The Process and the Cost of buying a property in Puerto Vallarta:
Buying property in Puerto Vallarta is possible, whether you’re an American citizen, Canadian, or from anywhere else in the world, it is completely legal to buy property in Puerto Vallarta.
However, as a foreigner, there are specific guidelines that must be followed, guidelines that real estate agents in Puerto Vallarta are extremely familiar with. Your agent will explain to you the exact process that takes place when buying a home in Mexico, and of course, help you with this process from start to finish.
Most foreigners choose to have a Real Estate Agent to help them to go through the whole process of buying a property in Mexico. Most foreigners aim to buy a property in cash but some others look for a financing option, consult your real estate agent to know the specific regulations of Puerto Vallarta. Because it is near the ocean to buy a property you will be required to have a Bank Trust.
What is a Bank Trust?
A bank trust is a financial institution that enables the bank’s customers to do transactions. The bank takes up the role of trustee during such transactions and helps customers transfer assets to another customer following the trust agreement terms and conditions. Act as a fiduciary or an agent on behalf of the trusts. In México a Bank Trust is Called FIDEICOMISO.
Why is needed a Bank Trust?
By law in Mexico, a foreginer can NOT OWN a property withing 50 kilometers from the shoreline. Anything inside this area is restricted to foreginers, then how can i buy in Puerto Vallarta? Here is where a Bank trust is required.
How does a Bank Trust works?
Once you were working with your Real Estate agent to find the property you want to buy and you decided that is the one, it is time to Set Up The Trust.
A bank Trust IS NOT A LEASE, but you will need a financial institution to hold the trust, and the Mexican financial institution help you legally to MANAGE YOUR PROPERTY. Your house is not an asset of the bank or property of the bank, The buyer will have full right over the property, but need the financial institution to back the process, that is why every year after you buy your house, you need to pay a fee to the Bank trust.
In short: It suppose you are not allowed to buy a property near the ocean but if you pay a fee to the government every year, though a mexican bank, they let you do it 🙂
Bank Trust FAQs
- Do I have to get the Bank Trust if I pay the property in cash? YES
- Do I have to get the Bank Trust if I pay Mortgage? YES
- Do i have to pay the fee every year? YES
- Where do I pay this fee? In the Bank who is holding the Trust
- The Bank Trust apply only in properties within 50 km from the shoreline? YES
- How much is this Bank Trust Fee? Aprox700 usd
Financing your dream home
You may be wondering about financing your dream home. Financing is a wonderful option for those who simply cannot afford to buy in full. Learn all about how foreigners can get a Mexican mortgage and finance their property in paradise, by reading Financing and Mortgages in Mexico, a complete guide from Coldwell Banker.
Recommendations to look for a property for sale in Puerto Vallarta:
Real Estate Agents:
- Coldwell Banker https://www.cblacosta.com/
- Top Mexico https://topmexicorealestate.com/
- Century 21 https://century21mexico.com/
- MexPat https://mexpatrealtors.com/mortgage/
- Applegate Realtors https://applegaterealtors.com/buying-a-home-in-puerto-vallarta/
The Only Bank to get a Mortgage in Puerto Vallarta:
- https://www.intercam.com.mx/ offer credit to buy a house, lend you the 60% of the total value of the property, in Bahia de banderas is required a Bank Trust.
The high demand to buy a property in Puerto Vallarta:
In the past year, the demand to own a house in Puerto Vallarta has increased a lot, people from the USA and Canada come down here in floods to find the perfect property for vacation, to live in, or as an investment. Consider also that the process can be more complicated than if you were Mexican.
This has a direct impact on the property prices for sale, as an example: 2 years ago, still, during the pandemic, you could acquire a house in Fluvial for around 200,000 USD, but this past year due to the high demand in properties the price increased in almost a 100%, and now a price in Fluvial is around 380,000 USD. This is a high increase in a short time.
We can find the same effect in all the zones we did mention above, the prices are still going up while you are reading this, and I know this first hand because I am trying and struggling to buy the house in the one I live in now. We live in Fluvial but the property prices are going up crazy and this is projected to continue next year.
There is still another option, not so popular among foreigners, but is to consider zones out of the scope, but you have to surrender, comfort, access, maybe safety, and the vibe of the surrounding. In these zones, you may find properties on sale with prices as low as 70,000 USD. If you want to take a look, some of these zones are Las Juntas, Mezcales, Mojoneras e Ixtapa.
