Invest in Mexico Real Estate 2024 | Why, Where & How – Plalla

Illustration of arrows showing the flow of money and a house

Invest in Mexico real estate, it’s a safe investment and the best way to protect your money in times of crisis. If you are interested in investing in a property and you don’t know where to start, here you will learn what it is, why you should, where the opportunities are, how much money you need and how to do it.

What is real estate?

To understand what real estate is, we must first understand the origin of the term, Real Estate originally meant: Property of the King and referred to the lands and properties that belonged to the king. Over time, trade caused some people to start to get rich, then some social movements arose changing the law and thus people were able to buy land.

The term Real Estate was preserved in the English language and basically real estate is real property that includes land lot and any building on it, it cannot be moved or changed to another place because it is attached to the land, for example: a house or an apartment, where the building is attached to the land.

Illustration of a House held by a hand coming out of a Laptop screen

Why invest in real estate in times of crisis?

Here are 15 reasons to invest in the real estate market:

 

1. Safe investment

Real estate is a low risk and highly profitable investment where you achieve recurring and passive income.

If you are a foreigner, you will need a trust, which will protect your investment even more, since it cannot be confiscated by any person or government including the Mexican government.

 

2. Low interest rates

It is the best time to apply for a mortgage loan because banks lowered interest rates to almost half since the beginning of the Covid pandemic. As Winston Churchill said: “Never waste a good crisis.”

If you are a foreigner and you work for a Mexican company in Mexico, you can also apply for mortgage loans from Mexican financial institutions.

 

3. Real estate is better than saving in the bank

Money loses value every year due to inflation, however, real estate increases in value up to 13% annually and if you also rent your property you will obtain an additional profit.

 

4. Real estate is better than trading currencies

Currency exchange or saving in foreign currencies such as the US dollar and the euro, can be a good business, but currencies get devalued and are affected by inflation, supply and demand through the exchange rate, also by the economy and policies caused by economic uncertainty and financial crises.

If you are foreigners and you handle a strong currency, you can benefit from the exchange rate to Mexican pesos, making the prices of the properties more accessible to you.

 

5. Real estate is better than other types of investments

Buying and selling real estate is a safer investment strategy and more profitable compared to investing in the stock market, cryptocurrencies, gold and bonds.

There is a lot of talk about investing in the stock market and it is even advisable to buy shares of large companies such as Amazon, Tesla and Facebook, but in reality you are risking losing your money since their shares are overvalued and subject to speculation.

Cryptocurrencies are also affected by speculation, there are many frauds and thefts, in addition several governments are developing their own digital currencies and prohibiting the use of cryptocurrencies such as Bitcoin. In the case of gold and bonds, the gains are minimal since they are greatly affected by inflation.

 

6. Cash Flow

You generate a constant flow of money, extra income that seems to be a second salary that offers security for the future and improves the outlook for your retirement.

If you are foreigner, the earnings can be payed in cash, tax free income that you don’t have to declare in your country

Illustration of a hand offering a coin to another hand holding a house

7. Great return on investment (ROI)

You can generate a return on investment of 8% to 13% per year if you decide to put your house for long-term rental or vacation rental. The vast majority of developments offer the property management service and they take care of your property or you can also do it yourself with the help of platforms such as: Airbnb, Booking, Vrbo, TripAdvisor and social media.

 

8. High capital gain

In addition to generating short-term profits, when you sell your property you will benefit from the increase in value that real estate undergoes over time. You can obtain a capital gain of up to 15% per year.

 

9. Flexible investment

It is a short, medium or long-term investment, which you can take advantage of at all times. You can rent or sell it at any time to generate a profit or simply withdraw your initial investment, you never lose money.

There are also different investment options in real estate, you can invest in houses, condos, residential lots, commercial premises, offices, etc. Properties for sale such as new construction, pre-construction, resale and Friends & Family presale, with different payment plans and financing options.

 

10. Tax benefits

You can reduce and deduct taxes when you buy, rent and sell your property, get in touch with a real estate agent, who will help you find the best property for your investment strategy.

 

11. Second home

You will have another address which you can dispose of at any time to live or to vacation, you can also use it to retire in the future.

 

12. Heritable Investment

You can transmit your assets and rights through an inheritance, donation or transfer of hereditary rights in life and thus protect the assets of your family.

 

13. Pre-construction and Friends & Family presale

You can take advantage of discounted prices in the pre-construction and Friends & Family stages. When properties go up for sale before construction is complete, they are sold at lower prices, called pre-construction or pre-sale prices.

Even better, just before they go on sale, when the procedures are still being done before construction kicks off, some developers offer the Friends & Family promotion where you can set aside a unit with prices up to 30% cheaper than when they are built.

