By Alejandro Mitre and Carolina Lupio
Today, for many it is important to be aware of exchange rates worldwide. Fortunately, technology already allows us to remotely purchase products and services and pay from our local currencies and pay in foreign currency.
There are options so that in the world of Real Estate you are not affected in case the exchange rate rises suddenly.
These 3 recommendations will help you acquire a property with a high probability of losing the least due to exchange rate fluctuations.
LIQUIDITY
Exactly, we all know that having money is the first step. If you have sufficient liquidity, you can send all the funds of the sale from the beginning to Escrow so that they are frozen on the day of the transaction until the day of the sale.
The risk is minimal in case you decide not to carry out the transaction, since this would only lose the small Escrow fee or any deposit that has been considered non-refundable in case of cancellation.
At The Agenc y , we like to control this option from the moment we enter the offer, since we establish what amount is considered refundable, dates of subsequent deposits and the exchange rate.
ACCORDING TO THE EXCHANGE RATE, BUT IN PESOS
When making an offer, the parties can agree on a certain exchange rate on the day the offer is being held, or also on the day of closing; whichever is lower.
This is translated as simple as signing between both parties the exchange rate on the day of the sale so that both buyer and seller know the final balance in pesos. This will prevent taxes from rising, surcharges, unforeseen expenses, etc. from being generated. But beware! Your seller must always be aware that on the closing day, he will receive in dollars, the equivalent of the agreed amount in pesos, according to the exchange rate on the date of the deed.
TAX CONSIDERATIONS
Todos Santos Real Estate: Remember that this is a sale and purchase transaction, which will generate taxes . It is also important to consider if, in the near or remote future, you want to re-sell the same property, the exchange rate and / or the value in pesos that is established in your deed, will be the value that will be taken account to calculate your taxes when selling.
There are a large number of benefits when purchasing in pesos; however, it is important to approach a specialist on the subject for advice and your decision to be convincing.
We have a legal and financial department that will support you from the beginning to offer you the best and most viable option.
Do you have more questions about it? Contact us. alejandro@theagencytodossantos.com or carolina@theagencyloscabos.com .
See you soon!
#TodosSantos #TodosSantosMLS #RealEstate #Realtor #Invest #ForSale #BCS
Alejandro Mitre
+52.558.580.6476
Alejandro@TheAgencyLosCabos.com
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