Tag Archives: Living in Mexico

5 Top Riviera Maya Real Estate Trends 2021

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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.

Source: Global Property Guide

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!

Buying Real Estate in Mexico

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PLEASE BE CAREFUL WHEN LOOKING TO PURCHASE REAL ESTATE IN MEXICO

Although having a real estate license IS REQUIRED in Playa del Carmen and all Quintana Roo, according to a law passed in 2015, it is estimated that only less than 1% of those who are selling real estate are licensed. Continue reading →

New Frequent Flyer Program for Pets in Mexico Airports

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Because more travelers are visiting Mexico with pets each year, the Ministry of Tourism (SECTUR) implemented the Frequent Pet Traveler (Mascota Viajero Frecuente) program in major airports around the country, in cities like Cancún, Guadalajara, Queretaro, Toluca, Mazatlan, and Zihuatanejo.

The program aims to make things easier and faster for frequent travelers who need to carry their pets. All the pets need is a special application from SECTUR, a health certificate, up-to-date deworming treatments, and having been vaccinated for rabies for at least 6 months before the travel.

After registering in the program, owners are provided with an official check-in document called Registro de Ingreso, issued by the Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria (SENASICA), which contains the general data of traveler and pet, vaccination and deworming record, and a health certificate that is updated every time the pet enters the country.

To receive the document that certifies the entry of pets into the country, travelers need to present a health certificate, valid for 15 days after being issued by an official veterinarian, on letterhead with the doctor’s medical certificate, along with origin and destination data and date of the last rabies vaccine. Upon entering the country the pet should be in a conveyor or container, clean, without bed or toys, and with a leash or a collar.

In this way, frequent travelers to Mexico who can prove their pets are vaccinated and without worms won’t need to repeatedly fill forms every time they enter the country with their pets since their data will be available on the program’s database. The travel certificate for the pet is sent to the owner via email.

The registration for the Mascota Viajero Frecuente program can be done with no cost in the Agricultural Health Inspection Offices (OISA) of AICM T1, AICM T2 at Mexico City, or visiting SENASICA’s central offices in Cancun, Guadalajara, Querétaro, Toluca, Mazatlán or Zihuatanejo. For more information, contact 59051000 ext. 53611, 54326 y 51020 or (0155) 43130154, 43130155 or 43130152.

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

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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!

 

Puerto Aventuras: a hidden gem in the Riviera Maya

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Puerto Aventuras Marina

Marina lifestyle, the world’s second largest barrier reef, a wildlife sanctuary, a 9-hole golf course just a stone’s throw away from beautiful beaches… that’s only some of the incredible features of the unique community of Puerto Aventura.

Even if you are a local resident or a frequent traveler to the Riviera Maya area, you may not have heard of Puerto Aventuras. But why is that and what more can you discover about this one-of-a-kind paradise?

Situated just between Playa del Carmen and Tulum, Puerto Aventuras has the world’s second largest barrier reef, a world-class marina, and a wildlife sanctuary. Perfectly located in the heart of the Riviera Maya, the town epitomizes the essence of the area: white sand beaches, turquoise water, great sightseeing, archaeological Mayan ruins and multiple islands.

But the benefits of Puerto Aventuras go way beyond its ideal location. One of its best-hidden secrets, the town has one of the few marinas in Mexico that can accommodate large boats and is one of only two between Cancun and Belize that offers full-service. The marina provides docks for different sized boats and yachts from 10′ to 150′ long, sailboats, luxury ships and small fishing boats. A complete residential marina lifestyle, it has a unique and ingenious layout where most homes and condos have immediate access to the canals. Boat lovers and owners can literally tie up their boats directly in their backyard! You’ll also find excellent opportunities for snorkeling, diving, sailing and fishing.

Puerto Aventura is as well the location of the first golf course in the Riviera Maya area which was designed in 1991 by renowned PGA player Thomas Lehman.

Puerto aventuras real estate

Also a wildlife sanctuary, you’ll find dolphins, sea lions and manatees in Puerto Aventura. You can even go swimming with the dolphins! The town also has a number of hotels, restaurants, shops, as well as many bike paths, jogging spaces and tennis courts.

So how come so few people know about this Caribbean gem? A safe and well-protected community, many people assume that the town is off limits but that’s simply not the case. Visitors are always welcome at the restaurants or various hotels. You’ll also find many vacation rentals in the area.

Because most of its hotels and vacation rentals are not listed on common travel and booking websites like Expedia, Puerto Aventuras has remained a very exclusive real estate development. If you do manage to find yourself in Puerto Aventuras, you will immediately notice its tranquil and friendly vibe! With residents hailing from all over the world, the main language spoken is English.  Most people can’t help but fall under the spell of this enchanted community and want to spend as much time as they can there.

Prices for vacation rentals and investment properties will be a little higher than in Playa del Carmen or other towns in the Riviera Maya. But as any resident of Puerto Aventura will tell you, it’s worth every penny!

If you are keen to learn more about Puerto Aventuras and its many amenities and investment opportunities, talk to one of our real estate agents. Living Riviera Maya has many properties listed in this little piece of paradise!

 

The Advantages of Living in Mexico

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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!