5 Top Riviera Maya Real Estate Trends 2021

5 Top Riviera Maya Real Estate Trends 2021

2020 was a surprising year for real estate in Riviera Maya real estate. Many have asked me what do I see is in store for 2021?

While Covid settled in 2020, we thought our market would just dry up. Contrary to that, 2020 proved to be a very strong year for real estate in Playa del Carmen, Tulum, Puerto Aventuras, Puerto Morelos. Will we see more of the same results in 2021? Whether you’re selling, buying, or staying put, here are some 2021 real estate trends that are important to you.

These are just my views based on my experiences of 16 years here in Riviera Maya and also reading based on what is going on in the US, or strongest neighbor.

Riviera Maya Real Estate Trend #1: Slim Pickings for Home Buyers

Okay, this is probably the most difficult to believe: It’s true, the desirable properties got snatched up in Covid. Really cool properties that you always saw for sale online, have now been sold. New products are still coming in line sure, but we still see less growth of new than in previous years and higher absorption of the great location resale properties.

But don’t worry, we’ll walk you through what to expect if you enter the market.

What Slim Pickings Mean for Buyers

Low inventory means you need to be prepared. It also means you should trust what your agent is telling you about the market not just what you “see online”.

We KNOW the truth of the market status. We live here and work it full time.

The internet is a big messy advertising medium for Riviera Maya Real Estate with a high inaccuracy of price and availability. ASK us, we can verify the true status for you of any property.

  • Somethings’ gotta give. If you can’t find the property you want, be willing to trade some “nice-to-haves” for your “must-haves.”
  • Be open to other possibilities. What if the location where you’re planning to buy is too competitive? You might be surprised at the gem in a less popular neighborhood. Working with a real estate agent at LivingRivieraMaya.com who really knows the area is the best way to find a home that fits your budget and lifestyle.
  • Be clear about your finances. This is primarily a cash market. VERY few options for mortgages to foreigners. Know what you can afford in cash and the timing of when funds will be available.

Contact US, your real estate experts in Riviera Maya

Riviera Maya Real Estate Trend #2: Prices.

In the US in November, home prices grew by an incredible 15% compared to 2019. We can’t say that here, yet. Price homes in the US rose to a national median of well over $300,000. This marks more than 100 straight months of year-over-year price gains. This is partly the reason for our increased velocity of Playa del Carmen real estate transactions, and other Riviera Maya real estate destinations. Investors had more available cash to float from their primary residences to invest in Riviera Maya Real Estate.

What I can foresee for 2021 is that the speed with which Riviera Maya real estate is bought and sold should continue to increase, as long as PRICES are reasonable. Why do I say this? Real estate in Playa or Tulum is still primarily a cash-based, second home market for investors. Keep your prices reasonable when selling to make it accessible for these reasons.

What Prices Mean for Buyers.

Be real with how much house you can really afford.

Don’t make stupid low offers if you really want to own that ONE. We have seen some disappointed buyers who worked hard at looking and deciding, only to go away empty-handed because they were looking to steal property because of Covid. Yes, due to Covid we did see some flexible sellers, but not stupid low prices.

For more help on buying a home in this crazy market, check out our free Home Buyers Guide. It has all the answers you need to buy a home in Mexico with confidence.

What Prices Mean for Sellers

If you have been trying to sell for a year or more, this is good news. You can expect to accomplish this goal as long as the prices are reasonable.

To get the best offer for your home, list it with us, an experienced real estate agency that really knows your local market.

Having said that, be sure to work hard with any offer that comes in so you don’t lose an opportunity.

Some buyers may try to gut punch you with a low number. Work it, don’t ignore it.

We have seen some really low offers turn into really serious negotiations that close and I believe this will continue to be the case for 2021.

Riviera Maya Real Estate Trend #3: Mortgage Interest Rates In the US Are Still Super Low

Bottom line? This means you can take out a line of credit on your existing home there and buy a home in Playa del Carmen or Tulum or Puerto Aventuras.

We see more people wanting out of the cold and into the warmth; more people can move their dreams forward, rather than wait; many people are tired of being confined and want the warmth and openness of Mexico.

