There is nothing like making an excellent investment that has so much to offer. Purchasing Mexico real estate will bring you and your family lots of prosperity. When getting to this point, you will have to understand some of the basic fundamentals that will keep your money working for you now and in the future. The following topics will hopefully lend some necessary information for all to know.
Purchasing the right property at the right price and place
Knowing your property’s surplus-value or its anticipated appreciation can bring added value to your investment. The Financial Times – an international publication that puts its emphasis on business and economics, rates the Riviera Maya as one of the Top 10 Fastest-Growing Real Estate Markets in the world. Property values have appreciated approximately one-third in the last five years. The Riviera Maya’s appealing lure to the world’s travelers will provide investors with a satisfying ROI. The Riviera Maya’s year-round occupancy rate is 80% and growing. Another excellent reason to invest in Mexico real estate!
Consider preconstruction over move-in ready when purchasing Mexico real estate
If time is a factor and you have a date in mind to purchase a new home, then a resale property is probably your best option. However, if you have a flexible period, preconstruction is the closest you will come to building your ideal condo. Just imagine having the opportunity to choose a view, interior colors, tile, furnishings, and more. There is nothing wrong with a ready-made-home, but new is also a great option as well.
Playa del Carmen and Tulum real estate offer a wide variety of preconstruction developments. We also recommend choosing a reliable developer that can guarantee they have all their paperwork in order and they stick to their delivery dates. Your real estate agent will guide you when choosing which development to invest in.
Maintaining your investment is key to keeping its value
Like any other investment, keeping up on regular maintenance and needed upgrades will preserve your investments’ value. Most people like to stay in nicer accommodations when on vacation and especially being thousands-of-miles away from home. They will also pay a higher amount of rent for a condo that feels comfortable, appears updated, and is trouble-free. These key factors work two-fold when you go to sell. Your rent records will show a progressive or steady income, which increases the property’s potential to an investor. Keeping a condo in good repair will again appreciate its overall resale value and bring a higher selling price.
Managing your investment and having local representation
When purchasing Mexico real estate, making arrangements to find a local management company is recommended. Some investors, and especially first-timers, will claim that they can maintain their property from far. Others will say that they don’t want to spend or forfeit any revenue generated on commission. But hiring a property management company can and will, in the long run, reduce resale value.
Buyers who are interested in readymade condos want a well-maintained property. They look for what is called a ‘plug and play investment’ – no updates needed and is immediately ready to start generating revenue. Having a management company either on-site or with a local office can keep your investment in good repair. They can also advise on certain items that need replacing. A property that requires little to no work will also bring a higher asking price.
Vacation rentals vs. long-term rentals
We recommend answering the following questions before committing to a rental plan:
- What revenue are you looking for?
- Is there a particular length of time set to recover the initial capital outlay?
- Do you want to use your condo at any time for personal or family use?
If you want a consistent amount of income every month, then you should consider long-term rentals. Long-term leases (3, 6 to 12 months) provide a steady stream of income that creates a manageable payback. However, if your investment has multiple uses and the ROI (return on investment) has a prolonged length of time for recouping your capital, vacation rentals are your best option. Vacation rental plans do bring in quite a bit of income, but there are periods of downtime. These particular times are perfect opportunities to enjoy your little piece of paradise.
Investing in Mexico real estate can be a sure bet when considering owning in a world-class destination. Whether it is for an investment purpose only or having multiple functions, you will enjoy all the benefits either way. Taking a leap in life by breaking out of your comfort zone will not only create an adventure, but additional income as well. It can begin with a simple email or phone call. Take a moment to contact us at Top Mexico Real Estate. Let one of our professional agents provide you with several current and preconstruction listings