The financial ability to buy a property is just one of many issues that must be considered before making this big decision.
The idea of buying a property in a Mexican destination like Vallarta · Nayarit (either with the intention of moving or simply to have a place to spend vacations) can be very attractive to those who have been captivated by the cultural richness of this country. However, before making the decision to buy, potential buyers must keep in mind some considerations related to starting a new life in a new place. This will help avoid unwelcome surprises. Ensuring the financial ability to buy a property is just one of many issues that must be considered before beginning this stage of life in this Mexican paradise.
To provide a basic guide, we asked Luke Kost, of Cochran Real Estate, and Antonio Palacio, of Silva Brisset Realtors, for their recommendations of things to consider before and after a real estate transaction.
1. Property Type
Initially, it is necessary to review the client’s budget and the type of property sought. Based on this, the agent can select those properties that may be suitable. Antonio Palacio believes this step is vital, since here you can find land from $30,000 USD to houses at more than $10 million USD.
2. Bilingual Neighborhood?
Another key question is whether the desired area of the city has services available in the client’s language, and whether they will need to secure the help of a bilingual assistant or take some Spanish classes to achieve a satisfactory conversational level.
3. Try Every Season
It is wise to experience the climatic conditions of each season, especially for those who plan to become full-time residents. Luke Kost recommends visiting for two weeks in three different seasons. Similarly, it helps to ascertain the various levels of tourist influx.
Thanks to globalization and technology, it is becoming more popular for people to turn their home into an office, working from anywhere in the world. So, now moving to another country at an early age is more common, not just a privilege of retirees. When working long distance, it is important to check the quality of the area’s Internet connection. If employment in Mexico is desired, opportunities and market conditions must be considered.
How expensive is life in Vallarta · Nayarit? Thanks to previous experience, many will have a general idea of the prices of some products and services here. However, there are others that come with living here as a resident that should be considered.
1. Generate a Reliable Network of Consultants and Suppliers
You can rely on your real estate agent to make you a list of service providers who can help you with things such as household chores, legal advice, and medical care, as well as mechanics.
2. Maintenance and Fees
In places with a tropical climate like our destination, properties require constant maintenance, while in the United States and Canada, it usually is not needed as often. Thus, the vast majority of condominiums here have monthly or annual maintenance fees. For an independent property, you can hire a private company that offers this type of service.
3. Register with SAT
If you want to work or establish a business in Mexico or turn your property into a vacation rental, you must register with the Servicio de Administración Tributaria (SAT) (Tax Administration Service) of the Secretaría de Hacienda y Crédito Público (Ministry of Finance and Public Credit). That way, you will pay the relevant taxes in accordance with the law. The assistance of a reliable accountant could be of great help.
4. Income Tax
If you plan to sell your property in the future, you should be aware that you will have to pay Impuesto Sobre la Renta (ISR) (income tax). This is a percentage of the total price of the property, which you can calculate with the assistance of a tax consultant or notary. Also, you should know that ISR can legally be significantly reduced. It is best to educate yourself about this before signing a purchase contract.
5. How much is my house worth?
Learning the average price per square meter in the area where your property is located is important. That way, you will be aware of the value of your assets, and it will be useful if you sell in the future. If you stay in touch with the real estate agent with whom you closed the deal, you can ask about this.
We hope that these pointers will be useful to you and that if you are interested in investing in Mexico they will make it easier for you to learn more about each of the above topics. And surely you will find professionals willing to help you at any time.