Things are really coming together in the Puerto Vallarta real estate market. For many years, long-term financing was not available for land purchases in Mexico. In addition, financing for existing construction and new construction was likewise out of the picture.

Within the last ten years, the lending picture has changed dramatically in Mexico, opening up markets like Puerto Vallarta for foreign real estate investment. New laws have been put into place to protect both buyers and sellers of land. These new laws secure ownership rights well enough to entice banks – both US and Mexican – to issue mortgages for the first time in Mexico’s history.

In addition to mortgage lending, financing is available for land acquisition, new construction and even refinancing. The last item – refinancing – is a big one because property owners in Mexico now have a way to tap into the equity that accumulates in their homes.

The equity can be used in the same way it is used in the US, although the formula for calculating equity and the maximum available for loan is somewhat different. Lenders usually make at least half of a home’s equity available for refinancing. In addition, interest rates are competitive – hovering around 7 percent.

For investors, this is great news! The availability of long term financing means that investors can acquire and improve upon land without risking their own capital. In addition, Puerto Vallarta is a ready-made market, and demand for luxury properties here is increasing.

For the real estate investor, Puerto Vallarta presents an excellent opportunity to benefit from investments in the luxury market here. If you would like more information about real estate investments in the Puerto Vallarta real estate market, please contact Coaching Services today!