Mexico Finance Insurance

Personal financial planning seems like such a lofty task to so many people. But it is really a simple idea. You are in control of where your money goes.

So few people are. And there really isn’t any reason why. Managing your finances isn’t a difficult task. In fact, it is one you must master in today’s world. It will get you to where you are heading. It will help put your kids through college, it will take you on that second honeymoon, it will buy your home and retire you in comfort. How could you not learn the basics?

There are three general processes in managing your finances.

First, you must be able to control your day to day finances. This is your spending and your earning. You must create a budget, perfect it and learn to utilize it. You have to put the credit cards aside and get out of debt. You have to choose saving over spending sometimes.

The key behind managing your money is that it is no longer managing you. When you are in debt and your money is all spent as soon as you are paid, you aren’t in control. When you decide where that money is going and it goes to where it earns you money, you are the one in control.

The second aspect of financial planning is seen in the choosing and working towards realistic long-term goals. These goals are the motivation behind controlling your finances. You may want to get out of debt, buy a house, go to college and retire comfortably. You might want to see the ocean for the first time — in Mexico. You might want to tour Europe with your daughter when she graduates college. No matter what your goal, it will be the fuel to keep you on the right path. Use it.

The third factor is the building of a financial safety net around your family to prevent financial disasters. You need to have adequate insurance to protect you and your family from illness, death and lawsuits. You need to have a will in place. You must have an emergency savings account that has enough money in it to cover three to six months of expenses.

Your emergency savings not only cushions your budget from the unexpected, it also prevents the usage of credit and protects your savings. You won’t have to dip into retirement when something major goes wrong. You don’t have to use an emergency credit card and then pay high interest to replace something that is broken. You have protected your finances.

Take the time to learn how to manage your finances. It means less stress on you and your family. Yes, it takes a little time and a little work. But it will pay you back many times over.

All too often citizens of the United States, Canada and other countries ASSUME that property purchases are carried out automatically in Mexico in a manner similar to that of their native countries.  The first law of property purchase in Mexico is DON`T ASSUME anything!  Purchasing property is NOT  the same as in other parts of the world.

Would You Purchase a Property in Your Hometown Which Is Not Registered in the Local Public Registry or Land Titles Office?

Would you hand a complete stranger, without an office or an established business entity, a check for perhaps hundreds of thousands of dollars to pay for a property?  Why do so many foreigners do this when they purchase in Mexico?  Many do not realize that Mexico has a complex and complete legal system and a court system that is as well organized as any that exists in the United States, Canada or Europe.  It is essential that you have an idea of how the system works and what to expect when considering a purchase of property in Mexico.

Don’t Leave Your Brain at the Border!

Article 27 of the Mexican Constitution prohibits ownership by a foreign individual or business entity of real property (real estate) within the “restricted” zone which is an strip of approximately 30 miles from any coastline and 60 miles from any border.  Recognizing the demand by foreigners for ownership of property and recognizing the importance of making desirable properties available to foreigners for potential positive impact on the economy, the Mexican government implemented a series of Foreign Investment Laws beginning in 1973.  The law was modified in 1989 and again in December 1993, to incorporate the provisions of the NAFTA treaty passed in late 1993.

For those who are acquiring property for residential usage, the law requires that title to the property in the restricted zone be transferred to a Mexican bank, as trustee, in the establishment of a trust (fideicomiso) in which the foreigner is the beneficiary.  The bank is the titleholder of the real property and the foreigner is the owner of the rights of usage of the property.  The bank owns the real property rights and the beneficiary owns the personal rights of usage.  Ownership of these personal rights is evidenced through a deed prepared by a Mexican Notary Public and signed by a representative of the trustee bank.

Currently the term for a trust is fifty years.  The Foreign Investment Law of 1989 provides for renewal by filing an application.  Multiple renewals are permitted under the law.  By requesting extensions every fifty years, a property may be controlled by a family or business entity for generations.  For those foreign individuals or companies buying property in the interior of the country, not in the restricted zone, no bank trust is required but authorization from the Secretary of Foreign Relations must be obtained and ownership must be registered in the National Foreign Investment Registry located in Mexico City, as well as in the municipality where the property is located.

Avoid Mexico Taxes and Extra Costs. Leave the Mexico Deed in the Seller’s Name:  This is Wrong!

Until the buyer is formally named as the owner in fee simple or in the bank trust in a public document before a Mexican Notary Public, title to the rights in the property remain with the persons named in the previous property deed.  Their signatures are required to transfer title.  If the buyer fails to obtain his or her own deed he/she will be required to obtain the titleholder’s signature before a sale and transfer to another buyer.  This can be costly, frustrating, dangerous and time consuming.

The Importance of Mexico Registration of the Deed for Beneficial Rights.

The Mexico purchase/sale document signed by buyer and seller is generally legally valid between the parties to a transaction.  It most likely contains the description of the property, the price to be paid to the seller, and any other special terms and conditions.  It WILL NOT, however, provide valid notice to third parties unless it is recorded in the Public Registry Office of the municipality in which the property is located.  Mexico’s land registry system functions in much the same manner as the Public Registry offices in Podunk, North Dakota, Los Angeles, California, Ottawa, Canada or places in between.

many foreigners purchasing property in Mexico do not understand the importance of registration of their interest in property.  They believe that it should be left in the name of the property developer, in the Master Trust, or in the name of the previous holder of title.  What if the developer goes bankrupt?  What if the corporation and its principals, disappear?  Who can sign as the representative of the property?  Who then owns the property?  What happens if an unscrupulous seller sells the property to someone else?  While title is in the name of the seller, it is HIS/HER asset;  she may mortgage it, he may sell it again, it may be attached in satisfaction of a judgment, she may die without a will.

