Frequently Asked Questions

1. What are the costs associated with buying a property in the Riviera Maya?

It is important to clarify that, after deducting expenses, our annual profit is an average of 10% to 12% per year of the value of our property.

When purchasing a property in the Riviera Maya, costs include:

• Notary fees (approximately 1% to 2%).

• Trust costs (for foreigners, it can range from $500 USD annually).

• Closing costs (typically 5% to 7% of the purchase price). Additionally, if you plan to rent, there are maintenance and utility costs. As Warren Buffett said, "Price is what you pay; value is what you get." Here, value lies in market growth and tourism appeal.

2. Is it safe to invest in real estate in Mexico?

Answer: Mexico, especially the Riviera Maya, has proven to be a safe investment option. The real estate market has shown consistent appreciation, and the tourist demand ensures high occupancy rates for rental properties. It's important to work with trusted agents who know local regulations. As Donald Trump stated, "Real estate investment, even on a small scale, remains a proven means of building wealth." The key is to choose the right area and seek proper advice.

3. What types of properties are most profitable for investment in this region?

Answer: Vacation condos and luxury homes are the most profitable options, especially in high-demand tourist areas like Tulum and Playa del Carmen. Oceanfront condos or those in gated communities offer good returns from short-term rentals, while luxury homes can attract high-net-worth buyers for permanent or vacation residences.

4. What is the buying process for foreigners in Mexico?

Answer: The process is straightforward but involves some additional steps for foreigners:

1. Trust: If the property is in the restricted zone (50 km from the coast), you must set up a trust with a Mexican bank.

2. Purchase agreement: Similar to other countries, a preliminary contract is signed.

3. Notary: A public notary authenticates the transaction and the acquisition tax is paid.

The process can be completed in a few months if you have the right support.

5. How does the trust property work for foreigners?

Answer: A trust is a legal instrument that allows foreigners to buy properties in the restricted zone (like coastal areas). The bank acts as the trustee, but you hold all rights to use, enjoy, and sell the property. This contract is renewable and offers the same security as a direct deed.

6. What areas are most recommended for investment in the Riviera Maya?

Answer: Cancun, Playa del Carmen, and Tulum offer unique opportunities:

• Tulum: Ideal for luxury and eco-friendly properties, attracting high-end travelers.

• Playa del Carmen: Popular for vacation rentals and urban condos near the beach.

• Cancun: A more established market, perfect for long-term investments with secure returns.

7. What are the property value appreciation projections in the Riviera Maya?

Answer: According to recent data, the Riviera Maya has seen annual appreciation rates of 8% to 12% in key areas like Tulum and Playa del Carmen. Continuous growth in tourism infrastructure, coupled with rental demand, suggests this trend will continue in the medium to long term.

8. What legal aspects should I consider when investing in Mexico?

Answer: It's crucial to work with a real estate attorney and ensure all documentation is in order. Contracts should be clear and protect both the buyer and seller. For foreigners, using the trust is essential, and understanding local tax laws is key. Legal security is guaranteed when the proper process is followed.

9. What is the expected return on investment (ROI) for vacation rental properties?

Answer: The ROI in the Riviera Maya can vary, but vacation rentals typically generate annual returns between 8% and 14%, depending on location and property management. The most tourist-friendly areas, like Tulum and Playa del Carmen, offer higher occupancy rates, especially during peak seasons.

10. Are financing options available for foreigners looking to buy property in Mexico?

Answer: Yes, there are financing options available through local banks and some international banks. Interest rates may be higher than in Canada or Chile, but it's a viable option. Additionally, some developers offer direct financing with flexible terms.