| Pages:
1
2 |
JG
Junior Nomad
Posts: 49
Registered: 1-29-2005
Member Is Offline
|
|
true cost to buy/sell
Have heard a cost range to buy a house in baja including all taxes, bank trust, survey etc to be app. 5-10%...to sell including all commisions, taxes
and other fees can run 30- 40 PERCENT... could this be true? Any of you Nomads have first hand knowledge of the true costs involved in purchase and
sale as well as the yearly fees involved in a $150,000 house? Thanks for any help..jg
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
don't forget you need to pay US capital gains taxes also.
Bruce R Leech
Ensenada
 |
|
|
Cincodemayo
Senior Nomad
Posts: 725
Registered: 3-7-2005
Location: Pacific NW
Member Is Offline
|
|
Yeah don't forget that Bush needs to rebuild that mosque in Baghdad that the Muslims blew up with our tax dollars.
Don\'t get mad...
Get EVEN.
|
|
|
awfulart
Nomad
Posts: 260
Registered: 5-10-2003
Location: Rio Rico AZ
Member Is Offline
Mood: Wondering what our Nit-Wit elected officials are doing now?
|
|
Real Estate Sales Cost-Good Question
There must be someone out there who has sold and bought real estate in Baja. 30 to 40 % seems excessive, certainly even more than Caleefornia.
However, what if the buyer pays all costs. If that is the case, this cost should be honestly & accurately estimated in any negotiations between
buyer and seller.
|
|
|
Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
Member Is Offline
Mood: Full Time Residents
|
|
Mulege recent costs to buy..
$1500 attorney for paperwork
$500 for notario
$800 for bank trust to start
$400 a year for bank to hold trust
taxes about $200 to $400 depending on value
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
the thing is that the biggest expense is the capital gains both Mexican and US and there is now way any one can tell you what that is going to be. it
will be different in every case.
Bruce R Leech
Ensenada
|
|
|
JG
Junior Nomad
Posts: 49
Registered: 1-29-2005
Member Is Offline
|
|
Legand has it that the Mexican tax on a sale is based on the GROSS sales price, not the net increase in value...$150.000 sales price x 30%= $45,000 +
$9,000 sales commish (assume 6%) +all other closing costs totaling app. 40%....$150,000x 40%= $60,000....and if you finiance the house..OUCH!! These
figures are an estimation based on a few conversations and refer to a house, not bare land. Seems odd no one seems to want to talk about this much.
|
|
|
bancoduo
Banned
Posts: 1003
Registered: 10-3-2005
Location: el carcel publico mazatlan sin.
Member Is Offline
|
|
who to trust? Bob and Susan. Who are developers. Or JG.
|
|
|
Dianamo
Nomad
Posts: 182
Registered: 12-27-2005
Location: SF Bay Area, CA when not in El Cardonal
Member Is Offline
Mood: ...still in Baja
|
|
I am learning
my way through the BUYING process.
It seems to me that by the time you acquire all the necessary goverment documentation, foreign status docs, certificate of no liens, certificate of
paid property taxes, pay someone to do the title search, and set up the fidiecomiso, etc. etc. etc..... it is going to cost about $6000,  (I am being told $5000, but the numbers don't add up to $5K, so I am planning on
$6K)..... Then you pay the 2% transfer tax, won't know what that is until the Gov Appraisal is complete.
The purchase price of the property really doesn't change many of the fees that are charged greatly. Most of the fees are the same for $20K purchase
as for a $100K purchase.
The buyer pays all fees except for Capital Gains Taxes and the seller's commission (but we really pay that, just indirectly).
Good luck, I am willing to talk offline if you want, send me a U2U.
DianaMo
|
|
|
comitan
Ultra Nomad
Posts: 4177
Registered: 3-27-2004
Location: La Paz
Member Is Offline
Mood: mellow
|
|
It has been posted here referencing a Mexican Lawyer that you will not have to pay Mexican Capital gains if you live in your home more than 2 years
and it is your primary residence, and you have to prove you do not have a home in the U.S.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
any one know what the Us capital gains tax is for sail on foreign property is?
