Chances are you’ve either been to Mexico and want to experience more of its charming communities or you’ve spent quality time in what we believe is the most beautiful location on Planet Earth, Huatulco.
An Economic Overview
Nationally speaking, Mexico went through the global economic crash that affected so many nations. However, the blow wasn’t as drastic here as it was in the U.S. and in Europe. In fact, the economy was stronger then and it continues to be on an upswing, especially with regards to real estate investments. Mexico’s real estate values are perhaps better than ever.
The Economic Downturn Meant an Upturn for Savvy Real Estate Investors
A few years ago, high-end condos and villas on the beach were suddenly affordable for the average investor. The annual property values steadily increased each year, and the proximity between Canada and the US made it all the more convenient for maintenance and renovation.
The Mexican government was thrilled and made it easier than ever for short- and long-term expats to buy land and invest in real estate. Foreigners were able to buy and sell property in Mexico using what they call a fideicomiso. It’s a special real estate trust that allows titles to go to foreign investors. The property can be sold, transferred and willed, just like a real estate property back home.
Fast forward to today and not much has changed.
Affordable AND convenient luxury is still accessible for those who want to jump in on a “no brainer” real estate investment opportunity.
How Can You Get Involved?
Every day we get calls from those wanting to get involved. So we’re opening our “Huatulco Real Estate Know-How Kit” to give you more “bang for your buck” tips:
- Location is everything – This common phrase is really true. Location is everything. To determine if your selected real estate property is in a good location, ask these questions: Is the potential property located in a safe neighborhood? Is it close to shopping areas, nature, etc.? Is it situated in a renovated community or in an “up and coming” area? Is the area noisy or dirty? If you don’t know the answers to these questions, ask around.
- Figure out what’s most important to you – If you’re an avid surfer, maybe something on the beach is worth the extra money. If you’re bringing your family to live in Mexico year-round, look for property that’s close to the good schools. Match up your lifestyle to the real estate opportunities.
- Determine when the home was built – Newer homes come with new plumbing, wiring, air conditioning, and energy efficient features. But they also come with unforeseen challenges and appreciate quicker than older homes. Bear in mind that there are plenty of older homes that have the kinks worked out, making them a great value.
- Do your due diligence – As you enter into the real estate investment arena, it’s important to note that it’s not the same in Mexico as it is in other countries. Count on this as you complete the paperwork and work with third-party service providers. This does not mean, however, that you’re going to get yourself into a pickle. It just means that you should ask about the reputation of anyone with who you work. Also, be sure to find out if there is any unfinished business on the property such as past-due liens.
- Negotiate – Everything is negotiable in Mexico. In fact, sometimes the prices are inflated intentionally to allow for room to haggling on price. Take advantage of this common practice and don’t worry about feeling too shy to try. You may just save yourself several thousands of dollars for your effort.
- Consider renting out your property – If you only plan to visit your new property from time to time, consider renting out your home. The rent will cover the mortgage as well as any applicable tax write-offs such as travel expenses, legal and professional fees, insurance and repair work.
To learn more about Huatulco real estate, contact us today. We’d be happy to walk you through the process and answer any questions you may have.
And if you have already invested in Huatulco real estate, we’d love to hear from you. Feel free to share your success stories and helpful tips below.