Tell me if this is a good Real Estate deal or not?

[Quixote1818]

First take a look at the place they are building.

http://www.rockypointforsale.com/condos.html

You can have fractional ownership of one of these condos for just $28,000 right on the coast in Rocky Point Mexico.


As far as ownership in Mexico, here is how they explain it? Does this sound ligit?

Full Ownership at Las Palmas:
The Las Palmas resort offers a beautifully designed Master Planned Community with fully deeded ownership to both condominiums and beach homes.


Real Estate in Mexico
Foreigners can own property in Mexico through a trust managed by a bank. This trust allows individuals or corporations to use and enjoy real estate property located within a range of 100 kilometers from the borders of Mexico, and 50 kilometers from costal areas.

Trusts are legally established by the Mexican Investment Law, Chapter IV, Articles 18 to 24, fifth transitory.

A Fiduciary (a bank trust department) will have temporary ownership of the real estate property, subject to the direction of the beneficiary (the foreign buyer) allowing the beneficiary use of said property.


Title Insurance
Las Palmas has worked with two outstanding leaders in the US Title Insurance business to provide our clients with title insurance. As a client, you can choose either First American Title insurance Company or Stewart Title Guaranty de Mexico for your title insurance needs.




Fractional Ownership at Las Palmas:


What is fractional ownership:
A concept that was originally developed in the 80’s, fractional ownership is not time-share because the purchaser is buying rights to the title to real estate. With time-share a purchaser is only buying a right to a block of time, usually for a limited amount of time before additional renewal fees or charges are added. There are no exchange fees or requirements to reserve your unit.



The Benefits of Fractional Ownership:

Luxury ownership for Less:
Las Palmas Fractional Ownership allows you to own a fully furnished, high quality vacation property while spending less money on upkeep, taxes, and the initial purchase price with the concept of paying only for what you use.


An Investment in Equity:
A common misconception when a vacation property is divided such as this, is that fractional ownership is the same as time-share. Time-share cannot compete with fractional ownership on any level. With a typical time-share, a purchaser is only buying a right to a block of time usually in a hotel type atmosphere. But with the Las Palmas residential resort property, you are buying a legally titled, beneficial interest in the property and the property is a beautifully furnished condominium or beach home. As an owner, you have full rights of ownership, including selling to others, leasing, giving it away, and passing it to future generations. As real estate of course, you will experience real estate appreciation over time.

[napi21]

1. I have a bridge I can sell you for half that. Ya interested?? b/t

[FloridaPat]

2. I still don't understand what a fractional ownership is. Do you have

an explanation for this?

Here's another web site that has real estate in Mexico. Doesn't mention all that title/bank stuff.

http://realestate.escapeartist.com/Properties/Mexico/For_Sale/

[Quixote1818]

4. Here is another place with explanation and sample schedule

http://www.lasgardenias.com/frac_own.html


What I am interested in is if Rocky Point Real Estate takes off in the next five to ten years. My $28,000 could double in five years? Thoughts?

[Quixote1818]

10. Here is a better explanation/site of fractional ownership

http://www.luxuryfractionalguide.com/index.php

[FloridaPat]

3. That's only for 4 weeks. They said this is a new concept.

I'd look elsewhere.

[Quixote1818]

5. I am more interested in the investment

I saw on 60 Minutes that Real Estate in Mexico is about to take off. I am wondering if I could turn my $28,000 into $60,000 in five years. Plus I would get several friends to be the other investors so I could go at any time as long as it was OK with them. I actually doubt if I would go very often. I am more interested in the investment.

[LSdemocrat]

6. I'd talk to a real estate lawyer before investing in foreign real estate

You don't want to have to deal with any unforeseen consequences.

[Quixote1818]

8. I definitely would

People in Phoenix and Tucson are talking about Rocky Point taking off. I just want to get in early if it's going to boom.

[Jara sang]

7. Not

Americans cannot own property in Mexico. Didn't you see that episode of King of the Hill?

[Quixote1818]

9. They can now

Real Estate in Mexico
Foreigners can own property in Mexico through a trust managed by a bank. This trust allows individuals or corporations to use and enjoy real estate property located within a range of 100 kilometers from the borders of Mexico, and 50 kilometers from costal areas.

Trusts are legally established by the Mexican Investment Law, Chapter IV, Articles 18 to 24, fifth transitory.

A Fiduciary (a bank trust department) will have temporary ownership of the real estate property, subject to the direction of the beneficiary (the foreign buyer) allowing the beneficiary use of said property.

[Jara sang]

11. That sounds even worse, I wouldn't do it.

[enigmatic]

12. Rocky Point...

is/was the hot spot for RVers and college kids coming from Arizona and San Diego and was moving from a sleepy little village to booming tourist spot, at least when I was living in Phoenix in the late 90's..

[Quixote1818]

15. I went their in 92' for spring break and it had nothing

I am amazed when I look at these photos. It's really starting to take off.

[izzybeans]

13. I'm not sure about the fractional ownership. Does that mean timeshare?

Anyway in Mexico you have to set up a trust with a lending bank in order to get around their real estate laws about foreign ownership near the coast (an X amount of kilometers). After a period of time you don't need this trust. I'm not sure how long. But for the most part it seems legit-I would check on this fractional ownership. It might be a marketing scheme to suck people into time shares.

[Quixote1818]

14. It's not time share and it would gain equity

An Investment in Equity:
A common misconception when a vacation property is divided such as this, is that fractional ownership is the same as time-share. Time-share cannot compete with fractional ownership on any level. With a typical time-share, a purchaser is only buying a right to a block of time usually in a hotel type atmosphere. But with the Las Palmas residential resort property, you are buying a legally titled, beneficial interest in the property and the property is a beautifully furnished condominium or beach home. As an owner, you have full rights of ownership, including selling to others, leasing, giving it away, and passing it to future generations. As real estate of course, you will experience real estate appreciation over time.

[Quixote1818]

16. Here is an article on Fractional Ownership

http://www.bankrate.com/brm/news/real-estate/20031211a1.asp