Real Estate Investment in Yucatan
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Questions to Ask Before Making a Real Estate Investment in Mexico
Emerging markets are a hot trend in personal finance, and a growing number of Canadians, Americans and Europeans are looking to other countries for great buys. Real estate in Mexico has been performing particularly well for the past few years, and many experts project that economic growth and property appreciation rates will continue to stay strong in the years ahead.
Given these conditions, real estate in Mexico is attracting a growing number of prospective investors. If you’ve been thinking about putting some of your money to work in a safe, smart investment with excellent potential for a strong return, now is the time to start educating yourself. It’s essential to enter any investment from a position of knowledge, and real estate in Mexico is no different.
While you should certainly take your time and do your due diligence, you’re also more likely to get into the market at an advantageous price if you act sooner rather than later. With that in mind, here are answers to some basic questions about investing in Yucatan Mexico real estate
What is ROI and the S-curve?
These are essential concepts for real estate investors.
ROI is an acronym for “return on investment.” It expresses profits as a percentage of the original amount of money you put into the property. Here’s a basic example using simple numbers:
Let’s say you purchased a property for $200,000 using $20,000 of your own money as the down payment. You hold onto it for three years, during which time you invest a further $5,000 a year of your own money to pay down the mortgage. That brings your total investment to $35,000.
After three years, the property has appreciated in value and sells for $270,000. The $70,000 increase in value is offset by the $35,000 you invested, leaving $35,000 in pure profit. That represents a 100% ROI.
The S-curve, is a more advanced concept. It describes a mathematical model for predicting growth in specific markets. It evaluates two key factors – time and property values – to predict when a market is ripe for investment. Yucatans S-curve is currently very good, showing strong potential for a positive ROI.
Can My Celestun Property Investment Generate Positive Cash Flow?
The short answer is yes! The Resreve at Celestun Resorts offers a guaranteed rental income program, ensuring all our investors enjoy plentiful opportunities to monetize their properties and earn substantial income that can add to your profitability.
Is it Better to Buy a Detached House or a Condo?
This is more than just a matter of preference; it’s important to take specific factors into account when making your choice.
Condo owners enjoy superior cost predictability; maintenance costs are minimal, and common elements are covered by your monthly fees. However, owners of detached homes enjoy more freedom and privacy, which may be important to you. If you’re planning to rent out the property to vacationers, you’ll find that visitors prefer both property types in roughly equal numbers, so you don’t have to worry much about trying to predict the rental market.
What are the Market-Specific Benefits of Buying in Celestun Yucatan?
Here’s a quick overview of the many benefits of investing in Celestun Yucatan:
- It’s a market with proven growth and robust potential, with excellent value compared to other popular Mexican destinations
- It enjoys year-round near-perfect weather and attracts lots of vacationers
- The region has posted solid year-over-year property appreciation rates for several years running
- Ongoing infrastructure improvements promise to further develop the local economy in the years ahead
Is it to My Advantage to Own Property Located Slightly Outside Town?
If you enjoy seclusion, pristine beaches, unspoiled nature and superior value for your investment along with all the perks that come with being close to the city, then it is definitely to your advantage to join The Reserve at Celestun community.
Does it Make Sense to Own Property in a Resort Community?
Owning property in a resort community delivers a long list of benefits:
- World-class amenities
- A health-oriented community lifestyle
- Regular opportunities to socialize and make new friends
- Stunning beach access
- …and much more!
If you would like to learn more about the exciting opportunities currently available at The Reserve at Celestun, please register with us online to receive your free, no-obligation sales information package.