If you think the prices in Puerto Vallarta are indeed going very high, you must consider that this trend is expected to continue for at least the next year. This is because the demand does not stop and the flood of foreign money is still making the prices increase. Offer Demand effect.
Sale Prices and popular zones for foreigners to live in Puerto Vallarta:
As I mentioned above the prices are very similar in all Bahia Banderas, considering here: Bucerias, Cruz de Huanacaxtle, and Punta de Mita.
Lets see the prices to buy a property in Puerto Vallarta updated to November 2022:
Zona Romantica:
Is the MOST desirable popular zone for many, is close to the Malecon and the ocean, has traditional vibes, and everything is close, but is not cheap.
- Houses: From 350,000 to 2M USD
- Condos: From 250,000 to 1.3M USD
Fluvial Residential:
It is a very privileged residential zone, in the heart of Puerto Vallarta town. Is where Cody and I live, yes I Love it, and yes it is expensive. You have the walking distance of Costco, Comercial Mexicana, and The beach 10 minutes walking, and 3 malls around also within walking distance of course if you like to walk like me. Malecon is just 10 minutes by car/taxi and you have restaurants and convenience stores nearby. In comparison with the noise and movement of other zones, it is very quiet here despite being in the middle of the town.
- Houses: From 350,000 to 800,000 USD
- Condos: 170,000 to 250,000 USD
Zona Marina:
Is the other MOST desirable popular zone for many foreigners, is close to the yacht pier, and has a lot of incredible restaurants all along the pier too. The zone is very calm and has this exclusivity vibe, most foreigners live here, is right by the main avenue in Puerto Vallarta that takes you everywhere called Francisco Medina, close you will also find within walking distance, convenience stores and big supermarkets, and Galleria Mall 5 min ride. Has also a big hotels complex and if you are in the mood for a day pass is an ideal location too.
- Houses: From 350,000 to 1.5M USD
- Condos: 250,000 to 1.3M USD
Nuevo Vallarta:
A very popular zone for many foreigners is close to the ocean, and is about 20 min drive from Puerto Vallarta, in Nayarit state, close has a new theme park called Vidanta and is very close to Bucerias (about 5 minutes). To enter Nuevo Vallarta you need to cross a safe point and the residential zone is stunning, chosen by many, and of course, is exclusive..
- Houses: 300,000K to 2M USD
- Condos: 200,000 to 1.5M USD
Camino a Mismaloya:
Very popular zone for many foreigners. I have to say this zone is the most beautiful, talking about ocean views. All condos and houses here have a privileged view of the ocean and the color is deep blue, stunning. The disadvantage I see is you need to cross half of the town to reach a supermarket.
- Houses: From 230,000 to 1.5M USD
- Condos: 230,000 to 1.5M USD
Another zones to live in Puerto Vallarta Area Considered by foreigners:
Versalles
Versalles: Close to Fluvial, this district is a bit more middle class neighborhood, you can find a bit more affordable prices, also on the sight of foreigners:
- Houses: From 200,000 to 400,000 USD
- 150,000 to 350,000 USD
Colonia Independencia
About 10 minutes from the Malecon area, this is a more locals area, very calm, and nice, has easy access and is good to live in, you can find different option in prices, also on the sight of foreigners:
- House: 250,000 to 1M USD
- Condos 150,000 to 250,000 USD
Palmar de Aramara:
Close Fluvial tool, this neighborhood is a bit of a mix you can find a bit of a fancy area but also a more simple environment. Is very calm and very close to the beach.
- Houses: 180,000 to 400,000 USD
- Condos: 200,000 to 380,000 USD
Are there other zones to live, maybe not right in Puerto Vallarta but in Bahia Banderas?:
Yes, and the prices are very similar. What I have seen is that to buy a house all Bahia Banderas has by the same price list.
The other close towns you may consider can be around 30 to 1 hr from Puerto Vallarta but still in Bahia Banderas: Bucerias, La Cruz de Huanacaxtle, and Punta de Mita
Puerto Vallarta is a paradise, but to live in paradise now has its considerations, stay safe and I will keep posting more useful information about how is to live in Puerto Vallarta, Stay tuned!
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