The good
news for investors and Foreigners is you can own property in Mexico,
free and clear, easily and forever. Or buy low and sell high. Having lived
here for 6 years, I am amazed at the changes and modern times that seem
to have flooded into this area - small fishing villages now evolving into
modern cities with American-style life and mega shopping centers.
When I arrived
by boat with my family in 2001, life was slow and easy; the Mexicans still
live the old way but life has become an extension of Miami - fast vibrant
exciting with a booming real estate market.
As little
as 4 years ago, the growth began. Skyscrapers climbed to the sky. Condos
began selling for $300-$500000US dollars, not pesos, the official currency.
Houses with oceanfront that could be bought 6 years ago for $60k, climbed
into the $150K range.
Bare jungle
that used to sell for $1000 a hectare (1 hectare=approx.2.2 acres)
is now going for over $50K, depending on location. Brand new houses in
American style suburbs began mushrooming and Mexicans lined up to buy them,
along with a few smart foreigners. Four years ago a new 2 bedroom 2 bath
house with sunroof and garden went for $40,000, now they are in the region
of $90,000 region and climbing fast.
The good news
is its only half way. Yes you should have been here 4 years ago but its
not too late - the word between the realtors is 2-3 more good years before
saturation and full market value is reached. Bottom line, buy a new house
or condo now and watch your investment probably double in 3 years while
you rent it out or live here in winter while your neighbors freeze back
home.
Developers
have been pouring in from Spain, the USA, Canada and Mexico city, why?
Low cost land + high demand + low construction costs = profit.
In the
small city of Playa Del Carmen I have seen over 50 new condo building projects
in the last year alone.
About 45 miles
South of Cancun a condo here is not likely to be under $130k. Oceanfront
condos move in the $250 to $500k plus range and they will be 5 star with
all mod cons, Jacuzzi, pool, etc.
Developers
are opening large American-style shopping malls as populations are expanding
at an ever increasing rate; this area is predicted to go from 100,000 people
to 600,000 in the next 6 years. Twenty years ago there were 3 small movie
houses – there are now 24 state of the art cinemas with all the
latest movies –they’ve opened in the past 4 months
alone.
Wal-Mart is
here, so is MacDonald’s, Sam’s Club etc.Mexicans love the new wave. They
want American or fancy European taste goods, restaurants fast food and
slow, the lifestyle.
Over 1,000,000
foreigners live in Mexico today, many in this region, settling in. Canadians,
American, Britons and Europeans are moving in and fueling the boom. In
addition the wealthy families from Mexico Citys with its rat race of thirty
million people, pollution and high crime rate, want to retire here.
Cozumel
is the largest island of Mexico - only 9 miles from Playa Del Carmen. Dozens
of projects are underway, and selling fast. This I fear is the last area
for good buys in beach front real estate.
Prices range
from $300 to over $1000 per square foot beach front property in this whole
region, and is hard to come by, unless you go far south towards Belize.
Cancun, with
a population of over 50,000 leads the area in real estate prices; oceanfront
condos are on par with Miami and selling at around $80,0000 again depending
on exact location and size. One can still find a good deal in the older
suburbs, with a 3 bedroom house of Cancun possibly going for under $100,000.
In Playa the
big developers and hotel chains are building rapidly and I expect in the
next few years the entire coast will be composed of hotels. The Riviera
Maya has become one of the busiest areas in the world for tourism.
A friend purchased
a small residential lot for $80,000 a year ago and sold it recently for
$160,000, again in a high demand location. Another aspect of real estate
turning good profit, is subdivision - buying 10 acres and splitting it
up for residential lots. Over 3 times return in the right location.
In the past
2 years the infrastructure has improved dramatically - new hospitals, universities
and schools have sprung up. My kids attend a new private school that almost
equals American standards.
New cars are
the most outstanding development - just 4 years ago a SUV or luxury car
was very rare, now I watch fascinated as every second car is a new BMW
Toyota SUV or Mercedes version, even Hummers are here. Financing came out
around that time so the real estate boom equals new wealth and lifestyle.
If you want
to retire or live in a new country consider Mexico changing faster than
you or I can blink, but be willing to learn Spanish and live in tranquility
with the locals who are wonderful people.
If you’ ve
been coming down to Mexico on vacation for years and thinking about buying,
do it soon or it will be over, I kid you not.
For investors,
these are my best picks depending on your investment level:-House or condo.
Buy if price and location good, rent and hold. Buy several to maximize
profit and retire from the proceeds.
Development-
I offer 20% ROI on beachfront condo development, minimum.
Investment
$550000usd. I build 12-15 condos to be sold within 18 months.
Land - solid
return with good location. Very high ROI with smart purchase.
Hotels - I
have several from $1million to $50 million.
The best deal
is large oceanfront lots zoned for hotels. These can be bought for a couple
of million and flipped at huge return as phenomenal demand from the international
hotel chains who want a piece of this market.
I also offer
accounting service and can have a corporation set up in your name to own
the properties making it 100% legal, in your name.
Rental and
maintenance service available.
Even Stewart
Title service now here.
Recently,
an investor bought many acres just back from a beautiful beach, he now
sells an up market 4 bedroom house in American style community in the $600k
range and they are selling fast to my surprise.
If you have
any serious questions about this area or deals going fast you can reach
me at dave2ash@yahoo.com, I will
be glad to work with you, I am strictly a buyers agent, my website is www.primeinvestmentrealty.com
