Why You Should Consider Buying a property in a Pre-Construction Project

 

When buying property in the Riviera Maya, you’ll need to take several considerations into account. One of the most important decisions you’ll want to make is whether to purchase an already existing property or a unit in a pre-construction project. While the risk involved may scare many buyers off, buying pre-construction is worth considering if you want to save a good amount of money.

Below you’ll find some reasons why pre-construction projects make for great investments.

 

  • Pricing: The earlier you buy in the pre-construction project, the higher your gains. The prices for pre-construction are usually lower than those for an existing condo. In the preliminary stages developers are eager to advertise how many units have been sold since it makes for good publicity and attracts more buyers. Because of this, they often start selling units for an even lower rate early on. As an added bonus, the seller might give you a free upgrade to your unit to thank you for your bold move, e.g. a condo with an extra bedroom, a free Jacuzzi…

 

  • Automatic Appreciation: As more units get sold, the discounts become less and less available, eventually disappearing altogether, giving an automatic appreciation to the value of your property. For example, the unit you bought for $200,000 very early on will be worth $250,000 at the end of the project. And this gain doesn’t factor in any subsequent rise in market value. Think of the substantial profit you’ll make if you decide to sell it one day in the future!

 

  • Financing options: One of the big advantages of buying pre-construction is the ability to customize a financing plan. Once you have chosen your condo, you will have to put down a deposit- but the amount won’t need to be as large as a typical mortgage down payment. You will then pay the remainder according to construction progress (no interest is charged on these amounts). You can even transfer over to long-term financing, either through the developer or through a bank. This option will have to be discussed early on in the negotiation, however.  

 

  • No renovation costs: Buying early into a development offers more choices and will save you more money. When you purchase a pre-existing property, any changes you make to suit your taste will result in added costs. But not with pre-construction! The color of the walls, the lighting fixtures, the countertop materials won’t cost you one cent more, resulting in direct savings to you!!!

 

In the Riviera Maya, particularly the Playa del Carmen area, there are so many pre-construction projects that finding one that best suits your needs and budget is easy. Whether you choose a gated Community, villa, condo, development near a commercial center or golf course… you don’t have to compromise. So just pick your project, invest and start making a profit!

LRM’s pick: To help you find the best pre-construction project for you, the Living Riviera Maya’s team has pulled together a short list of remarkable properties.

  • ZULIM by GMB: Great prices in an up and coming neighborhood. They offer eco-friendly architecture, from studios to 2 bedrooms units.

More info:

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  • MIRANDA by SIMCA: A solid developer offering great design concepts. You can get beach views and on 38th St., the best area of Playa del Carmen!

More info:

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  • MAREA 34: Downtown living, very close to Playa’s best beaches. One and two bedrooms condos. Reliable developer. Only 22 units!

More info:

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  • HACIENDA ESCONDIDA: Very spacious condos in a gated community. This development will include a park with a freshwater cenote, green spaces, pedestrian areas, benches as well as an area for kids.

More info:

Hacienda-escondida-condo-for-sale

 

  • THE GALLERY: A concept art residential project in Playa del Carmen with avant-garde architecture and unique design. Each space will be brought to life by a different national and international artist. Only 4 blocks to the beaches!

More info:

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The Advantages of Living in Mexico

The advantages of living in Mexico:

The advantages of living in Mexico

Mexico and its all-year-round warm weather is a popular destination amongst American and Canadian tourists. In 2014, 1,598,000 Canadians visited Mexico, up from 692,000 in 2000, according to Statistics Canada. Canadians account for about a third of all foreign retirees in Mexico, according to the Mexico Tourism Board.

Canada’s department of foreign affairs estimates about 125,000 Canadians live at least part of the year in Mexico but why is that? Well, there are several reasons but one of the most important one is surely this one:

What makes Mexico really attractive is the cost of living! In short, people can live in Mexico, a life that they can’t anywhere else.

Indeed, housing has extremely high standards…The same as what you would have in Canada or the US: Full kitchen with all useful appliances, good internet connections, AC, etc. But for a fraction of the rent, you would pay back home. And if you decide to buy a place and furnish it, you will be able to find local craftsmen who can do fitted kitchen etc…again…for a fraction of the price!

Food is also an important element! Mexico’s culinary tradition being part of UNESCO’s world heritage, you can be sure that you will always have something to satisfy your taste buds. Just as an example, a street meal won’t cost you more than 5$. And if you decide to cook your own food (totally possible since you will have a fully furnished kitchen), you will most definitely save even more on your food budget.

Since most people moving to Mexico are retirees or snowbirds, something very important to consider is health care. Well you will be happy to learn that Mexico enjoys extremely good health care. As good as in the US or Canada…even better maybe as the price for dental cares and health services, in general, are less expensive, with better service and less waiting time!

In addition, keep in mind that the “better life” part often includes a maid, gardener, or inexpensive babysitter in the mix…

Of course, if you’re considering moving to Mexico to live full-time or part-time, there are other things you should keep in mind:

Transportation: On that side, you are also lucky! Not only is Mexico a very accessible country from the US or Canada; there are several international airports throughout the country, but there is also excellent and safe bus service to travel around the country or between cities for not very much and local public transport is well developed in even the smallest towns. So most of the time, you won’t need a car.

Last but not least…visa and immigration paperwork! Mexico is probably one of the easiest destination in that regard. Upon arrival, you can ask for an 180 days visa which you will get instantly and that you can renew as often as you want (as long as you leave the country for a couple of days and reapply for one when you come back). However, becoming a permanent resident of Mexico requires several years of living in the country: four for most people, two for those married to a Mexican national.

Safety: We often hear terrible things about violence in Mexico but all in all, Mexico is a safe country. Of course, you should do a little research before you move anywhere but all popular cities and regions amongst expats (such as Riviera Maya), are extremely safe!

Buying in Mexico: Promissory Agreement Explained

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If you are not familiar with the buying process of a property, here is a little explanation about the different stages and steps, in particular the «Promissory purchase and sale agreement», also known as «Promissory agreement» which will be the foundation of your transaction because it contains all the important elements and details to close the deal.

The first stage is called: The pre-closing

You have found the property of your dreams, you are ready to buy it. You will then make an offer to the seller with the various conditions you want from the seller (e.g. price, furniture included or not, renovations to do before the official sale takes place, etc…). You will submit it to the seller and if he/she agrees, you will move to the closing process, the next stage.

In the closing process, the most important document is the “Promissory (purchase and sale) agreement”.

But what does it contains exactly and why is it important?

In the “Promissory agreement” you will find:

  • the purchase price
  • a description of the property that will be sold
  • a full list of the furniture, items included within the property and in the purchase price
  • obligations that the buyer must respect, the most important one being to pay the seller
  • obligations that the seller must respect, the most important one being to provide the buyer with the property based on the characteristics that were agreed in the purchase and sell agreement.
  • A date of when the physical possession will be delivered
  • A certain date of when the transfer of title will take place
  • Jurisdiction, which means the place where the agreement is executed
  • Penalty clauses, to guarantee both the buyer and the seller, that if anything goes wrong, there will be some sort of indemnity or a legal security.

The “Promissory agreement” will then evolve and mature into the final document: The “Deed”. This last document will be formalized by a public notary, the last stage, is when the buyer pays all closing costs associated with transferring the deed in their name. And last but not least, that last document is submitted to the public registry for recording.

But as you can see the most important stage is the “Promissory agreement” because all the rest of the transaction ensues from that document.