Osprey
Ultra Nomad
Posts: 3694
Registered: 5-23-2004
Location: Baja Ca. Sur
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Bank trust
This July we will pay our 21st annual payment for our fideicomiso on our little Mexican house in Baja Sur. It's usually about $500 U.S. per year and
we consider that as just a small fee for being able to buy/hold property near the beach. In a previous thread about the trusts, the banks and Mexico's
congress maybe voting to eliminate the trusts, there were many Nomads that opined that the banks would fight it because they wouldn't want to lose all
that income for doing virtually nothing.
Compared to all our other expenses (we have only our SS to live on) it is chump change and I have always felt the banks see it that way too. Maybe
that's why the 9 major banks (all are foreign now except for one or two) stopped renewing trusts and not accepting any new ones.
Today's Gringo Gazette newsletter report about the congress, the law, the lobbying says "The Banking lobby isn't going to let this one get by them
because banks make way too much easy money charging the annual fee for the fideicomisos."
So it now strikes me that some of you out there are just as smart as Carrie Duncan and like her you know all about Mexican realty, banking and
lobbying by foreign owned banks. Now tell us why the banks quit the fideicomiso business. After all, it was found money.
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Udo
Elite Nomad
Posts: 6342
Registered: 4-26-2008
Location: Black Hills, SD/Ensenada/San Felipe
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Mood: TEQUILA!
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I would also be interested in an answer, Jorge.
Udo
Youth is wasted on the young!
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Osprey
Ultra Nomad
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Location: Baja Ca. Sur
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You go to the one or two remaining banks that still do Fides and beg them to "Do it again for another 30 years" for example.
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micah202
Super Nomad
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Location: vancouver,BC
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Quote: Originally posted by Osprey  | | You go to the one or two remaining banks that still do Fides and beg them to "Do it again for another 30 years" for example. |
...and if they say no? 
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BigBearRider
Super Nomad
Posts: 1299
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Location: Big Bear, Punta Chivato, and Cabo
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Mood: 
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Then you start a corporation.
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Pescador
Ultra Nomad
Posts: 3587
Registered: 10-17-2002
Location: Baja California Sur
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What do you do in the "real world" when one option closes, you find a way to do something different. It was a stupid system on its setup, but that is
about normal for when the government tries to get involved in things that are better left to the 'Free Enterprise System". I knew this was a weird
situation, so it was easier to establish citizenship and own the property outright, but others have attacked it in other ways. There is not
necessarily a right way, but a way that works for you.
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Paulclark
Nomad
Posts: 357
Registered: 10-13-2008
Location: Castillo de Arena
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Upon expiration of your trust, which is usually 50 years(old trusts 30 years) you will need to renew with your existing bank or apply to a new bank,
for a new trust. There are lots of banks willing and happy to create a new trust (fideicomiso) and it is not difficult. Lots of reputable agencies
able to help you.
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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Hopefully the bank trusts will die a quick death and we all will be able to get a clear title
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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Leaving the fideicomiso in the hands of private businesses was a big mistake and gamble as businesses, for the greater most part, tend to fail
completely eventually, are replete with inefficiencies, and only motivated by self interest, not the interest of their customers. Witness the fact
that banks do absolutely nothing for their arbitrarily set annual fee...how does that make sense? That is just another unfounded, economy-damaging
transfer of wealth.
If it ever comes to pass that we foreigners can own real estate in fee simple title, that would be great...and fair. Fairness, something businesses
do not concern themselves with, their only motivation is maximizing profit by whatever means necessary so long as they do not get caught for any
wrongdoing or so long as an action by them does not damage their reputation.
Remember, if there is no fido renewal, the value of your property will go down as the fido expiration date gets closer since 1) the size of your
buying market is being reduced, and, 2)transferring your fido to another foreigner will only have a limited life for that new owner.
Creating a corporation to continue your ownership of your fido purchased property will cost thousands (just a few thousand) as you will have to pay
for filings to create the corp and then pay a few thousand in fees and taxes to transfer title to the corp properly. Also, on a perpetual basis, you
have to pay an accountant to file monthly and annually to do the online governmental reporting and maintain a cursory set of books (general ledger)
as the corp is a legal entity and that's what all corps have to do. That will most likely cost more annually than a fido fee. Further, if you are a
USA citizen, you will have to remember to file a couple of disclosure forms annually with your US tax return or suffer a big penalty.
