Bank Trust – What is it? When is it needed?

Mexico Bank Trust and how to Purchase article

Bank Trust – What is it? When is it needed?

Mexico is a beautiful country and economically booming. You might have been thinking about either buying a property (or several properties as vacation rentals ) or developing a business here.

Good news! It’s a very good idea and totally feasible.

There are a few rules to respect, though.

This article will guide you through the various steps and explain two different schemes that will come in handy when you decide to make it happen i.e. setting up a Bank Trust (Fideicomiso) or a Mexican Corporation.

 

First of all, you have to know that a while back, it was impossible for Americans and Canadians to buy property in Mexico that was 50 km from any coastline or 100 km of a neighboring country (called the restricted zone). Only Mexican nationals were allowed to invest in land and properties located in this zone. The Mexican Constitution still stipulates that no foreigner is allowed to acquire land directly in this zone…However…some things have changed.

 

You can now invest in this zone through a Bank Trust:

A bank trust is a property interest held by a Mexican bank who´s sole purpose is to manage the property for the benefit of the owner. It is essential to remember that although the bank legally acts as the trustee and holds the title, your property is not an asset of the bank.

   It is valid for 50 years and can be extended for another 50 years.

You will need to set up one Bank Trust per property. So if you buy 2 or 3, you will end up with 2 or 3 bank trusts.

There is, of course, an annual fee that you’ll have to pay (the fee can vary between 400-800USD per Trust, depending on the bank and each particular case). You will be the main beneficiary but the Trust allows you to designate two beneficiaries (whoever you want: your spouse, children, partner…) and if anything is to happen to you, they will     automatically become main beneficiaries. The beneficiary has every legal right to occupy, rent, modify or inherit the property, and this is protected by the Mexican Constitution. The big advantage of this scheme is that there is no paperwork, you pay once a year and you are done for the next 12 months.

 

The other way to become a titleholder is through a Mexican corporation:

This scheme is advised if you are thinking of buying several properties (you can have as many properties as you want) for commercial use or if you are going to create another business. Indeed,  you can operate a business through it, work from home, or run an internet business. It is actually quite simple to set up (it shouldn’t take more than a week) and you can incorporate under whatever name you wish. You need a minimum of two shareholders, though. This option has many advantages (tax wise for example) but on the downside, it involves a lot of paperwork and administrative work. This scheme requires you to pay on a monthly basis and probably to deal with an accountant (that you will have to pay as well).

 

   You now are a little bit more aware of the different options offered to you if you want to buy in the restricted zone, but the best advice no matter what is always to ask a real estate professional.

At Living Riviera Maya Real Estate, we can help and guide you through each step. We have the experience, knowledge and we will find the solution that works best for you!

 

Price reduction on Puerto Aventuras Beachfront Condo

Best priced beach front

– Announcing a price reduction on Puerto Aventuras, a 2,217 sq. ft., 3 bath, 3 bdrm single story “Large terrace with ocean views”. Now $425,000. Price drop !
MLS® #PAV524

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Elegant 3 bedroom ocean view condo in Puerto Aventuras for sale.
Price was 650,000 USD dropped to 525,000 USD Now, Sept 2016 is 425,000.00 Steal of a deal for real estate in Puerto Aventuras on the Beachfront.

Personal use or vacation rental investment, this is one of the best buys for condos in Puerto Aventuras.

This Puerto Aventuras condo for sale is huge with 2217 sq ft of interior space with large terrace facing the ocean, in a 4 story building. Furnished with classic Caribe furniture and fully set up kitchen with top of the line appliances and granite counter tops, this condo is ready to move in and begin renting.

There is a large pool leading to the sandy beach and blue calm waters of the bay of Puerto Aventuras.

Condo building has elevators and parking making this an easy lifestyle. Walking distance to the shops and cafes and restaurants of Puerto Aventuras commercial district

If you are boat person, you’ll like the fact this condo faces the beach on one side and has the marina on the other side.
Puerto Aventuras is a gated beach, 9 hole golf course and marina community with full service Marina for yachts. Something for everyone.

