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