Is it better to buy a condo in Mexico or in the USA?
The decision to buy a condo can be a difficult one, especially when considering whether to invest in a property in Mexico or the USA.
In this article, we will analyze the differences in cost and opportunities of buying a condo in two popular locations: Tulum, Mexico, and Miami, Florida, USA.
By comparing the average price, HOA fees, property tax, and potential profit over a 10-year period, we will explore which location offers the best investment opportunity.
The Cost of Buying a Condo in Mexico is less
To begin with, let us analyze the cost of buying a condo in Tulum, Mexico, and Miami, Florida, USA.
| Miami, Florida | Tulum, Mexico | |
| Average Price of a Condo | $325,000 USD | $210,000 USD |
| The average price of a condo per sqft | $300 USD | $230 USD |
| HOA fees per month | $1,000 USD | $175 USD |
| Yearly Property Tax on a $265,000 USD property | $2,570 USD | $400 USD |
The average price of a condo in Tulum, Mexico, is $210,000 USD, whereas, in Miami, Florida, it is $325,000 USD. Additionally, the average price per square foot in Tulum is $230 USD, whereas, in Miami, it is $300 USD. This indicates that Tulum offers a more affordable option for those looking to buy a condo.
Moreover, the HOA fees in Tulum are significantly lower than in Miami, Florida. In Tulum, the monthly fees are only $175 USD, whereas in Miami, Florida, they are $1,000 USD. This is a considerable difference that can save buyers a significant amount of money in the long run.
Lastly, property taxes in Tulum are much lower than in Miami, Florida. For instance, the yearly property tax on a $265,000 USD property in Tulum is only $400 USD, whereas in Miami, Florida, it is $2,570 USD. This suggests that Tulum offers a more favorable tax policy for condo buyers.
Profit in 10 Years (for $265,000 Condo):
Another critical aspect to consider is the potential profit over a 10-year period. By analyzing the estimated value of the property in 10 years, the total appreciation, expenses, and profit (after expenses), we can compare the long-term profit from appreciation in Tulum and Miami, Florida.
Let’s look at the breakdown of profit over 10 years time on your property in Miami vs your property in Tulum Mexico.
| Miami, Florida | Tulum, Mexico | |
| Estimated value of property in 10 years | $563,125 USD | $551,200 USD |
| Total appreciation | $298,125 USD | $286,200 USD |
| Expenses (HOA & Maintenance) | $145,705 USD | $28,000 USD |
| Profit (after expense) | $152,420 USD | $258,200 USD |
Over a 10 year period, you are making 51.52% more profit on your property in Tulum Mexico vs Miami, Florida.
Assuming that the condo’s initial value is $265,000 USD, the estimated value of the property in Tulum after 10 years is $551,200 USD, whereas, in Miami, Florida, it is a little more at $563,125 USD. But that’s where the similarity stops.
Tulum results in more profit than Miami. Because the expenses in Tulum are significantly lower, totaling only time to an estimate of $28,000 USD compared to $145,705 USD in Miami, Florida. Tulum results in long-term with more profit with an estimate of $258,200 USD compared to an estimate of $152,420 USD for Miami, Florida. Therefore, in terms of long-term profit from appreciation, Tulum offers a more attractive option for condo buyers. However, remember to account for seller fees.
To learn more about selling a condo in Mexico click here.
Vacation Rent Your Condo to Maximize Profits
To maximize the profit on your Tulum condo, renting it out can be a great option. The demand for rental properties in Tulum has been steadily increasing, making it an excellent opportunity for condo owners. Additionally, the rental income can offset the cost of owning the property, resulting in a more profitable investment.
The long-term profit from appreciation is greater on your Tulum Mexico condo.
Buying a condo in Tulum, Mexico, offers a more affordable option for those looking to invest in a property. The lower average price, HOA fees, and property tax, combined with the potential for greater profit over a 10-year period, make Tulum a more attractive location than Miami, Florida, for condo buyers.
Furthermore, renting out your Tulum condo can provide a steady source of income, resulting in a more profitable investment. However, it is essential to consider the legal requirements and regulations when buying and renting out a property in Mexico.
Click here to learn more about the Tulum Real Estate Market Trends and Statistics.
Click here to read about how to rent out your Tulum vacation property to collect an income.
Read about the 5 Steps to buying a property in Tulum Mexico as a non-Mexican.
Check out some Tulum properties for sale.
Would you like help and guidance from our real estate agents in Mexico? Then click here to contact our Real Estate agents today.
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