Mexico the Mayan Riviera

Mexico

While Mexico is a large, sprawling country of some 109 million people, we will concern ourselves solely with the areas touching the Caribbean Sea along the Yucatan Peninsula, primarily from Cancun south to Belize. This area is widely known as the "Mayan Riviera." Most well-known tourist locations are Cancun, Cozumel and Playa del Carmen, though the smaller towns around these big three have been growing dramatically over the last decade. Numerous residential and second-home options have sprung-up south of Cozumel during the last five years. Obviously, with the severe economic downturn world-wide, growth and development have slowed markedly, but this may be only a hiccup in the long-term growth of the area. There have also been a number of incidents involving narco-terrorism or other drug cartel activity throughout Mexico and the police forces and government have been so thoroughly

map of Mexico

Among Mexico's primary draws are its proximity to the United States and ready accessibility via air from numerous international destinations, primarily into Cancun International Airport (CUN). Spanish is, without a doubt, the primary language throughout the Yucatan Peninsula, but English is becoming more of a staple.

Contrasted to much of the Caribbean, many professional real estate agents and brokers are located along the Mayan Riviera. Information and listings can be found on a dozen or more websites for agents working in the area, which are normally licensed as agents. They can also help navigate some of the idiosyncracies of Mexican law - such as a prohibition on foreigners owning coastal land (anywhere within 31 miles of the coastline). The usual way around that law is to create a bank trust (fideicomiso) which holds the property (for 50 years, which can be extended) and the foreigner will be a beneficiary of that trust with the ability to transfer, lease or improve the property. Transfer of the trust assets (the property) to others or heirs should be without capital gains or inheritance taxes through this vehicle. Trusts cost roughly $2,000 to establish, plus a fee of around $500 per year to manage the trust. Title insurance is available through at least two different American title insurance companies and would be recommended.

A notario (notary) handles the closing and no attorney is required. Closing fees can be estimated at 5-7% of the purchase price or 5-6% plus $4-5,000 (numerous fees are based on a percentage of purchase price, others are flat fees). Closing fees include: taxes, notary fee, appraisal, application, establishing the trust and obtaining the SRE (foreign affairs) permit. Traditional mortgages and bank financing are available at fairly competitive rates. Numerous rental management companies are available for those wishing to offset ownership costs with rental income - 20-35% fees are customary.

The most real estate activity seems to be centered on the area south of Playa del Carmen where numerous developments have popped-up in recent years. Most of these resorts appear to cater to ex-pat retirees, particularly oriented toward American pensioners.