What to keep in mind when looking to purchase a home in Tulum or anywhere in Mexico


 

So you have decided you are ready to buy a property in Tulum. But have you researched the local market, historical price appreciation, taxes, regulations, and found the best agent to assist you? Here are our tips for anyone looking for a foreign investment:

 

1. Consider historical price appreciation. Look at how prices were fluctuating in the area over a period of time. In Tulum, a land lot of 1,000 sq ft used to cost $10,000 USD, while in 2017 it’s up to $37,500. The whole Riviera Maya region saw a steady growth: the region grew from few tourists to millions of holidaymakers nowadays. That’s a good sign for any real estate investor.  

 

2. Find a local company that knows the market. When buying property in Tulum or anywhere else, find a trustworthy local agency. Each country has its subtleties, so you need to find a local agency that will explain all the details to you about real estate growth, local laws and regulations. Check the agency’s reputation in the local market.

 

3. Study local laws and regulations. Foreigners buying land in Mexico within 50km (32 miles) from the coastline need to use the means of a bank trust, called fideicomiso, where the bank (trustee) holds the trust deed for the purchaser. This is a common and easy process, but it would help to have a local agent advising every step of the way.

 

4. Find out if you’ll be paying in U.S. dollars or local currency. Sometimes foreign buyers pay in local currency, and then it keeps depreciating, as Mexican peso. But foreign real estate purchases in Mexico are usually performed in U.S. dollars, so buyers actually gain from the fact that dollar keeps getting stronger. Make sure you pay in U.S. dollars when buying property in Tulum.

 

5. Consider all the costs. Owning a home will mean having to pay for utilities, condo fees and/ or property taxes – luckily, those are not very high in Mexico. It’s always good idea to purchase a furnished and stocked property, so you don’t have to worry about stocking your own towels, knives and forks.  

 

6. Look for a great property manager. If you use your property for rental income, a good property manager will be your key person, who will take care of the property, cleaning, check in and check out and deal with all the guests’ issues. Ask around for recommendations from other property owners in the area. Some new condo hotels offer property managers that take care of your guests, your condo’s security and everything else. Riviera Maya Property Consultants offer property management services for the clients.

 

7. Treat this as a real rental business. Treat your property rentals as any other business. You will have to create a business plan, and stick to it: advertise the property on Airbnb and other vacation rental sites, take great photos, answer emails and keep the schedule.

 

If you are looking to profit from your property, look at quickly-growing vacation destinations, such as Tulum. Even in such fast-developing places, the window of opportunity for real estate investment varies throughout the years, so it’s best to grab the chance when the prices are still low, but there is already a big demand for holiday rentals.

 

It’s important to remember to do diligent homework before investing in a foreign home, but it’s definitely worth it – nothing can beat having a dream home in your favorite place in the world, where you can create memories and also earn income.

 

For more information, please contact us directly!

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