Costs of buying a house in PV

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chitwood
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Costs of buying a house in PV

Post by chitwood » Tue Apr 21, 2009 6:24 pm

What are the normal costs incurred in buying a house in PV. Somewhere I remember reading that they could be substantial depending on the cost of the home.

Hate surprises - especially the pay out money kind. Tks.

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katnsocal
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Buying property in Mexico

Post by katnsocal » Wed Apr 22, 2009 4:43 am

For starters you can read the article at:

-http://banderasnews.com/realestate/ownership-info.htm

It is a pretty good explaination of what you can expect in the way of the entire process and what you can expect to have to pay for with your purchase.

There are others on this site that own property in PV and I am sure they will add more info for you. My business partner bought my property for me and it is a whole different process if a national buys it.

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Post by marcos » Wed Apr 22, 2009 12:41 pm

The costs spelled out in the article seem about right. But there are some other issues that you ought to know about ... especially as they pertain to negotiating the contract.

First, and probably most importantly, no one in PV seems to want to accept offers on property that are contingent on anything. A typical NOTB Offer to Purchase contains contingencies re: financing, home inspections and other items. An offer in PV contingent upon having the home inspected will be rejected in all likelihood. Therefore, you'd need to have the home inspected on your own dime and with the risk that someone else could come in and make a non-contingent offer while you were doing your due dilligence.

Second, having a third party company hold money in escrow is a relatively new concept in Mexico. Some brokers may tellyou that this can not be done but it can ... at a cost of approximately $500 USD.

Third, the contract is in Spanish (with maybe an ad-hoc English translation) and the wording of the Spanish contract prevails). You might want to consider hiring an English-speaking attorney to make any contractual changes you might require. The cost of this will assuredly vary but I'd plan on about $1,000 USD.

Fourth, part of your closing costs are paying the bank trust fee for an entire year. The choice of the trustee is your choice but some banks offer a fixed fee per year for the trust (we used Banorte) and other banks can alter the amount of the fee at will.

Hope this helps!

chitwood
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Post by chitwood » Wed Apr 22, 2009 5:32 pm

Link wouldn't work.
Thank you for all of your help.
I have read where buying a place could cost 4-6% of the price. That there is a gov. tax of 2-4% on the selling price.

One person said we could just take over their trust and that costs would not be very much. Is this legal? Safe? Thank you.

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kcowan
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Post by kcowan » Wed Apr 22, 2009 6:17 pm

Further to what marcos said, the $500 fee for escrow is no interest, We upgraded to an interest-bearing escrow account for $700 and the closing took 5 months so we gained about $2200 after costs. (American Title in Jacksonville FL)

Shop for a good bank trust fee. We got one that was US$460/year and guaranteed not to increase for 50 years. (Banco del Bajio)

The buying process can be intimidating. You should do your own research online before wasting a lot of time traipsing around the bay.

Right now prices are dropping. Don't use an agent that does not admit this.

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