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August 4, 2021
If you are considering investing in the Riviera Maya real estate market, the following tips will help you better prepare.
Thousands of people have bought real estate in Mexico’s Riviera Maya, and they have done so successfully.
So if you are considering investing in the Riviera Maya real estate market, the below tips will help you be better prepared for that big step.
Mexico has areas called restricted zones which encompass any land within 31 miles of any Mexican coastline and 62 miles of any bordering country.
The restricted zone was created to protect Mexican economy derived from real estate investments.
However, foreigners are able to purchase property in these zones, as long as they do it through a bank trust or Mexican corporation.
Make sure you study your options and know exactly what you need regarding an investment in the restricted zones of Mexico.
There are several parties involved in a real estate transaction.
The main ones would be the seller and the buyer, as well as a Notary Public to notarize all documents and transactions.
While there is really no option for those parties to not participate, there are others that are not an obligated part of the transaction, but you could and should consider for a smooth purchase.
These are a real estate agent to help you navigate through the local market; a lawyer and accountant to overlook all applicable taxes and legal documentation; a financial institution to serve as the bank trust or, if you’re a resident of Mexico, to provide you with a mortgage.
Some people also involve an inspector to see the property prior to committing to a purchase to make sure there are no unpleasant surprises in the future.
Any real estate transaction will involve taxes and fees, both for selling and for buying.
It is important that you familiarize yourself with these associated costs of purchasing a property in Mexico.
When you buy a property, you must pay the ISAI, which is the purchasing tax.
As a homeowner, you must consider HOA fees, the annual predial tax, and others.
Other associated costs are Notary fees, real estate agent commissions, lawyer and accounting fees, the cost of the title deed, associated fees of a bank trust, mortgage fees and interests, amongst others.
Thousands of people both foreign and national have purchased property successfully in the Riviera Maya.
Part of their success is knowing the area in which they are buying.
The Riviera Maya is made up of several cities or towns: Playa del Carmen, Puerto Aventuras, Akumal, Tulum.
They are each unique in their own way, and boast different neighborhoods and areas. It is important that you are familiar with the location and that it suits your needs.
Before even considering house hunting, you should first understand what your wants and needs are when it comes to the home you will buy.
The first thing you need to define is the purpose of your property.
Is it a permanent or a vacation home, a vacation rental business, a retirement home? Once this is defined, you will be able to make a list of must-haves and things you can sacrifice in case needed.
Your wants and needs can be as generic as number of rooms and spaces, home layout, whether you need it to be in a gated community or not.
Or they can get specific, such as the need for it to be a smart home, if you require a CCV security system, whether it should have or be near a dog park, how far from the city center it should be, amongst others.
This will help you and your real estate agent narrow down the search.
When you buy a home, you need to do it at the right time for you, but also at the right time for the market.
Real estate markets vary between a seller’s and a buyer’s market – basically, offer and demand.
If demand is driving the market, you have more room for negotiating price and perks.
If you purchase in a seller’s market, you will be less likely to find flexibility from the seller.
It is also important for you to define if this is a home you will eventually want to sell. If that is the case, understanding the real estate market trends for the future is important, so you can capitalize from selling when ready.
This is one of the reasons why we recommend working with a real estate agent.
If you are well-prepared, purchasing your dream home in the Riviera Maya will be an easy and stress-free process.
Make sure you educate yourself and ask every question you need to. The process should feel easy for you. Happy house hunting!