1. Visiting Properties in Latin America

How long is the flight from US?

Flights from the US to Latin America vary depending on the departure and arrival city, the following are some common flight routes:

-          Miami, FL to Santo Domingo, Dominican Republic: 2 hrs
-          Miami to Panama City, Panama: 2.5 hrs
-          Miami to Lima, Peru: 6 hrs
-          Miami to Buenos Aires, Argentina: 7 hrs
-          Miami to Rio de Janeiro, Brazil: 8.5 hrs
-          Miami to Montevideo, Uruguay:  10 hrs

2. Financing your Mortgage

a.       What are the mortgage rates in Latin American countries?
Mortgage rates vary from country to country. The more developed a country’s real estate market and the more complete its banking system, the better terms and interest rates you are likely to find. For example, in Panama where foreign real estate ownership is favored by the government, interest rates are as low as 6.5% annually.

b.      How long does it take to get a mortgage?
In some countries, obtaining a mortgage may take just a few days while in others up to several weeks. The length of time for securing a mortgage depends on the specific financial institution that will be financing your mortgage as well as on the legal processes in the country where you are purchasing.

3. Taxation
a.       Is there a sales tax when you buy a property?
Sales tax on the purchase of a property can vary from 0% to very low. New properties may be tax exempt in some countries while a 1-2% real estate or transfer tax may apply. As taxation varies from country to country as well as case from case, we recommend that you consult with a tax advisor for more detailed information.

b.      How long are tax abatements?
In some cases, tax abatements can last up to 20 years for new constructions or less for other properties.    

4. Real Estate Transfer of Deeds

Are there a property deeds when you complete a property purchase?

Most countries offer full title to foreigners who buy properties in the respective country. When the mortgage is signed for or when the property has been paid off with cash in full, a title transfer will take place. This process is overseen by the title agent, bank agent or lawyer.

5. Corporations

a. How much does it cost to form a corporation?

Forming a corporation costs relatively little in relation to the amount you can save. Costs can be anywhere from $500 to $1,500 depending on optional features.

b. What are the benefits?

As a legal tool, forming a corporation saves taxes as well as limits liability, giving added protection to your assets.

6. Property Management

a. Who manages the property?

Management companies provide services to keep your property in top condition. There is a variety of management companies to choose from which differ in service, experience, quality and expertise.

Management companies provide the following:

    * Making repairs

    * Washing linens

    * Cleaning

    * Seeking out renters

    * Advertising the property for rent

    * Processing and collecting payment

    * Depositing share of income in property owner’s bank account.

b. What's the split between the owner and management?

For rental properties managed by a management company, 20-40% of the rental is charged depending on the scope and quality of services provided.

7.  Legal Advice

a.       Do you need a lawyer to buy properties in Latin American countries?

While lawyers in Latin America are relatively inexpensive it is not necessary to have a lawyer present when buying properties. Contracts tend to be straight-forward and simple but of course, you can always have a lawyer review it for you.

b.      Do we provide legal advice for our clients?

Certainly, our services include (but are not limited to) the following:

·         Title search
·         Corporation set up
·         Immigration advice
·         Contract review
·         Opening of bank account
·         Answering legal questions

8.  Insurance

Do you have to insure your property when you buy it?

Property insurance is required in many countries when financing is involved. If the property is purchased in cash, in most cases, no insurance is required.  

9.  Purchase Offers & Contracts

a.       Is there an English version of the property contract?

Contracts usually are provided in both Spanish and English but if not, then you will receive the contract in Spanish with a certified translated version in English.

b.      What can be negotiated in the contract and terms?

Certain terms, such as the schedule of down payment installments, can be negotiated. For more information, consult your agent at Homes Waiting International.