Unless the Deed for the rights of the Beneficiary has been Recorded, there may not be a remedy for the purchaser who neglected to obtain a registered deed…his or her interest and investment, may be lost.

To obtain the deed an appraisal, a property tax certificate, and a no-liens certificate must be obtained.  Notarized bank instructions must also be obtained if property is in the “restricted” zone.  Seller’s capital gains tax and Buyer’s acquisition tax must be paid.  The deed transferring rights to the buyer must be registered and stamped by both the tax office and the public registry.  If this process is not complete, the buyer is not fully protected.  The buyer’s ultimate protection is registration in the Public Registry office record, NOT the Notary Public or the trustee bank!

Financed Properties in Mexico

When property is sold with a down payment and the balance to be paid over a term of years, many sellers prefer to hold title to the rights in their name and transfer title to their rights only upon receipt of payment in full.  Meanwhile, however, the seller may die, may disappear, may bo bankrupt…again risky situations for the buyer.  the prudent buyer will insist upon a transfer of title and registration of a mortgage or pledge in which he gives his rights in the property as security for payment of the remaining purchase price.

In the event of default by the buyer, the seller must conduct a proceeding similar to a judicial foreclosure in the United States and Canada.  It is as troublesome as a foreclosure in any country in the world but notably more problematical.  The registered title and recorded pledge or mortgage provides the buyer a greater comfort level in his investment.  The lender also enjoys protection in having his loan recorded and will have an established legal proceeding to follow in the event of default by the buyer.

The travel industry is a seven trillion dollar industry expected to double to fourteen trillion dollars within the next decade. This lucrative industry is currently growing 23% faster than the global economy.

A key factor in this growth phenomenon is the steady stream of baby boomers who are retiring, or getting ready to retire. In fact, baby boomers are retiring at a rate of one every eight seconds. Travel was rated the number one thing these baby boomers intend to do when they do retire.

There is now an increased demand for qualified travel agents, due to the explosive growth of the industry as a whole. To become a certified travel agent, your options are not limited to the traditional brick and mortar setting.

Many reputable travel agencies are now offering attractive options for the individual looking for a legitimate home based business.

If your goal is to work as an independent travel agent from the comfort of your own home, you may want to consider working as an online travel agent.

Here are some companies that you can research, that offer excellent income opportunities and complete training. Please note, that many travel companies that actively recruit agents to work from home, will hire their agents as employees.

There are also travel companies that recruit independent agents. This option will offer the agent the freedom of being self-employed, and the ability to set their own hours.

To take advantage of this option, be aware that there will be an investment required. The ability to make money will be solely at the discretion of the agent who chooses to invest in this business model.

On a positive note, many agents who have invested in this business model are making a very nice income, so be sure to research this option before ruling it out.

Travel companies that currently offer the independent agent business model include TraVerus Travel Network, Global Resorts Network, and Your Travel Business, also known as YTB.

Make sure to do your due diligence! Be sure to research each company carefully, and make it a priority to fully understand the compensation plan. You will also need to know what training is available, and whether the company will offer you the opportunity to become certified.

Don’t be afraid to ask important questions, such as whether the company has IATA(International Air Transport Association), IATAN (International Airlines Travel Agent Network), and CLIA (Cruise Lines International Association) Credentials. This is important information to know, especially if you intend to take advantage of the travel perks and benefits available to those in the travel industry.

Here are some questions to ask – What is the initial investment, if any? Are there any additional costs or fees associated with obtaining licensing, or becoming certified? And finally, if you are considering a work at home position, what kind of support and training is offered?

Next, determine whether you a right fit for the travel industry. Lets break down the qualifications that will determine whether you are suited for this challenging, but rewarding career.

Travel agents should have a minimum of a high school diploma. Agents should have a true love for travel,as well as a sincere enthusiasm and love for working with people, because these traits are crucial elements for success in this industry.

Travel agents should also possess excellent multi-tasking and organization skills. Attention to detail and accuracy are very important, along with great communication skills. In addition, good computer skills will be needed.

Travel agents should possess a professional, courteous demeanor when working with suppliers, and the general public. Sales ability and great interpersonal skills are an added plus.

The benefits of becoming a travel agent are many. I have listed the top three.

Travel agents save up to 80% on travel to many of the worlds exclusive resorts and destinations. These discounts include, but are not limited to:

a. Complimentary upgrades

b. Hotel room upgrades and discounts

c. Car rental discounts and upgrades

d. Cruises

e. Theme park discounts

f. Vacation Packages

FAM trips, also known as familiarization trips. Suppliers will offer access to their facilities at substantial discounts so that travel agents will have first hand knowledge of their facilities. The travel agent will then be able to make recommendations and book travel for their clients based on their personal knowledge and first hand experience.

The supplier will roll out the red carpet for the travel agent to ensure the travel professional has an outstanding time.

There are also tax benefits for individuals who chose to do this profession as an independent travel agent. You should consult with your CPA or tax professional for more information regarding this benefit.

So, how do I become a travel agent? In summary, becoming a travel agent can be a lucrative and rewarding career. Should you decide that you possess the skills and abilities needed for success, you can look forward to a promising career.

In addition to the companies named in this article, you can do further research online at Google or Yahoo using the following keywords – become a travel agent, how do I become a travel agent, travel agent careers, or online travel agent.