mpb Posted November 18, 2013 Report Share Posted November 18, 2013 A new law, to allow foreigners total ownership of property along the coasts and borders, has been passed by the lower house. It still has to be passed by the upper house and all of the states to ratify it. It is expected to take about 2 years and means no more bank trusts needed to own coastal property and border property. This whole fideicomiso will be done away with altogether. Link to comment Share on other sites More sharing options...
Mainecoons Posted November 18, 2013 Report Share Posted November 18, 2013 The banks make a lot of money off this deal, I wouldn't be surprised if they find a way to derail the legislation. If it happens, one can certainly expect a lot of appreciation in coastal property. Link to comment Share on other sites More sharing options...
Intercasa Posted November 19, 2013 Report Share Posted November 19, 2013 I don't see a surge in sales. Trusts can be a good estate planning tool and with the average cost being $600US per year, that is $6,000US in 10 years, how much will saving that amount translate to an increase in value? It is one of the last unequal treatments of foreigners in Mexico. Link to comment Share on other sites More sharing options...
geeser Posted November 20, 2013 Report Share Posted November 20, 2013 I think the increase in value might come from northerners being willing to invest in coastal property. I have had a property trust for many years with no problems, but when you talk to US citizens they are very skeptical about these trust, and many wouldn't invest because of preceived problems. It just kind of goes against everything they understand about property law. Of course once they understand the amount of capital gains tax on property here they may decline anyway. Link to comment Share on other sites More sharing options...
pappysmarket Posted November 20, 2013 Report Share Posted November 20, 2013 If you rent the property for as little as one day you will not be eligible for this even if it passes the necessary states. As was stated earlier, a trust is a very good estate planning tool. Many if not most foreigners buy at the beach with the express intent of renting while they are not there so it probably won't make much difference to foreign buyers. Link to comment Share on other sites More sharing options...
Tomas Posted November 22, 2013 Report Share Posted November 22, 2013 Having owned several homes in Mexico over the past 25 years and having had some in bank trust accounts as well as fee simple deeds my main issue with the trust fee structure is that after the initial property purchase and fees that one pays the bank for establishing the trust (which cost the same as simple deed) you continue to pay the bank a yearly maintenance fee tied to the property value that continues to rise every few years BECAUSE they keep your bank deed in a drawer. The only advantage to having the bank trust that I can determine is your ability to transfer the property to non-blood or marriage related persons on your death "IF" your will is properly prepared..The bank trust is a money pot for the bank for doing NOTHING but sending you an annual bill..This opinion is for those who live in the interior and not within the "forbidden zone" along the coast or US border...and even then you can avoid the bank trust by utilizing a Mexican corporation as the owner... Link to comment Share on other sites More sharing options...
Ferret Posted November 22, 2013 Report Share Posted November 22, 2013 It's the "IF" part that I'm not understanding. A Fideicomiso, as I understand it, stands alone as a legal entity and is not dependent on a Mexican will even if one exists. That's the joy of it...no probate. Link to comment Share on other sites More sharing options...
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