another benefit, no more 3520, 3520A, 8938 tax forms, and regarding transfer fees, in the US you can do a quit pro deed, I am not certain something like this exists in Mexico but I would think it does, and would mean only paying recording fees
The measure passed in the House of Deputies by a large majority, eliminating he requirement for a fideicomiso but, if the newspaper reports are accurate, retaining restrictions on the type of property that can be directly owned by foreigners. Direct ownership by foreigners, within the restricted zone, will be limited to residencial property and no such property can be put to a commercial use. Ownership of any other category of property, or any commercial use of such property, will still require that ownership be in a Mexican Legal Entity, such as a corporation.
Looks like there will still be a big hurdle even if the senate approves the change. La medida, aprobada el martes en la Cámara baja por 356 sufragios a favor y 119 en contra, todavía necesita el visto bueno del Senado y que lo apruebe la mayoría de las 32 legislaturas estatales para volverse ley.
There are some voices in opposition to the change, but their arguments strike me as illogical. One argument is that the change will result in the further Americanization (USAtion) of Mexico through an influx of new arrivals who will take up residence here. This ignores that foreigners can already buy here, and many do, so the hypothesized damage is being permitted under current law. I also think it overestimates the extra demand for housing the change will create, as those who can afford to buy can, for the most part, also afford to create a fideicomiso. Lastly, this objection ignores the fact that Mexico has recently raised barriers to immigration by setting out a new and much higher financial test many must now meet, as well as by requiring visas in many cases in which none was required, before.
You'd have thought that the "people" would be happy that us foreigners no longer have to line the pockets of the evil banks that charge them 12% interest on mortgages, 60% on credit cards and us extranjeros 7000 pesos a year for doing absolutely nothing! It baffles me that they think anything will be different - when we can already, and do, buy houses here. :huh:
The subject of the fideicomisos was not brought up today in the senate. The last day of the session is Tuesday.
It will be interesting to see if this USAtion happens after the fid's are abolished; I think it will, personally: many people fear buying where a Mexican bank, under control of a Mexican government, owns your property in trust. They worry that the "3rd world Government" will just seize all such properties. They have argued with me not to buy where a bank holds my property in trust, and I've tried in vain to argue my reasons for proceeding. More than once after such an argument, I've second guessed my decision. But when I step out the door of my home in Pto. Morelos I'm PERFECTLY content.
As Matkirk pointed out, and I have said often, the banks do absolutely nothing for an outrageous sum of money. Plus, they have no duties or responsibilities or liability for anything. They charge you on the way in, when you buy, and on the way out, when you sell. Getting the properties out of the control of the banks, assuming this law passes, will most certainly be a nightmare and a long lasting process. We will be at the mercy of the robber barons.
I'm fearing a nice 50,000 notary fee, a 40,000 bank "administration" fee.... However maybe the bank will do me a 3 year loan to help pay and only charge me 40% interest....
