Tuesday, June 19, 2007

How to buy property in Mexico!

Once upon a time, Americans were not allowed to buy property in Mexico. And once upon a time this was true. Mexico had "restricted zones" and these zones included the coastal waters edge inland 30 miles, from the border inland 60 miles, and all of the Baja Peninsula states of Baja California and Baja California Sur.

Leasing and time shares were the only purchase options in those areas available to most Americans, until Mexico's Foreign Investment Act of 1993 and the North Atlantic Free Trade Agreement of 1994. Now it is possible to own property in the restricted zone with all the same rights as "fee simple" in U.S.

Since ownership became possible, Mexico's tourist meccas have exploded with U.S investment dollars and development growth. I went to Puerto Vallarta last year and there were so many developments happening I could barely keep track.

You must do your homework before you buy in Mexico. Here are some tips before buying in Mexico: Research the integrity of the developer, talk to others who have purchased in the proposed development, take out title insurance and the most important thing - do not drink margaritas before or during the signing. You may have forgotten what you bought in the morning!

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