Anyone purchase land in mexico?

kt · Since 16 Mar 2005 759 Posts Portland, Or Opinionated

hi forum,

would love to hear of anyone's experience buying land and building a house in mexico in/around kiteboarding destinations or anywhere for that matter.

looking for a nice kiteboarding retreat and thought it would be a good investment as well.

thanks
kt

Nak · Thu Sep 14, 06 9:23 am

I haven't any experience, but I have heard that you can get some steals in Cozumel. Hurricane dameged home available for 10K. (Roof missing...) 10K or 20K in refurbish cost and you have a home a few blocks from Country Club. I have not seen this first hand, but did hear it from someone who is normally reliable about these things. It might be worth checking out.

Nak

Tony · Since 28 Aug 2006 940 Posts Portland Opinionated

I guess you can purchase land in Mexico...But it's only yours for 99 years (if you do not have Mexican Citizenship). I'm sure you'll get enough kiting done in 99 years.

Wyo Kiter · Thu Sep 14, 06 10:17 am

never ask a man how much land he owns or if you can wear his hat...an old cowboy saying

This should give you a good place to start...

http://www.doradoproperties.com/dorado/serch.asp

kt · Since 16 Mar 2005 759 Posts Portland, Or Opinionated

tonski · Since 11 Jun 2005 332 Posts NW Portland Obsessed

Some info from mexonline.com:

The law declares that the Mexican nation has original ownership to all land and water in Mexico, as well as minerals, salts, ore deposits, natural gas and oil; but that such ownership may be assigned to individuals.

The Mexican Constitution prohibits direct ownership of real estate by foreigners in what has come to be known as the "restricted zone." The restricted zone encompasses all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the "fideicomiso," (FEE-DAY-E-CO-ME-SO) which is, roughly translated, a real estate trust. Essentially, this type of trust is similar to trusts set up in the United States, but a Mexican bank must be designated as the trustee and, as such, has title to the property and is the owner of record. The Mexican Government created the "fideicomiso" to reconcile the problems involved in developing the restricted zone and to attract foreign capital. This enabled foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law.

A "fideicomiso" is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the seller of property in the restricted zone. Foreign buyers cannot own real estate in the restricted zone due to Constitutional restrictions. The bank acts on behalf of the foreign buyer, taking title to real property. The bank, as trustee, buys the property for the foreigner, then has a fiduciary obligation to follow instructions given by the foreigner who is the trust beneficiary. The trust beneficiary retains and enjoys all the rights of ownership while the bank holds title to the property. The foreigner is entitled to use, enjoy, and even sell the property that is held in trust at its market value to any eligible buyer.

In order to allow foreigners to enter into the agreement contained in the Calvo Clause, Mexico requires all foreigners to apply for and obtain a permit from the Ministry of Foreign Affairs prior to contracting to acquire real estate in Mexico. This is currently done by the trustee/bank at the time a real estate trust is set-up.

Given the changes made for 1997 in the foreign investment Law, and the fact that a buyer can now apply for and obtain a trust permit in a matter of days, it is always better to secure the trust permit from the Ministry of Foreign Affairs before entering into any contract.

The bank, as trustee, must get a permit from the Ministry of Foreign Affairs to establish a real estate trust and acquire rights on real property located within the restricted zone. The purpose of the trust is to allow the trust's beneficiary the use and exploitation of the property without constituting real property rights. The beneficiaries of the trust (fideicomisarios) may be:
Mexican corporations with foreign investment
Foreign individuals or legal entities
The law defines "use" and "exploitation" as the right to use or possess the property, including its fruits, products, or any revenue that results from its operation and exploitation by third parties or from the bank/trustee.

The law does not clarify how trust permits will be issued. Article 14 of the law states that the Ministry shall decide on issuing the permits "...considering the economic and social benefit, which the realization of such operations imply for the nation." The basic criteria used to determine such benefits are likely to change somewhat with the publication of the new foreign investment regulations. However, it is reasonable to anticipate that some of the unwritten rules used by the Mexican government in the area of real estate trusts will be included in the new foreign investment regulations. It is also possible that some of the confusing elements will be eliminated. It is important to understand the application of the current regulations, even if they are going to be replaced, as well as some of the unwritten policies the government has used in the past, to better understand what criteria will be used by the Ministry in the future.

