Puerto Vallarta Real Estate and Property Market
Puerto Vallarta Real Estate - more in this category > Mexico Real Estate > Cozumel Property > Cozumel Rental PropertyThe market for real estate in Puerto Vallarta is strong. The area is attractive to tourists because of the beautiful beaches, the fishing and the nightlife. This means that there's always a good rental market, particularly in peak tourist season. However, many people buy Puerto Vallarta real estate primarily as a holiday base rather than as a source of rental income. If you're staying in the area very frequently, it may be more economical to buy a property rather than paying hotel prices. Puerto Vallarta is also increasingly popular as a retirement destination.
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Am I allowed to buy Puerto Vallarta real estate?
Foreigners, including US citizens, are allowed to buy property in Mexico. However, some Puerto Vallarta real estate is in "restricted zones". These zones, also known as zona federal and prohibited zones, include some of Mexico's coastline. If you're a US citizen, you won't be able to buy property in these zones. However, you can buy property indirectly in these zones, through the fidei comiso (bank trust) method set up for this purpose. You are the primary beneficiary of the trust, and in practice this means almost all the benefits of ownership, including the right to name an heir. The trusts last 50 years and are automatically renewable at the end of this period. However, you will not be able to buy property in the restricted area to be used for commercial purposes.
How much does Puerto Vallarta real estate cost?
Prices vary depending on the area, the quality of the house and how buoyant the market is. Purchases of villas and condominiums tend to be in cash, which means that the people involved in the transaction do not report the price. For this reason, it is difficult to gauge property prices in Puerto Vallarta. As a very general guide, prices for luxury apartments vary between $400,000 and $800,000. Prices rise with proximity to the beach and luxury features.
Are there any risks with Puerto Vallarta real estate?
Yes, there are risks, as there are with buying property anywhere. The growth of the market has led to an increase in the number of opportunist con-men, but the Government has redoubled its efforts to stamp out abuse of the system. There are steps you can take to minimize the risks. It's a good idea to be very careful about developer-financed property; some developers give you contracts which aren't acceptable under Mexican law before going bust and leaving you with nothing. Get a notario publico (government-appointed attorney) to read through your contract before signing anything. You should also avoid ejido (non-deeded) property. It isn't legal for overseas buyers to purchase this kind of property, although many sellers offer deals nonetheless. Because it isn't legal for you to buy it in the first place, you won't have any legal redress if things go wrong.
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