There are many different types of property investment options in the Playa del Carmen real estate market.With high population growth in the region, vacation rental units, pre construction condos, reduced priced real estate have all been popular choices but there also exists the Mexico real estate fixer-uppers In the next several months we will follow one particular project in Playa del Carmen and experience how hard..or easy it is to execute building improvements in Mexico and in the Riviera Maya zone
One of the main factors a Mexico real estate investor needs to review in a fixer-upper project is the potential of the market place There are basically three areas that you need to review and the extent of the study all depends on how accurate you wish to determine your future cash flows
Regional, neighborhood, and specific property studies will help you project what future value your property could possibly yield This is driven by some factors at a heavier weight than others and for the Playa del Carmen real estate market, tourist visitors and occupancy rates are one of the leading indicators that guide the demand and supply On a regional scale, we collected data on the state of Quintana Roo and that of the Riviera Maya Noticing that this state has one of Mexico's highest tourist visitors per year over the past 5 – 10 years definitely scored high on our choice of finalists Also, tracking the quantity of money the federal, state organizations have been investing into the infrastructure also are very positive factors given that newer roads, newer pubic facilities, newer airports all attract a nicer and more comfortable living conditions which in turn creates a desire for…. moving and establishing residency.This is also a magnate for private investments Now that the region has been chosen, neighborhoods need to be compared.Being a non-Mexican, choosing to live and invest in another country first separates many of you readers into a very small percentage of the market place But still, your unique category of non-Mexican real estate investors or Playa del Carmen real estate buyers has been increasing over the past 5 – 10 years.Like properties and similar products are being introduced and it is always wise to try to be….different, finding niches in the market So if capital returns are important for your purchase, studying the neighborhoods, finding that overlooked street, that hidden gem in the rough is always a good option to analyze In this country that overlooked neighborhood might mean areas that all of the Mexico homes are lined with cement block exteriors No paint, no trims, just grey cement and constructions that always seem to be 50% complete Many times these are the neighborhoods where your first time visitors to Playa del Carmen properties start locking the car doors and start looking at the gasoline gauges A home or a construction needs to be evaluated not on the current state of the Playa del Carmen property, but more of the location and of the vision the area, the street, and of the particular unit might have in 2, 3 or 5 years Some buildings classified as a Mexico fixer-upper project might need some light touches, some tender loving care Other buildings might need great imagination and possible projects that include tearing down complete sections of the home and having a good on site, contract team to control and administer the costs closely I have seen, heard, and witnessed many a Mexico contractor that have bankrupt a project and/or a Mexican corporation.So this calls for close review and attention
The business climate of the Mexico real estate market is also a factor which many investors should review before choosing the option of a fixer-upper During the past several months, the market has slowed down considerably compared to 5, 3 and even last year's results In such slow downs, such as what has been witnessed in Playa del Carmen real estate region at the end of 2008 and all of 2009, newer homes with depressed prices are options that must be compared Some very interesting returns can be acquired with a quick rebound of the market within a short time period See our List of Mexico real estate price reduction properties Along these lines, a slower market also creates other areas of opportunity A slower real estate market decreases the quantity of new projects which also decreases the amount of construction work available This opens up the door on finding laborers and contractors much easier and such help is more negotiable when determining costs and expenses Reconstruction projects can come in at a tighter budget which decreases the pressure on the required rental rates and the exit price of the property when putting the unit for sale back on the market All of these items are useful line items to evaluate when comparing Mexico real estate investment options.
Many a Mexico fixer-upper project goes beyond the bottom figure on a spreadsheet Many people choose to purchase a Playa del Carmen real estate property that has been run down not based on returns but out of enjoyment or love of restoration I had a client, in his middle 50's who was looking for a hobby He was successful in his home country business, spent many hours in offices and traveling on planes back and forth across the states Down in Mexico, he and his wife fell in love with the Caribbean ocean, with the food, and also with the people He purchased his property, comes down during the winter months and is constantly driving into town to visit the small local hardware shops or driving his truck to Cancun to the Home Depot picking up materials for another mini project at his Playa del Carmen Home He is not using a calculator with his fixer-upper, he is just enjoying the warm weather, being outdoors, and learning some Spanish along the way Other reasons that people might go into a Mexico fixer-upper project is based on investment budget One of the first items that compel a person to purchase a Playa del Carmen property is the area Living along or within walking distance to the Caribbean beaches, near to fifth avenue, and in a multi cultural community But with the high growth experience in the past 5 years, property values have also grown at a good clip People with a high desire to live or retire in Playa del Carmen but do not have the capital to purchase a turn key home, often will not have the choice and will purchase a home that needs repairs This then becomes their work in process and as they raise money, they continue adding onto or repairing parts of the home which need attention
There are many investment opportunities in the Mexico Real Estate Market A Playa del Carmen real estate fixer-upper is one such option that has and can continue to give extremely strong returns It is important that you do some homework before choosing such option into the regional real estate market Neighborhoods and obviously the particular building and property must also be closely analyzed Construction costs and costs of contractors also require homework as these will be major line items on your investment project The majority of Mexico fixer-upper projects require number crunching, but some buyers choose to purchase run down properties simply as a hobby or a pass time In the next several months we will follow a small Playa del Carmen fixer-upper project to understand some of the obstacles, peek at some of the costs involved, and to share the designs and see before and after construction results During such time if you have an interest to find out more or have me help you find other interesting Mexico fixer-upper property candidates feel free to write or call
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 was invited and received the first federally applied Mexico Real Estate Degree and Professional License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company's web site www.TOPmexicorealestate.com NETWORK
“Mexico s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!
Want more Articles |
Want to see Real Estate |
Want to learn more |