Welcome to Q and A with Nick Fong, the founder and broker of Ronival Real Estate in Baja California Sur. In this article, you’ll learn some key information about various aspects regarding real estate, especially in Baja Sur.
First, see the difference between a timeshare and a fractional purchase. Then, uncover the available financing options in Cabo and Baja Sur. Next, learn about the purchase process and closing time for foreigners in Baja Sur. Finally, see if you need to pay US taxes living in Mexico.
Now, read on to learn this important information from the top real estate broker in Mexico – Nick Fong.
Uncover the difference between timeshares and fractionals
As Nick Fong explains in the video, a timeshare is considered “right to use.” That means, you have a set amount of time to use the property every year. It’s a contract and it has a limited amount of time.
A fractional is different. It is still not 100% usage, but it’s “titled property.” Fractionals are a safer way to own a property. And, they can be passed down to your heirs.
Available financing options in Cabo and Baja Sur
Although foreigners can buy real estate in Mexico, home financing can be limited. So if you’re from the United States, Canada, or elsewhere and purchasing real estate in Baja California Sur, there’s an amazing financing option available.
Global Mortgage is a company that has been partnered-up with Ronival Real Estate for quite a long time now. The company is called Global Mortgage and it provides some amazing financing options in Cabo.
Timeframe to purchase a property in Baja California Sur
How long does it take? In the video, Nick says that it takes 60 to 90 days to close a sale in Baja Sur. But if you’re a foreigner, like from Canada or the United States along with any other country, it takes a little longer.
To begin, you must set up a fideicomiso or Mexican corporation. Within the Mexican Constitution, Article 27 requires that foreigners purchasing residential property in the restricted zone must obtain property rights through a Mexican bank trust, known as a fideicomiso.
Do you need to pay US taxes living in Mexico?
The simple answer is yes. The United States is the only country in the world that requires its citizens to file taxes every year, regardless of what country in which they reside. And since you can file your taxes online, it’s easy. Just make sure you file before April 15th each and every year.
Work With Ronival Real Estate
Ronival Real Estate has helped thousands of buyers and sellers across Los Cabos since 2010. If you’re interested in Cabo Real Estate, our team can assist with everything from showings and negotiations to closing and property management. Have questions? Contact us here or call +52 (624) 227 5766.