• Puerto Vallarta a wealth of opportunities.

• Purchasing a House?

• Buying Real Estate in Puerto Vallarta.

Puerto Vallarta is no longer the sleepy fishing village it once was. Today it offers the very best real estate opportunities on the West coast of the Americas for a third or fourth of the price of most southern Californian properties. Investments in Puerto Vallarta are continually rewarding buyers with handsome profits and it seems to be the trend for many years to come. If the last 10 years of Puerto Vallarta's real estate history is the slightest reflection of the next ten years it would be a very wise move to secure your investment today.

THE MEXICAN ECONOMY:

Mexico has come along way from the years of annual inflation rates of over 1000%. In actual fact the Mexican economy is moving along exceptionally well. The Mexican government is estimating an annual growth rate of approximately 3.8% with annual inflation hovering at approximately 4.00%. The Mexican government is also expecting to balance its books in 2006. As the 12th largest economy in the world we believe that the best has still to come and we invite you to become part of Mexico's formidable future growth. Mexico offers you a variety of incredible investment locations to choose from and Puerto Vallarta is on the top of the list.

HOW LEGAL CHANGES AND INTERNATIONAL AGREEMENTS HAVE HELPED TO ATTRACT MORE FOREIGN BUYERS IN RECENT YEARS?

Mexican Foreign Investment Laws were very restrictive prior 1971. In Dec. 1993, the New Foreign Investment Law was passed allowing Foreigners in most cases to establish Mexican Corporations with 100% foreign share holders and Administration (certain fields are still reserved to Mexican Nationals or the Government). The same Law approved the extension of the existing bank trust system which allows foreigners to acquire rights to properties within the Restricted areas (Coastal and Border areas of Mexico) to 50 years (instead of the prior30 years trust). The subsequently approved Regulations to said Law guaranteed the renewal of any existing trust for the same period of the prior one; therefore, making it an almost ongoing situation as new buyers could set-up a newly established 50 year trust and so on. This same Law also authorized the direct purchase by Mexican corporations (even with 100% foreign share-holders) to acquire through direct title commercial properties within the same Restricted area. On 1994 the signing of the Free Trade Agreement between the US, Mexico and Canada provided further certainty to Foreign Investment in Mexico. Since then, we have experienced and increasing demand by foreign investors as well as a large amount of foreign residents coming to live in Puerto Vallarta seeking jobs and investment opportunities or even starting small businesses, which can now be owned by a Mexican Corporation with Foreign share-holders. The application of Mexican Immigration Laws has also become much more flexible, thus creating this affluence of foreign permanent residents.

WHAT SORT OF APPRECIATION HAVE PROPERTIES OWNERS RECEIVED OVER THE LAST FEW YEARS?

Prices have been increasing at an average rate of approximately 7% to 10% per year in the more touristy areas (ie, view properties, gated communities, ocean or beachfront, etc). However, many areas have also experienced phenomenal increases of up to 20% over last year's prices. New Condominium and Residential Developments are having an unprecedented "boom". There are, at least 2 or 3 new developments starting each month within the Puerto Vallarta and Bay of Banderas corridor. As a reference, it is estimated that 2004's real estate residential investment totaled approximately $400 million USD. During 2005 and leading into 2006 we are expecting to substantially exceed the 2004 dollar real estate investment figure.

IMPORTANT AND BASIC ASPECTS TO CONSIDER WHEN SEARCHING FOR THE RIGHT REAL ESTATE INVESTMENT.

Possibly one of the most important differences regarding real estate investment in Mexico is to be aware, that unlike Canada or the US, there are no Laws requiring compulsory real estate licensing. It is therefore essential to make sure that the real estate company you are dealing with has been established for several years and has a solid reputation. Furthermore it important that the real estate brokers/owners or agents you are dealing with area licensed, members of the Mexican Association of Real Estate Professionals (A.M.P.I.). It is preferable that they are also members of other International Association(s) of Realtors, such as N.A.R. in the U.. or Professional Real Estate Institutes (CRS) or C.I.P.S. (Certified International Property Specialists); in addition to being bilingual (Spanish and English). It is also important to know that Puerto Vallarta was one of the first cities in Mexico to have a local Multiple Listing Service, which allows a purchaser to work with one real estate firm that will be able to show and offer all the properties listed on the market by all agencies. Title insurance is available in Mexico and the buyer should make sure that the funds related to the transaction are held in escrow with Title or Escrow companies and not paid directly to the seller prior to closing. Many of the pre-construction projects may not offer the necessary legal protection therefore it is necessary to seek professional legal advice. Another significant difference when purchasing real estate in Mexico is the higher cost related to closing. closing costs are generally paid by the buyer and they represent a high percentage of the purchase price ranging from 4% to 10%.

WHAT TYPE OF PROPERTY AND PRICE RANGES ARE AVAILABLE WITHIN THE BAY OF BANDERAS?

Due to space constraints we are providing a very general range of what you can expect to pay for different types of property within the Bay area.

One bedroom view condos going from $100,000 to $200,000 USD.
Oceanfront: $175,000 to $350,000 USD.

Two bedroom view or Marina condos from $200,000 to $800,000 USD.
Oceanfront: $350,000 to $1'500,000 USD.

View Townhouses from $350,000 to $750,000 USD.
Detached villas on residential areas, Golf courses, Marina, etc. starting at $500,000 USD to $2'500,000 USD.

View Villas from $750,000 to $3'500,000 USD.
Larger oceanfront villas or estates from $3'500,000 to $12'500,000 USD.