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10 Reasons Riviera Maya Real Estate Won’t Depreciate

13 May, 2017

10 Reasons Riviera Maya Real Estate Won’t Depreciate

The Riviera Maya is an 80-mile stretch of prime beachfront real estate that runs south along Mexico’s Caribbean coast from Cancun, stretching through Playa del Carmen and Puerto Aventuras, all the way to Tulum. Mexico’s Riviera Maya is not only stunningly beautiful, safe and accessible, with modern infrastructure and every amenity at your fingertips, but it also happens to be one of the most attractive destinations in the world for anyone considering investing in real estate.

 

 

“The real estate market in the Riviera Maya is thriving,” wrote Bigger Pockets. “It has become one of the most successful markets for real estate.”

Here are 10 reasons why real estate in Mexico’s Riviera Maya won’t depreciate and the value will continue to go up over time:

1. Riviera Maya is Among World’s Top 10 Fastest-Growing Property Markets

The Financial Times named Mexico and the Riviera Maya among the top 10 fastest-growing property markets in the world last November – a status that is unlikely to change anytime soon. Prices have risen about one third over the last five years in the Riviera Maya and demand has risen exponentially as well, with sales increasing by at least 25% each year for the last three years.

2. Hotels Report 80%+ Occupancy Rates

Year after year, hotels and property managers who rent out vacation homes and condos in Mexico’s Riviera Maya report average occupancy rates of 80% - 90%. This translates to serious income for anyone who owns a vacation home rental in Playa del Carmen, Tulum or Puerto Aventuras.

10 Reasons Riviera Maya Real Estate Won’t Depreciate -  Hotels Report 80%+ Occupancy Rates

3. More Than 13 Million Tourists Visited Mexico’s Riviera Maya Last Year

Again, this can translate to incredible income for anyone who owns real estate in Playa del Carmen, Puerto Aventuras or Tulum that is anywhere close to beachfront, and the tourism numbers are growing by leaps and bounds every year.

4. Mexico’s Middle Class is Growing

One of the most tell-tale signs of a healthy economy is a strong middle class, and Mexico’s middle class has been growing in size for years. In fact, the rapidly growing middle class in Mexico is quickly becoming the country’s largest demographic.

5. Mexican Economy is Strong

According to the Financial Times, Mexico’s economy is “humming along” and remains strong despite some political uncertainty and a weak peso. In fact, the weak peso is encouraging foreign buyers to invest larger sums and is driving growth in the Mexico real estate market.

6. Cash Deals Equal a Robust Mexico Real Estate Market

In Mexico, almost everyone pays cash for their property, so people buy what they can really afford, not what they can afford to buy in payments. While this might seem like a minor detail at first, upon closer inspection it supports the overall long-term strength of the real estate market in the Riviera Maya and throughout the country.

10 Reasons Riviera Maya Real Estate Won’t Depreciate - Cash Deals Equal a Robust Mexico Real Estate Market

7. Billions of Investment Dollars are Pouring In

Everyone always says to “follow the money,” and the Riviera Maya real estate market is no exception. Luxurious new developments are popping up all the time and it seems like there’s a new announcement nearly every day about someone who is planning to invest a large sum in a new business venture. The list is long, but it includes a $235 million investment by Thor Equity Group, a more than $1 billion investment by OHL and Dreamworks announced an $800 million investment just last year.

8. Invest with your IRA / 401K

Most investors don’t realize that it’s possible to buy real estate using a Self-Directed IRA, which can provide another way to buy property, in addition simple cash purchases. Assets can easily be rolled over from a traditional IRA or 401(k), but most financial advisors will never mention this, because it doesn’t pay them commission and isn’t part of the standard list of stocks and mutual funds they are all told to sell.

10 Reasons Riviera Maya Real Estate Won’t Depreciate - 8. Invest with your IRA / 401K

9. Collect 8-14% ROI Per Annum

Not only will real estate in Mexico’s Riviera Maya not depreciate, but if you make a smart purchase it can actually pay a handsome ongoing annual return on investment (ROI). Some vacation home rental properties in the Riviera Maya are offering between 8-14% ROI – and you also get to own a gorgeous condo in one of the world’s best vacation destinations – what could be better?

10. Tourism in Mexico is Still Growing

As a whole, Mexico is #9 among the world’s top 10 vacation destinations and attracted around 35 million visitors last year. This momentum is showing no signs of slowing down, in fact it is only speeding up as the numbers for the first quarter of 2017 start to roll in.

Have you ever thought about buying a vacation home in a foreign country like Mexico? Share any questions you might have in the comments section below!

Want to know more about using real estate as an alternative to traditional investments like the stock market? Click the link below and learn how real estate can help you beat the dismal returns most investors have been seeing!

Which is the Better Investment? Real Estate or Stock, Discover why real estate beats the stock market

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Topics: 401k Real Estate Investment

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