Acanto Condos open model unit

Developers of the Acanto Condominium complex, adjacent to the Acanto Hotel, in the heart of Playa del Carmen have finished construction of a model unit, with completion of the entire project expected in the near future.

The complex has one-, two- and three-bedroom condos located a half-block from the beach and one block from 5th Avenue, the resort town's main tourist strip, with a wide range of restaurants, nightlife and shopping within easy walking distance.

Condo purchase prices start at $265,000 for full ownership and include all the services of a luxury hotel, including Jacuzzi, swimming pool and a rooftop terrace.

The condos are part of the Acanto Hotel complex and owners ca participate in the hotel rental program to start earning a return on the purchase the moment the condo is ready for occupancy. The Acanto Hotel has a historical occupancy rate of more than 90%, making for an incredible potential opportunity for any buyer or investor.

For a limited time, the owners are offering discounted prices on selected units and financing as well as a guaranteed return on investment.

Experts estimate that the long-term investment prospects of Playa del Carmen and Mexico remain very attractive. The country itself has become economically strong and the opportunity for long-term real estate appreciation in most regions continues to be favorable. Over 1 million Americans now live full-time in Mexico, in addition to the large population of ex-pats from Europe, who have chosen the country for its safety and quality of life.

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Foreigners to Earn the Right to Own Beachfront?

Mexico Real Estate Magazine has recently reported that the government is considering changing the law to allow foreigners to own beachfront real estate.

Excerpts from the article:
A new constitutional amendment, proposed by Mexican Senator Mario López Valdez of the Institutional Revolutionary Party (PRI) on March 5, 2009, sets the stage for what could become one of the most dramatic changes in Mexico’s regulations on foreign real estate ownership and investment since the 1971 recognition of the “bank trust,” or fideicomiso.

The fideicomiso being a mechanism for foreigners to control coastal property, as the document gives the trust deed moral Mexican citizenship by law, and as such trust owners may hold the property to the sole benefit of the foreign beneficiary. Prior to 1971, foreigners were relegated to controlling real property through either leases or time-share clubs.

Mexico boasts nearly 7,000 miles of coastline, ranking it the 12th longest coastline in the world. The country’s 1917 Magna Carta reads, in Article 27, Section 1 (in part), “Under no circumstances will foreigners be able to acquire direct ownership of land and waters within a zone of one hundred kilometers [62 miles] along the borders, and fifty (kilometers) [31 miles] along the shores.”¹ (This language was adopted by Mexico in the Constitution of 1917, after hundreds of years of invasions by Spanish, French and even United States forces.)

However, the current global economy and the importance of international tourism make such restrictions anachronistic and inhibitors to investment. The current Constitution has been viewed by many in the business sector as impeding the proper functioning of the tourist sector.

The initiative ensures that foreign ownership would be for habitation purposes only and, as such, will not threaten Mexico’s sovereignty, a major point of contention with more nationalistic voices.

The development of tourism is a national priority for Mexico, given its importance as a development factor and growth engine. Tourism is credited with elevating the country’s productivity, employment opportunities, and generally lifting areas of the country with fewer economic development options, thereby increasing the quality of life of the people.

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Do You Have Margarita Mind?

Margarita Mind is a dangerous disease and it afflicts American, Canadians and European real estate buyers equally and without mercy.

How do you catch it?
It happens when you arrive in Mexico, checkbook in hand, with the hungry look of the besotted tourist that envisions a life hanging in a hammock on a white sand beach in front of your little dream cottage.

How do you know you have it?
When you start saying things like: “I met this guy in a bar; he has a cute house he wants to show me.” Or: “My friends say there are ways around the Mexican real estate laws”. And here is a real danger sign: “But I LOVE the house…I don’t care about the problems with the title or water or beach rights.” If you recognize these symptoms early enough, you can save yourself a lot of money or heartache.

Margarita mind can be fatal; I am not making this up; a financially comfortable American hired an English-speaking builder to build his dream home on the beach with its own water treatment, desalination plant, satellite Internet systems and a to-die-for view One small problem, the builder put the house on the wrong lot! The neighbor was very appreciative of the American for so beautifully improving his property. A proper survey using GPS points would have saved the day.

If you recognize these symptoms early enough, you can save yourself.

Here’s how:
Stop! Think! And answer this question: would you enter into a real estate transaction in the old country without all of the facts, without a survey or appraisal, without a written contract, without double checking the rules? Of course you wouldn’t! So why do it in a foreign country where your government has no ability to right any wrongs?

Real estate laws in Mexico are not very different from in the U.S., Canada or Europe. However, real estate agents in Mexico are not licensed. And while the vast majority are honest ethical people, the few predators are the ones you need to be wary of.

Mexico wants and actively seeks the foreign investment dollar (or Euro) and the government has put practices and systems in place to help and protect the foreign real estate buyer. In the “restricted Zones of Mexico,” 100 miles from a border or 50 miles from a coast, foreign buyers obtain their properties in a fideicomiso (feeday co meeso). The fideicomiso closely resembles a living trust and gives the foreigner peace of mind, clean title and the right to sell, bequeath, mortgage and improve the property. And it has a 50 year life that can be renewed ad infinitum in 50 year chunks.

Closing costs and fees are significantly higher in Mexico than in the U.S. and Canada, lower then in France though. Many buyers, taking the advice of uninformed friends or misguided agents make foolish decisions in order to save a few thousand dollars upfront.

