Tag Archives: Jalisco

Purchasing Property in Mexico

Purchasing Property In Mexico

Thinking of heading south of the border with dreams of homesteading? Don’t know how buying a choice little piece of land to farm could fit into the equation? Well, the great news is that yes, you can do it! Purchasing property in the interior of Mexico is very affordable, very do-able, and an excellent alternative for many reasons (see “secret sustainability” post below…). It’s actually really easy. Here’s how: 

Property in Mexico is affordable and has minimal taxation or other carrying costs.

 

1) Obviously, step one is finding your spot. Take your time, do your homework, and take at least a month to travel around the area you’re interested in. Travel by bus is easy and affordable in latin america, the people are incredibly friendly, and there are plenty of others travelers out there who you will meet on the road. Holly and I knew the country fairly well before starting, but still spent a month in a rental car, touring the Pacific coast within 150 miles of a key transport hub, Puerto Vallarta, before settling on the exact spot where we ended up taking root.

2) Once you have a property in mind, be certain to seek out a reputable notario in the area near where you are considering purchasing. Make sure you talk to a registered “notario”, not a regular abogado (lawyer). Also note that real estate agents in Mexico aren’t licensed and there are many agents peddling property without oversight or exclusivity, so if questions come up, the notario is the person to confer with, not a real estate agent. Always check with a Notario first before making a commitment to anyone! Most city’s have english speaking Notario’s available.

3) Once you’ve settled on a place that you know to be titled (having an escritura), have the notario you are working with review all title doc’s to make sure there are no liens. (Usually a small deposit will hold while doc’s are reviewed. Title insurance is available from U.S. based company, Stewart Title).

4) Next have said Notario write up a “Compra y Venta” sales agreement, and then proceed with purchase… Bank $ transfers are straight forward, Titles are usually issued within several days.

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Purchasing near the Coast

Condominium properties or titled private properties located in the restricted zone and less than 2000sq meters can easily and safely be put into a Mexican bank trust (Fideicomiso). The process is basically the same as above however title will be issued in the banks name with you named as the beneficiary (trust are generally 99year term & renewable).

Palm trees & powder white sand, Tulum.

Problem Properties

For ejido property without previous title, or purchase of larger land tracts in the federal restricted zone (within 50 km of the coast), property purchase can get a bit more tricky.  For other, more problematic purchase, almost anything is possible although the process can be long and grueling. Read on…

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The following is offered as a quick start trouble shooting guide to any foreign nationals considering the purchase of ejido, or recently privatized ejido property, or property in the restricted zone. Blogger MexDog assumes no responsibility for accuracy as the rules change over time, and even by region/municipality. Make certain to seek advice from at least one reputable Notario before committing more funds than you’re willing to lose!

1) Any deal to purchase property that is still part of an ejido should be considered RISKY. Regardless of what you may be told, using a mexican national as presta nombre (borrowed name) or any other means to purchase ejido property in the restricted zone can never be a fail safe proposition regardless of having Powers of Attorney or a Will in place. While many people have successfully “owned” property for years in the name of a prestanombre, there seems to be increasing financial/development pressure that is making that vehicle for holding property ever less stable over time.

2) The litmus for determining if property is actually private, and not still part of the ejido, is possession of an escritura (title) for the parcela or lot from RAN in name of the ejiditario property owner.

(Note that property can be titled and owned privately by an ejido member (ejiditario) without still being part of the ejido land holdings). Privataization can be accomplished through either the Procede “regularization” or dominio pleno process only). Any deals involving property said to be “about to be privatized” should be approached with extreme caution – if at all.)

4) It is advisable that any deposit money paid should be accompanied by a formal compra y venta agreement, best reviewed by a Public Notario’s office. A formal compra y venta will be drawn up for privately titled property only, not ejido property. Any purchase agreement other than a formal, approved compra y venta shoud be consider extremely risky. Consideration should also be given to the facts that realtors aren’t licensed, escrow accounts are rarely used, and that even deposit money accompanied by a formal compra y venta may be at some risk.

Note here also that even with a compra y venta agreement in place, all members of the ejido are constitutionally entitled to a first right of refusal before the first sale of a property out of the ejido.

5) Final purchase, payment, and transfer of title should be conducted under the supervision of a Public Notario’s office only.

6) Final deeds and ownership will be in the name of either a bank trust (fideicomiso) or mexican corporation, not in the name of the foreign national directly, and title insurance is available once the final deed is issued, approximately 2 to 6 months after closing.

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secret sustainability south of the border

View of beautiful Mayto Beach from the first hill.
Rancho Sol y Mar (www.ranchosolymar.com)

Thinking of moving off the grid? Starting an organic farm or CSA? Are you part of a group considering pooling resources and homesteading together?

Well, shhhh-h-h-h, come closer, I’ve got a few well guarded secrets I can share with you…

Secreto Numero Uno: get your hippi ass south of the border! Be it Mexico, Costa Rica, Columbia, or wherever, there are many reasons that you should consider the southern option. The reasons? Listen in:

Reason #1: Two to Three growing seasons. Yes, you can find extended growing in the southern U.S., but 1000 miles south of Texas you really do get an entire second or even third season. What’s not to love about growing outdoors, year round!