The average mortgage interest rate for a 15-year fixed-rate mortgage dropped to 2.31% in November 2020—the lowest it’s been since Freddie Mac started reporting nearly 30 years ago!

And now economist geeks think interest rates will continue to hover around 3% in 2021, which is still pretty low.

This represents a good chance to cash out there and buy a home in Playa del Carmen or Tulum or Puerto Aventuras or anywhere in Riviera Maya.

What Lower Rates Mean for Buyers

Sure, interest rates are low right now—which can help you get into Riviera Maya Real estate market. Just be careful to calculate how much you can afford and let us know truthfully.

What Lower Rates Mean for Sellers

If interest rates stay low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer.

Riviera Maya Real Estate Estate Trend #4: Online Real Estate Services Are Growing

No doubt you’ve heard of real estate services like Zillow that allow you to browse or list homes for sale online with the click of a button. But did you know that online services are now offering to buy and sell your house for you?

We Offer Services as “Virtual” Agent

It’s a great way to view a property or get to know an area. Book an appointment with one of my trusted experts to get started. We dedicate the time and energy to you to show you real-time what a property can look like, distance to the beach, distance to town, restaurant facades, whatever you want to see.

In 2020 at LivingRivieraMaya.com we saw an increase in online closes by 45% over previous years. Some people had never even been to the town they purchased in and not physically seen the home prior to closing.

I see this as a continued trend in 2021, especially for those Canadians who are must quarantine for 14 days when returning from travels.

Online Closings

In related news, digital technology is also making it easier to handle document-based tasks virtually. For example, many home transactions are using electronic signature apps and remote online notarization to streamline the process.7 In other words, there’s a chance you can buy or sell a house this year without getting out of your car or ever-changing out of your bathrobe and slippers.

Real Estate Trend #5: Confidence

Equity probably won’t decrease through 2021.

With most housing markets at low risk for a downturn, Freddie Mac (US) believes home prices will continue to rise in 2021—but at a slower pace of nearly 3%.

Real Estate in Riviera Maya usually follows tourism and tourism is buoyed by the US economy and the economy in the US is a lot driven by real estate equity.

Does this mean a strong velocity of sales in Riviera Maya real estate for 2021? If we just base our predictions on all the above, yes. However, there are always mitigating external factors that we cannot predict.

A real estate market crash looks unlikely.

With all the uncertainty behind everything that happened in 2020 and with home price growth possibly slowing down in 2021, you might be wondering if the housing market could collapse. Well, it’s impossible to know for sure, but economists suggest a housing crash is unlikely. Again this = CONFIDENCE.

After all, the super-low mortgage rates are motivating investors to bring some cash from the US or Canada and enter the Playa del Carmen real estate market, which increases demand. Many investors and buyers are looking to move full time to Playa del Carmen or Tulum.

But there’s still a very low supply of home listings. This is keeping home-buying competitive and allowing home price growth to soar.

Take Control of the Trends With a Top-Notch Real Estate Agent

Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent at LivingRivieraMaya.com

Find your real estate agent today!

Most of Caribbean and Central American Resorts Look at Long-Term Solutions to Solve Sargassum Issue

Growing reports of seaweed-covered beaches are reaching traveler’s ears who are beginning to worry about the quality of their beach vacations in the Caribbean and Central American Countries.

The aforementioned reports have prompted resorts to take extreme measures to control the onslaught of sargassum that can overwhelm beaches in the region. However, the public should not be alarmed for sargassum isn’t something that happens daily. It doesn’t take place every day nor on every beach. Continue reading

Location is KEY when buying an investment property in Riviera Maya

Think of booking a vacation or trying to choose a place you want to live- now think of the first factor that comes to mind? Is it the location of the property? Do you decide first which country you want to live in then narrow it down to the city and neighborhood? One slowly learns that being in a location that is convenient for themselves and others is important, especially if they want to rent it out and make money on the property. Also finding a place that is up and coming is a great idea too because you have a head start with finding the best place in the area. You get to choose first! Continue reading

Cancun again at the top of the list in 2018

It is no surprise that the fact that Riviera Maya real estate remains one of the smartest real estate investments available in the Americas is a direct result of the highly touristic nature of the area which spans from Cancun to Tulum, including Playa del Carmen, Puerto Morelos, Puerto Aventuras, and several other beachfront towns.

