One branch of the Mexican Government will vote today on whether to retain the requirement for the establishment of a bank trust for foreigners who want to buy property located within 50 KMs of the sea. The move to eliminate this requirement has the support of the new President of Mexico, and is generally expected to pass. If it gets through the legislative process it will mean both an initial savings to the buyer, plus an annual savings, making owning property here just a little more attractive. _______________
First the tenencia and now the fideicomiso? Be still my heart. I believe it's already passed one chamber of congress and just needs the senate to approve. The president is in favor, so it looks good.
Surely the banks will line the pockets of the politicians not to get rid of it? It's such easy money for the banks they won't want to give it up lightly! So what will happen to us with Fideicomiso's? Will we have to pay to get the property from the bank into our names? To disolve it? We could end up paying full selling fees? I just can't see them getting rid of it.
It's pretty much a done deal from what I've been reading. Apparently, the banks rake most of the money in for themselves and the states are left out. Now, they say they'll be able to collect some kind of tax from us, but I doubt it will be anything the size of the fideicomiso. I'm pretty confident it's going to happen. We may know sometime today. I'm also wondering what happens to us. I'm going to assume they have to let us out of them, but I'm afraid it's going to cost us. I may consider selling my house and buying another one to get out from under it, if they're going to gouge us.
I am betting that in order to make life simpler they will turn this into a Mexican nightmare before all is said and done.
Yeah, I'm thinking the banks my try and charge us to get out of them. Imagine if its like 70,000 pesos or something - that would be like 10 years fidecomiso payments!
Anyone looking for an inexpensive option for housing would definitely find this change to be a plus, removing, as it does, a standing 600 peso or so extra monthly expense, not to mention the large sums charged initially to set one up. Exactly how much will be the issue. Someone who´s been through the process of selling their property on which they had a fideicomiso, and transferring the rights to the fideicomiso to the buyer can probably give us a very accurate picture of the costs involved: ordering the bank to deliver title to you would be much the same as ordering the bank to deliver it to a new owner, if the new owner were also a foreigner, and the costs would be much the same. ANYONE OUT THERE BEEN THROUGH THAT? I´m not sure it would even be a taxable event for the purposes of the adquisition tax and capital gains taxes if you have the title transferred to yourself, but this would require consulting with a notary to be sure.
I watched the senate most of the day and it doesn't look like they even talked about the fideicomiso. Maybe tomorrow. The current session ends Tuesday.
