Are you thinking of purchasing real estate in Riviera Nayarit on Banderas Bay, Mexico? If so we have some pointers for you to consider before you take the plunge.
Things you should know before buying real estate in Banderas Bay
Closing Process when buying real estate in Banderas Bay
The closing process will generally take between 30 to 45 days with paperwork and escrow payments all coordinated through a local public notary and your local real estate office. All closing costs are covered by the buyer while the seller pays any capital gains taxes and real estate fees. The buyer and seller need not be present at closing when buying real estate in Banderas Bay, but they may be represented by their sales associates via a power of attorney.
Taxes on real estate in Banderas Bay
Property taxes are pretty low in Riviera Nayarit and Banderas Bay in general; the current rate is 0.08% of the assessed value of the house, paid yearly, as determined at the time of sale.
Maintaining Your Property
If you are a condominium owner in Banderas Bay, common maintenance and security is handled by the Condominium Owners Association and paid for by the monthly fees you pay. Home and condominium owners who will be away from their units for a long time may want to consider a property management company.
Insurance on real estate in Banderas Bay
Buildings, contents, earthquake, liability, damage, and many other kinds of insurance are all readily available in Mexico at a relatively low cost. All types of policies can be written to pay in US dollars.
Financing on real estate in Banderas Bay
Mortgages are less common in Mexico than they are in other places; it is far more common to buy real estate in cash here due to the high interest rates on mortgages.
Rental Potential on real estate in Banderas Bay
In Riviera Nayarit there is a very strong market for vacation rentals both in condo and house form. Properties which are competitively priced can expect to have 70 – 80% occupancy across high seasons.
Equity on real estate in Banderas Bay
Will your property in Banderas Bay gain value? This is something that cannot be firmly stated, but we will say that short-term speculation is not the norm here; people who buy in Riviera Nayarit tend to be buying retirement or vacation homes for the long haul. Of course, if you buy in tourist hotspots you can expect prices to rise with a little more alacrity.