage payment to meet, owners have generally preferred to wait for a market upturn instead of reducing their price for a faster sale. This year, a number of sellers have concluded that a lower list  price is the only way to attract more buyers. We have noticed that homes priced below USD$500k are beginning to move more so than ones that are higher priced.

Another factor that should be mentioned is the large number of wealthy Mexicans who are increasingly viewing San Miguel as an enjoyable and secure place to live. The increasing demand for property on the part of Mexican nationals is ultimately going to stabilize and even increase property values.

Up and coming neighborhoods tend to be the ones on the outskirts of the center of town such as San Antonio, Guadalupe, Independencia, and San Miguel Viejo, to name a few. However, potential buyers need to see these areas for themselves so that they have a feel for what these colonias have to offer and how they fit one’s needs.

For more information and list of properties for sale in San Miguel de Allende, visit www.coatesdolan.com.

For more information, read the article:  http://aarp.org/magazine

Watch the video to hear why Cramer decided to buy in Mexico and why it’s a great time to invest in Mexico.

“It’s not such a bad idea to diversify away from stocks”, Cramer said. “Mexico properties have no property taxes, are easy to maintain and there are property managers everywhere,” he said.

“I think that out-of-favor real estate in Mexico, that’s easily accessible to Americans, represents a great buy,” Cramer said.

“Mexico is a big country and not every province, every state is involved in the drug trade,” he said. “And San Miguel has to be one of the nicest places I’ve ever been.”

Read the results here at Travel + Leisure…

Without fanfare, President Felipe Calderon has been quietly working on attracting millions of U.S. retirees to Mexico by proposing the expansion of retirement benefits and medical tourism.

Read the article now…

• http://www.icfdn.org/publications/retireeresearch/
• http://www.solutionsabroad.com/en/relocating/relocating-category/cost-of-living-in-mexico.html
• http://www.insidemex.com/
• http://www.boomersabroad.com/
• http://www.articlealley.com/article_1479720_19.html
• http://www.mexconnect.com/
• http://www.warrenhardy.com/
• http://www.oecd.org/publicationanddocumentsbycategory/0,3469,en_33873108_33873610_1_119656_1_1_1,00.html
• http://portalsanmiguel.com/
• http://internationalliving.com

“As safe as Seattle,’ says a transplant to Mérida, Mexico, where there is no sign of the violent drug war waging in the north. Expatriates are fast buying and renovating colonial haciendas.

“It is not the climate,” says Mr. Engle, explaining why he moved to the Yucatán Peninsula. “It is the people. It is the most welcoming place.”

Americans scared off by violence in Mexico? Not here.

In towns far from the US border such as Mérida, Mexico’s drug wars seem like another world. In fact, according to a recent survey by the International Community Foundation, violence reduced the frequency or duration of trips to Mexico for only 7 percent of American retirees who live or travel frequently to Mexico.

Read the entire article here…