 

14. You don’t need to be a real estate expert

The process is simple, but we recommend that you rely on a professional real estate consultant, who will help you find the best property according to your needs, wishes, dreams and budget, and will also guide you throughout the process.

 

15. Community development

Everyone wins because when you buy a property you help the community to develop, support the local economy, promote growth in the area, create jobs and create opportunities for many people.

Likewise, if you put your apartment for long-term rental, you are giving accommodation to a local family or with vacation rental you are hosting tourists while they travel.

Aerial view of Tulum archaeological zone in front of the Caribbean Sea

Where to invest in real estate?

The Riviera Maya does not stop growing. It has become one of the best places to invest in real estate in Mexico. Here are some of the most important tourist destinations in the world such as Playa del Carmen, Tulum, Cozumel and Cancun within a short distance. The area has the main hotel chains, airlines and travel agencies in the world.

Cancun International Airport is the airport that receives the most international travelers in Latin America. Thanks to this, millions of national and foreign tourists arrive each year. In addition, with the arrival of the Mayan Train and the Tulum International Airport, the flow of visitors will increase and the area will develop more quickly.

Investors, both national and foreign, consider the Riviera Maya as one of the areas with the greatest potential to invest thanks to its excellent geographical location, easy accessibility, perfect climate, beautiful white sand beaches and blue waters turquoise, but above all because of its high real estate demand caused by tourists looking to rent vacation homes and locals looking for a long-term rental to live. This guarantees a high return on investment and a high capital gain.

Buying a property in Playa del Carmen, Tulum and the Riviera Maya is a safe investment, there are currently more than 400 new developments for sale, mainly apartments, but there are also houses and lands for sale.

Who invests in the Mayan Riviera?

 
USA 33.3%
Mexico 23.6%
Canada 22.4%
Europe 13.1%
Latin America 7.20%
Rest of the world 0.40%

Pie chart showing the countries that invest the most in Riviera Maya

How much money do you need to invest in real estate in Playa del Carmen and Tulum?

Property prices in the Riviera Maya vary greatly due to their location, size, and amenities. You can find condos for sale in Playa del Carmen starting from 1.3 million Mexican pesos (approximately $ 75,000 usd), studios for sale in Tulum starting from 1.7 million Mexican pesos (approximately $ 95,000 usd), and even luxury beachfront apartments for 1.2 million dollars or beachfront houses for 3.5 million dollars.

Can you invest in real estate without money?

Yes you can! Mexican citizens and permanent or temporary residents who are working in Mexico and their employer registered them with the Mexican Institute of Social Security (IMSS) or work for the government can apply for a home loan with Infonavit and Fovissste institutions, who have schemes that allow their beneficiaries to apply for a mortgage loan that can cover up to 100% of the value of the homes.

If you are a foreigner, you may be entitled to similar schemes in your country.

On the other hand, bank mortgage loans are another excellent option to finance up to 90% of the property value and in this case you would only need to make a 10% down payment.

If you are a foreigner, you can also apply for a home loan from a Mexican financial institution. Ask us how!

In addition, all developers offer pre-sale payment facilities with down payments of 10% to 30% and the rest is paid in monthly installments(usually 12 to 24 months) until the property is deeded.

As Andrew Carnegie said: “90% of millionaires got their wealth by investing in real estate.”

How to invest in real estate in Mexico?

Very easy, you can invest in real estate in the Riviera Maya in just 6 simple steps:

  1. Visit our real estate search page: https://plalla.com/en/real-estate/
  2. Search houses, land lots and condos for sale.
  3. Read information, see pictures, videos and floor plans.
  4. Contact us and we will help you with your search and answer your questions.
  5. Visits physically or virtually the properties for sale
  6. Make an offer with the help of Plalla Bienes Raíces
Property search website showing a map and four properties for sale

CONCLUSION

The benefits of investing in real estate are many. You are betting on a safe investment when you buy a residence or a lot because it will increase in value over time generating a capital gain and a high Return on Investment (ROI), without having to risk your money in the stock market, cryptocurrencies, exchange of currencies or savings that will be affected by inflation.

We’d love to hear from you! If you have any comments, doubts, or questions, please don’t hesitate to share them in the comments section below. We’re here to assist and guide you.

If you found this article helpful, feel free to share it on your favorite social networks or send it via email or WhatsApp to your family and friends! Thank you so much for your support, and remember, we are Plalla Real Estate. 🙂

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1 thoughts on “Invest in Mexico Real Estate 2024 | Why, Where & How – Plalla”

  • The 4 Best Places to Invest in Real Estate in the Riviera Maya – Plalla

    […] and tangible rewards. If you want to learn a little more about real estate, read our article: Investing in Mexico Real Estate | Why, Where and How, or if you just want to get to know the area better, read our Riviera Maya Travel […]

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