Docstoc

Purchasing Real Estate

Document Sample
Purchasing Real Estate Powered By Docstoc
					                          CLOSING COSTS INTRODUCTIO

                            1. Expenses due Buyer

                            2. Expenses due Seller

                            3. Common annual fees

* Detailed explanation of each expense item described in the article within the web page:
* As in our previous articles, we recommend verifying and updating all figures with a local Mex
Accountants and Professional Lawyers to verify and ensure current figures and factors.
                           - By Thomas Lloyd

STS INTRODUCTIONS




n the article within the web page:          http://playacarmenproperty.com/closing_costs.asp
d updating all figures with a local Mexican Notary Public, Professional
re current figures and factors.
                                                                                       EXAMPLE OF TAXES AND EXPENSES DUE
                                                                                       WHEN PURCHASING REAL ESTATE IN MEXICO
                                                                                       * example of a residential real estate acquisition
                                                                                                                EXAMPLE PURCHASE PRICE (u.s.d.) $ 500,000.00
                                                                                                                                   APPRAISED VALUE $ 500,000.00

                                                                                                                                            MANDATORY      OPTIONAL
                                        DESCRIPTION                                           FACTOR              RESPONSABILITY
                                                                                                                                            AMOUNT DUE    AMOUNT DUE
A     Attorney contract review                                                                                                                            $     600.00
B     Title research                                                                                                   BUYER                              $     500.00
C     Title Insurance                                                                           7.00                   BUYER                              $   3,500.00
C-2   Escrow Account                                                                                                   BUYER                              $     700.00
D     National Registry of Foreign Investments                                                                         BUYER            $        350.00
E     Permit from Ministry of Foreign Affairs                                                                          BUYER            $      1,500.00
F     Mexican Financial Inst.Trust / Bank Trust"fideicomiso" *                                                         BUYER            $      1,400.00
A-2   Title Transfer and Title Registration Coordination by Legal Counsel                      0.50%                   BUYER                              $   2,500.00
G     Notary Public fees                                                                       0.50%                   BUYER            $      2,500.00
H     appraisal fees                                                                                                   BUYER            $        500.00
I     certificate free of liens                                                                                        BUYER            $         50.00
J     certificate of no property tax due                                                                               BUYER            $          5.00
K     registration of Land Transaction with Public Registry Tax                                1.00%                   BUYER            $      5,000.00
L     Acquisition Tax (I.S.A.I.)                                                               2.00%                   BUYER            $     10,000.00
M     Expedition of Deed                                                                                               BUYER            $         35.00
N     Miscellaneous                                                                                                    BUYER            $      2,000.00
O     IVA VAT (only on commercial properties)                                                  15.00%                  BUYER            $           -
P     Capital Gains Tax (I. S. R.) buyer (20% of profit if due) #                               20%                    BUYER            $           -
      TOTAL DUE BUYER                                                                          4.67%                                    $     23,340.00
      TOTAL DUE BUYER ON SUB EXPENSES                                                          1.56%                                                      $   7,800.00
      # This amount is due only on extraordinary circumstances when actual purchase price is below the official govt. Appraised value
      * If buying a property in a trust, a transfer of beneficiary can be executed with an avg. Cost of $800 per $500,000 usd transaction
      Ç All quotes are inflated to reflect a higher than real cost for your financial analysis
                                                                                  TAXES AND EXPENSES DUE
                                                                                  WHEN SELLING REAL ESTATE IN MEXICO
                                                                                  * example of a residential real estate acquisition
                                                                                       EXAMPLE PURCHASE PRICE (u.s.d.) $                    500,000.00
                                                                                                         APPRAISED VALUE $                  500,000.00

    DESCRIPTION                                                                       FACTOR                AMOUNT DUE                 RESPONSABILITY

Q   Pro rata property taxes                                                                                $        -                     SELLER
R   Capital Gains Tax on properties (I. S. R.)                                          20%                $ 100,000.00                   SELLER
       20% of gross proceeds or 28% net income *
S   Sales agent commission                                                              7%                 $   35,000.00                  SELLER
    TOTAL DUE SELLER                                                                                       $ 135,000.00
    * Capital Gains Tax is due when property is commercial
      Residential homes, will pay a percentage based on the profit of the sale
      Exemption of Capital Gains tax is possible, but thorough analysis of the account needs to be studied
      Documents needed for exemption are proof of address (bank statements or Electric Bills or Water Bills or Gas Bills) with property address
          Offical ID and documents demonstrating proof of residence, (FM3) amongst others
                                                            COMMON TAXES AND EXPENSES DUE
                                                            WHEN HOLDING REAL ESTATE IN MEXICO
                                                            * example of a residential real estate acquisition
                                                                 EXAMPLE PURCHASE PRICE (u.s.d.) $                500,000.00
                                                                                    APPRAISED VALUE $             500,000.00

    DESCRIPTION                                                  FACTOR               AMOUNT DUE             RESPONSABILITY
T   Annual property taxes (Predial)                              0.10%               $      500.00               OWNER
U   Annual administrative expenses of TRUST documentation                            $      700.00               OWNER
V   Rental Income Taxes                                                              $         -                 OWNER
W   Maintenance Expenses                                     $      300.00           $    3,600.00               OWNER
X   Annual Insurance Expenses                                                        $      800.00

    TOTAL DUE OWNER                                                                  $    5,600.00

				
DOCUMENT INFO
Description: Purchasing Real Estate document sample