For years Mexico has been the top destination for travelers worldwide. The easy lure of its powder white beaches, multi colored turquoise waters and tropical setting makes the 80 mile stretch of the Riviera Maya the most visited spot in the Yucatan Peninsula.
Most people that visit this stretch of paradise with its world class sport fishing, snorkeling, kite boarding and myriad of other activities not to mention the perfect year round weather, wish to own a piece of it. And the most common question is what kind of financing do you have?
Property transactions are, and for the most part, have always been a 95%-99% cash business. This has allowed for a very conservative market resulting in property prices remaining stable and increasing even during the housing crisis most countries faced a few years ago. Options are available though.
Some Pre Sale or Developer financing is available where the buyer makes a down payment of around 30% and then pays benchmark payments or monthly payments until construction is completed. Another form is a large down payment with interest only payments for a period of years, and then a final balloon payment.
For those looking for a more traditional type of financing there are developments like TAO. Located within the gated community of Gran Bahia Principe, Tao is situated in a jungle setting around Latin Americas largest golf course and its owners get to enjoy all of the amenities that the resort offers such as the pools, restaurants, and beach club just to name a few. Pre-construction sales allow the client to put down a min $15,000 payment with monthly or balloon payments with no interest until delivery at which time half of the price must be paid. After completion, clients have the option to finance the rest for up to 10 years at a reasonable interest rate.
One of the little known facts or misunderstandings that people have is that they don’t know they can use some or all of their IRA or 401k to make their investment purchase. With the average investor having lost 40% twice over the last 10 years the idea of using these funds to purchase a vacation rental and eventually a retirement home while still receiving better returns is quite appealing and over 30% of our clients use this form of financing. Whether financing real estate in Akumal ,Tulum or anywhere in Mexico your retirement account can help finance your dreams.
As the Mexican Government and foreign interests are investing billions a year into the Riviera Maya, so are the options for financing beginning to open up. With the influx of foreign investors and a growing middle class, banks and lending institutions are beginning to take another look into the mortgage option.
We want your buying decision to be safe and secure so remember, hire an attorney, hire a professional Realtor, and never buy land without a title.
Visit our Financing section here so you can learn more about how to invest in Mexico