This year, Cancun maintained its position as the number one summer hot spot for US travelers, according to Airlines Reporting Corp. (ARC).

According to the aforementioned institution which keeps track of the number of tickets purchased for the top ten most booked destinations, Cancun came in first, as it did in 2017. Meanwhile, Orlando bumped New York out of its second-place finish last year as New York fell to third place.

Moving up in popularity this year is Las Vegas, jumping from sixth to fourth place. London held firm in fifth place, while Punta Cana, Dominican Republic dropped from fourth to sixth most booked summer destination. Seattle held its 7th place 2017 spot, while Chicago rose to eight most booked destination, bumping Honolulu down one notch from last year.

Los Angeles rounded out the top ten most booked destinations with the closing position.

Chuck Thackston, ARC Managing Director of Data Science and Research, said that overall, travel this summer is higher than last year, “reflecting the continued strong economic conditions.” He noted, “average ticket prices are also slightly lower in most cases, so taking a vacation continues to be a great value.”

As tourists continue to pour into Riviera Maya through the Cancun airport, smart investors purchase property in Playa del Carmen, Cancun, Tulum, and other towns in the area confident that the current trend will continue and ROI will remain very high.

What are you waiting for? Call us now for more information about buying property in Riviera Maya.

The Mexican peso was the best performing currency in Latin America in 2017

The Mexican peso closed 2017, a year of plenty of political, commercial and fiscal turbulence, with a small gain of 5.15 percent in appreciation against the US dollar, which makes it the best performing currency of Latin America for that year.

After loosing around 60 percent of its value during the four previous years, in 2017 the Mexican currency experienced several highs and lows marked by turmoil. The first quarter closed 9.44 percent up, and the last was 7.69 percent down.

Among the main factors driving the price of the peso were the policies implemented by Trump’s government at a commercial, fiscal, and even migratory level, which many times were aimed directly at Mexico and made many investors wary. Experts point out that the process of renegotiation of NAFTA was a key point of stress during the second half of the year. This was compounded with the effect of the ongoing normalization process carried out by the Federal Reserve (Fed) on its monetary policy which affected the exchange market.

However, the peso firmly stood its ground, with a rise of up to 20 percent against the dollar since Trump took office, and then coming back from a 13.7 percent fall at the end of the year.

Riviera Maya awarded Best Destination in Mexico by Travel Weekly Awards

Riviera Maya keeps winning the hearts of millions of travel enthusiasts around the world in the Travel Weekly Readers Choice Awards 2017!

For 15 years, the popular travel magazine Travel Weekly presents awards in 77 categories to distinguish the best actors and destinations of the global tourism industry, which includes hotels and resorts, tour operators, airlines, cruise lines, and more.

There was little surprise when the Riviera Maya was once again named Best in Destinations, recognizing it as the first choice for travelers visiting Mexico for the 14th consecutive year. The gala for the event was held at the Conrad New York on Dec 14th and was attended by the director of the Tourism Promotion Trust of Cozumel and Riviera Maya, Darío Flota Ocampo, to receive the award.

Other Mexican participants were Funjet Vacations and Apple Vacations, who each won Best in Tour Operators (one for Mexico and one for the Caribbean, respectively) and Playa Resorts/Hyatt won Best Hotel Chain, among winners from all around the globe.

Moving from Canada to Mexico

A Few Items to Consider Moving From Canada to Playa del Carmen, Mexico or Moving to Tulum or all Riviera Maya

Today’s world of connectivity allows easier access to jobs and various opportunities on a global scale. As a result, there is a greater movement of people across borders to live or retire in Playa del Carmen, or invest in Tulum or buy in Riviera Maya, Mexico. These exciting moves are accompanied by obligations to make a successful move. To ensure a smooth transition with very few bumps along the way, we suggest taking the following steps:

Moving To Your New Destination

Contact us at Living Riviera Maya Real Estate for your move to the area.
We specialize in helping you successfully invest in real estate in Playa del Carmen and Riviera Maya.

