Mexico Real Estate Playa del Carmen

Does Tulum Investment Property Make You Money?

Tulum is one of the top high rental yielding beach towns in the world. Popular for real estate investors who want to invest at a fast pace.

But how do you make money on your Tulum Investment Property? And what makes Tulum Properties one of the best investments? Does the Covid-19 impact on the Mexican economy open up a massive opportunity for foreign investors? Or does it actually hurt your investment?

Let’s answer all this for you.

Tulum Real Estate Investment - Mexico Real Estate

Why Invest in Tulum Real Estate investments?

Buying real estate in Tulum is one of the best investments, with luxury condos in Tulum beating the stock market with an 8-13% return on investment.

Most stock market’s average yearly expected return is between 5.43% according to conducted reports (view graphic below). With most people planning on this investment to be for their retirement. When you do the calculations and factor in yearly inflation rates (roughly -1.6% per year) then 6-7% drops to between 4.4% and 5.4%.

Why Mexico Real Estate is better than stocks?

Real estate naturally goes against inflation. In fact, it consistently delivers better returns of 10.71% or more since 2000. Real Estate outperforms the stock market 2:1 since 2000.

That 10.71% is compounding making this more lucrative. That’s why real estate investors do much better and are much more secure investors over a long period.

Therefore, many investors are putting their investment money into real estate rather than stocks.

It’s smarter and the safer choice!

UPDATE – Weakened Mexican Currency Strengthen Foreign Currency for Real Estate Investment Opportunity

On March 23rd, 2020, the Mexican peso fell to a record low against the United States dollar due to the economic impact of the Covid-19.

1 US dollar was selling at banks for as much as 25.52 and it’s the first time that the greenback has cost over 25 pesos.

As of 27th September 2020, it is 22.34 pesos to 1 USD.

This opens up a massive opportunity for investment in Tulum for investors from off-shore. If you act now.

4th Quarter Prediction for 2020: Vacation Rental Market Will See a Lift amid Covid-19 decline.

Social distancing has already caused behavioural changes in the way you see and interact with technology. People are working from home and it’s become normal.

Companies are now considering a remote working as a better alternative to office working.

For vacation rentals, we will see a lift in Tulum. Many predict the vacation rental market will see more demand. While resorts could see a decline.

Covid-19 is changing social behavior. People becoming more aware of their options for work and travel.

People see the advantage of renting a vacation property, being more private, and a better experience.

What’s the best way to make Money on your Tulum Investment Property?

The best way to make money from your Tulum Investment Property is through vacation renting your property.

There are brand new condo-hotel developments in Tulum offer resort-style services and amenities, with a “Hands-off approach”. 

What does this mean for investors? It means that you don’t have to worry about anything with maintaining and profiting from your Tulum investment property.

All you have to do is sit back, relax, collect ongoing rental income, and enjoy a Mexico vacation away from home with friends or family whenever you feel the urge (up to 30 days available for personal use – optional).

To get the maximum ROI possible, you are best to buy pre-sale or pre-construction investment properties. 

You can expect up to a 20% discount when buying your investment property on pre-sale. That means when your property is completed and delivered, you could sell it and make a profit on it.  

Buying pre-sale means sometimes waiting for up to 2 years for the construction to be fully complete and ready for your property to go on the market and make you money.

Tulum Weather - Mexico Real Estate - Tulum Investment Property
The all year around warm climate of Tulum makes it a popular vacation destination for tourist.

World-Class Tourism in Tulum makes for High Occupancy rates all-year-around

In high season, Tulum vacation rentals and hotels experience occupancy rates of between 80 to 90+%. But why such a high rate?

It’s no secret that Tulum is a very popular destination for tourists. In fact, we expect the predicted percentage increase for Cancun airport tourist arrivals to increase by around 6%. This number steadily grows every year.

In recent years Tulum has experienced occupancy rates as high as 72% in low-season. This is world-class for anywhere and a very good rate for low-season.

Price rates for low-season remain high for Hotels and vacation rentals. Charging up to $500 USD per night in the low-season months is fairly normal.

Your rental property can expect to experience a steady, high occupancy rate 365 days a year and a strong return on investment every year.

How to Make Money with your Tulum Investment Property

ROI for well-managed rental properties in Tulum is 10% and can be much higher. When you factor in the appreciation of Tulum property, the yearly increase of land value in the Tulum (around +8% per year) and on pre-sale prices, then you see why Tulum investment property is a solid investment opportunity now and into the future.

And you can take a relaxing vacation in your Tulum Investment Property whenever you feel like.

Click here to read 5 Steps to Buying a Vacation home in Tulum

How to find your Tulum Investment Property

We have access to soon to be completed Tulum Investment property deals that are high ROI condo-hotels. If you want more information, Click here to contact us today via our contact page.

Summary:

3 Reasons to Invest in Tulum

1. Growing Tourism of 15% per year

Tourism continues to grow in Riviera Maya, Mexico, and especially in Tulum. With more flights of arrivals in Cancun, every year means that Riviera Maya and Tulum will continue to grow in the millions of visitors per year.

2. Unique Experience for everyone

Have you heard of the Tuluminati’s? Yeah, that’s right. There is a new word for those who love and enjoy Tulum.

Tulum has a rising fashion scene called Boho-Chic or Bo-Chic. Search Tulum on Instagram and you will see the thousands of incredible photographs.

3. Higher ROI with Vacation Rentals

It’s no secret that the vacation market has transformed. People are choosing to book online and choose vacation rentals as a better option. When you invest in a Tulum vacation rental, you are making a safe investment in a popular travel destination. The rising trend of people staying in vacation homes will only get more popular.

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