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Should I Invest in Playa del Carmen Condo through a Mortgage?

Thomas Lloyd,  Broker By Thomas Lloyd

Buying a Playa del Carmen condo is an excellent investment, whether for your retirement, vacations, or actually as source of income. One option which is becoming increasingly common for Americans and Canadians is to buy a condo through a Mexico mortgage or other financing options. The advantage is that buyers can own a property through monthly payments directly in Mexico, without having to effect their home equity.


However it is also important to consider the option carefully, and evaluate if it meets each buyer's needs or not. In Playa del Carmen real estate, the following are a few situations in which it can be good idea to choose a mortgage.


You're planning ahead for retirement; you've calculated that the monthly payments fit into your budget, without effecting your regular retirement savings amounts, and you can complete the payments before retirement comes. In this case, the ease of monthly payments allows you to manage the purchase, acquiring your condo in a beachfront community well ahead of time, removing this item from your preparation "checklist," and giving you the option of enjoying your property in the mean time, pointing to the possibility of combining planning for retirement with the next two items.

Related: 5 Reasons to Retire in Mexico 

You vacation on the beach often, and the cost of paying the mortgage is partly balanced by the expense of hotels and rentals that you would usually have any way. Remember that the mortgage leaves you with a property you own as well; banks will provide you with a calculation sheet, allowing you to find the total in expenses from interest, etc. and compare these to what you save in hotel rooms. You can further balance the expenses of a mortgage through renting out your property to other vacationers.


You buy a condo ideal for vacation rental income. With careful analysis and the help of an experienced broker, you can find a condo which has high appeal for vacation rental. Typically, large condos with 3 or 4 bedrooms, close to amenities with convenient access to the beach hold the highest appeal. This also has a lot to do with the property management company working for you; talk to your real estate agent for recommendations.

Related: The Advantages of Buying a Vacation Home in Paradise

If you buy with a mortgage, you may need to count on supplementing the payments and other ownership expenses with extra funds. Be sure to make a realistic financial plan to avoid causing complications! This plan can be especially effective if you are buying to plan for retirement, or for your own vacations, and you can considerably lower the amount you pay out for your property if you dedicate effort to finding renters and a good rental management company.


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Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"


Region:  Playa del Carmen real estate.

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. A Mexican Certified Realtor he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546.

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