What is presale real estate?
If you are looking to buy a home in Mexico, you should consider presale. This is an early purchase of a home that is still under construction. You pay a deposit and then pay the rest of the price once the home is completed. It’s also a great benefit to developers, as it lets them fund the project up front. In turn, they are able to offer buyers homes at lower prices. This style of financing allows additional capital for better materials and higher quality workmanship, which greatly benefits buyers in the long run.
Why buy presale real estate in Mexico?
It’s been said that the Riviera Maya region of Mexico is a good place for real estate investors. It’s true, especially in the vacation rental market, where buying presale can be a great investment strategy. The increase in population and tourism from recent years has greatly boosted this property market, which has resulted in an accelerated development of new projects and increased demand for real estate there. Conventional wisdom states that investing in real estate is not a bad idea if you live abroad or want to leave your property to your heirs. However, if you are considering buying presale real estate in Mexico it is worth noting that purchasing the property will provide you with many benefits.
- You can sell it when you are back home; so therefore, if this is not your primary objective then they are even less useful.
Here are the 5 benefits of buying presale real estate in Mexico
Mexico is a popular destination for retirement and second-home travelers, but it’s also seen a spike in interest from Americans looking to buy land. With the recent devaluation of the Mexican peso, prices for the properties that foreigners can purchase have gone up significantly. For those who are considering buying real estate in Mexico, there are a few things you should know before making any real estate purchases. These benefits may seem like small details at first glance, but they’re important to your overall happiness as an expat.
1. You have more time to get ready to move
One of the most obvious benefits of buying a presale home in Mexico is the time you get to prepare your move. You have plenty of time to sell your current home, which can take a while depending on whether you’re moving across town or across the country. You have time to visit potential areas where your new home could be and find a place that suits you best. And, you have time to plan out how you will decorate, remodel and/or furnish your new place once it’s finished. This might seem trivial, but for anyone who has ever moved before knows just how stressful moving can be! Having more time to plan ahead ensures that you are not constantly pressured by deadlines and instead can enjoy all the exciting elements that come with buying a home abroad in Mexico.
2. More time to pay off your property during the construction phase.
Another advantage to presale properties is that you can often negotiate a construction timeline with your developer. For example, if you purchase the property before the building is finished, you may be able to make a down payment and pay for the rest of your condo or home when construction is completed. This gives you a significant amount of time to save money, budget for other expenses during the construction phase and pay off any debts that may have built up as a result. You’ll benefit from this in two ways: First, it lowers your debt service and makes it significantly easier on your finances overall. Second, it gives you more time to plan for any additional expenses or upgrades that you might decide on once the building is complete (e.g., furniture).
3. A set price from the beginning.
When you buy presale, the price is fixed, and it won’t change. There are no hidden fees, no surprises—just a clear picture of what you’ll pay up front. This means that you can easily manage your budget and there’s no risk of unexpected fluctuations in the market driving up your final costs, as they would if you bought after construction was complete and the home was ready to move into.
4. Never a better time to buy in Mexico.
When it comes to the value of your investment, one of the most important factors is the exchange rate between the Mexican peso and your home currency. The current exchange rate (as of January 2019) is about 19 pesos to 1 US dollar. Mexico has not seen such strong foreign buying power since 1981. With a little research, you will see that most experts predict that Mexico’s economic growth in the next 5 years will be greater than any other emerging market (GDP growth for 2018 is roughly 2.5%). GDP growth creates more opportunities for businesses, which means more jobs and a stronger economy overall. This gives us reason to believe that Mexico’s economy should continue to grow as it has in recent years making this a great opportunity for investors looking at buying real estate in Mexico at a great price!
5. You have time to research your options.
A presale purchase gives you the time to research your options. You have time to build your financial portfolio and save more money for a down payment, allowing you to put less of a strain on your mortgage. You have time to find a mortgage broker and sort out the details for financing. You have time to find a real estate agent who is both qualified and trustworthy when investing in such an important property purchase. You have time to check out the area where you plan on buying so that you can ensure it’s where you want live. If there’s anything that doesn’t suit your needs, now is the perfect opportunity to go in another direction—before signing any contracts. You have time to research the builder, ensuring they’re reputable with plenty of happy homeowners under their belt; working with your real estate agent to find reputable presale properties in Mexico. Click here to get free help from our real estate agents in Riviera Maya Mexico at no cost and at no obligation.
Buying a presale home in Mexico requires some forethought, but can actually save you money down the road if you’re willing to wait for construction to end and move in after a few months or use it as a rental vacation home.
Buying a presale home in Mexico requires some forethought, but can actually save you money down the road if you’re willing to wait for construction to end and move in after a few months or use it as a rental vacation home.
- Buying a pre-construction property in Mexico is much like buying anywhere else: You will have the option of financing your new home through the developer or getting your own mortgage through a local bank with more favorable terms. The advantage, of course, is that you get first choice at what is going on sale.
- Choosing to buy early means that you will probably be offered an incentive price. Generally speaking, this lower price would reflect an average savings of 20% off of the total cost when compared with prices from properties that are finished and ready for occupancy. Or if you were planning on renting it out as a vacation rental property anyway, this discount would allow you to break even sooner on your investment.
Developers are often offering numerous payment plans during the construction phase so buyers can plan their finances and payments accordingly.
The Best place to buy presale real estate is in Riviera Maya Mexico
The Riviera Maya is not just a beautiful tourist destination. It is one of the safest and most expat-friendly regions in Mexico, and has a thriving tourism market that will be more than enough to generate excellent income for your investment property. Located on the northeastern side of the Yucatan Peninsula, Riviera Maya is conveniently located close to many major cities, making it easy for you to travel back and forth from this location to your other homes around the world.
Find your dream home as a presale property in Riviera Maya Mexico
We recommend you contact our real estate agents who can negotiate the purchase price of your property and help you find your dream property in Riviera Maya Mexico. Contact our real estate agent now.
What Does Pre-Construction Mean?
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