Buying on a Budget: Part 6
In this series, Buying on a Budget, you will learn how to evaluate the Mexico real estate market and decide what kind of real estate property you are looking for. We will provide you with all the necessary tools for buying real estate in Mexico on a budget and teach you how and where to find savings. So that when the right opportunity arises, you are ready for it. In this edition of Buying on a Budget you will learn about location factors and how to evaluate areas within any region to find lower than average prices.
In the last edition, I discussed choosing an area within Mexico as a way to find savings. But the reality is that you probably choose the area that you wish to live in according to where you vacationed and fell in love with. Whether the area you choose is inexpensive or not, there are factors within each given area that can help you choose a good property at a lower price. Here are some examples that cover a number of locations.
Back from the Beach
The biggest factor to consider is the proximity to the beach. In popular beachfront locations like Playa del Carmen or Puerto Vallarta condo overlooking the beach are in high demand and the price is reflects the demand. Property located a few blocks from the beach will have a significant drop in the prices. At the same time, these properties are a comfortable walk away from the beach, and often have stores, shops and restaurants close to them. And if you look for a property just a short drive from the beach you will find even lower prices.
If you are buying an investment property with rental income, you need to consider the location and its rental potential.
The “back from the beach” rule applies to many beachfront communities, but there are exceptions. For example, Cancun a worldwide vacation destinations main beachfront area is the Hotel Zone, a strip of land with luxury resorts and high-rise condos. Because this narrow strip of land is separated from downtown by a large lagoon there are no property’s a couple blocks back from the beach. This having been said, a similar idea applies to the downtown area, lower prices and only a 10 minute drive to the beach.
Within any given region, the newly developing communities often offer lower prices. The first developers to build in the new area will usually be able to buy their land at lower prices. Theses developers then in turn offer lower prices to the buyer. As the community begins to build up and more services appear the price begins to rise. For these reasons, there are often low prices on good properties in newer communities.
It usually goes without saying that within any area, expat neighborhoods will have higher prices than neighborhoods built for the local Mexican population. Prices will adjust according to the amenities, means and lifestyle of the area. There are neighborhood that were originally developed for locals that have potential, be it close to the beach or downtown, or there are really nice view. While many expats do not want to buy in these neighborhoods, once the community gains some appeal and starts to get discovered, you will have the opportunity to buy before the area becomes too popular.
With these new communities, there is always some educated guesswork involved. If you are choosing a gentrifying community to save money, you should consider the possibility that it might stay the way it is for some time, and be sure that you can live there comfortably.
Once Popular Communities
There are also communities that were once popular and for one reason or another, maybe new options within the area have opened up, they have fallen out of popularity. Sellers will need to lower their prices to compensate, while the initial appeal for the area such as a nice lifestyle or its proximity to the beach is still there.
Savings vs. Investment
Many of these options are a good choice for finding lower prices if you are simply looking to enjoy life in Mexico in a good property. On the other hand, if you are interested in an investment property, you will need to pay more attention to the rental potential and perhaps invest a little more if necessary to maximize this potential. The fact that these locations are prime expat and tourism destinations can often increase investment potential in the kinds of communities mentioned above.
There are many ways to evaluate areas within any region to find lower than average prices. The next edition will cover living in Mexico on a budget. Be on the lookout!
Now, if you have any question about buying on a budget or if you are interested in any of the TOP MEXICO REAL ESTATE properties we have listed anywhere throughout Mexico, please feel free to contact our Top Buyer’s Representatives and we will be glad to help you find your very own piece of paradise.
And remember, here at TOP MEXICO REAL ESTATE…
We make it happen!