Buying Property in Mexico; Our New Condo in Puerto Vallarta

Guess what? We bought a condo in Puerto Vallarta! It took forever but finding the perfect place was worth the wait. This article recaps our experience buying property in Mexico, describes the purchase process at a high level, and offers a quick photo tour at the end.

Buying property in Mexico is different than in the United States, but it is not a particularly complicated process. Finding the right property in Puerto Vallarta… now, that’s a whole other story!

Our Original Plan 

We originally planned to rent for a year or two before purchasing property in Mexico. Even though we vacationed in Puerto Vallarta for years, we thought things might feel different living here full-time. The idea was to neighborhood hop for a while, then find a long-term rental until we were ready to buy a place.

While a lovely theory, the rental plan did not play out well. As crazy as the real estate market is in Puerto Vallarta, the rental market is even crazier. Add a 4-pound chihuahua to the mix, and finding a nice place to rent was nearly impossible. Many homeowners associations (including the one in our new building) only allow owners to have pets. I persuaded several owners to approve Teddy, but it continued to be challenging to find a place.

Ultimately, we lived in 6 different places before we closed on our new condo. Being nomadic was fun, but we were definitely ready for a sense of permanency. 

Expectation versus Reality 

Call me a dreamer, but I expected our search for property in Puerto Vallarta to be like an episode of House Hunters. You know the drill. Give a realtor your wish list. They scour the multi-list, then take you to visit your three favorite listings. You mull the options over for a few days and make an offer for less than the asking price. Easy, right?

Our search was more like The Hunger Games. The real estate market in Puerto Vallarta is bonkers right now. Developers are building condos as fast as possible but can’t keep up with demand. Moreover, everything under construction is much smaller than we wanted. List prices are simply a jumping-off point for bidding wars.

The Search for Property in Mexico

Wish List

• Neighborhoods: Amapas, Romantic Zone, or Conchas Chinas
• At least 2,000 sq ft
• At least 2 bedrooms
• At least 2 full bathrooms
• Deeded parking space (in case we decide to buy a car)
• Covered Terrace
• Ocean View
• Walkable to Romantic Zone or Centro
• Gym
• Pool

What We Found

Over two months, we looked at about 15 properties. Early in the search, we found a condo that we really liked. Unfortunately, it was already under contract by the time we saw it. We put in a backup offer, but the original purchase went through, so our offer was not considered. 

In December, we made an offer on a second property. Though we didn’t love it, the place was nice and checked most boxes. That listing ended up in a bidding war, and our hearts just weren’t in it.

By Christmas, we were frustrated with the lack of inventory and decided to pause our search. Confession: I started asking myself if living in Puerto Vallarta was in the stars for us. 

So, what do you do when you get fed up? Travel!

We spent a month in Mexico City and a month in Merida. Those trips were fantastic, but we couldn’t wait to get home to PV. We returned refreshed and started looking at the multi-list every morning to see what was new. One week later, our condo popped up. My heart skipped a beat when I saw it!

Our realtor got us in to see the property on the first day of official showings. We knew it was “the one” when we walked in the door. Perfect? No. Amazing? YES! The condo exceeded our wish list in every category except the gym.

Within a couple of hours of seeing the condo, we submitted a cash offer (above list price) with an aggressive closing date. We later learned that our offer was not the highest, but the quick closing appealed to the seller. We were ecstatic when we found out our offer was accepted!

How is Buying Property in Mexico Different?

Buying a home in Mexico is much the same as in the US. You make an offer, there is some negotiation, offer accepted, buyer hires professionals to do due diligence, etc. The major differences are related to financing (or lack thereof) and how you legally hold title to the property.

Financing

Until recent years, getting a mortgage in Mexico was virtually impossible for US citizens. There are a growing number of financing options in Mexico, but they require hefty down payments and are tied to extremely high interest rates (up to 20%). Paying cash for property seems to be the expectation in Puerto Vallarta. In this current seller’s market, I can’t imagine an offer being accepted unless it is cash.

Buying Property Via Mexican Trust

We are legal residents of Mexico, but we are not Mexican citizens. Since we are within 30 miles of the coastline and not citizens, the title to our property is held in a trust administered by a national bank. The trust has a lifespan of 50 years and is automatically renewable. It functions somewhat like a family trust does in the US, but only holds one specific property. We are the designated beneficiaries of the trust and have all the rights of use and enjoyment, improvement, etc. that are typical for homeowners.

Home Sweet Casa

We closed on our condo six weeks after submitting the offer. Since it came fully furnished, we moved in the same day. Easiest move EVER! So, how did we fare on our wish list?

• Upper Amapas Neighborhood
• 3,200 sq ft
• 3 bedrooms 
• 3 full bathrooms
• Deeded parking
• Huge Covered Terrace in the front, with smaller terraces for 2 bedrooms
• Full Ocean View
• 8-minute walk to Romantic Zone
• There is no gym in the building, but a boutique hotel next door allows us to use their gym for $25 per month.
• Pool
• Oversized jacuzzi tub in the master bath (bathtubs are rare in Mexico)

Overall, we couldn’t be happier with our purchase. Huge shout out to the seller’s agent, David Pullen of David Pullen Properties and our agent Russell Faulkner of Timothy Real Estate Group for navigating a flawless transaction.

Photo Tour

Click on the video below for a quick photo tour of our new condo.