Reason #2: The cost of land & living. Land is cheaper (well maybe not Costa Rica anymore), but equally important for the long haul is that property taxes are nearly zero. On our one hundred acres we pay a whopping $200 a year. Tell me that doesn’t help with the bottom line! And while some things like farm & solar equipment are expensive there, once you have property you are allowed a one time exemption to bring a moving van’s worth of “household goods” into Mexico without import taxes. Also, the cost of ongoing basic staple goods is roughly half what one pays in the U.S.

Reason #3: Save energy and reduce your carbon footprint: So how much of your precious time and energy do you want to spend every year preparing for the coming winter? 30%? 40% 50% or even higher??? Well how does 0% sound as an option for you? If you are situated in Mexico or further south, the cost of winter is a thing of the past. And then there are the ethics and nuisance factors of winter heating to consider. How much of your life’s energy, not to mention the planet’s carbon resources, do you really want to spend on heating you home, or even, in extremes climes, avoiding the possibility of freezing to death?

Reason #4: Less Regulation: Face it amigos, you just can’t fart in the U.S. anymore without a permit! Seriously, come south of the border and you’ll discover a sense of freedom you would never have dreamed of. Whether you plan to sell in a farmer’s market such as one of the three or four thriving ones in Puerto Vallarta alone, or if you’re planning a CSA, selling to restaurant’s, simply just growing for yourself, you can count on minimal regulation once you’ve crossed the border and made your way south.

Reason #5: Security in the face of what lies ahead. Really, you ask? Is he really suggesting that life in Mexico can be more secure than life here in the good olde U.S.A.??? Well, yes, actually, I am. As for the narco violence, there are a few simple, common sense rules to be followed such as staying out of the areas of drug production or major transport corridors. The vast majority of the violence I hear about is limited to three or four states, and even with that, it’s the narcos and cops getting perforated, not tourists, travelers, or organic veggie farmers. (I could go on and on about this subject, but will save that for another post…). So what do I mean by security for what lies ahead? Well, the way I see it, if the energy infrastructure gets disrupted for one of any number of reasons (troubles in the middle east, peak oil, climate change) then simply surviving, let alone thriving anywhere north of 30 – 40 degrees north latitude could get really expensive if not downright impossible. Personally, I’d rather build my life’s dream infrastructure in a place with great public transport, and where access to cheap energy is a bonus, not a necessity!

Reason #6: Sun, sun, sun… Viva El Sol! And boy do we have plenty of it. We make our electricity with it, heat & pump water with it, cook with it, and even sterilize with it. Yes, of course there’s sun in Arizona, but 1000+ miles south, it get’s even better. Just one of our photovoltaic systems alone, a mere 2.4kw array, produces close to 15kw on a sunny day. Sweet! So come on down and start farming those photons…

Reason #7: Affordable Help. Let’s face it, you can’t, or don’t want do, do it all yourself. At 200 – 300 pesos a day ($15-$25 U.S.), it’s possible to get excellent, flexible help as you need it. We always make sure to pay above the going rate, and we have gotten terrific, reliable help for all the special projects that inevitably pop up! For one longer term employee we pay all the required social security taxes and withholdings, and, all told, including accounting & filing fees, the extra cost still comes out to only around $1000 per year, (not counting the wages paid). Get the help you need at truly affordable prices!

Reason #8: Quality of Life. Having shuttled back and forth, splitting parts of the year between the two worlds for nearly a decade now, I can with some authority that QOL south of the border is, in general, superior. Yes there are issues with sanitation, schooling, crime and such, but over all life there is really sweet. The Mexican people are, on the whole, far more open, warm and friendly to strangers than has been my experience in the northern countries, and the pace of life, much more focused on friends and family, is more relaxed, and even festive, than north of the line.

Secreto Numero Dos: The really good news is that if you’re still not convinced, there’s a secret spot I can tell you about where you can come dip your toe in the water (literally) and try the idea on first before plunging in. You, our new amigos are cordially invited to come spend some time with us in beautiful Mayto! Our off grid goat ranch + sustainability center has a campground where you can beat the winter and hang out for a while. We also have work exchange programs, internships, and even the possibility of homesteading or other longer term involvement. Check us out! http://www.ranchosolymar.com

Eat This Campground!

View of the campground bath house and Mayto Beach…

Well, it’s really happening! We now have our sign up, and Camping Sol y Mar (Camping Sun & Sea – http://www.ranchosolymar.com) is finally launched. Situated 300 yards back from the gorgeous, pristine beach of Mayto, Mexico (state of Jalisco, 2 hours south of Puerto Vallarta) Camping Sol y Mar is to our knowledge, the world’s first 100% off grid campground with solar powered RV hookup sites. And yet another first, thanks to the new herb spiral created by Katy & Alex, Camping Sol y Mar is also now the world’s first “edible campground”. That in addition to the bananas, mangos, coco’s and other plantings, well on their way to fruity fruition. Oh, and did I mention the new clay pizza oven that Alex is working on? Getting hungry yet? well then there’s just one solution – come camp with us in Mayto this winter!

Our Mission Statement…

Mission Statement:

 “To provide a source of income and good jobs for the community. To promote sustainable construction and living practices. To foster education. To help connect visitors with local residents”

Holly & I feel that we have been given and incredible opportunity with this property and the above mission statement is the beacon that guides us. Rancho Sol y Mar, has an ongoing interest in trading care-taking responsibilities or project help for housing, shared business opportunities, or other compensation. Together with friends, family, and other participants, we are forming a flexible, working community based on common goals and open spirit.