1 604 628 7247 ; info@LivingRivieraMaya.com

Many of our associates of Playa del Carmen Real Estate Mexico, including me, as owner/broker have expatriated completely from Canada to Mexico. We can share our experiences with you so you relocate from Canada to Playa del Carmen, to avoid any unwanted surprises. Our specialty is orienting and educating you in the real estate market of Playa del Carmen and all Riviera Maya, so you find the right property, at the right price, in the right area, that fits all your requirements.

There is so much to consider when moving to Mexico to Playa del Carmen and the Riviera Maya and buying property. Me and my team at Playa del Carmen Real Estate Mexico take our role seriously. We have been successfully advising investors of Riviera Maya Real estate since 2003. Our orientation during your buying process includes info such as the locations of schools, hospitals, health service providers, public services, fun things to do, and lifestyle wishes and wants.

When making a real estate investment in Playa del Carmen and moving to Riviera Maya we make sure you have all the best legal advice.

Before you Move

We highly suggest making a checklist:
-Create a detailed packing list of what needs to go and what can stay or be given away/donated.
-Arrange packers, movers, storage, research moving companies. If you plan to import large pieces, you will need a customs broker. Most successful buyers who move here choose not to import.
-Take a course in Spanish either in your hometown or here in Riviera Maya. Knowledge of a few basic words and expressions can go a long way.
-We will introduce you to the right bank to set up new bank accounts so you can transfer funds as required.
-Join any social media expat sites and join clubs. They have already made the move and they could provide you with some great tips.
-Make sure your passports are valid for at least 6 months after you exit Canada. Have several copies ready for when you arrive to distribute as needed.
– Visa for stays longer than 120 days are required for Mexico. You can begin your application for a temporary resident visa at the Mexican consulate closest to your hometown. Once it’s approved, you will complete the process here in Inmigracion in Playa del Carmen. We have a team of people to guide you through the immigration process when you arrive in Playa del Carmen.
-Bring citizenship documents, police checks, birth certificates, etc.

Leaving Canada – The Canadian Tax System

First, the good news stated simply. Mexico does have a tax treaty with Canada, which helps Canadians avoid double taxation and help prevent tax evasion. However, a move to Mexico or buying property in Playa del Carmen or Riviera Maya does not necessarily mean that you automatically are considered a non-resident for tax purposes.

Depending on your ties to Canada, the number of days you spent there, and other factors, the Canada Revenue Agency (CRA) may consider you a: Factual Resident, Deemed Resident, Non-Resident or Deemed Non-Resident.

If you are a non-resident or plan to become one, then properly exiting the Canadian Tax System is crucial. Playa del Carmen Real Estate does not offer tax advice for Canadians. However, we can refer you to a Canadian company that specializes in this. Trowbridge Specialists can simplify the process for you.

Call us at Playa del Carmen real estate Mexico and we will hook you up with their information. 1 604 628 7247

If you do not take the proper steps there is a potential for double taxation on your worldwide income, application of incorrect tax rates and penalties, and/or interest accruing. In order to terminate your Canadian Residence in the tax system, you will need to file a departure tax return indicating your date of departure. We recommend you speak to your tax advisor or we can refer you to one.

This date of departure varies if you have a spouse or dependents or if you are becoming a deemed resident of a new country. Furthermore, on your departure tax you may need to include a deemed disposition – if leaving the country, the CRA treats any property you own as if it was sold at the current fair market value when you become a non-resident. Depending if there is a capital gain or capital loss, taxes may be applicable or a loss could be claimed on your return.

While you may have physically left Canadian soil, there are usually ties to Canada that remain, such as real property, bank accounts, RRSP’s, etc. These ties may provide reasoning for the CRA to penalize you if not properly addressed.

As a non-resident who owns a rental property that earns you income, you are obligated to report this income to the CRA. There is a non-resident withholding tax at a rate of 25% of the gross rental income.

However, the non-resident withholding tax can be significantly reduced. There are certain forms to be filed with CRA by your appointed agent. Playa del Carmen Real Estate Mexico will put you in touch with a specialist in Canada.

If you have RRSP’s, dividends, retirement compensation, continued social security benefits, royalties, are earning interest, or other types of income, make sure to advise these companies of your non-resident status as they may need to remit withholding taxes to the CRA on your behalf. As a non-resident earning this type of income, they should issue you an NR4 slip – this slip reports any withholdings and income to the CRA.

