There are some things you should know before you buy a Puerto Vallarta real estate. If you want to purchase a property, the following information should be taken into consideration:
How will you finance your Puerto Vallarta real estate?
Real estate purchases in Mexico require you to consider your own financing sources back home. The transactions are normally in cash so you will have to avail of loans and other financial sources like Equity Loans, Personal Lines of Credit, Second Mortgages, etc in your home country. You can avail of a Mexican mortgage once you become a permanent resident in Puerto Vallarta or if you are a Mexican national and will be dependent on a regular income.
Puerto Vallarta Real Estate Rentals
Quality properties in Puerto Vallarta enjoy a strong rental market both for homes and condos. Most of these properties are competitively priced and can be for rent. The average occupancy each year is between 70% and 80%.
Equity on Puerto Vallarta real estate
It’s common for buyers to ask if their properties will increase in value. Please note that the Mexican real estate market has a relatively short history in terms of speculation. If you own a property in the most popular tourist areas, such as Puerto Vallarta, you can expect a rise in property values. Most buyers do not buy real estate just to increase their wealth through speculation. Rather, their ownership is for them to enjoy a second home for vacation or for retirement.
Closing processes for Puerto Vallarta real estate
Expect a range between 30 to 45 days for the closing process in Puerto Vallarta. The processing includes all paperwork and escrow which requires the role of a local public notary. The seller pays the capital gains taxes and real estate fees while the buyer pays the closing costs. The buyer and seller’s Sales Associate can be the representatives for the closing without their presence although a power of attorney is required.
Compared to USA and Canada, real estate in Puerto Vallarta has relatively low property taxes. The rate is around 0.08% of the property’s assessed value at the time of sale. The property tax is known as ‘Predial in Spanish’ and should be paid annually on Puerto Vallarta real estate.
To ensure proper maintenance of your property, you need to set aside a budget so you can afford the maintenance fees necessary on common areas. The Condominium Owners Association is usually the one in charge for the common area maintenance and security if you are one of the condominium owners.
Are you planning to leave your property for some time? Homeowners who live abroad may consider a property management company for their Puerto Vallarta real estate if they will be away for any length of time.
Insurance such as property, liability, damage, and earthquake are essentials when you have a real estate ownership. These are all readily available in Mexico and at affordable prices.
Are you getting a good deal?
If you were to compare what your money would buy with the housing market outside of Puerto Vallarta, relatively, you are getting a great deal. You will also take into account other factors such as beauty, ambiance, safety, cost of living, and life goals. So the answer to the question is definitely a ‘Yes’!