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Why Invest in Mexico Real Estate? Part 3

12 January, 2015

Well,here we are again and I’m going to wrap up this series with a short discussion on Land Banking. I’ll go over the concept,explain the benefits,and show you how you can double your money and then some,safely in just a few years. Simply put,Land Banking is the process of buying undeveloped land in the path of future progress.

One our owners favorite quotes is by Will Rogers “Don’t wait to buy land,buy land and wait”. My favorite is  by Gen. Douglas MacArthur "What a man has to do to become rich in America is find out where everyone is going,.. get there first,… and buy LAND.” The art of Land Banking has been around forever and most of the worlds richest people,including industrialists,were large landowners.

Unlike conventional stocks and bonds which are pieces of paper bought,sold,and traded on hype and speculation,land is a tangible asset that when bought properly,is the safest investment you can make. The simple fact is that more people are born every day than pass away  and you can’t make more land. I’m not saying that buying a piece of property in the middle of nowhere is a good idea,but purchasing land in the path of major highways and developments is a no brainer.

That’s exactly whats happening in Tulum right now. Unlike Cancun and even Playa del Carmen,people who invest in Tulum real estate have a different set of building regulations such as height and even more important “population density” which will require developments to be more spread out.

We here at Investment Properties Mexico,having formed a bond with the local Mayans,have been able to acquire the rights to over 800 hectares of land in the area of Muyil. This land is currently in the entitlement process and at every stage the value goes up. Unlike Playa del Carmen,Tulum is implementing a bypass rather than an overpass in order to service the airport and keep the downtown area less congested. And where does that bypass end… Muyil. 

Now lets look at development projects. Large developers prefer to deal with large plots of land rather than 50 individual land owners. Simple fact is when landowners know somebody is buying up property,then the prices increase and the developers have to haggle with each and every one of them,prices go crazy,and most of the time the deal gets put off or just goes away. These developers would rather pay premium prices for a single land deal and get the project going. We understand that and that’s why we put this investment in place.

Now let’s look at the amount of land were talking about,880 hectares,that's 2,000 acres of prime real estate right in the middle of a developing area,not to mention a bypass that lands everyone right at your doorstep. That brings along with it a lot of clout,not to mention a lot of control and bargaining rights,almost enough to control what gets put where and the design model of a small area or city. I find that impressive,don’t you. 

The simple fact is that this area will be a large development project and those that get in first will reap the rewards as with everything else down the coastline and highway 307. As time passes,prices will increase,and you don’t want to be the one that said “If only I had bought then". If you decide to wait then maybe you can get in on the next project... if you're not already retired by then.

Until next time,take some time to look over our Land Banking materials online and I’ll be back soon.

And remember don’t take my word for it,do your own homework and then call Investment  Properties Mexico.

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