Call us for a viewing today.

Judi Shaw1 800 441 3275 (Office)1 604 628 7247 (Office)+521 984 116 3251 (Cell)

Buying Property in Mexico- How to Do it Safely and Profitably.

Properties purchase in MexicoSo you just got back from vacationing on the coast of Mexico. After days spent by the Caribbean Sea you have fallen in love with the place- to the point where you now want to buy property in this little bit of paradise.

And who could blame you? Mexico really is heaven on earth…

The great news is that buying property south of the border is possible! The laws have changed considerably in the past 10 years allowing foreigners to purchase property in Mexico. Even the areas along the coasts and borders, formerly designated as the “prohibited zone”, are now available to foreign buyers.

You will need to abide by a few rules, however, if you want to avoid any unwanted hassles. To make a safe and secure purchase in Mexico, be sure to follow the below procedures:

  • Before you do anything, you’ll need to set up a trust called a “Fideicomiso”. A qualified and licensed bank administers real estate through this trust on behalf of the beneficiary, (the owner). The term of this trust is 50 years but can be renewed for another 50 if needed.
  • You’ll also need to ask the seller for the legal title and certificate of no tax liability upfront.
  • Always be careful to NOT give earnest money to the seller! This concept does not exist in Mexico. Neither does escrow. Real-estate agents are not licensed and won’t have a separate account for earnest money. You may be able to find agencies in your country to provide these services.
  • The closing deal will have to take place in the office of a Notario Público. A specialized attorney, the Notario Público acts as a key person in the purchasing process. His duties include: (i) examining the documents of the selling party to ensure their accuracy and legitimacy; (ii) verifying the title; and (iii) searching the public records to determine the status of the seller’s title to the property and the existence of liens against the property.
  • Last but not least, foreign buyers should always be advised to consult counsel in their country of origin or a Mexican counsel regarding real estate transactions. They also can contact title companies in their home country to answer questions about conveyance issues, title searches and title policies for a prospective property as well as escrow account considerations.

The procedures for buying property in Mexico will be different than they are in your country but there are some similarities. Always proceed with caution and educate yourself on the rules and regulations before investing your money to make a secure and profitable purchase in Mexico.

 

Call us today for more information !

Judi Shaw | 1 604 628 7247 Direct | +521 984 116 3251 Mexico Cell

 

An Insider’s Guide to the Top 10 Beaches in the Riviera Maya

Map of Riviera Maya

Map of the Riviera Maya from sac-be.com

No trip to the Riviera Maya is complete without a visit to one or more of the idyllic beaches in this tropical paradise. But where to go? Surely most beaches in this popular destination are filled to capacity with resorts, sunbathers, and tourists.

Not so. The Riviera Maya still has a few undiscovered gems that have yet to be claimed by developers. Believe it or not, you can still find uncrowded and unsullied beaches in the Riviera Maya.

Whether it’s seclusion you seek or a rocking beach party, these top 10 beaches are worth checking out during your stay:

  1. Maroma Beach. Known as one of the world’s most beautiful beaches, Maroma Beach is just 10 minutes north of Playa del Carmen. If you want a luxury resort or hotel vacation where you can enjoy stunning views of the Caribbean, Maroma Beach may just be what you’re looking for. Many of the resorts and hotels on this beach make respecting the natural environment of the area a priority.   

    whitjeeee-instagram

    From @whitjeeee on Instagram https://www.instagram.com/p/BJ0oOmFhY9o/?tagged=maromabeach

  2. Akumal. Translated to mean, “the land of the turtle”, sea turtles love to lay their eggs in this small Mexican village. Located 60 miles south of Cancun, the clear water and reefs of Akumal beach make for a perfect day of snorkeling and diving.

    flannerybloom-instagram.com

    From @flannerybloom on Instagram

  3. Mamitas Beach. If it’s a party you want, look no further than Mamitas Beach. It boasts the best nightlife in the area and hosts a number of concerts including the Riviera Maya Jazz Festival and the BPM Festival. Enjoy great music and company overlooking a stunning beach backdrop.

