Go Global South of the Border
By Patricia Tan
Why is Mexico one of North America’s favorite destinations? Is it the miles of white sandy beaches, emerald-green reefs of the Caribbean, state-of-the-art hospitals and medical care, or something more?
Mexico’s attractions are many and varied and will be viewed differently depending upon the motivation of the visitor to this friendly, welcoming country. Tourists will undoubtedly be drawn by the natural beauty, Mayan history and the opportunity to enjoy unspoiled beaches and water sports in the clear blue seas.
Once smitten with Mexico’s attractions, many tourists visit over and over again and eventually decide to settle in the country. Many of those people decide to make Mexico their retirement home. The fact that American and Canadian money can buy much more south of the border is probably the most significant benefit to retirees living on a fixed income, or those who want to enjoy a lifestyle that would be beyond reach in their home countries.
First, Mexico makes it easy (and cheap!) to qualify for a retirement visa. There are no high entry fees, and retirees can import their personal belongings, including a car, duty free. Money buys much more south of the border, where you can enjoy all the modern conveniences of life, including medical coverage to a very high standard at a fraction of the cost in USA or Canada. Retirees often talk about a very high standard of living that includes domestic help, being achieved for only $20,000 a year.
Foreigners are often concerned that Mexico’s system for property ownership is very different from their home country. First, Mexican real estate transactions are not regulated in any way, and real estate agents and brokers are not required to be licensed. The old saying “let the buyer beware” is very appropriate and it is imperative that anyone looking to invest in Mexican real estate seek the guidance and advice of a competent attorney to draw up contracts and review the terms and conditions of sale. Additionally, an attorney can do a title search and point out any issues. American title insurance companies are now operating in Mexico and title insurance can provide the buyer with peace of mind. The foreign buyer should always engage his own attorney, rather than using the attorney of the seller or the real estate company.
The Mexican Constitution prohibits direct ownership by foreigners, of real estate in the “restricted zone.” This zone comprises all land located within 100 kilometers (about 62 miles) of any Mexican border, and land within 50 kilometers (about 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the “fideicomiso,” which, roughly translated, is a real estate trust. Essentially, it is similar to trusts set up in the United States, but a Mexican bank must be designated as the trustee and, as such, has title to the property and is the owner of record. The Mexican Government created the “fideicomiso” to resolve the problems involved in developing the restricted zone and to attract foreign capital. This enabled foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law.
Foreigners who decide to make Mexico their vacation or retirement home can choose from a variety of real estate options: Modern beach houses or condominiums, dramatic views of the sea from a hillside retreat, or tranquil living in colonial home set in a rustic highland valley.
Interested to find out more about real estate in Mexico? Call Patricia Tan (941-504-9232) for more details on Mexico and information on upcoming educational seminars regarding Mexican developments and real estate opportunities.
BIO
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career in international sales and marketing has afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. Patricia spent five years as a Director of an American real estate franchise in England in 1990s, when American real estate companies were just entering the European market.
Patricia has earned the REALTOR® designations of Certified International Property Specialist (CIPS), Graduate REALTOR® Institute (GRI), and Transnational Referral Certification (TRC). She has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty in Sarasota, where her focus is to bring international buyers to the local market. In 2008 she organized and took part in marketing trips to Canada, Asia and Europe, to promote Florida’s Gulf Coast and the Sarasota area in particular. Pat may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com [1].
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