Guide to buying a Mexican vacation home with family or friends.
For those who can’t afford a Mexican vacation home on their own, sharing one with friends is a tempting idea.
3 years ago, Frank raised the idea of purchasing a vacation home in Tulum with his close friend Tom. ‘What about buying a Tulum vacation home together?’ Frank casually asked Thomas.
In 2017, when the crypto market was booming, two Canadians—who traveled frequently and got along well together—made a small fortune investing in digital assets. They decided to invest their gains in an international real estate property they could share.
“We decided, ‘Let’s invest in one now’,” said Frank, who was 27 and was the market analyst for a large online business.
He and Tom, a 28-year-old coding teacher/influencer, now jointly own a Tulum condo near downtown. An investment of under $150,000 USD.
Tom and Frank oversee the small monthly fees; The condominium handles the administrative details and guest check-ins. They each make monthly contributions of $60 each to cover maintenance costs (around $120 USD), and sometimes there are special assessments to, say, something needs repairing though because it’s a new condo this is very rare.
The condo is rented out to vacationers for most of the year. Frank and Tom can take a much-needed break from work-life for a vacation in Tulum usually once or twice a year.
The condo collects anywhere from $90 to $150 USD per day depending on the season rates fluctuate on their 1-bedroom Tulum condo.
Pre-pandemic occupancy rates were 85% and during the pandemic, it was 67%. Note: Occupancy rates for Tulum are returning back to pre-pandemic rates.
Buying a vacation home with friends or family in Mexico
Buying a vacation home with people you know, whether it be family or friends, makes sense for many reasons.
If you are interested in vacation homeownership, it can be easier to pool your resources with friends/family to afford a vacation home rather than try to buy on your own.
Even if you have the money to buy a vacation home in Mexico alone, you may quickly discover that co-ownership is better than sole ownership.
More people means more buying power, which can be used to buy a bigger house and more amenities.
“We know people who buy a weekend home and feel guilty over the fact that they don’t use it enough,” said Frank. “It makes more sense when the property can be rented out when the owner does not use it.”
If you’re thinking about buying a vacation home with friends in Mexico, you may find that splitting the costs and sharing the responsibilities makes the whole venture more manageable.
Marriage rates are declining in the United States, but homeownership is still very desirable. That’s why more people are looking for a solution to homeownership. One option is to buy with friends or family.
Buying a home with friends can be problematic even when the owners are romantic partners. “Homeownership is so emotional,” says Zulema, an agent for Caribe Luxury Homes in Playa del Carmen and Tulum.
“Some friends and families who buy a joint vacation home think it’s a good idea because they really like the idea of having a place to stay and share company, or they think they won’t be at the home much, so it makes more sense to buy a vacation home to rent,” Zulema explains.
“I have found that who you buy your vacation home with is important. Both parties need to be on the same page with each other” she said. “Buying a property in Riviera Maya together is really special. You are buying a property you can share memories – as well as being a smart investment you make together.”
“It’s important to have an exit strategy in place, in case things don’t go as according to plans,” says Zulema.
“Many of my clients buy in the pre-construction phase which means that when the condo is delivered the price of the condo has already increased.”
In over 5 years, Zulema’s real estate agency Caribe Luxury Homes has sold many vacation homes in Riviera Maya Mexico. Usually ranging between $120,000 USD to $450,000 USD. In Tulum, Playa del Carmen, Puerto Aventuras, Akumal and other places around Riviera Maya Mexico.
“There’s something calming about having a co-owner,” says Zulema. “If you can afford the property exactly how you want it and have a manager to manage it all, many do go it alone. But there’s something nice about making the decisions with a friend or family member.”
“It’s important to discuss what’s entailed in purchasing a vacation home in Mexico with friends. For example: how bills are to be paid, how often friends are permitted to visit, and what can happen if one party has a reversal of fortune or just wants out. A written agreement can help to clarify all of this.” says Zulema.
If you are thinking about buying a vacation home in Riviera Maya Mexico with friends and family then it’s a good idea to seek advice and help from professional real estate agents who have experience in these matters.
Click here to contact our real estate agent in Riviera Maya today – at no obligation. They will guide you through the whole process from finding a vacation home to closing on your dream home here in Riviera Maya. Click here to contact our friendly and professional real estate agents today.
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*Some of the names of the people in this article have been changed with respect for the privacy of our clients.