If you are planning on purchasing real estate in Banderas Bay, there are a number of procedures and considerations that are worth reading up on to ensure a smooth experience. The following are some of the things you should know before you buy real estate in Banderas Bay.
Closing process when you buy real estate in Banderas Bay
The closing process to buy real estate in Banderas Bay is a little lengthy. It takes between 30-45 days to ensure all of your paperwork and escrow accounts are set up. The process must be carried out by a local public notary in Banderas Bay. The buyer pays the closing costs while the seller pays the capital gains taxes and real estate fees. Buyers and sellers do not need to be present at closing because both can be represented by their Sales Associate via a power of attorney.
Property Taxes for real estate in Banderas Bay
You can expect very low property taxes compared to USA and Canada when you buy real estate in Banderas Bay. The rate is usually around 0.08% of the assessed value and is known as ‘Predial’ in Spanish. House taxes should be paid yearly.
Mexico has all the needed insurance for your property including liability, damage, property, and earthquake insurances. These are all available at low costs.
After you have bought a property in Banderas Bay, you might want to choose a property manager to look after your place. Especially if you will be away from your home for any length of time. As a second home homeowner in Banderas Bay, considering a property management company will be necessary, unless you have friends or family who can help you out.
Real estate transactions in Mexico are usually paid in full. Mortgages for foreigners are only available if you are a permanent resident working and paying taxes in Mexico. If you need extra financial aid, you might want to consider some sources back home like equity loans, second mortgages, personal lines of credit, among others. Otherwise, you will be expected to pay in full.
One of the advantages, when you buy real estate in Banderas Bay, is that you can expect good rental potential. Quality properties in Banderas Bay are competitively priced. You can expect to rent your property as well as good hotels with an average occupancy of 60-80% annually. Take note that Banderas Bay enjoys a very strong rental market for both homes and condos.
Short-term property speculation is not a concept readily applied to the Mexican real estate market; but if you own in the most desired tourist areas, you will certainly see a rise in property values. Most buyers who have purchased real estate in Banderas Bay usually want to enjoy their property as a vacation home.
Are you getting a good deal?
Definitely yes! When you compare what your money could buy, in relative terms, with the housing market outside of Banderas Bay, you can assure of getting a good deal. Make sure you have considered the following factors like local beauty, ambiance, safety, cost of living, and life goals.
Don’t forget to calculate a budget to maintain your property in Banderas Bay. You should consider general wear and tear, roof tiles and plumbing etc. You also need to pay any maintenance fees on common areas, if applicable. Common area maintenance and security is usually handled by each building’s Condominium Owners Association.
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