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Udo
Elite Nomad
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MEXICO LEGSILATORS VOTING ON SALE OF COASTAL PROPERTY TO FOREIGNERS
MEXICO LIVING
Selling Mexico's Coast to Foreigners
by Christa Thomas
On March 5, 2009, Senator Mario López Valdez introduced legislation
that would remove restrictions on foreigners from directly acquiring
property on Mexico's coasts.
The bill seeks to modify Article 27 of Mexico's Constitution, to grant
foreigners the ability to acquire land near Mexican beaches without
intermediaries.
Article 27 was put in place for reasons of national security, in
response to numerous historic foreign invasions. Currently, foreigners
who wish to acquire lands situated within 50 kilometers (31 miles) of
Mexico's coast must do so indirectly through trusts administered by a
Mexican bank, or, in limited circumstances, through a Mexican
corporation.
The Constitutional prohibition does not impede foreigners from owning
land in the coastal zone. It only imposes procedures that make the
purchase more costly and complicated, and the investment more uncertain.
This can reduce the incentive for foreigners to invest in Mexico.
Senator Valdez, a member of the Partido Revolucionario Institucional
(PRI), argues that current international economic and political
conditions favor removing ownership restrictions. In particular,
international investors are looking for cost-effective alternatives to
the high cost of housing in their local markets.
In Mexico, tourism is an important economic activity that contributes 8
percent to the nation's GDP, and employs 6 percent of the population. In
2007 there were over 4.3 million vacation properties (including
timeshare units) within the coastal regions, with nearly 70 percent of
those belonging to foreigners.
Senator Valdez contends that offering simplified coastal land ownership
to non-Mexicans will further boost Mexico's economic growth.
This legislation to amend the Constitution is now with a Committee of
the Senate for analysis and official opinion.
Source: www.pan.senado.gob.mx <http://www.pan.senado.gob.mx/>
Posted by George Puckett, author of Baja Diaries-Chronicles of a
Paradises Lost <http://www.bajadiaries.com> and Founder of Mexico-My
Space <http://www.mexico-myspace.com>
COULD MAKE IT THIS TIME AROUND.
Udo
Youth is wasted on the young!
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Bajaboy
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I'm not going to get too excited but this would be a good thing for Mexico.
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Paulclark
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This would be great for development and make buyers feel more secure -- and save the non-Mexican buyer $1,900 USD
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vandenberg
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There must be some kind of banking industry lobbying that would be heavily upposed to doing away with the "Golden Goose", the fideicomiso. Where else
can you sit on a sh*tload of nothing, while collecting millions of dollars ?
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oldlady
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IRS
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Osprey
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Van, what do you know about the banks we don't know? Maybe I've been left out of the loop. I've read lots of accounts about 90% of banks down here no
longer handle Fideicomisos -- they must have thought they were not enough income for the handlings cost. No claims I know about. Not much income to
the bank, not much work to handle. No golden geese around here. Was I misinformed or? Maybe some others can chime in and set me straight. Thanks.
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vandenberg
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| Quote: | Originally posted by Osprey
Van, what do you know about the banks we don't know? Maybe I've been left out of the loop. I've read lots of accounts about 90% of banks down here no
longer handle Fideicomisos -- they must have thought they were not enough income for the handlings cost. No claims I know about. Not much income to
the bank, not much work to handle. No golden geese around here. Was I misinformed or? Maybe some others can chime in and set me straight. Thanks.
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My thought:
There is but a one time effort required initiating/doing the paperwork, which the trustee pays for. After that the trust likely goes on microfilm,
dissappears into some bankvault, never to be seen again, and for years after, the bank collects their $500.00 yearly fee, while doing absolutely
nothing but pay their help minimal wage. Sounds like a "Golden Goose" to me.
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comitan
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Its a Golden Goose from my pint of view.
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”
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Osprey
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Anybody else? It's a gold mine. The all gave it up. Why?
