Sotavento Luxury Residences

by Sotavento, Tuesday, January 01, 2019, 12:24 (794 days ago) @ midalake

Thank you D;

I would agree that unit buyers who acquire in the developing stage have an advantage over those who buy in the complete stage in terms of pricing. Much of this is because many owners prefer to have a unit ready to unoccupy without the uncertainties of construction. As such, developers often increase prices as the project proceeds and demand increases.

For some clarification, yes there is a 25% withholding tax on a sale in Mexico. However, this same withholding tax exists if, as a foreign citizen you sell a property in Canada or the USA. Under the tax treaties between the two countries this tax withheld can be applied against your capital gains or profits in your home county. The witholding tax is designed so that foreigners who transact in a country can't take their profits out before paying tax.

A foreigner selling a property in the USA is actually worse off. The 25% is applied not against profits but against the full selling price.

At the end of the day, while profits may happen for unit buyers at Sotavento, i don't think that should be the key driver. It's a "Lifestyle asset" Something you own because it enhances your life. Yes, most unit buyers will probably turn a profit but, I hope their value in ownership and use exceeds those profits.

People who own homes in Florida, Palm Springs, Scottsdale, Whistler, Aspen, Puerto Vallarta didn't all buy because it promised a financial windfall. They did it because it's where they chose to spend their win.

Happy New year.

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