How Jill’s Second Home In Mexico Pays For Itself
Last year, a client named Jill bought a vacation condo in Playa del Carmen, Mexico.
Jill bought a two-bedroom condo with a lock-off, one for her personal use and one to rent out.
Each winter, Jill takes a trip to Playa del Carmen to check on her rental property and to meet with her rental manager. During the visit, she stays in one of the bedroom lock-offs.
And a part of Jill’s income comes from renting out the second room of her two-bedroom lock-off condo and covers the carrying costs.
With money left over to subsidize Jill’s annual holidays in Playa del Carmen Mexico.
Then, every April 15, Jill is able to take the expenses of those trips to Mexico as deductions.
How To Buy Mexico Property For Investment
If you’re considering buying a second home in Mexico, here are 5 things to consider before making a purchase:
1. Buy in places with a real estate market that is trending upwards.
It’s important to buy property in markets that are appreciating. In the last 4 years, from 2018 to 2021 the average home price has appreciated 39% in Mexico.
And the market for buying a second home as an investment in the Riviera Maya is increasing. The average price for a home in Quintana roo is well under the average price throughout Mexico.
There are many possible causes for this. One conclusion is that buyers see hope in living here as well as potential profit.
2. Diversifying your investment in another country.
Real estate investing outside your country of citizenship can provide you with a lot more upside opportunities than if you were to invest in only your own country.
A rental apartment in Playa del Carmen gives you a place to stay and generates a return on your investment. It also lets you build up capital in Mexico, which is safer than holding it all in US dollars.
3. Buying in a place undergoing immerse progress
Where ever infrastructure is being upgraded and improved, it represents a market where one can invest with low-risk and high-reward.
Mexico’s infrastructure is being upgraded. And the upgrades are making Mexico an even more attractive place for tourists to visit and stay.
This will mean owning property in Mexico is even more valuable.
Mexico is a fantastic opportunity for foreign investors looking for high rewards with low risk and a place to stay in the colder months.
4. Understand the costs of acquisition and selling of your Mexico property
It’s important to understand the cost associated with the acquisition and selling of your Mexico property. While real estate agent fees are zero for buyers here in Mexico – there are other fees.
Depending on the company, purchasing a piece of real estate in Mexico can include some costs. And some agents charge a fee for helping you the buyer find a home.
Caribe Luxury Homes Real Estate agents do not charge finder fees for you the buyers. So you begin concentrating on finding your dream property in Riviera Maya Mexico with the help of our real estate agents.
But other costs you will need to think about: legal fees, notary fees, registration fees, title insurance, and transfer taxes.
It’s best to ask a real estate agent about how much the costs are ahead of time, so you know whats to expect.
5. Calculate maintenance and expenses on your second home in Mexico.
When you buy property in Mexico and are planning on renting it out, keep in mind that you’ll likely have to spend money to keep the place habitable–that is, you need to budget for repairs, labor, and maintenance.
Again, the details of these costs in the context of specific investment you are looking at in Mexico can be discussed with our real estate agents if you are looking to buy a second home here in Riviera Maya Mexico.
Why not start looking for your dream second home in Mexico today?
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Playa del Carmen Mexico
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*The names in this article may be changed due to the privacy we have for our clients.