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bajadock
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Any reliable statistics on number of fideicomisos contracted annually? If that stat were available, I'm guessing the number would be pegged toward 0
for 2009.
But, the lack of traffic is enjoyable.
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longlegsinlapaz
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| Quote: | Originally posted by vandenberg
There must be some kind of banking industry lobbying that would be heavily upposed to doing away with the "Golden Goose", the fideicomiso. Where else
can you sit on a sh*tload of nothing, while collecting millions of dollars ? |
I agree totally! There would be an immediate drop in nationwide bank revenue of $350-$450 USD a year for each & every fideicomiso currently in
place. It'd also reduce Hacienda's tax revenue by the 10% they curently receive. IF IT WERE TO HAPPEN, I'm betting they'd come up
with a fideicomiso cancellation fee & that'd be the last revenue they'd be raking in. I can't see much likelihood of that happening. If you
think the banks are going to willingly give up what I also consider to be "free money" for the sake of the overall Mexican economy, by increasing
tourist dollars in other (non-banking) arenas, I can't envision it happening during our lifetimes! Basically, we're being charged $350-$450 a year
just for them to post the annual payment!
Osprey, banks still hold the fideicomiso in trust, but several (not all) banks have made a lot of our lives tougher by moving the annual payment
process away from our local banks to impossible to communicate with banks in mainland Mexico!
Wiley, I'm sorry that you only have a lousy little "pint" of view!  Just goes
to show ya that "o's" can have value!
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BigWooo
Senior Nomad
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I guess I'd feel much more secure owning our properties fee simple...but can you envision the nightmare process that will be invented to transfer
ownership from a fideicomiso to a fee simple title...that I'm not looking forward to. 
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Mexitron
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Maybe the banks figure they'll start making money lending for real estate down there, as the prices will likely go up with the lack of
restrictions...?
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Woooosh
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What decade are they shooting for? Mexico alwasy brings these types of issues up just before the political fireworks season. I never figured out
how the restricted property ownership meshed with NAFTA anyhow.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Bajahowodd
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It is odd. In the US, there is sort of an opposite practice. Virtually all banks loan funds for mortgages, but then, they sell the paper, thus
relinquishing the long-term income for a smaller, if quick, profit.
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susanna
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We purchased a Lot across Puerto Nuevo in 2005 and only have a contract thru Grupo Lagza since the sellers were mexicans and paid it off when we
purchased
it from them, but we never got as far as getting a Fedicomiso.What will happen
then if we decide on selling? I have been paying the impuestos since then.
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Dave
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It's an illegal subdivision so...
| Quote: | Originally posted by susanna
We purchased a Lot across Puerto Nuevo in 2005 and only have a contract thru Grupo Lagza since the sellers were mexicans and paid it off when we
purchased
it from them, but we never got as far as getting a Fedicomiso.What will happen
then if we decide on selling? I have been paying the impuestos since then. |
A fideocomiso is not an option. Best you could do is to sell it to a national.
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CaboRon
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| Quote: | Originally posted by Dave
| Quote: | Originally posted by susanna
We purchased a Lot across Puerto Nuevo in 2005 and only have a contract thru Grupo Lagza since the sellers were mexicans and paid it off when we
purchased
it from them, but we never got as far as getting a Fedicomiso.What will happen
then if we decide on selling? I have been paying the impuestos since then. |
A fideocomiso is not an option. Best you could do is to sell it to a national. |
I agree, you do not own the property .....
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rts551
Elite Nomad
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| Quote: | Originally posted by Woooosh
What decade are they shooting for? Mexico alwasy brings these types of issues up just before the political fireworks season. I never figured out
how the restricted property ownership meshed with NAFTA anyhow. |
What the hay does NAFTA have to do with this issue?
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susanna
Junior Nomad
Posts: 76
Registered: 2-17-2008
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Any National out there interested in buying an Oceanview lot?
Please contact me.Or if anyone out there knows someone also.
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