Many people are considering buying a second or vacation home in Mexico and only want to spend a few weeks or part of the year in it. The financial opportunity exists to make enough rental income to cover the property's costs. A purely hands-off vacation home rental that doubles as an income producing investment property is extremely desirable. You can generate income while a property in the Riviera Maya appreciates in value, which is certainly not the case now, or in the near future, anywhere in the US. How can this be accomplished?
The first factor to consider is tourism figures. The Riviera Maya, along the beautiful Mexican Caribbean coast, attracts large numbers of visitors, giving you a large pool of potential renters, since it is a highly desirable vacation destination. More and more tourists opt for living the lifestyle here, in a home or condo, rather than having a canned big-box resort experience. To put things in perspective, Mexico's occupancy rates were averaging 65%, even in this harsh economic downturn, and occupancy rates in the Riviera Maya are even higher.
Beyond the numbers of tourists and rates of occupancy, you of course will also need to buy an attractive property that is in a desirable location. Amenities are key to potential renters and therefore also critical to your success in renting. The type and quality of the amenities your property offers will guide renters to you. Even your furniture choices will make a difference and finding an excellent property manager is an absolute must. Partner with someone who will take care of any necessary duties, including cleaning, paying bills, maintenance and repairs. With everything in place, you can expect to host rentals for 18-24 weeks a year.
Growth in the Tulum real estate market is also creating an urgent need for short-term accommodation. Right now, there simply is not enough supply and the accompanying demand gives you an excellent opportunity for great return on investment.
Another alternative that reflects truly hassle-free real estate investing is a condo-hotel. Right now, a limited opportunity exists in a development just about an hour and a half from the Cancun International Airport, just 30 minutes from downtown Playa del Carmen and 15 minutes from the Mexican Caribbean Sea in Tulum, which is home to the best beaches in the world.
Your real estate investment in a luxury condo-hotel unit gives you access to a beach resort and the new 27-hole Riviera Maya Golf Club, one of the best golf courses in the region. Units are fully furnished with guaranteed rental income from the resort hotel. This investment opportunity is completely operational without requiring any work on your part. You won't have to find renters, there are no condo fees, utility bills, repairs or maintenance to worry about. It's all taken care of, so you just get to relax and receive your quarterly return on investment. These luxury condos have been hugely popular and have seen significant appreciation since they were sold as pre-sale units.
Our office can guide you through the variety of options for owning vacation property in the Riviera Maya, providing a home-away-from-home with significant profit on your investment property and excellent rental returns. Now may be the best time to prepare for the upcoming high season.
Do you have questions about the best ways to make money with a vacation home? Let us know in the comments!
Read Are Turnkey Vacation Rentals Right for You? to learn more about this exciting alternative investment wealth building strategy!