Posted on 05/10/2006 9:46:05 AM PDT by radar101
Some Americans who bought homes or leased land were helpless when developers and brokers moved in. Ocean views can be fleeting.
LA CRUZ DE HUANACAXTLE, Mexico — Doug and Dru Davis sold their San Diego County home several years ago to buy a $200,000 house on the beach here.
The value of their new place not far from the resort of Puerto Vallarta increased fivefold — until some developers moved the beach.
The couple's serenity was shattered last fall when construction crews began dredging the bay in front of their property to reclaim land from the sea. A planned marina, hotel and high-rise condos now threaten to block their ocean view.
"This is sending a terrible message to investors," said Doug Davis, 61. "You think you're buying oceanfront property and then the [Mexican] government lets someone build in front of you."
Flush with equity from the steep run-up in U.S. real estate prices, American boomers are snapping up properties in Mexico, helped by a change in rules that has made it easier to purchase in coastal zones that were once off limits to foreigners.
No agency on either side of the border keeps statistics on the number of Americans who have encountered problems. But interviews with homeowners, real estate experts and government officials reveal real estate deals gone sour and a host of potential pitfalls.
Some would-be buyers have had brokers disappear with their deposit money. Others have had their homes seized in land disputes. A few have even landed in jail.
"There is a history of problems," said Liza Davis (no relation to Doug and Dru Davis), public affairs officer at the U.S. Consulate in Tijuana. "We ask people to go in with their eyes open."
(Excerpt) Read more at latimes.com ...
This relationship with Mexico seems like a one way street. If they are demanding rights in our country, why aren't we demanding rights in their country?
LOL! Investing in land in Mexico qualifies as very high risk investment.
It is against the law for non-mexicans even naturalized immigrants to own property within 50 KM of the coast...
I really don't have much sympathy for the couple. It's a very well known fact that when you buy land, especially on the water, in Mexico, there's always a chance they'll take it away. In fact, I don't believe you can buy it...you're actually leasing it from the government. So these two should be happy they got to live on the beach for few years for a very low amount of money. Sorry.
They have learned an expensive lesson about Mexico, their laws are written for Mexicans.
Looks like Ginsburg and Co. are on the Mexican Supreme Court.
"It is against the law for non-mexicans even naturalized immigrants to own property within 50 KM of the coast..."
This doesn't sound right.
Hey Doug and Dru, I hear there are some good real estate deals to be had in Cuba and Haiti. The governments and legal systems there are pure as the driven snow too, unlike corrupt Mexico.
There is a reason people voluntarily walk out of that country with nothing but the clothes on their backs.
Actually you lease it (long term) from the government through a Mexical legal entity intermediary...
And the restriction for ownership I believe is within two miles of the beach.
Incidentally, most countries south of the border have similar pitfalls, even the most "liberal". "Lost" ownership rights are almost daily miracles down there.
I did not know about the 50 KM rule.
I did know that no non-citizen can only own 48% of any property.
At least they aren't seizing it to build a Wal-Mart.
It used to be the whole country.
You can easily bypass it with a domestic, Mexican, corporation.
Exactly! Which shows you who's boss. You are in your house as long as they let you.
50KM from the Coast and 100KM from the border.
My wife is a Mexican National we are looking at an investment in Mexico.
Kind of like owning land in Arlington, TX.
Some of my inlaws have been spending some time in Mexico. It's fine if you stay away from the outskirts of resort areas, which are haunted by criminals looking for rich Americans to rob or kidnap.
Individual Mexicans are very pleasant to deal with, if you take them on their own terms.
But I agree. It would be foolish to invest in Mexico. If you are inclined that way, I think Costa Rica makes more sense.
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