When considering Mexico real estate investment one very viable option is that of a condo hotel. This special type of Mexico condos for sale has its own distinct advantages, and especially for the buyer who is new to investment and would rather focus on enjoying their investment property than constantly analyzing all the market details, it presents an easier way to enjoy income on a vacation property.
The advantages condos in a hotel or resort setting can pretty much be summed up in the idea of “hands-off.” This is a hands-off investment, making things easy for the buyer. Some of the advantages include:
Sold furnished – Most condos in a hotel or resort are sold furnished as luxury hotel rooms, since this is their purpose. This means you don’t have to worry about finding and installing furniture, etc, or ensuring that you’ve covered all the necessities of renters. This makes it easy for you to begin enjoying your property, and to begin renting out and enjoying income immediately.
Good value prices – Developers of new condo hotels often offer competitive prices for Mexico beachfront for sale.
Hands-off maintenance – Cleaning and maintenance are part of the package; when visitors move out, hotel cleaning staff will clean and prepare for the next visitors immediately, and on-site maintenance staff will take care of all and any repairs as they come up. While maintenance fees tend to be higher, they also tend to include a good deal more. It’s worth reviewing the list of included items and thinking about how much it would cost you to pay for them separately, remembering that you don’t need to hire anyone to take care of it while your not there or invest time checking up that it’s being done right.
Hands-off rental management – The rental pools are part of the hotel management service; all you have to do is sign up, and you’ll be ready to enjoy income from your property. On this point, it’s worth investigating the strategy and occupancy history of the management company to ensure that this hands-off rental service will indeed deliver on your investment.
Easy personal use management – Many of these rental pool plans include easy reservation of time for personal use. You’re property will be in the rental pool for the rest of the time.
Guaranteed Income – Some developers are offering guaranteed return if you are buying in a new condo-hotel. If you are buying resale, a simple investigation of rental history will offer you a pretty good idea of how you’ll do for income. Be sure to consider all costs; this is easier since most are included in monthly fees, but for the sake of planning, you don’t want to overlook any monthly payments that are left in your hands. Most new resort-style condos will spell this out for you fairly clearly.
Good future value – Since the value is closely tied to tourism market and demand for hotels in the area, you have very good likelihood of seeing an increase in demand; Mexico has made increasing tourism its number 1 priority for 2011 and the following years with the goal of bringing the country into the top 5 world-wide for tourism income. This is a good indication that your income should be going up, and there will be more demand to buy properties like yours.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546
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