17 Nov
The How To’s of Long-Term Rental Properties in Mexico
What factors to consider before choosing a long-term rental property location
Most of us have heard throughout our lifetime that the one way to financial security is through real estate. Typically, we invest in real estate because it equates to low risk with a nice return on our money. Many of us believe that the way to financial freedom is to buy real estate, whether you purchase one property or multiple properties, with the sole intention to flip or sell quickly, at an increased price.
We’ve all seen the shows on cable that promote how easy it is to buy fixer uppers, do a little work to them then put the property on the market for sale and instantly have a huge profit. This way of investing is not a realistic option for most of us, as we’d have to dedicate ourselves to seeking out properties on a fulltime basis then doing our due diligence to assess if the property can potentially be profitable. We all want to believe that we can overcome these challenges but unless we are a seasoned real estate investor for these types of opportunities, the obstacles can sometimes far outweigh the benefits. This is one of the multitude of reasons why I am an advocate of investing in real estate with the anticipation of being a long-term holder of the property for at least five to 10 years.
The concept of investing in rental property affords us the ability to purchase at or just slightly below market value but continues to allow us make a good return on our money. So the question arises, how do you know where to buy a rental property for investment purposes?
We should consider many factors before choosing a location to invest in rental property. We must look at the future job growth and how many people will be coming to the area to fill those jobs? What is the social economic demographic of the population? What is the economic stability of the area? Is the current market saturated with long-term rentals or is there a demand for more?
Let’s take Playa del Carmen as an example. Although the economic structure of Playa del Carmen is very diverse, the common denominator of tourism is the actual driving force that dictates this economy. With the increased tourism year after year, the demand for workers on all ends of the economic spectrum has also increased. The population of the Riviera Maya is, on a conservative level, slated to double within the next several years.
There are so many contributing factors as to why Playa del Carmen is the ideal location for investment of long-term rental properties. The number one reason is this influx in population. People are moving to Playa because of the growing number of opportunities and the realization that they can sustain wages that will allow them to live their desired lifestyle. However, many just seek to lead a simpler way of life.
As tourism continues to increase, the demand for long-term rentals also increase. We are have begun to witness a need for long-term housing for those that begin to call the Riviera Maya home, whether they are Mexican Nationals or Expats alike. We, as real estate investors, need to go where the demand is. That demand is in Playa del Carmen.
Kami Kemp
www.TOPmexicorealestate.com
(512) 879-6546
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November 17th, 2008 at 1:43 pm[…] unknown wrote an interesting post today onThe How Toâ??s of Long-Term Rental Properties in Mexico | Top Mexico …Here’s a quick excerptThis is one of the multitude of reasons why I am an advocate of investing in real estate with the anticipation of being a long-term holder of the property for at least five to 10 years. The concept of investing in rental property … […]
November 17th, 2008 at 2:06 pm[…] unknown wrote an interesting post today onThe How Toâ??s of Long-Term Rental Properties in Mexico | Top Mexico …Here’s a quick excerptWhat factors to consider before choosing a long-term rental property location Most of us have heard throughout our lifetime that the one way to financial. […]
November 18th, 2008 at 1:55 amAmen! There is a great need for long term rentals for the middle class here in Playa! I really hope that more condo owners will consider renting their units out for the long term rather than trying for vacation rentals. There are a lot of benefits to renting long term for the owner. Among them are the peace of mind that comes with steady rental income and lower expenses. No more outrageous electricity bills in the summer months, lower property management fees, and potentially less wear and tear. Thanks for the article.
November 18th, 2008 at 2:35 amExactly what Libby and Kami mention.
November 22nd, 2008 at 11:47 pmalso quite interesting note is the long term projections of tourism. Some areas have tourism as a present date job generator, but the infrastructure or the support from the govt. is dwindling.
Tourism as an industry for the federal govt. as well as key state govts which of course include Q. Roo. is nurturing this industry. They are investing record amounts of money into this sector as they know in 5 - 10 years, tourism will be Mexicos number one job creator and revenue generator.
[…] KamiKemp wrote an interesting post today onThe How Toâ??s of Long-Term Rental Properties in Mexico | Top Mexico …Here’s a quick excerptWhat factors to consider before choosing a long-term rental property location Most of us have heard throughout our lifetime that the one way to financial. […]
November 29th, 2008 at 7:23 am[…] benefits. When buying a Mexico rental property, we must do our due diligence in determining costs, potential income, and how we want the Mexico rental property to work for […]
December 2nd, 2008 at 12:06 amThanks for the information. I don’t know how difficult it is for foreigners to buy property in Mexico. We are looking to making some coastal investments, so all the informations we can get helps.
December 9th, 2008 at 2:40 am[…] deposit does not belong to the Landlord…it belongs to the Tenant. I always recommend that the property manager in Mexico hold onto the security deposit in a trust account so that there is no confusion on disbursement of […]
January 31st, 2009 at 9:10 pmgreat post i am always intrested in the way real estate works in Mexico
March 10th, 2009 at 10:11 amGreat information! We have agents who are interested in real estate markets in Mexico. Especially for retirees.
March 17th, 2009 at 10:31 pmCurtis
feel free to invite your agents and clients to visit this blog…all questions and comments are very welcome
March 18th, 2009 at 2:55 amwhat i must pay for an nice 3 bedroom-villa in cancun on the beach actually ca.?
March 27th, 2009 at 3:59 am