5 Reasons You Should Invest in Tulum Real Estate Right Now

The white-sand beaches, ancient Mayan history, and culture here in Tulum are some of the main draw factors to why you should invest in Tulum real estate right now. Not to mention that the real estate market in the Mayan Riviera is pumping and many people from all over the world are drawn to this area.

Tulum Real Estate - Cenotes are found in Tulum

The Cancun International Airport in the Mayan Riviera is situated only 1.5 hours from the heart of Tulum and only 45 minutes to the outskirts of Playa del Carmen. With an international airport being so close you can book last minute flights back home or easily pick up guests at any time. Let’s dive deeper into what those main reasons are that you should invest in Tulum right now without delay.

1. The time is now
2. The location is prime
3. Large equity gains
4. Many eco-friendly developments
5. The market is trying to tell you something

The time for Tulum Real Estate is now:

There is no better time than the present to invest in real estate in Tulum. The longer you procrastinate, the less money you can potentially make if you are purchasing your property as an income property. With the way the market is heading and the number of properties that are being purchased in the Mayan Riviera by investors, you will want to get your hands on one before it’s too late.

Think retirement. Whether you are purchasing a property for your retirement or not, down the road you can have it paid off and not have to worry about it. The rental market is prime in Tulum right now as it is a hot destination for travelers all over the world.

Tulum is in a prime location:

I previously mentioned about the international airport in Cancun and how Tulum is in close proximity to it. This is definitely a selling feature and a way to attract potential renters to your property. People don’t want to have to travel for many hours in order to reach their destination. However, Tulum is close enough that it is ideal but yet it is far enough away from the city life that they have their full Zen-experience. Tulum is a place to relax but you can also enjoy some cocktails and dancing in the evenings. It offers the best of both worlds.

Tulum Ruins – Source: zkahlina.ca

Large equity gains:

There are large equity gains that can be made in Tulum due to supply and demand. There is more demand than supply right now, which goes to show how popular Tulum is becoming. Demand drives real estate prices up, which is another reason why buying pre-construction is a good idea and will save you money.

Did you know that Tulum was at a 100% occupancy rate in 2016 and 2017 throughout the high season? For investors who are looking at buying an income property, these are the statistics you want to see. There was close to an 8% increase of international visitors last summer in the Riviera Maya in 2018. People are not only flocking to Tulum to escape the winter, but they are also moving here and visiting all year-round.

Tons of eco-friendly developments are being built:

As you are probably aware, Tulum is an eco-friendly beach town that is looking to be self-sustainable. With all the eco-friendly developments that are being built as we speak, there will be many up and coming opportunities to purchase real estate in the later 2019. If you can purchase an eco-friendly development, why wouldn’t you? You then are working towards making a difference in the environment in Tulum and all over the world.

Listen to the market:

It’s important to listen to the market and look at the different market trends. Trends don’t lie and you can grasp a lot of information by comparing the market trends over the years. Especially in Tulum, Tulum has grown exponentially and continues to attract investors who are eco-conscious and want to invest in a location that is laidback, yet glamorous.
Tulum has many options for investors who are looking at investing in Tulum real estate in the upcoming future. There are many developments in Tulum that will offer a good return on your investment. Speak with a real estate agent today to learn more!

Bank Trust – What is it? When is it needed?

Mexico Bank Trust and how to Purchase article

Bank Trust – What is it? When is it needed?

Mexico is a beautiful country and economically booming. You might have been thinking about either buying a property (or several properties as vacation rentals ) or developing a business here.

Good news! It’s a very good idea and totally feasible.

There are a few rules to respect, though.

This article will guide you through the various steps and explain two different schemes that will come in handy when you decide to make it happen i.e. setting up a Bank Trust (Fideicomiso) or a Mexican Corporation.

 

First of all, you have to know that a while back, it was impossible for Americans and Canadians to buy property in Mexico that was 50 km from any coastline or 100 km of a neighboring country (called the restricted zone). Only Mexican nationals were allowed to invest in land and properties located in this zone. The Mexican Constitution still stipulates that no foreigner is allowed to acquire land directly in this zone…However…some things have changed.

 

You can now invest in this zone through a Bank Trust:

A bank trust is a property interest held by a Mexican bank who´s sole purpose is to manage the property for the benefit of the owner. It is essential to remember that although the bank legally acts as the trustee and holds the title, your property is not an asset of the bank.

   It is valid for 50 years and can be extended for another 50 years.

You will need to set up one Bank Trust per property. So if you buy 2 or 3, you will end up with 2 or 3 bank trusts.

There is, of course, an annual fee that you’ll have to pay (the fee can vary between 400-800USD per Trust, depending on the bank and each particular case). You will be the main beneficiary but the Trust allows you to designate two beneficiaries (whoever you want: your spouse, children, partner…) and if anything is to happen to you, they will     automatically become main beneficiaries. The beneficiary has every legal right to occupy, rent, modify or inherit the property, and this is protected by the Mexican Constitution. The big advantage of this scheme is that there is no paperwork, you pay once a year and you are done for the next 12 months.

 

The other way to become a titleholder is through a Mexican corporation:

This scheme is advised if you are thinking of buying several properties (you can have as many properties as you want) for commercial use or if you are going to create another business. Indeed,  you can operate a business through it, work from home, or run an internet business. It is actually quite simple to set up (it shouldn’t take more than a week) and you can incorporate under whatever name you wish. You need a minimum of two shareholders, though. This option has many advantages (tax wise for example) but on the downside, it involves a lot of paperwork and administrative work. This scheme requires you to pay on a monthly basis and probably to deal with an accountant (that you will have to pay as well).

 

   You now are a little bit more aware of the different options offered to you if you want to buy in the restricted zone, but the best advice no matter what is always to ask a real estate professional.

At Living Riviera Maya Real Estate, we can help and guide you through each step. We have the experience, knowledge and we will find the solution that works best for you!