My cardinal rule for buyers is to “Do it right the first time, pay the proper fees now, or pay BIG time later when you sell or are caught in a routine audit.”
And with the advent of American style long-term mortgages and the safety requirements built into the mortgage industry (well, down in Mexico, anyway) it is safe and sensible for foreigners to use a mortgage. Not only are foreigners able to obtain significant financing needs for their Mexican dream home, but securing a mortgage, using a well-reputable cross-border mortgage lender, ensures that your close is legal and done properly. Content provided by Conficasa Mortgage International, a pioneering provider of cross-border financing of Mexican properties for Americans and Canadian dreamers, with more than 10 years of experience, ensuring a smooth lending and closing process throughout all stages of the complex cross-border financing process. The U.S.-based company has offices in Houston and Chicago and maintains close partnerships in Mexico resort areas. For more information, contact (281) 598-7060.

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What Can An American Buy in Mexico?

The summary below has been prepared by Jonathan A. Pikoff, Esq. founder of Pikoff & Associates, a Mexico-based law firm. Mr. Pikoff is one of few attorneys with law degrees in both the U.S.A. and Mexico. His practice focuses on real estate development and advising U.S. public and private companies doing business in Mexico. He is fluent in Spanish, and lives in Los Cabos, Mexico, where he has an active law practice. The firm also has offices in Mexico City and Houston, Texas.

The regulations on the sale of real property to foreigners are found in the Mexican Foreign Investment Law. An American (or any foreign national) can acquire land almost anywhere in Mexico with the permission of the Foreign Affairs Ministry. The only exception in the Foreign Investment Law is that foreigners may not acquire directly real property in the "restricted zone."

The restricted zone is the strip of land 100 km from the border and 50 km from the beach. If a foreigner wishes to acquire land in the restricted zone, he or she may enter into a trust agreement with a Mexican bank.

A Mexican company with foreign investment, even 100% foreign investment, may acquire fee simple title in the restricted zone as long as it is not used for strictly residential purposes. If the property is considered to be solely residential, the company must use a trust. The Regulations of the Mexican Foreign Investment Law state that residential real estate is real estate specifically to be used as a dwelling by the owner. The law provides a list of examples of real estate that seems residential, but is not considered as such by the law.


According to the law, non-residential real estate includes, but is not limited to:
1. Time Share;
2. Real estate intended for both industrial, commercial or tourist use and residential use;
3. Real estate acquired by credit institutions in payment of debts;
4. Real estate bought by companies to be developed and sold. This would include apartments and residential communities; and
5. Generally, any real estate to be used for commercial, industrial or agricultural purposes, as well as, ranching, fishing, forestry, or to provide services.

The Regulations make clear that this list is not complete and that any questions of whether an activity is residential should be sent to the Foreign Affairs Ministry.

If you're considering any real estate transactions in Mexico, contact Pikoff & Associates.

The Tides Condos Selling Well in Playa del Carmen

PLAYA DEL CARMEN -- Confirming its status as one of the Riviera Maya's most sought-after resort-residency properties, The Tides Playa del Carmen achieved record-breaking sales results over its opening weekend. Pre-construction sales totaled an all-time high of $50 million for this forthcoming project from Kor Hotel Group, which accounts for over 40% of the total 209 residential units. These figures establish The Tides as the most successful real estate project to date for downtown Playa del Carmen.

With striking architecture by the award-winning firm Legorreta+Legorreta and interiors by tastemaker Kelly Wearstler Interior Design, this Yucatecan sister to Kor’s original Tides in Miami's South Beach promises one-of-a-kind chic by the shore. Ground-up construction of the oceanfront property is scheduled to commence spring 2007 and is set for completion winter 2008.

Read more about this story here.

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What Can An American Buy in Mexico?

The summary below has been prepared by Jonathan A. Pikoff, Esq. founder of Pikoff & Associates, a Mexico-based law firm. Mr. Pikoff is one of few attorneys with law degrees in both the U.S.A. and Mexico. His practice focuses on real estate development and advising U.S. public and private companies doing business in Mexico. He is fluent in Spanish, and lives in Los Cabos, Mexico, where he has an active law practice. The firm also has offices in Mexico City and Houston, Texas.

The regulations on the sale of real property to foreigners are found in the Mexican Foreign Investment Law. An American (or any foreign national) can acquire land almost anywhere in Mexico with the permission of the Foreign Affairs Ministry. The only exception in the Foreign Investment Law is that foreigners may not acquire directly real property in the "restricted zone."

The restricted zone is the strip of land 100 km from the border and 50 km from the beach. If a foreigner wishes to acquire land in the restricted zone, he or she may enter into a trust agreement with a Mexican bank.

A Mexican company with foreign investment, even 100% foreign investment, may acquire fee simple title in the restricted zone as long as it is not used for strictly residential purposes. If the property is considered to be solely residential, the company must use a trust. The Regulations of the Mexican Foreign Investment Law state that residential real estate is real estate specifically to be used as a dwelling by the owner. The law provides a list of examples of real estate that seems residential, but is not considered as such by the law.

According to the law, non-residential real estate includes, but is not limited to:
1. Time Share;
2. Real estate intended for both industrial, commercial or tourist use and residential use;
3. Real estate acquired by credit institutions in payment of debts;
4. Real estate bought by companies to be developed and sold. This would include apartments and residential communities; and
5. Generally, any real estate to be used for commercial, industrial or agricultural purposes, as well as, ranching, fishing, forestry, or to provide services.

The Regulations make clear that this list is not complete and that any questions of whether an activity is residential should be sent to the Foreign Affairs Ministry.

If you're considering any real estate transactions in Mexico, contact Pikoff & Associates.