| 002325 Visit since April 30, 2004
Sales activity in the Bay
of Banderas for the first three
months of 2004 has remained
strong. All price ranges and
areas have experienced demand
and sales.
Demographics: Foreign Buyers
are becoming more informed
about inventory available for
sale. They have more information
about the process of buying
and owning real estate in Mexico.
These potential purchasers
have done research on the internet
in advance of arrival.
 More singles are purchasing
than previously. However, couples
buying for future retirement
remain a large part of the
purchaser market. The average
price range requested is increasing
to the $300,000'sUSD.
Product Design: Floor plans
are being designed to reflect
the cosmopolitan, varied interests
of new residents from Canada,
USA, and Europe. The kitchen
can be a focus of a large entertainment/living
area. Additional cooking areas
may be built in the garden
or on the terrace.
More light is incorporated
into the designs with the use
of more windows and light fixtures.
Bedrooms are larger and may
include additional areas for
reading or watching television.
Bathrooms are large with a
shower separate from the tub;
closets are more spacious and
include shelving and built-ins.
Handmade doors and windows
of native woods now compete
with high quality European
designed/made plastics. Creative
designers and architects may
combine the two products within
the same dwelling. Wood may
be used for warmth and drama
in entries and living/ dining
areas. Flexible vinyl window
systems are useful in the sleeping
and entertainment areas.
Native materials such as tukul,
contera, and native marble
have become more prominent
than former use as decorative
accents. Teak furniture is
being enjoyed as an alternative
to the popular parota, amapa,
primavera and rosa morada woods.
Guayaba and coapinole woods
are being used decoratively,
as well as structurally.
There is more local selection
of furniture and accessory
stores for shoppers. More inventories
are kept on hand than the past.
Hard- to- find mattresses with
box springs can be purchased
without requiring special order.
More selections of brands of
appliances, window coverings,
and furniture are available.
Lifestyle: Art galleries and
coffee shops continue to open.
New small bakeries offer more
varieties of breads and desserts.
A Frenchman makes pastries
locally. There are more gourmet
products available, both native
and imported.
Dining
choices has expanded to include
peking duck as a regular
menu item in a local PV restaurant.
Spanish and "fusion" tapas,
Indian and Dutch dishes are
offered at a variety of small
restaurants. Cafes with classical
music and dessert are appearing.
City Planning: There are ongoing
efforts to reduce automobile/bus
traffic in downtown Puerto
Vallarta to encourage walking.
On the weekends, live music
is being set up on small stages
at intersections of the Malecon.
The local musical scene now
offers live Cuban music, New
York disco style, and intimate
cabaret in addition to salsa
and traditional Mexican music.
Banking: American, Canadian,
Spanish and Pacific Rim banks
have acquired much of the local
banking community. Banks are
attempting to offer more consumer
credit, as well as home mortgages
on a limited basis. Local or
Guadalajara bank branches continue
to manage bank trusts (fidecomisos)
for foreigners. Certain local
banks have permits to hold
escrow accounts in US dollars
for the purchase of real estate.
Buying and Selling Mexican
Real Estate: The procedure
for selling real estate will
now take into account capital
gains tax implications. Property
deeds will show actual purchase
prices. Savvy buyers will require
formal receipts or facturas
for the expenses related to
their sale in order to reduce
capital gains taxes upon re-sale.
Improvements or upgrades made
in properties over the course
of ownership will be documented
and registered with the tax
office.
When properties are put on
the market for sale, the seller
should know in advance if he
will be paying capital gains
tax and how much it will be.
Owners declaring and documenting
a Mexican residence as their
primary home for tax purposes
will understand that a requirement
for exemption from capital
gains includes a record of
payment of income taxes in
Mexico.
The three countries of North
America: Canada, The United
States of America, and the
United States of Mexico are
continuing to share information
between their countries in
regard to income and residency
of their citizens. North America
governments are continuing
to find ways to increase their
tax bases.
Ecology: An international
association of countries, which
monitors the development of
beaches, continues to be involved
with Mexico and their shoreline.
Environmental and ecological
studies are required prior
to building single- family
homes as well as multi-family
or commercial development.
Informed Population: Local
homeowners in a northern community
of the bay are demonstrating
an example of citizen involvement
in local government. Their
civil association, through
proper channels, can legally
object to improperly issued
building permits, and force
compliance of beach concession
usage.
Foreign residents are learning
through personal contacts,
and the news media, the relevance
of international news, including
Mexican economics and politics.
They are becoming citizens
of the world.
"If a man be gracious and
courteous to strangers, it
shows he is a citizen of the
world, and that his heart is
no island cut off from other
lands, but a continent that
joins to them." Francis Bacon
1561-1626
This article is based upon
legal opinions, current practices
and my personal experiences
in the Puerto Vallarta-Bahia
de Banderas areas. I recommend
that each potential buyer or
seller conduct his own due
diligence and review.
Harriet
Cochran Murray
For
additional information on
properties, for sale or lease
within the bay please visit Harriet
Murray website, call
or e-mail me at: harriet@casasandvillas.com
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