Over the last few years, Mexico has become one of the world’s leading real estate investment destinations. It also happens to be one of the most affordable places in North America to get started as a property investor.
Tip #1: Why You Should Consider Buying a Pre-Construction Condo
Pre-construction condos are condos that are sold in the early stages of development. Because they have not yet been built, they tend to be cheaper and more affordable than resale condos (condos that have already been constructed).
There are also financial benefits to buying pre-construction condos, including being able to take advantage of great payment terms that can last anywhere from 6 months up to 5 years!
Tip #2: Look for the Perfect Location
You’re looking for a property that:
- Has high rental demand, especially in the offseason; and
- Is easy to get to on your own; and
- Is easy for renters to get to.
Beyond these core considerations, the details of the perfect location are more subjective. Ideally, you’d want a place close to amenities you enjoy—world-class restaurants, spectacular beaches, exciting nightlife—but this is more of an “if you can find them” addition than an absolute requirement.
When it comes to finding that elusive combination of qualities, we’re happy to say that Riviera Maya Mexico has it all: skyrocketing rental demand and excellent proximity for both owners and their guests.
Tip #3: Find a Reputable Developer
To ensure you have a successful rental property, it’s important to make sure you’re working with the right developer. Here are three ways to find a reputable developer:
- Do your homework. Ask for references and check out the developer’s website. Find out if the developer has an outstanding reputation in the area and look closely at their previous projects. If possible, get references from past clients who can attest that the building process was completed on time and without any problems.
- Consider the quality of the developer’s other projects. A good way to determine whether you’re getting what’s advertised is by visiting some of their existing properties or buildings under development. While most developers won’t let you into occupied units, they should be willing to show off completed common areas such as pools, lobbies or clubhouses because these are crucial selling points for a potential buyer or renter.
Tip #4: Hire a Professional Real Estate Agent
If you do decide to buy a pre-construction condo in Mexico, it is very important that you hire a professional real estate agent who has experience with pre-construction condos and can help guide you through the process.
There are many benefits to hiring a real estate agent when purchasing your next pre-construction condo or home in Mexico such as:
- The Real Estate Agent will be able to offer you professional advice throughout the entire process.
- They can provide additional information regarding your condo purchase that may not be included on the internet or in news articles that may include things like adverse neighborhood reports or legal issues with developers.
- Your Real Estate Agent will be able to provide insight into what other people paid for similar units within your chosen development and help guide you in making an informed decision so there are no surprises once the closing day arrives.
- If anything unforeseen occurs during the purchase process then having someone who has been through it all before can really make all of the difference for both buyer and seller peace of mind!
Tip #5: Don’t Wait Until the Last Minute to Buy Your Condo
The main advantage of buying a condo early on is that you’ll get the best price. As a project nears completion, prices are typically higher.
You’ll also have more choices in the building because many buyers will only consider units that have been built and finished. Therefore, some of the best units and locations in the building may still be available for purchase at this stage.
In other words, you’ll have more selection and be able to choose a unit that’s exactly what you want—and not what’s leftover from other investors who bought earlier but didn’t care about specific features or characteristics.
Buying early also means you can customize your unit to your exact tastes since no work has yet been completed on it. So if you want to combine two units into one large one or make modifications to the walls (such as adding electrical outlets), now is the time to do it before construction has begun on any of them.
Tip #6: Maximize Your Profits by Renting It Out
When you own a condo that has not yet been built and is in the pre-construction phase, there’s a lot to think about. One of the most important considerations is your exit strategy. What are you going to do with this place when it’s done?
Will you sell it? Will you keep it as an investment property? Will you live in it yourself?
The answer to these questions will determine how much money you can ultimately make from your investment. The best thing to do is have a plan before buying so that your decision will be driven by strategy rather than emotion.
As I’ve already mentioned, there’s one option that can help maximize profits on your new condo: renting it out.
You might think, “Who would want to rent my tiny little apartment?” However, this is actually a very good question because plenty of people choose to live in downtown condos over houses in the suburbs or small towns.
They enjoy the energy and convenience of city living and they don’t feel like they need all that extra space anyway—a studio or one-bedroom apartment suits them perfectly fine.
Beside long-term renting, short-term renting is considered the better option. As you can generate more income than a long-term rental. In fact, Riviera Maya is the fastest-growing short-term vacation rental market in Mexico.
Investing in a pre-construction condo can be lucrative and create a lifetime of returns for you.
Investing in a pre-construction condo can be lucrative and create a lifetime of returns for you.
If you are considering purchasing a pre-construction condo, it is critical to get in early on the development. The only way to maximize your profits for buying pre-construction condos is to purchase at the lowest price possible, which means that you’ll want to buy as soon as possible. Consider using a real estate agent who specializes in new developments; this will help set you up for success.
There are many reasons why buying a pre-construction condo can be lucrative and create wealth for you; however, the biggest reason is that most new condominiums appreciate value quickly once they have been completed.
In order to offset your expenses while waiting for your condo project to be finished, it is important to rent out your property while it’s being built. Your rental income can help pay down your mortgage so that by the time your condo project has been completed, you will have already created equity through renting out the property before completion!
This strategy makes purchasing condos an investment rather than just another place where people tend to lose money over time like cars and computers do.
If you decide that investing in pre-construction projects is right for you then now might be an excellent time because there are many projects currently under construction throughout Riviera Maya Mexico with more coming online every day.
Find a Pre-Construction Condo in Riviera Maya Mexico
Riviera Maya is a high-demand tourist destination, but it’s also a great place to invest in real estate and an even better place to live. The area has a lot to offer retirees, snowbirds, and investors looking for both capital appreciation and rental income.
Unlike other areas of Mexico that have been recently discovered by tourists, the Riviera Maya has become an established favorite with travelers from all over the world, including Europe and North America.
This translates into a stable vacation rental market for condominium owners who want to rent their units out during the times they are not available for use.
Click here to read: Pre-Construction Purchase Agreements in Mexico: What You Need to Know
Related articles:
The Benefits Of Buying Presale Homes In Mexico
What Does Pre-Construction Mean?
What Is A Condotel Or Condo-Hotel (With Examples)
What Is A Fideicomiso? Buying Mexico Real Estate For Americans
