IPD advise potential purchasers to focus on gated communities and secure resorts - Mexico has a number of 5 Star Resorts with associated Golf Courses and Marina's to offer the buyer who looks for the location but without the hassle of having to leave a secure environment. Like many countries Mexico has it fair share of issues to deal with and buyers we feel should look at a resort before seeking property in unknown locations.
During the last few years a new breed of sophisticated buyers and investors have looked at Mexico through a different set of glasses. Now buyers are focused on Mexican Resort Real Estate due to the safety issues combined with the fact that resorts offer so much more than just somewhere to sleep.
Owning property in Mexico has well defined rules regarding non-Mexicans. These rules are in place to protect buyers ownership rights and to promote the sale of real estate to foreign investors. The key is a safe, established and perpetually renewable Mexican Property Trust called a "Fideicomiso".
What is a "Fideicomiso" or Mexican Property Trust?
With the advent of North American Treaty Agreement, the Mexican Government recognized that it was critical to make foreign investment in Mexico safe and easy. Because the Mexican Constitution prohibits foreigners from purchasing or owning real estate within 60 miles of an international border or within 30 miles of the Mexican Coast, a new, safe method of holding title was created. This new instrument, modeled after the one in Monaco, allows ownership through a Mexican Property Trust, called a "Fideicomiso". This is a trust agreement, much like an estate trust, giving you all the rights of ownership.
The Department of Foreign Affairs in Mexico City issues a permit to a Mexican Bank of your choice, allowing the bank to act as purchaser for the property. The bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. This is not an asset of the bank; they simply act as the Trustee to hold the Trust.
Much like Living Wills or Estate Trusts in the U.S., the Mexican Bank, or Trustee, takes instructions only from the Beneficiary of the Trust (You). The Beneficiary has the right to use, occupy and possess the property. The Beneficiary may also sell the property by instructing the Trustee to transfer the rights to another qualified owner, or bequeath the property to an inheritor. The initial term of the trust is 50 years, and it can be renewed for an additional periods of 50 years indefinitely, providing for long-term control of the asset.
Owners have all the rights to enjoy the property, sell the property, rent the property or improve the property.
Buying a property within a Resort in Mexico is even easier as you will have all the details provided to you by your IPD Real Estate Consultant.
Mexican Luxury Real Estate Resort
For a complete list of luxury apartments and villas for sale in resort settings in Mexico contact an IPD Property Consultant.
