If you’re sick of dealing with disappointing returns from mutual funds and the stock market and have been considering adding an alternative investment to your portfolio that is designed to provide ongoing return on investment (ROI), Mexico vacation home rentals should be first on your list. In fact, vacation homes that provide investment income are the best way to invest money in Mexico and we’re going to show you why.
Benefits of Owning Vacation Rentals in Mexico:
- Booming vacation rental market
- Low comparative expenses
- High rent to value ratio
- Excellent property appreciation
- Collecting vacation rental returns
- Getting to visit with family and friends
In fact, although the last bullet point may not typically be part of the equation when evaluating investment properties in Mexico – particularly when you’re talking about the areas in or near downtown Playa del Carmen, Tulum and Puerto Aventuras, which all lie in the Riviera Maya region just south of the Cancun International Airport along Mexico’s only Caribbean coast.
“Since investors can personally enjoy their investment, in addition to making a profit, it means that a vacation rental property in Mexico can be a ‘dream investment,’ while also helping to create a ‘dream lifestyle’ for the investor at the same time,” wrote NuWire Investor, a leading news and education resource for alternative investments, which also covers various types of real estate investment, including vacation rentals, hotels for sale and other investment properties.
Find the Best Mexico Vacation Rental Properties – What Every Buyer Should Know
Before you decide where to invest money or buy real estate in Mexico, it’s important to evaluate the potential location(s) and find an experienced real estate investment advisor to work with. Start by finding the most reputable real estate investing companies in each area, or – even better – find one experienced realtor or company that can help you find and evaluate the best properties for your needs and budget in all of the areas you are looking at.
“When deciding where to invest in a Mexican vacation rental property, the most logical choices would be the main tourist regions of the country – the Riviera Maya (Cancun, Playa del Carmen, etc.), Puerto Vallarta, Los Cabos, Lake Chapala, etc.,” wrote NuWire Investor.
It’s also essential to evaluate the existing rental market in the area, so work with your investment advisor to do some basic research on other investment properties to see if they are renting out regularly or sitting empty and which areas are reporting 80-90% hotel occupancy rates and rising tourism numbers.
So, as a general rule – if your main goal is to receive excellent vacation rental returns, look at projects that are already proven to provide ongoing investment income and strong appreciation.
For example, The Fives Luxury Residences offers two amazing locations in downtown Playa del Carmen – one directly on the beach and the other just a few minutes’ walk away near Playa’s ultra-chic and always bustling Fifth Avenue. The beautifully-appointed units offer the opportunity for ongoing rental income and “No Worries No Hassles Ownership,” bringing the best of the Playa del Carmen real estate market to investors in a whole new way.
Other fantastic vacation home investment properties in Mexico’s Riviera Maya include Villas Las Palmas Boutique Hotel & Residences, which is a luxury, residence-style boutique hotel close to one of the world’s most beautiful beaches that offers an amazing 8-14% return on investment (ROI) and the best services and amenities in Tulum; as well as Villas Aqua in Puerto Aventuras, which offers 8-12% ROI and easy access to the beach, a world-class golf course designed by Thomas Lehman, a picturesque marina, and plenty of dining, shopping and adventure activities in one of the Riviera Maya’s most exclusive communities.
Both Villas Las Palmas and Villas Aqua also offer “No Worries No Hassles Ownership,” which is an essential part of successfully managing vacation home rentals in such a competitive market that is likely far from the buyer’s home base.
“If an investor doesn’t want to be involved at all in the management of their property, they should look at resorts or complexes that offer rental pools,” wrote NuWire Investor. “While these are fully-owned and titled condominium properties, the resorts will often take care of all levels of maintenance and decoration.”
Of course, these residence-style boutique condo hotels also tend to have a better international presence and therefore better promotional strategies and rental pools as well. All of that will lead to higher occupancy rates, and of course, a hand-off approach to ownership, which frees up your time to focus on other investments or just enjoy life. Finally, be sure to ask your investment advisor about buying real estate with an IRA and take a look at the Self-Directed IRA real estate rules, which present an alternative investment option to the typical mortgage loan or all-cash property purchase.
What’s the best-performing investment you’ve ever had in your portfolio, traditional or otherwise? Share your personal investment stories in the comments section below!
Want to learn more about how “No Worries No Hassles Ownership” provides the best way to invest money in Mexico real estate? Click the link below and see why this innovative approach to property management and investing money ensures that you will enjoy the property and collect unbeatable return on investment.