Everything you need to know about buying and selling real estate in Mexico, Puerto Vallarta, and the Banderas Bay region

Real Estate in Puerto Vallarta

Do You Really Know Your Real Estate Agent?

A recent discussion with a seller made me realize she needed to become aware of misunderstandings which could happen by her not understanding Mexican immigration and tax requirements. In this local real estate market, nationals and foreigners should be registered to do business and pay taxes to Hacienda or the Mexican IRS.  However, there are people who choose not to be registered and illegally earn income they do not report.

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Behavioral Bias in Real Estate

Are Your Emotions Costing You Money?

One of the most interesting asset classes where we see pronounced influence of behavioral biases is in real estate. Real estate is a highly emotive asset in most cultures. This can help explain phases of ‘irrational exuberance’ in property markets where prices move away from fundamentals. Real estate markets suffer from a greater degree of incomplete information. No two assets are the same, and there is often no central exchange. Sellers tend to know more about assets than buyers, a fact that real estate intermediaries can exploit. The quality of, and access to, information is poorer than in stock markets.

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Real Estate Transactions in Mexico

Cultural Differences and Negotiations

The three countries which make up North America are physically close, but each has a different history and culture. Which cultural aspect do you associate with the following:

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Monopolies, Underground Markets, and Ethics

The Color of Financial and Real Estate Markets

A BLACK MARKET or underground economy, or shadow economy is a market-characterized by some form of non-compliant behavior against an institutional set of rules. If the rule defines that a set of goods and services production and distribution is prohibited by law, non-compliance with the rule constitutes a black-market trade, as the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, prostitution, illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion is really participation in the unreported economy. 

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