| Invariably, when North Americans visit Puerto Vallarta, | | | | temporary or transient feeling. Also, since most of |
| Mexico, they have such a good time under absolutely | | | | the villas are located on the mountainside, they are |
| ideal conditions, that they hate to leave. Upon | | | | usually multi-story and involve stairs, thus presenting |
| returning home, many start planning their next trip to | | | | obstacles for those less fit. Maintenance of a villa |
| Vallarta and can only dream about retiring here | | | | requires much more time, effort, and money and |
| someday. The fortunate ones, either currently retired | | | | therefore, to many of the older or less healthy |
| or about to retire, often start thinking about how | | | | retirees, it alone might rule out villa ownership. |
| they can own a piece of Vallarta and spend at least | | | | Typically, the older retirees find the advantages of |
| a part of their retirement in Paradise. | | | | condo life outnumber those of villa ownership, |
| Many visitors interested in pursuing the idea of | | | | whereas the younger retirees with many healthy |
| retiring in Vallarta will rent a condominium during their | | | | years ahead of them, prefer villa ownership. |
| first extended stay, and while doing so, will | | | | Due to the ever increasing cost of land, as a "rule of |
| experience all the benefits Vallarta has to offer, and | | | | thumb", you can use an average cost per square |
| will explore the market for condos and/or villas. Once | | | | foot for a villa of $250, whereas the average cost |
| they have determined that Vallarta will be their full | | | | for a condo would be a little less, at $200 per square |
| time or part time retirement destination, they are | | | | foot. Of course, there are many properties in Vallarta |
| ready to start considering which is most appropriate | | | | that sell for substantially less, however, we're only |
| for them, a condo or villa. | | | | considering those with magnificent views and all of |
| There are certain aspects of condo and villa | | | | the modern amenities. On the surface, these prices |
| ownership that are constant; for seven months from | | | | may seem high, however, similar properties with |
| November through May, the climate will be ideal, | | | | comparable views would be two to three times as |
| there will be numerous activities to enjoy and an | | | | much in the States. Furthermore, association fees are |
| abundance of friends to enjoy them with, and every | | | | much less and property taxes are negligible in Mexico. |
| condo or villa will have a panoramic, breathtaking | | | | An additional consideration that every retiree must |
| view of the Banderas Bay and the Sierra Madre | | | | have relates to real estate future values. In Mexico in |
| mountains. | | | | general, and in Puerto Vallarta specifically, there is no |
| The following discussion is to address the differences | | | | housing slump or fear of recession, as prices continue |
| between condo and villa ownership. | | | | to escalate at a rate of 10% or more per year. |
| The first variable that most consider is the | | | | All properties, whether condos or villas, are purchased |
| percentage of time expected to be spent in Vallarta | | | | through 50 year trusts, held by a designated bank. |
| each year. For those planning full retirement in | | | | These trusts give the holder exclusive right to |
| Paradise, a villa with staff might be the best choice; | | | | property usage for 50 years and can be renewed |
| association fees are minimal, there are no neighbors | | | | after 50 years, can be given to a designated |
| or renters upstairs, value appreciation is most | | | | beneficiary upon death and then renewed for |
| favorable, furniture and personal items can be | | | | another 50 years, or can be sold, allowing the buyer |
| shipped into Mexico making living conditions more | | | | to renew the trust for new 50 year term. These |
| similar to back home, and most importantly, the old | | | | bank trusts are as safe as the title and deed used in |
| house in the US or Canada can be liquidated, thus | | | | the States or Canada; plus, since they are Mexican |
| freeing up the capital for retirement and travel. | | | | bank trusts, they are virtually untouchable by any |
| Those planning part time residency in PV might favor | | | | outside entity. |
| condo ownership; they will be close to many of the | | | | Since all real estate legal transactions in Mexico are |
| restaurants, shopping areas, and activities, they will | | | | done in Spanish, it is imperative that the buyer is |
| be able to turn the key and forget about it at the | | | | represented by a qualified attorney. Also, much of |
| end of the "high season", they will have an | | | | the Mexican coastal land is classified as ejido land, and |
| opportunity to generate rental income while away, | | | | as such, was designated by the Mexican government |
| their maintenance expenses will be minimal, and they | | | | many years ago to be used by the natives as farm |
| will retain their permanent family residence back | | | | land. North Americans are unable to purchase some |
| home. | | | | of this beautiful coastal land and therefore, any North |
| The second variable to consider would be the | | | | American retiree considering real estate ownership in |
| number of friends & family that might be | | | | the Vallarta area, must have competent |
| expected to visit each year. When you live in | | | | representation to assure them that the land is |
| Paradise, you'll be amazed at how many "dear | | | | appropriate for foreign ownership. |
| friends" you had back home! Of course, the smaller | | | | Due to the differences in laws and language, an |
| the condo, the fewer "dear friends" you'll have. | | | | exclusive buyer's agent is a prerequisite in order to |
| Whereas, if you own a grand villa, you'll have more | | | | avoid the potential pitfalls associated with real estate |
| "dear friends" than you ever knew you had. | | | | purchases in Mexico. Having a truly professional agent |
| The third variable has to do with the age and health | | | | with 100% buyer dedication and loyalty will assure |
| of the retiree. A younger retiree might favor a villa | | | | you a safe and pleasant real estate purchase, |
| where he can call it home, living there as he would in | | | | regardless of whether you're buying a condo or villa |
| any permanent residence, without having that | | | | in Paradise. |