Is home ownership considered a secure investment in Mexico?

Not only is Punta Sayulita a secure financial investment, it is an investment in the community as well. Enjoy this safe haven provided for residents and their loved ones in Mexico. Property ownership in Mexico is considered a secure investment option.

Foreigners have been purchasing land and homes in the coastal areas of Mexico for more than forty years. This is thanks in part to the assistance of a Mexican Bank trust which names the owner as the beneficiary and the Mexican bank as the trustee.

These owners enjoy the same rights as property owners within the United States, including the right to enjoy, lease, sell and make improvements to the property.


What does the law say about property ownership by non-Mexicans?

As stated in Article 27 of the Mexican Constitution, non-Mexicans cannot directly hold residential real estate within fifty kilometers of the Mexico coastline. Additionally, non-Mexicans cannot own land within one hundred kilometers of Mexico’s international borders.

However, many non-Mexicans have been purchasing coastal and border properties since 1973 through the implementation of a Mexican bank trust, commonly referred to as a Fideicomiso. Much like a trust in the United States, the Mexico bank holds all rights and privileges of the property including ownership while exclusive use and enjoyment is granted to the beneficiary, the non-Mexican.

With the Mexican bank trust, the non-Mexican beneficiary has the right to occupy or rent the property at his own discretion. The non-Mexican beneficiary may also initiate a transfer of title for the property to any legal beneficiary he chooses. Beneficiaries can also modify the property by following all local zoning laws and regulations.

The initial term of these trusts is fifty years and can be renewed for an additional fifty years during or at the end of the first fifty years for a nominal fee. In addition, the property may be sold at any time to any person qualified for land ownership through citizenship or bank trust. The non-Mexican buyer can increase the purchase amount due to property value appreciation.

These implementations are designed to ensure the legality of all transactions and protect the rights of non-Mexicans who secure land. Punta Sayulita has numerous closing specialists and a savvy sales team that will help you every step of the way as you establish a trust and initiate a transfer of ownership.


How do I establish a Real Estate Trust or ‘Fideicomiso’?

A Real Estate Trust, or Fideicomiso, can be established by paying the Mexico bank a nominal predetermined fee which includes a property value percentage. These fees are established to cover the costs of preliminary studies and drafting a trust agreement.

Typically, the costs associated with a trust can range from five hundred to fifteen hundred dollars in the initial set-up, and approximately five hundred dollars recurring annually. These fees will be paid directly to the Mexico bank serving as the trustee.

These real estate bank trusts are held as off balance sheet assets by the Mexico banks acting as trustees. This trust system was implemented by the Mexican Government to provide non-Mexicans legal ownership without amending their 1917 Mexico Constitution.

When you decide to purchase property in Punta Sayulita, you will receive the assistance of our closing specialists who will assist you and make sure that you and your legal counsellors understand each and every step in the purchasing process.


What kind of property closing costs should I expect to incur?

Closing costs are, on average, calculated as four or five percent of the property purchase price which is somewhat more expensive in Mexico than in the United States and Canada. These fees have been implemented to cover the costs of notary fees, property registration, transfer taxes, title insurance, and certificates that guarantee there are no liens on the property. Private escrow companies are now specializing in Escrows and this function will cost approximately one thousand dollars per transaction.

Public Notaries will record all transactions taking place in the Land Registry Office. Notaries are also responsible for collecting any property taxes due during closing. For your convenience, Punta Sayulita specialists have already arranged the necessary closing logistics with a registered Public Notary to facilitate a speedy and accurate closing.


Can I purchase Title Insurance in Mexico?

Yes. Title insurance is available in Mexico. The First American Title Insurance Company is committed to issuing title insurance on all Punta Sayulita residences to anyone who purchases land and hopes to procure title insurance upon completion of the sale.


What kind of property taxes can I expect to pay in Mexico?

When compared to other areas and regions around the world, the annual property tax in Mexico is considered low since they have never been considered government revenue. This includes the Puerto Vallarta and Sayulita areas. Mexico’s property taxes are paid bi-monthly, calculated using a percentage of the assessed value which was determined during purchase. These governmental policies are subject to change.


What are the requirements for infrastructures and utilities at Punta Sayulita?

Punta Sayulita has implemented infrastructures which have been designed to comply with all local, state and federal environmental regulations. Contracts have been fulfilled with local providers for water, telephone, electric, satellite, internet and gas utilities at Punta Sayulita.

Water and sewer utilities are under management by the Punta Sayulita community’s Home Owners Association, which is often referred to as HOA. Additionally, Punta Sayulita is currently constructing back-up power sources that will provide power to common areas in the community should local services fail.


What level of security can I expect to find in the Punta Sayulita community?

As a gated community, Punta Sayulita provides safe and secure living for all residents and guests, including twenty-four hour guards. In addition to the gate guards, there are community patrol members and vehicle patrol on duty around the clock to ensure an ideal neighborhood.

Currently, there are two security gates, the main entry and an alternative gate for pedestrians and work crews. The main gate is guarded 24 hours per day, and is equipped with automatic scanning devices and video recall. These technological devices provide documentation for all visitors entering and exiting the Punta Sayulita community.

The gate guard will only allow authorized personnel, residents and guests entry into the Punta Sayulita community. Residents and members of the community are provided with a radio transponder or other vehicle identification. These items should be placed in each vehicle to help security guards determine who should be granted access to the property.

For your safety and convenience, all guests should register in advance with Punta Sayulita’s Security Guards to be granted access to this secure community.


Is Punta Sayulita regulated by the Homeowners Association?

Yes. Punta Sayulita is regulated by a Home Owners Association, providing landscaping and maintenance of all common areas in the community. Other services of the HomeOwners Association include security and architectural design reviews as needed.


Does Punta Sayulita offer Property Management and Rental Services?

Yes. Punta Sayulita offers property management and rental services, offering peace of mind to homeowners. In your absence, Punta Sayulita’s Residential Services will oversee your property, keeping it secure and properly maintained.

These services include having your home cleaned and your kitchen properly stocked, your thermostats set pursuant to your arrival, and fresh linens provided on all of the beds in your home.

Punta Sayulita’s Residential Services covers every aspect of property upkeep including housekeeping, landscaping, bill payment, shopping and stocking, transportation, and many other issues that may arise.

Homeowners who choose to lease their homes can take advantage of Punta Sayulita’s professional rental program. This program markets your home and chooses qualified renters who meet and follow the Rental Agreement.


Are home furnishing packages available at Punta Sayulita?

Yes. Punta Sayulita has several home furnishing packages available, commissioned Rachel Horn Interiors. With these packages, you can easily create complete residential décor options that will capture the Punta Sayulita lifestyle and your own personal style. These residential décor packages can be procured during the purchase of your home.