Considerations Before and After Buying a Property

Whether you have the intention of moving here permanently or simply want to have a place to enjoy during the holiday seasons, the idea of acquiring a property in a destination like Vallarta · Nayarit can be very attractive for all those who have been captivated by the beauty and cultural wealth of Mexico.

Factors related to the start of a new life in a new place, which could contribute to saving some inconvenience.

However, before making the decision to buy, it is necessary to take into account some specific considerations related to starting a new life in a new place. These considerations could help you avoid certain inconveniences. First, understanding the market, researching your options and having the financial solvency to complete the acquisition of a property are just a few of the many factors to consider. You must understand the investment and be sure its within your means before starting this stage in the Mexican paradise.

With the aim of offering a basic guide, the Vallarta Real Estate Guide editorial team approached Jaime Sánchez, independent real estate agent, to learn about some of his main recommendations you should consider before and after carrying out a real estate transaction in our destination.

BEFORE BUYING

Type of Property
The first thing to review is the budget you have and the type of property you are interested in purchasing such as a condo, land to build on or single-family house. “Based on this, we can make a selection of those properties that best suit the needs of the prospect. This filtration is vital, because throughout Vallarta · Nayarit you can find lands from less than 30,000 USD, to residences of up to $20 million USD.”

Bilingual Zone?
Although Puerto Vallarta and Riviera Nayarit are mostly dedicated to hospitality (meaning many people speak English as well as their native Spanish), another key point is to know if the area of the destination in which the prospect is interested offers services available in their language or if they will need the help of a bilingual assistant to get involved. In a better way: “Easy communication is vital to promote better adaptation.”

Experience Each Season
It is highly recommended to know the climatic conditions of Vallarta · Nayarit in each season of the year, especially those who plan to become full-time residents. Summertime here is quite different than the months in which you might have visited for a vacation. “The ideal is to visit our destination for at least two weeks in three different seasons, this with the aim of perceiving its charms and characteristics.”

Work
It is increasingly common for people to turn their home into an office, carrying out their work from anywhere in the world. “This has made moving to other nations more frequent for younger people and not just a privilege for retirees. When working remotely, it is necessary to review the effectiveness of telecommunications services in the area you plan to purchase a home. If you want to start a business in Vallarta · Nayarit, you should consider the particularities of the market relevant to your particular business.”

Cost of Living
How expensive is life in Vallarta · Nayarit? You can get a general idea of the prices of some products and services from previous experiences during trips to the area. “In addition to those, it is important to consider the myriad other costs that will be associated with becoming a full and/or part-time resident. At this point, the previous experience of being at the destination is key again.”

AFTER BUYING

Generate a Reliable Network of Advisors and Suppliers
Although there are several local companies that manage and provide general maintenance to rental and part-time-occupancy properties, it is always important to have a list of service providers who can help with other household tasks such as cleaning, water delivery, food services and more. It’s also beneficial to find out about legal advice and medical care. “This way, in any situation, you would have a better idea of who to call.”

Maintenance and Fees
In destinations like Vallarta · Nayarit, all properties require constant maintenance due to the tropical climate. “Generally, in the United States and Canada, residents don’t need to do it as often. Here, yes, and that is the reason why condominiums have monthly and/or annual maintenance fees.”

Register with the SAT
If you want to work, establish a business or convert your property into a vacation rental, you must register with the Tax Administration Service (SAT) of the Ministry of Finance and Public Credit. “In this way and in accordance with the law, you will be required to pay the pertinent taxes for your business or rental income. The assistance of a reliable local accountant could be of great help throughout this process.”

Income Tax
If you plan to sell the property in the future, you must take into consideration the Income Tax (ISR) or capital gains tax. “This is a percentage of the total property price that must be paid and can be calculated with the assistance of a tax advisor or notary. You should also know that it’s possible to significantly reduce the ISR via legal means. However, it is best to find out about this issue before signing a purchase contract.”

How Much is My House Worth?
Knowing the average price per square meter in the area where the property is located is of great importance. “With this updated information, you can be more aware of the historical value of the property, which will be very useful in the event you choose to sell it in the future. If you remain in contact with your real estate agent with whom the deal was closed, you can ask him/her about this.”

“Although all of the above may seem overwhelming, the excellent news is that in Vallarta · Nayarit there are professionals who can assist and advise you at all times when you’re looking to invest in our destination,” Sánchez concludes.