While the above are only a few noteworthy tips, always do your research and work with industry experts for investing in Playa del Carmen Real Estate Mexico for your transition to Riviera Maya.

Love your new life on the beach.
Do it the right way and don’t make mistakes.
Playa del Carmen Real Estate Mexico can help you navigate through all the steps.

1 604 628 7247 ; info@LivingRivieraMaya.com

www.LivingRivieraMaya.com

Riviera Maya tops the charts

Travelers put the Riviera Maya area among the best places to be in Mexico.

The Riviera Maya continues to be among the best destinations, according to the popularity rankings generated by travelers on TripAdvisor.

Source: Aquaworld

Four of the top six most popular destinations in Mexico are in the Riviera Maya, in a list of 25 cities. The reviews are filled with praise of its beautiful white sand beaches, dazzling diving places filled with sea life, incredibly well-preserved archaeological sites, dynamic nightlife and lively cultural activities (not to mention the lush, year-round tropical climate of the Caribbean sea!)

Source: playadelcarmen.com

Like that is not good enough, the Traveler’s Choice Awards, which lists the 25 best-rated beaches in the world, puts Playa Norte in 7th place. This beautiful beach has also been named one of Mexico’s best beaches for two years in a row. It is located in Isla Mujeres, an island less than 10 miles off the coast of Cancún. Senior contributor IslaMujeres1 writes: “When I first saw photos of this beach, I thought they had to be touched up. […] Calm turquoise waters, beach clubs, pure white powdery sand, and much more. […] Water so blue, it makes the sky look pale”

Source: Bahia Divers

Don’t miss the opportunity to visit these incredible destinations on your next vacation!

Curious about investing in Riviera Maya real estate? View our listings here.

Mexico: A Country with an Economy that Continues to Grow

 

Mexico economy Green Economic Growth

For those of you worried about Mexico’s state of the market and the economic slowdown between 2009 and 2012 as a result of the international financial crisis, I have some good news for you. The forecast for Mexico’s economy not only looks promising, it looks great. Since mid-2012, Mexico has been thriving on an international level, particularly in the Riviera Maya.

International companies as well as the Mexican government continue to invest massively in Mexico. The country has shown real determination in laying the foundations to cooperate with private institutions. These international companies as well as financial institutions include mutual funds, insurance companies, pension funds, foundations and sovereign funds. The aim? To foster strategic areas for economic growth and social development. Mexico has conducted studies, amendments, and regulations to the laws in order to accommodate the changes in this growing market. As a result Mexico overtook Brazil as the Latin American country receiving the most foreign investment capital.

 

Mexico economy flagMexico is one of the world’s most attractive countries to investors right now.

Because Mexico’s reputation as a hotspot for tourism continues to grow internationally, the government has decided to spend billions of public and private investment dollars on massive infrastructure spending programs. The extensive plans focus on upgrading roads, ports, telecommunications, water and energy facilities to sustain the country’s growth in tourism and travel.

The country also plans to invest in airport infrastructure, theme parks, marinas, golf courses, healthcare facilities and retirement communities. In total, the program will include 27 major tourist destinations spread across 17 Mexican states. These projects will create more than 100,000 new jobs and will further support domestic tourism by giving more citizens higher incomes as a result.

The Riviera Maya is a prime example of Mexico’s success in development and investments in Tourism. Over the years the Yucatan Peninsula has seen the number of tourists increase exponentially. In light of its international appeal and the high number of flights coming into the Cancun airport, it’s become a hotspot worldwide. An average of 4 million visitors per year choose the Riviera Maya as their holiday destination. The wind of economic optimism continues to blow over Mexico and has settled over the Riviera Maya. In the last 4 years, the area has become a great place to buy, especially for foreigners.

New project developments, remodeled homes, occupancies in hotels and rental condos are constantly on the rise. The market in Mexico couldn’t be in better shape. If you’re interested in buying in the Riviera Maya, there has never been a better time than now!

Judi Shaw | 1 604 628 7247 Direct | +521 984 116 3251 Mexico Cell