You’re planning on investing in Mexico property, but you don’t know how you’ll make money on your investment. You want the freedom of owning a house or condo outright, but you also want to invest in something that will provide a steady income. There are many different ways to be profitable on your Mexico property, including renting it out as a vacation rental or flipping it for profit. To help decide which works best for you, let’s look at some options.
Profitability: flipping vs Renting in Mexico
If you’re considering flipping vs renting in Mexico, here are a few things to keep in mind:
- Flipping is a lot of work and can be difficult to find properties in Mexico. If you do find them, they may not be worth the cost of repairs or renovations to flip.
- The real estate market in Mexico is growing fast and is driven by new construction. You’ll get better returns on your investment if you buy new construction properties because they will appreciate faster than older homes.
- In tourist regions such as Riviera Maya you are better off investing in new construction properties as vacation rentals. Buying presale or preconstruction is a great way to make a better ROI and get a property at a great price.
Buying a condo and using it as a vacation rental in Riviera Maya Mexico
Condos are the most popular way to rent in Mexico. They are a good option for short-term rentals, vacation rentals and renting out to families on vacation. Condos are also a great choice if you want to live close to the beach or poolside.
Condos can come with a variety of amenities, including pools, tennis courts and gyms. The type of condo you choose will depend on what you’re looking for in your Mexico vacation.
Buying private villas and using them as vacation rentals
Buying a private villa and using it as a vacation rental is another way to make money in Mexico. You can rent it out per day, per week, or even per month. As with any investment, there are advantages to villas as rentals.
- You’ll have control over who stays in your home. If you don’t want children around or want only adults at your house party, you can choose whom stays there based on their age and profile information provided by the potential renter.
- You get more privacy than if you were renting out an apartment/condo for guests to use for as long as they want (like Airbnb). It’s easier to control what kind of people come into your home versus having someone stay at an Airbnb where other guests may be staying nearby or on other floors of the building.
Buying land and building a condominium, resort, or hotel using it as a vacation rental
There are a few different ways to make money with land. The first is to buy it and build something on it, such as a hotel, condo or resort. You can then rent out the property to vacationers. This could be done by yourself or through a management company in Mexico. As long as you’re smart about what kind of property you choose to build and how much money you put into it this can be very lucrative in Mexico especially since land is usually cheaper than buying a home.
A second method for making money with the land is selling your land at some point down the road for more than what you paid for it initially (if you bought low). Real estate prices tend to rise over time. If you buy verified land at the right time at a great price and hold onto it for a few years, then you can make a great ROI.
Buying land gives you the option of holding and eventually sell at a higher price or if you decide to build your own home or investment property, then you can.
Finding an old home to restore and flip is not common in Mexico like in the USA and Canada
You may have heard that flipping homes are a great way to make money. It’s true, the U.S. and Canadian markets are very conducive to this type of investment, but Mexico is not as easy.
The real estate market in Mexico is different than those found in North America, which means there are many differences when it comes to buying old homes and turning them into profit-making properties.
Buying second-hand condos and homes and turning them into vacation rentals is possible if you find the right property at the right price.
Instead of buying an older home, it might be best to consider buying something new because it will cost less money upfront but it will still be easier for you than finding a house that needs work.
There are many different ways to be profitable on your Mexico property.
There are many different ways to be profitable on your Mexico property. It all depends on what you do with the property and how much you invest in it. The most common way for investors and developers to make money is by purchasing a condo, house or villa and using it as a vacation rental. Many investors are buying land in Riviera Maya Mexico to build resorts, hotels or condominiums so they can get a great ROI on their investment.
Get help to find an investment property in Mexico
We hope that this article has given you a better idea of the many different ways to be profitable on your Mexico property. Whether you are looking at flipping or renting, there are options available for both. As always, it is important to do your research and find out which option is best for you. The key takeaway from this article should be that there are many different ways to make money with real estate in Riviera Maya.
Be sure to use help from a real estate agent in Mexico. If you would like help finding your property in Riviera Maya Mexico click here to contact our real estate agents at no obligation.