The Ministry of Foreign Affairs must grant any petition for a trust permit that complies with the stipulated requirements within 5 working days following the date of its presentation to the Ministry's central office in Mexico City. It must be granted in 30 days if the application is submitted to one of the Ministry's state offices. The Ministry of Foreign Affairs must confirm the registration of any property acquired by foreign-owned Mexican corporations a maximum period of 15 days following the filing of the petition. In both cases, if the maximum period passes with no action by the Ministry, the trust permit or registration are considered authorized.

There is a common misconception among foreigners investing in Mexico that once the trust expires, the beneficiary loses all rights and benefits of the sale of the property held in trust. This is not the case. On the contrary, the beneficiary has a contractual right under the trust agreement with the Mexican bank to all benefits that may result from the use or sale of that property, even though he does not hold title to the property. Under Mexican Law, the bank, as trustee, has a fiduciary obligation to respect the rights of the beneficiary.

A real estate trust is not a lease. The beneficiary can instruct the bank to sell or lease the property at any time. The beneficiary can develop and use the property to his liking and benefit, within the provisions of the law. Generally, the law allows most activities engaged in by foreigners.

Information provided by Dennis Peyton of Peyton and Associates.

Mexonline.com Directory of Real Estate Agents in Mexico

pdxmonkeyboy · Thu Sep 14, 06 2:12 pm

sounds like fun, i think I'll buy this one....

Tony · Since 28 Aug 2006 940 Posts Portland Opinionated

PDX-, I like the pad - you don't have to worry about having the thing burn to the ground.

Tony · Since 28 Aug 2006 940 Posts Portland Opinionated

PDX- Nice Place you bought...Show them the inside. As everyone can see, this place came already furnished.

pdxmonkeyboy · Thu Sep 14, 06 3:23 pm

yeah, I like it. It has a very "open" layout

Portland Pete · Since 08 Mar 2005 145 Posts HR Stoked

some property south of La Ventana

http://www.bajahomesales.com/forsale-lastinas.htm

blowhard · Since 26 Dec 2005 2025 Posts Windward

My buddy purchased a lot in La Ventana last year and this summer he had a home built on it ,was a personal nightmare (construction) but was completed.A couple blocks from beach with services 3 bdrm 3 bath house $100k, lot I think was 20 K,
hope to spend some time mooching off him this winter

dangerD · Since 27 Jun 2005 223 Posts Bingen Heights Stoked

Yeah, so the fideicomiso is just the easiest option... Its $300 to $500/ year and probably will keep going up. Here's some other more exciting ways...
You can get work papers (FM3) and in 5 years you can become a mexi-citizen (w/ spanish fluency...)
Or you can form a mexi-corporation.. or join one set up for gringos in your area of choice...
Or you can give birth in Mexico and put it in Jr's name.
I like the last one, kinda romantic, si?

dangerD · Since 27 Jun 2005 223 Posts Bingen Heights Stoked

http://www.bajaland-deals.com/ Email Citlali, she's hot!
Barriles is near Ventana and has a lot more ammenities. Its getting to be a bit like florida with all the retiree-sport fishermen, but the wind blows steady and you can still drink and drive@!....

pdxmonkeyboy · Fri Sep 15, 06 9:22 am

I think I would be more inclined to live down there is they let you have guns. I have run into some serious trouble in Baja. Like, I can't sleep for a month afterwards kind of trouble. A nice semi-auto 9mm would have been nice to have.

Not to be paranoid or anything, but don't indulge yourself with super remote camping spots on the Baja peninsula. You may find yourself in a world of hurt with noone around. I have had allot of goos times in Baja but I have also had some nightmarish events unfold that I couldn't believe were actually happening.

Mark · Fri Sep 15, 06 9:27 am

dangerD · Since 27 Jun 2005 223 Posts Bingen Heights Stoked

Don't smoke anything out of a lightbulb and carry a big stick!