There are many great investment opportunities in the Riviera Maya, with new property developments undergoing construction all the time. Whether you are looking to buy a private home, condo or build your own home, there is important information that you need to know in order to make the right choice or decisions. Before purchasing a property from a developer we advise you to consider the following questions:
How is the project being financed?
All real estate projects require sales but, it is important that the risk is shared. You should avoid projects where you are required to advance the majority of the sale price. Generally, a deposit of 10-20% is requested.
Are they willing to negotiate?
Developers usually offer discounts at the beginning of a project and you can take advantage of this. With steady growth in prices, your investment should also increase in value by the time the development is fully completed. If you like a project, ask your agent to help you negotiate a better price.
How long will it take to see a return on your investment?
Over time, the resale value of your investment appreciates and you’re also building equity, which adds to your return. The combination of your cash flow or income and the equity you build is known as your total return. Find out if there are any hidden expenses that will affect your Return On Investment. Do some research and speak to other owners about their occupancy rate, expenses and rental prices to get a clear idea of how much you can expect to earn.
Return on investment describes the percentage gain or loss from an investment over any period of time. If you bought an investment for $50 and today it is worth $75, your return on investment is 50%. That is:
The return on investment works for any time period. It is simply a reflection of the change from one point in time to another. There are many variables which determine exactly how long it will take to recoup your investment nevertheless, you will start to see a return on your investment from the moment you initiate renting or usage.
What amenities do projects offer?
Popular amenities include a pool, private beach club, maid services, spa, WiFi, parking, security and a fitness center. All of these factors will impact your ability to secure rentals and be competitive with other rental owners.
Do they provide professional marketing and management to maximize the ROI?
Many investors do not live in Mexico full time, so if you only plan to spend a few months out of the year living in your home or condo you will need someone to manage your rentals. We highly recommend an independent property management company for professional rental management, maintenance, and administration. Your investment should be free of worries.
Work with a Certified Agency or Broker
It is important to work with a professional who knows the local area and market. So if you intend to purchase property in Playa del Carmen, Tulum, Puerto Aventuras, or Puerto Aventuras, please speak with one of Vimex Real Estate’s agents today.
Do you have any questions about investing in a property in the Riviera Maya? Please leave us a message below or contact us directly:
PH +52-984-803-3147 Playa del Carmen, Mexico leads@vimexrealestate.com
2 comments
condos for sale playa del carmen
great article very informative it would be useful to Mexico real estate buyers and real estate investors!
admin
Thank you Buy Playa. Hope that we will one day work together.