You might have heard that the Peso has fallen drastically and this is the best time to invest in Mexico. You might have gone through a lot of research and agents and you have decided that the best place to invest is in Tulum. However, do you really know all there is to know about Tulum? Below are some guidelines you should stick to in order to be a successful real estate investor in Tulum or any other place in Mexico.
It is very important to consider how prices have been fluctuating over a period of time in the area you want to invest. Generally, in Tulum a 1000 square foot land used to cost $10,000 USD in the past, in 2017 this same piece of land cost $37,500 USD. The entire Riviera Maya is experiencing steady growth and this is a good sign for anyone who wants to invest in real estate in this region.
This point is never old to be made. Always find a renowned and expert Real Estate Agent or Company which knows the local market and how it works to be able to guide you. This is what we are here for, we would make your search for the ideal property an ease.
Make sure you get updated on the local rules and regulation. Every region has a plan and buildings which are not accepted in certain local areas, so before you dive into investing, try to find out local laws and make sure you are not going to break any.
As the peso is depreciating, it is preferable to make all purchases in U.S. Dollars. This is advisable so if the peso keeps depreciating, you as an investor would gain since the dollar would be “stronger.”
Before buying a property, it is advisable to consider all additional cost that comes with the property and if you would be able to get a positive cash flow from your investment. Cost such as utilities, condo fees, property tax and if the property is not in good shape, how much you need for renovations, so it is always advisable to buy already furnished property.
As a foreign investor, if you decide not to stay in Mexico and decide to put your property up for rent, then you would need a great property manager. A trustworthy person who can clean, check in and check out and handle all guest issues would be key to the success of your investment.
Treat this as you would treat any other business, with the utmost respect and dedication. You would need a structured and organized business plan and stick to it. Do adverts on popular vacation sites and hire professionals for photos and other activities which would boost your chances of having clients.
Ares such as Tulum are experiencing a great boom in the real estate sector and to add to that, it is such a beautiful vacation destination which is a plus for you. In any case of investing in a foreign country, it is very important to do your homework first.