Posts tagged ‘mortgage’
2010-2011 Real Estate Trends
We understand that the decision to make an investment in real estate in Puerto Vallarta involves much thought and consideration, especially when you are trying to make your decision from afar and feel a little out of touch with what is happening in the real estate market here. That’s why we wanted to take a moment to highlight some of the trends Puerto Vallarta real estate is seeing for 2010-2011, and how they relate to Rivera Cuale.
Most importantly is that it seems the worst is behind us, and 2010 will be seen as the turning point for the Puerto Vallarta real estate market. We at Rivera Cuale would definitely agree, as evidenced by our strong sales over a period of a few months this past high season. We are now over 60% sold.
While it is still a buyer’s market and people are taking their time in making their purchase decisions to pre-empt economic uncertainty, with the market now in its recovery stage, the switch from buyer’s to seller’s market could occur very fast, and those who had waited too long will find they have missed out on the best selection and pricing.
Also, while the recent real estate market has been more resale-driven than developer-driven due to buyers’ hesitation to invest in something unfinished, we can say, that does not apply to Rivera Cuale. With Phase One and its amenities already complete, you know exactly what you are buying, and many have already come before you to buy and now reside in Rivera Cuale. On top of that, with our condo regime in place, we have already transferred title to many of our owners, and could do the same for you. Now that is peace of mind! And don’t forget, while we do offer luxury, it is very affordably priced!
Another trend in the market is that buyers are turning to mortgages more and more often to finance their new homes in Mexico. Several of our owners have already gone this route, and the brokers and banks they are dealing with are experienced professionals. If you are concerned about borrowing against the equity in your US or Canada property, did you know that you can obtain US-based financing by using your new, Mexican property as collateral?
Now here is one of the trends nearest and dearest to our hearts – that of being closer to community. Whereas previously buyers were looking for more isolated property that gave a feeling of exclusivity, lately they have been looking for homes that allow them to be part of the community, with opportunities to get involved socially and to be close to the people. Rivera Cuale does its part in being a contributing member of the community, and so do some of our owners, who volunteer in various not-for-profit endeavours. Rivera Cuale is located in the heart of Puerto Vallarta, close to community, and close to the action. Not coincidentally, this is the area that has been seeing the greatest percentage of sales in the overall Vallarta/Riviera Nayarit region!
To really get the full picture of how the market is looking, you may wish to read MLS Vallarta’s comprehensive review of the 2010-2011 real estate trends by clicking here.
Article by Leanne Smith
I welcome your questions and comments!
Financing Your Home at Rivera Cuale: Owner Story #1
In previous newsletters, we brought you up to date with the latest developments in financing in Mexico. Until just a very few years ago, most property purchases were cash transactions. Happily, this has changed; banks in Mexico and in the U.S. have now made mortgages available for both Nationals and Foreign buyers.
With many options in place, it is very easy now to obtain financing, and the process goes quite smoothly. The professional sales agents at Rivera Cuale will assist you every step of the way to ensure you get the best condo for your lifestyle, and to help guide you through the financing process.
Here is an actual example from one of our owners who chose to work with a qualified mortgage broker in Mexico to obtain US-based financing for the purchase of his new condo in Rivera Cuale.
This owner purchased a condo for $462,000. His mortgage, based on 75% loan to value, is $346,500. Interest rates on a 30 year mortgage start at 6¾%. The monthly payments on this loan are $2247, principal and interest.
It is possible to obtain a lower interest rate either with more money down and/or a shorter loan term.
It is important to mention that for US buyers, interest payments are deductible from US taxes. A Canadian tax deduction does not apply to Canadian buyers at this time.
This owner noted that the mortgage broker was very helpful in the document collection process, requesting, assembling and distributing the pertinent information in a check-list fashion which made the whole process relatively simple. Examples of documents he needed to scan and provide were his and his beneficiary’s passports and driver’s licenses, property tax statements, tax returns, and bank and investment statements. The ability to digitally gather and transmit everything really simplified the task.
Also, thanks to electronic banking, this owner and most other buyers find it effortless to set up automatic monthly payments from their US or Canadian account to make their monthly mortgage payments.
The name of the game in today’s market is financing: holding on to more of your cash and leveraging the difference by obtaining a mortgage loan.
Prepared by Estelle Eisen, with credit to one of our very helpful owners
I am a 20 year resident of Puerto Vallarta, and have been selling new condo properties here for six years. I was previously a licensed realtor in Washington, DC and Aspen, Colo. for many years. I am here to assist you in any way, and to answer any questions you may have on purchasing your new home at Rivera Cuale. Please contact me at estelle@riveracuale.com or 011-52-322-145-3727.