Side note, corps that are expected to have no business activity nor changes in any balance sheet accounts can get a filing deferment for 2-1/2 years.
My accounting fees to file for the deferment cost as much as the regular filings would have cost for the 2-1/2 years...therefore no cost savings in my
case. I won't even get into the requirements for banking purposes related to spending money "on any corp matters" such as a home property improvement
that costs over $2,000 pesos.
Technically, pursuant to Mexican law, a corporation held house is not to be used for strictly personal purposes such as a personal residence. But,
like many things in Mexico, what the law is and what one does are often two different things. But, it is a law that you should be aware of if you are
going to do this corporation thing.
Fee simple title would be the best circumstance. It would eliminate the fido fee and the maintenance cost of a corporation. Hope the legislation
passes.
I have trouble believing that banks would let fido fee freebie money go by the wayside without so much as a whimper.
The only thing I can think of is that the meager accounting that the collecting of their annual fee requires, is a pain in the neck to them. So far
as I have noticed, my bank is horrible at it and I have to make sure that I keep good records and copies of my payments and have had to prove to them
that I have been making all my payments. Businesses are so inefficient and wasteful.
[Edited on 2-24-2016 by MitchMan]
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Russ
Elite Nomad
Posts: 6742
Registered: 7-4-2004
Location: Punta Chivato
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I just was able to get the bank holding my fido to update my account. I had tried a couple time a year to get an update but without any luck. Here's
what they sent me last week. OUCH !
Bahia Concepcion where life starts...given a chance!
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SFandH
Elite Nomad
Posts: 7079
Registered: 8-5-2011
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I've searched for this and haven't been able to find any news reports, but I remember reading during the last time a couple years ago when a bill was
in the Mexican legislature to eliminate the restricted zone there was substantial opposition from Mexican citizens.
The bill passed in the lower house (Chamber of Deputies) but died in the upper house (Senate). It was not brought to a vote in the Senate, maybe
because of popular opposition.
Can anyone confirm that this is an unpopular idea with Mexican citizens?
[Edited on 2-24-2016 by SFandH]
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Osprey
Ultra Nomad
Posts: 3694
Registered: 5-23-2004
Location: Baja Ca. Sur
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Mitch Man, what's your b-tch man? You want a place in Mexico or not? If you give a dance you gotta pay the band. No fees like that in the good old
U.S. of A but you knew that didn't ya?
I told you before, you don't need to have what you like, you need to like what you have. Can't do that? Then you're lost, man.
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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
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Mood: Let's have a BBQ!
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| Quote: Originally posted by SFandH | I've searched for this and haven't been able to find any news reports, but I remember reading during the last time a couple years ago when a bill was
in the Mexican legislature to eliminate the restricted zone there was substantial opposition from Mexican citizens.
The bill passed in the lower house (Chamber of Deputies) but died in the upper house (Senate). It was not brought to a vote in the Senate, maybe
because of popular opposition.
Can anyone confirm that this is an unpopular idea with Mexican citizens?
|
The majority of Mexican really don't care either way however there is a loud minority that is led by Lopez Obrador (Morena) who made the most noise
against this. They are same group that is vocally opposed to the new energy reforms, opening up Pemex to foreign investment and CFE to use private
contractors. Some see that as simply Mexicans wanting to hold onto what they consider sovereign assets. Close friends who are political insiders tell
me they are mainly concerned with protecting the strong CFE and Pemex labor unions whose employees are largely loyal to AMLO / Morena.
The foreign ownership of coastal and border regions issue was just another topic they could use as political leverage. My friends tell me that they
predict the issue to be brought again for a vote when we see the price of oil increase back above $50/bbl. They also predict it will pass in the
senate this time around.
Stay tuned...
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BajaTed
Senior Nomad
Posts: 859
Registered: 5-2-2010
Location: Bajamar
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The Fidecomiso are truly obsolete as a legal doc.
For example there is a clause in our trust that states we cannot call the USMC if we are in dispute with the trust
Will the Mexican constitution ever be changed to allow title to held by foreigners in the coastal federal zones?
I've heard that lots of $$$ is flowing into real estate in Costa Rica, Belize & Panama due to ownership rights as compared to the Mexico? Will
this be a driver for change?
Es Todo Bueno
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