Before you buy a real estate in Puerto Vallarta, make sure you have considered the following information which is important to making sure you make a good purchase. Here are some things you should know before you buy real estate in Puerto Vallarta.
If you are a permanent resident in Puerto Vallarta or a Mexican national, you may be eligible for a Mexican mortgage to purchase real estate in Puerto Vallarta. If you are not yet a resident, you will have to get some financial aids through Equity Loans, Second Mortgages, Personal Lines of Credit, and others from back home. Most real estate in Puerto Vallarta is paid in full upon closing.
The closing costs are paid by buyers, while the sellers pay any capital gains taxes and real estate fees. The closing process on real estate in Puerto Vallarta usually takes between 30-45 days and the process include the paperwork and escrow to be carried out by a local public notary. Both buyers and sellers do not have to be present at closing and can be represented by their Sales Associate via a power of attorney.
A large portion of real estate in Puerto Vallarta is advertised in dollars. Some buyers may also request to be paid in dollars while others will accept the equivalent payment in pesos.
Compared to the USA and Canada, the property taxes are very low for real estate in Puerto Vallarta. The rate, which is known as ‘Predial’ is only around 0.08% of the assessed value determined at the time of sale. Yearly payment of taxes is required.
Maintenance on real estate in Puerto Vallarta
Property maintenance fees on common areas as well as a budget to maintain your property are necessary. Each building’s Condominium Owners Association handles the common area maintenance as well as the security for the condominium owners.
Rental Potential on real estate in Puerto Vallarta
Quality properties can be expected to rent at least as well as good hotels in Puerto Vallarta. The properties for rent here enjoy a strong market for both homes and condos. An average occupancy of 70-80% annually is common.
Make sure you have a property management company who can be in charge of your property in Puerto Vallarta if you are going to be away for any length of time.
You must also consider these various insurance necessary for your new home such as property, liability, damage, and earthquake. These are all readily available in Mexico at affordable prices for real estate in Puerto Vallarta: property, liability, damage, and earthquake insurance.
Equity on real estate in Puerto Vallarta
You might be asking “will my property increase in value?”. Traditionally, buyers who buy properties in Puerto Vallarta aim at acquiring a second home for vacations or retirement rather than increase personal wealth through speculation. Currently, short-term property speculation is a concept not readily applied to the Mexican real estate market, though you can certainly expect your property to increase in value and make a profit.
Are you getting a good deal?
Yes, surely! Comparing to what your money would buy, in relative terms, with the housing market outside of Puerto Vallarta, you can certify that you are getting a great deal. Plus, consider these other factors: ambiance, safety, cost of living, life goals, and local beauty.