Investing in Mexico can be profitable proposition to generate a great ROI. Purchasing property only in your country of origin is a thing of the past. Rapidly developing countries like Mexico offer plenty of opportunities for investing. Mexico’s real estate market is in full swing and on sale. With the dollar exchanging very favorably with the peso and new developments popping up all over the Riviera Maya, there is no better time to buy than now!
Most Americans are invested in the stock market in one way or another. This includes their 401Ks, traditional IRAs and ROTH accounts to name the more common ones. With the stock market yielding record breaking highs, people are experiencing immense growth in their portfolios. But remember this, “What goes up, must come downâ€, all types of stocks and mutual funds are very volatile to many industry indicators that pivot on supply and demand, international crisis and the unpredictability in foreign markets. A tilt in the market can lead to a disastrous outcome and could jeopardize your financial stability.
With all this said, would you rather have your personal-worth on a piece of paper or have a mix of tangible assets that you can visit anytime you feel the urge to? We are not suggesting to take all your money out of the stock market and invest in property, and especially on foreign soil. However, diversifying your portfolio isn’t a bad idea either. Let’s take a look at how investing in internationally renowned vacation destinations that keep growing year after year can earn nice returns.
There are several locations along the Riviera Maya like Playa del Carmen and Tulum that are showing exceptional growth. Both of these communities are considered resort destinations and have a year-round flow of tourist. The Yucatan Times reports a consistent 3-5% annual growth of visitors to the region each year. They also mention that occupancy rates are reaching an astonishing 95%. This is almost unheard of in today’s competitive market for tourism dollars.
Going back to our original subject and that is ‘investing in Mexico’s real estate market’ to producing a nice ROI. There are several publications that address percentage of return on investments that start in the single figures and end with double digits. With all the statistics given, what really makes an investment successful is knowing where and what to buy.
Here are a few common elements to take into consideration to generate a good ROI
-
Decide if you what a condo or stand-alone property
There are advantages to both. However, condos seemed to be easier to rent and most often have onsite management companies, maintenance and security personnel.
-
The top 2 attractions in any resort town are their beaches and entertainment districts
These are areas where vacationers like to have easy access to and/or within walking distance.
-
Before buying, ask for previous years rental histories
On the same token, try to talk with neighbors and find out as much information possible about substantiating the numbers you receive.
-
Purchase a property that is immediately ready for renters
People have a tendency to want to remodel and purchase new furnishings right off the bat. Unless there is something that needs immediate attention, start recovering some of your principle before deciding to invest more money.
-
Take time and buy right
What we mean by this is not to buy on emotion. Look at it as an investment and not a home. We are sure you will periodically visit your investment on several occasions, but it’s not your permanent residence and don’t treat it as such.
All the above mentioned are simple recommendations that offer valuable information, which in turn can lead to a good decisions. Smart choices produce above average returns.
After you close on your ideal property, it’s time to find someone to manage it for you. Choosing a good management company will increase your ROI by two-fold. Putting together a perfect combination of the right property, superb management and good marketing strategies can bring returns that will delight even the most conservative investor.
If you have any question regarding real estate in the Riviera Maya, let us know! We’ll be happy to help you and answer all your doubts. Remember, at Top Mexico Real Estate… We make it happen!