Real Estate Agents in Puerto Vallarta
Over the last few years, the real estate market in Puerto Vallarta has opened up to foreigners. If you are an American citizen with an income in the US and residing there you qualify for a mortgage to purchase a property in Puerto Vallarta. If you are already living in Mexico and don't have a home in the US, you might be eligible for a peso based mortgage.
Be aware of scams, only work with a real professional and try to find one who has a contract with a lender to offer mortgages. No upfront fee should be charged when you apply for a credit. You will have to pay fees to the lender once the process has started.
Watch out for an offer to purchase contract, because most of the time it does not include a statement that the offer exists only when you receive a mortgage. It happens that these contracts are offered, because the seller thinks it takes longer to close when you'll have to wait upon approval and fundings.
Make sure your real estate agent has the proper knowledge and experience with mortgages.
Mortgages have become more common over the last few years and a whole set of additional products have appeared like remodeling loans or re-financing. The loan term for a primary or secondary residence is usually shorter than thirty years.
A bank trust or fidecomisos is also an option. With this kind of loan a bank needs to be used for the trust. This bank trusts are needed when buying property rights in the restricted zones.
Capital gains is another issue to deal with. You can never be sure that capital gains tax upon sale will not be owned. Every case is different and based upon several criteria to decide if capital gains are due or if the seller gets an exemption. To know where you stand, you can take your documents to a notary and let them have a look at it.
If an offer on a property gets accepted, the buyer should start planning taxes. When you make capital improvements, you will get a factura. This factura can be used to increase the taxable value of your property and this will lead to the raising of the basis of the property. If the tax appraisal is increasing, this can affect the amount of tax due if the seller owes capital gains tax upon sale. This amount will be lessened.
Save your factura for your closing costs, because they can be used as a deduction against capital gains when you resell the place. This capital gains tax has to be paid if there's a profit when you sell your property. A piece of it goes to the government and the other part is for you.
It is always in your own interest to get some professional advice upon your tax situation.
As a foreigner your closing costs will consist of the bank trust set-up fee, an advanced payment of a year administration charge, acquisition tax, tax appraisal, no lien certificate, foreign investment permit and a notary fee. Every year you will have to pay real estate property taxes. A valued added tax or IVA of 15% will also be charged.
As the market in Puerto Vallarta keeps increasing, you will be able to find the property of your dreams easily by trusting the right real estate agents. When purchasing a property in Puerto Vallarta it is always recommended to get legal advice on what your rights and obligations are.