5 Reasons Why Puerto Vallarta Is a Great Place to Retire
Puerto Vallarta is a warm place to retire, and Rivera Cuale is the perfect location to create your own tropical paradise. If it gets too hot, there are no worries. You can cool off with a dip in the pool, enjoy the cool breezes from your terrace, or just relax indoors, under the air conditioner. At Rivera Cuale you have it all. Spectacular views of the Pacific Ocean, the soothing roar of the Cuale River at your doorstep, and palm tree filled tropical mountains. Ahhh…
Aside from being a sunny, tropical haven, the cost of living is substantially lower here than in the U.S. and Canada! And, if that’s not enough, here are several more reasons that might tempt a permanent move, or a second home in Puerto Vallarta:
5. Puerto Vallarta will host the sailing, triathlon, beach volleyball, and open water swimming competitions for the 2011 Pan American Games. Don’t miss the excitement!
4. The Mexican government is spending billions of dollars on infrastructure and tourist development throughout the country. Improvements in Puerto Vallarta include: construction of a new beach volleyball stadium; modernization of the international airport; expansion of the maritime terminal which now accommodates three, full sized cruise ships; creation of bridges and tunnels to allow better access and less congestion on our local roads; a super-highway is under construction that will connect north and south; and Puerto Vallarta has the best water treatment facility in Latin America.
3. Mexico is experiencing a new group of expats. A high percentage of parents with school-aged children are leaving the United States and moving to Mexico, particularly Puerto Vallarta. The American School of Puerto Vallarta (for students in kindergarten through Grade 12) is the only accredited school on the western coast of Mexico. This bilingual academy educates Mexican children, as well as the growing number of young foreigners who live in Mexico. So, if you once thought that you would have to postpone your plans to retire until the kids have graduated from high school, think again.
2. Puerto Vallarta has state of the art hospitals, and private practices. It is not difficult to find English speaking doctors who specialize in all sciences including: dentistry; cosmetic surgery; heart disease; various forms of cancer; etc. In addition, Puerto Vallarta is poised for the growing number of dependent elderly. There are a growing number of bilingual hospices in and around Vallarta.
1. Real Estate in Puerto Vallarta is a safe investment. Mexico has a high percentage of home ownership. However, only 6% of Mexican home owners carry a mortgage, as compared to 65% of Americans and Canadians. The real estate collapse of 2007 was caused in part by homeowners north of the Mexican border borrowing more than they could afford to repay. In Mexico, since the majority of the population own their homes outright, foreclosure is rare. As such, the cost of your purchase is fair, and the value is likely to grow steadily.
I am a licensed real estate broker from California with over ten years of personal investment experience throughout the United States, the southern coast of Spain, and Puerto Vallarta. I encourage you to schedule an appointment with me to see for yourself why Rivera Cuale would make an excellent addition to your real estate portfolio.
deanna@riveracuale.com
044 322 118 43 90 (local cell)
(322) 223 37 70 (local office)
(888) 226-0563 (toll free from USA/Canada)
Financing Options for a Home at Rivera Cuale
We are often asked by prospective buyers at Rivera Cuale, “What are my financing options?” We are pleased to inform you that there are a number of options available to you for financing your home here. Some of our owners have successfully secured mortgages for their homes and are already enjoying life as Rivera Cuale residents. 
There are several very professional mortgage brokers in Puerto Vallarta who can place loans both with Mexican lenders and US lenders. Mexican banks are actively marketing themselves in the mortgage business, making attractive loan packages available for foreign buyers.
If you don’t wish to take equity out of a property you own outside of Mexico, you can be prequalified for your purchase quite simply with one of these lenders.
Interest rates have dropped for the first time ever for US Dollar loans in Mexico. The rates have decreased by 1% for 30 year loans, to around 7.75% with a 75% loan to value ratio, and to 7.25% for a 20 year loan.
Being pre-approved for your mortgage is a good way to keep your purchasing timeframe short and manageable. Also, the condo regime and tax ID papers are all in place for Rivera Cuale, so loans can be processed quickly.
We would be happy to refer you to a mortgage broker or bank in Puerto Vallarta so you can start looking into your financing options. We can even give you an idea of your mortgage payments for your Rivera Cuale home once you’ve decided on a particular unit and loan term.
Please don’t hesitate to get in touch with us for more information.
Email: info@riveracuale.com
Toll free from USA & Canada: 1(888)226-0563
From within Puerto Vallarta: 223-3770
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