Bruce R Leech
Ensenada
|
|
|
bajajudy
Elite Nomad
Posts: 6886
Registered: 10-4-2004
Location: San Jose del Cabo,BCS
Member Is Offline
|
|
Good question, Bruce
I understand that you can make up to $80,000 outside the USA without paying income tax on it. Does that include a capital gain on property....
Should I even open the can of worms about Mexican citizenship and capital gains?
|
|
|
elizabeth
Senior Nomad
Posts: 742
Registered: 7-30-2004
Location: Loreto, BCS
Member Is Offline
|
|
| Quote: | Originally posted by bajajudy
Should I even open the can of worms about Mexican citizenship and capital gains? |
Sure, why not????? There hasn't been a good can of words on this board for awhile!!!!
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
| Quote: | Originally posted by bajajudy
Good question, Bruce
I understand that you can make up to $80,000 outside the USA without paying income tax on it. Does that include a capital gain on property....
Should I even open the can of worms about Mexican citizenship and capital gains? |
I dont think so
Bruce R Leech
Ensenada
|
|
|
bancoduo
Banned
Posts: 1003
Registered: 10-3-2005
Location: el carcel publico mazatlan sin.
Member Is Offline
|
|
80,000 yes. But but but IRS. You have to be out of the US for 18 months and only visit for two weeks. Being in BC so close to the border a red light
goes on. Good luck! The proof is on you. I heard it never works unless you can prove you were in jail or something like that. The system considers
you a lying peace of retired chit.
[Edited on 3-3-2006 by bancoduo]
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
you need to file with the IRS when you buy or sell even if there are no taxes due. then they will let you know for sure
Bruce R Leech
Ensenada
|
|
|
JG
Junior Nomad
Posts: 49
Registered: 1-29-2005
Member Is Offline
|
|
cost to buy with 30% down
Cost to buy...30% down..150k..11.9%(inc finance and loan fees), according to Platinum Capital (adveritised on this site).. all costs
included...maybe..still no real testimonials on a sales cost per cent on a house , non resident...dont want to sound like a wienee but cant seem to
get a straight answer on a simple question of cost to sell in the event I want to in time. This is getting very interesting!!
|
|
|
bajajudy
Elite Nomad
Posts: 6886
Registered: 10-4-2004
Location: San Jose del Cabo,BCS
Member Is Offline
|
|
If you are a legal alien in Mexico, you have the proof....your FM2, FM3 or legal resident status(I dont remember the letters and numbers for it) if
you dont then you are a stupid piece of retired.
It is all according to the circumstances. There are no pat answers to your question.
|
|
|
Acuity
Nomad
Posts: 195
Registered: 5-26-2005
Location: Comox, BC, and Todos Santos
Member Is Offline
Mood: Craving sleep!
|
|
| Quote: | Originally posted by JG
...dont want to sound like a wienee but cant seem to get a straight answer on a simple question of cost to sell in the event I want to in time. This
is getting very interesting!! |
If you're thinking Baja is another safe place that you could buy and sell property to quickly make a bundle - well, maybe you want to think hard about
it. Minimum listing period for Los Cabos realtors is (or at least was, one year ago) one year. In a "hot" market, maybe that gives you an idea of
just how "liquid' Baja real estate can be. If you want to sell, maybe you'll be worrying about the taxes you will pay, or maybe you'll be carrying
the place for a little longer than you might like!
As many (with direct experience) have told me, "if you can't afford to possibly lose some or even all of it, don't "invest" in Mexican real estate".
The reason to buy here shouldn't be profit, it should simpy be to live here. Just my 2c worth.
[Edited on 3-3-2006 by Acuity]
|
|
|
Bob and Susan
Elite Nomad
Posts: 8813
Registered: 8-20-2003
Location: Mulege BCS on the BAY
Member Is Offline
Mood: Full Time Residents
|
|
Acuity is completely correct....
Like a "cold" it's very hard to get rid of investment property in Baja.
Too much competition...everything is "for sale".
If you "buy" plan on keeping it.
It's not the investment...its the experience
|
|
|
| Pages:
1
2 |
![[*]](images/xmbforum/default_icon.gif){kind=icon}