    moritarules.jpg

    From @moritarules on Instagram

  1. WahWah Beach. For the older crowd, check out WahWah Beach Bar. A sort of gringo bar located on the beach, they play a lot of 70’s and 80’s rock.

    melcokersc

    From @melcokersc on Instagram

  2. Canibal Royal (aka The Reef Coco Beach). A little harder to get to, but worth checking out if you want a gorgeous, less crowded beach in Playa del Carmen. But bring your own amenities- you won’t find too many shops or restaurants nearby. Located around 48th Street.

    From @canibalroyal on Instagram

    From @canibalroyal on Instagram

  3. Playacar Phase 1. If you’re staying in Playa del Carmen, be sure to check out the beach at the Playacar Phase 1 residential development. You’ll find a wide, expansive and relatively quiet beach with fine white sand.

    mamiontour-playacar-beach

    From @mamiontour on Instagram

  4. Paradiso Beach. Located in the bohemian town of Tulum is one of the world’s most beautiful beaches. On a trip to Tulum’s Mayan ruins, be sure to stop by Paradiso Beach to enjoy its brilliant turquoise water, soft white sand and tranquil waves.

    From @stellabombella on Instagram

    From @stellabombella on Instagram

  5. Xpu-Ha. If it’s solitude you seek, be sure to visit the Xpu-Ha beach in the Riviera Maya. Located just 15 or 20 minutes south of Playa del Carmen, this beach typifies the ultimate remote, tropical paradise. Its calm, shallow waters are perfect for a day spent kayaking, swimming or just lying under the sun.

    From @mlleperrier on Instagram

    From @mlleperrier on Instagram

  6. Puerto Morelos. Halfway between Cancun and Playa del Carmen, you’ll find the small fishing and residential village of Puerto Morelos. The town’s quiet white sand beaches are set inside an offshore reef, creating calm waves for swimmers and snorkelers to enjoy.

    From @camspal on Instagram, Puerto-Morelos

    From @camspal on Instagram, Puerto-Morelos

  7. Punto Bete/ Xcalacoco. Travel just north of Playa del Carmen for yet another isolated beach. Its white sand, swaying palm trees, rustic beachfront housing, and breathtaking views are definitively worth the visit.

    From @ jhonagtz on Instagram

    From @jhonagtz on Instagram

 

Eco Home For Sale in Xpu-Ha, Riviera Maya

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Lush Green Privacy Close to the Beach

– On a beautiful 1-hectare jungle lot, sits a fully-furnished Eco-Home for sale in the Riviera Maya, Mexico – with self-sustained power!
Only 1.5km to Xpu Ha beach, the most beautiful in the entire Riviera Maya area and one of the most pristine beaches in Mexico.

•  4,844 sq. ft. 2 story – $625,000. Gem in the Jungle
MLS® #TUL625

There is a main house and a guest house, separated by a very large inviting resort-type swimming pool, and outdoor “palapa”-covered living area, where only the sounds of birds and animals around can be heard, providing total peace and tranquility amongst nature.

The Main House is 3,500 Sq. Ft. And features an open floor plan, large kitchen with onyx counters, artisan marble sink, and a semi-formal dining area.
The large living room adjoins to make a very connected living space.
There are two huge bedrooms and walk-in closets, large open showers, and lots of natural light streaming in.
Upstairs, on the flowing staircase, is a large office and TV room loft. High ceilings add more space to the airy rooms.
Outside, you pass by the outdoor living area and walk to the pool, which is 2500 sq ft. and circular in shape.

Across the way, you will find a comfortable, spacious guest house that is 1000 Sq. Ft. with an inviting veranda.

Polished cement floors throughout make the floor smooth and cool to walk.

This, and a lot more, is “Casa jungla” – Your jungle hideaway in the heart of the lush Mayan Riviera.

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