Owning property in Tulum Mexico as a foreigner
Buying property in Mexico is a bit different than buying property in another country. When you buy land or property in Mexico, it’s not exactly the same as what you would purchase in your own country. For example, if you were to purchase a house or land here for use as an investment (rental income) or as a personal residence, you will need to use a trust or buy through a corporation.
Why is this important? Because according to Mexican law, only Mexicans can own land on the beachfront. So when buying real estate for investment purposes or for building your dream home on the beachfront in Tulum, keep this in mind: Yes you own the land and property but the way to own it is a little different than in your own country.
Building a House in Tulum Mexico
Building a house in Tulum, Mexico is becoming more and more popular for Americans and foreigners. It is a great option if you want to build your own house and have the budget to afford it. Depending on the size of your home and the quality of materials and finishes, the costs can vary widely. The average cost per square foot for building a new house from scratch in Tulum ranges from $1200-$2250 USD. However, these prices tend to increase as you get further away from town where property values are higher.
A simple two-story 2 or 3-bedroom house with basic finishes will range from $200K-$350K USD, not including land costs. A larger luxury-style home can easily run into 7 figures starting at 1 million USD or more depending on your needs and wants.
You should also plan for additional expenses outside of just building the house such as paying for professional engineers and architects (called “constructores” here), permits, etc. Expect to spend an additional 10% of construction costs covering these items over time before breaking ground on your new home in Tulum!
Buying a Condo in Tulum Mexico
A Condo is an apartment that you own. Your condo will be part of a larger building and with Condos you usually share the roof-top area and communal garden. The buildings are usually no more than 3 stories high, have a large pool, elevator, security and parking.
If you buy a Condo in Tulum Mexico then there are different types of Condos for sale. There are affordable condos for sale on the outskirts of town or expensive beachfront condos for sale. You can even find beachfront apartments for sale in Tulum, which is unusual as it combines the best of both worlds.
If you buy a condo-hotel in Tulum then there will also be a concierge service to help with your bookings or to suggest restaurants etc as well as maid services depending on what level of room you have purchased.
Condo-hotels make great vacation rentals as they include many great amenities and are often hands-off as an investment.
Click here to get sent the 10 Best Pre-Construction Properties for Sale in Tulum Mexico
Steps to building a house in Tulum Mexico
If you choose to build a house in Tulum, here are the steps you need to take:
- Choose a developer or builder. The developer or builder should be someone with whom you feel comfortable and who has experience helping foreigners build their dream homes in Mexico. Some developers and builders make it easy for foreigners. This allows you to concentrate on buying the lots and deciding what kind of house you want to build. Another option is Condo-hotel as mentioned above, which has a high-end rental business attached. What this means is that it’s well-versed in dealing with issues that might come up when renting out your home on Airbnb or VRBO while you’re not living there full-time. A good developer or builder can help you obtain the necessary paperwork from the Mexican government so that your home is legal and yours to keep for years to come.
- Find land. Once you have chosen a developer or builder, he or she will be able to guide you toward understanding Mexico’s complex rules regarding owning property as a foreigner (because yes, there are very strict rules). You will probably want around 1/4 acre of land on which to build your home because many developers require this much space.
Deciding between building a house or buying a condo in Tulum Mexico
Deciding between building a house or buying a condo can be an anxiety-inducing decision, but by knowing all the variables with each option, you can make the best possible decision
Building your own home in Tulum can be a very rewarding option, especially if you are someone who wants to customize your home exactly the way you want it. It is also a great choice for people who have specific needs for their property–for example, maybe you have specific aesthetic aspirations or disability considerations. In addition, building your own home can be a good choice if you are looking for a long-term property and don’t mind dealing with the headache of building out from the ground up.
When deciding between building or buying a condo, there are many things to consider when making this decision. First and foremost, you should ask yourself some important questions: What kind of lifestyle am I interested in? Do I want to live in an area where there is already established infrastructure? How much privacy do I want? Will this home be my primary residence or will it be more like an investment property that I’ll only visit occasionally?
Click here to get sent the 10 Best Pre-Construction Properties for Sale in Tulum Mexico
