As we all approach retirement, we often dream of someday owning a piece of Paradise, somewhere in Florida, Arizona, Hawaii, or even Puerto Vallarta; someplace with a climate conducive to kicking back and enjoying life to its fullest, year round.

To more than 50,000 retirees, Puerto Vallarta, located on the Mexican Riviera along the Pacific Ocean at the same latitude as Hawaii but six hours closer and with a lower cost of living, has been selected as their primary or part time retirement destination. Unlike the arid zones of Arizona, magnificent ocean views are available everywhere in Vallarta. Unlike the flat land and low elevations throughout Florida, the Sierra Madres provide the back drop to all of the Vallarta area providing a beautiful array of tropical flora and fauna.

The city of Puerto Vallarta lies on the innermost part of the 25 mile diameter Banderas Bay. The total land perimeter of the bay is approximately 60 miles, however only about 40 miles of shoreline is available for foreign ownership. This available land extends from Mismaloya, 10 miles south of Vallarta, to 25 miles north of Vallarta near Punta Mita in the state of Nayarit. An additional stretch of Pacific Ocean shoreline extends about 15 miles north of Punta Mita with certain portions available for foreign ownership, thus providing the total Greater Puerto Vallarta area roughly 55 miles of beachfront property.

With Greater Vallarta

So, you?ve reached a point in your life where you think that you?ve learned a little about business, finance, contract negotiating, real estate, etc. and have at least a layman?s knowledge of law pertaining to each. Being that savvy, you might also be aware of the incredible retirement locations and values south of the border; furthermore, you might even be considering Mexico as your retirement destination. If so, you might as well forget everything you?ve learned and leave your law degree at home!

Mexico, as beautiful as it is, has a somewhat different way of doing business and a completely different set of laws. Additionally, all legal transactions, including real estate transactions, are done in Spanish. Therefore, for those of you that may be considering locations in Mexico as possible retirement destinations, the following information should give you some insight as to how the Mexican real estate industry works, list some of the possible pitfalls, and most importantly, give you the guidance required to assure a pleasant and safe experience.

In 1984, we made our first real estate purchase in Puerto Vallarta; a condominium in Mismaloya, about seven miles south of town. Our second purchase, two years later, was the adjacent condo. A year later, we removed the wall between the two condos and remodeled them into one very spacious three bedroom condo. For thirteen years, while still working in Houston, we thoroughly enjoyed visiting Vallarta two or three times a year.

At some time after the purchases of the two condos, we noticed that our original escrituras (legal property documentation similar to a title or deed that is held in a fidecomiso or bank trust) showed the property values to be about one third of what we actually paid for them. When we inquired about the discrepancy, we were told that the lower values were used in order to reduce our annual property taxes.

It wasn?t until many years later, when we decided to sell the condo, that we learned that capital gains taxes were due on the huge difference between the selling price and the documented purchase price. Ouch, we owed substantial taxes on a paper gain, when in fact; there was very little real gain! We then learned that the condo developer entered the extremely low sales prices on all the escrituras in the condo complex in order to evade paying substantial capital gains taxes. As we later learned, the developer could have entered the selling price, the appraised value, his cost of construction, or just about anything imaginable into the escritura, and we, being the na

The slowdown in real estate market offers a great opportunity for individuals who want to buy their first home. And Puerto Vallarta Homes make a good option though there is no dearth of affordable properties available for you in Mexico. Properties in Puerto Vallarta offer a wide variety of alternative homes, well suited to families of every size.

Another reason for Puerto Vallarta being a better investment option is the convenience of relocating in this area. Scenic beauty of this area makes Puerto Vallarta an ideal place for people who want to break free from the maddening pace of a city life.

Living in Puerto Vallarta means putting a brake in your lifestyle. The life here is slow and relaxed. With an exotic blend of the old and the new, this city region offers an unparallel combination of simple pleasures and sophisticated charms. Visitors will find fine dining restaurants, art galleries, luxury shopping centers and nightclubs in perfect harmony with street-side vendors selling Mexican handcrafts, traditional markets and roving mariachi bands. Puerto Vallarta is blessed with twenty five miles of golden beaches within spectacular Banderas Bay . Thus Puerto Vallarta presents unlimited opportunities for enjoying the Pacific like no else place does. Water activities like fishing, sailing, snorkeling, swimming as well as hiking are popular activities. It also has an underwater nature preserve known as Los Arcos. Apart from ocean, Puerto Vallarta also has colossal mountains which add to the beauty of this heavenly place. The mountains are adorned by the dense forests of Sierra Madre. If the natural beauty is Vallarta is not enough then old city charm and its warm people make it an icing on the cake.

Puerto Vallarta homes are affordable compared to American homes, due to economy meltdown, people who are dreaming big to buy a beachfront house or a condo with seaside view. Adventure seeking families more into water sports would find their homes near to lake a good investment.

Traditionally, Mexican Real Estate purchases have been limited to investors with enough cash to buy real estate without need for financing in Mexico. Unfortunately, not everyone can afford to pay cash for property. To circumvent this obstacle, Mexican Government introduced a system in which banks in Mexico acquire the property you want to buy and place it in trust for the sole use of the foreign property owner, or “beneficiary.” This trust, called a “Fideicomiso” ensures that the foreign buyer has all the rights and privileges of Mexican Property ownership, including the right to remodel, lease, mortgage, or sell the property at any time.

Author: Aniruddha Badola