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rtfrankel

Apr 13, 2004, 9:38 AM

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buying property in SMA

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Hello list,

We are in the final decision stage of starting down the road to buy a condo in SMA. I have discovered many fees other than the purchase price. I wonder if anyone on the list can confirm these numbers and suggest other fees I may be overlooking. Also any recommendations on a book that covers buying property in Mexico?

1. Notario is $2,000.

2. For each name on the title is $500 (except unless my wife's name is only listed and I am listed as the life estate than there is only one fee).

3. For rental property the government wants 8% a year on top of the property taxes.

4. Property taxes seem minimal about $300 per year.

5. Monthly expenses (include property taxes, all utilities, insurances) are about $250 for a condominium.

Is the rental market active or flat? We will want to rent the condo while we are not visiting. I was told that the condo will fetch about $1800 a month during the good season (June to April). Too high? And what about rental management companies in SMA? Is there a list or can someone recommend a few that we can interview? I understand so far that a management company's fee is about 15% of the monthly rent.

Thats it for now and thank you in advance for your time!

Todd

Chumley

Apr 14, 2004, 5:22 AM

Post #2 of 4 (641 views)

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Re: [rtfrankel] buying property in SMA

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Perhaps you should redirect your questions to the following address--

info@mexadv.com or visit their website at www.mexadv.com

Carol Schmidt

Apr 14, 2004, 8:49 AM

Post #3 of 4 (618 views)

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Re: [rtfrankel] buying property in SMA

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I can't answer any of your questions since I haven't looked into buying real estate. I can say that the $1800 figure can't be judged since you haven't said how big the place is, where it's located, what comes with it, etc. Property taxes are indeed very low here.

"Good season" is really two--December-March, and July-early Oct, with another high at Day of the Dead Nov. 2. Wish I could help you more.

Carol Schmidt

gpk

Apr 14, 2004, 2:06 PM

Post #4 of 4 (595 views)

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Re: [rtfrankel] buying property in SMA

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The notario I work for says there is no valid life estate in Mexico. Also, the 15% IVA is due on all rentals and this will require periodic tax return filings. Hacienda (the Mexican IRS) is beginning to crack down on private rentals, so be prepared for some hassles.