As one of the top beach towns for high rental yields, it’s not surprising that investment property in Tulum is a hot commodity right now. But how can you ensure that the property you’re buying will deliver great return on investment? Here are our tips for how to buy property that will provide excellent appreciation and ongoing rental income in Tulum.
Should I Invest in Tulum?
Home to iconic Mayan ruins overlooking the Caribbean Sea just south of Cancun and downtown Playa del Carmen in Mexico’s Riviera Maya, Tulum real estate has been gaining attention as a safe, lucrative investment opportunity. The laid-back, eco-chic lifestyle in Tulum has long been revered among travel-savvy jet setters, who come to enjoy its stunning oceanfront vistas, fresh local cuisine, exciting activities and the best beaches in the world. As a result, it was always just a matter of time before investors also started realizing that Tulum real estate offers a once-in-a-lifetime opportunity right now to collect high returns in one of the world’s strongest property markets.
“It is, and will stay, boutique”, wrote International Living. “This location has something big going for it. Five years from now this area will be a major attraction. The demand is already here, and it’s just getting started”.
It's also important to note that real estate investing always provides a natural hedge against inflation and has consistently delivered returns of 10 percent or higher. In addition, compounding those 10 percent returns from real estate investments can provide the added benefit of 50 percent more income, when compared to other types of investments.
What is a Good ROI on Rental Property in Tulum?
Buying rental property in Tulum is one of the best ways to invest money right now, offering returns of 8-12 percent ROI or higher on income producing investment properties (if you know where to look). Considering that most of today's stock market average annualized long-term expected return models show an average ROI of 6-7 percent (if you ignore inflation), the returns you can expect from rental property in Tulum are pretty incredible, especially considering that real estate is also much more secure than stocks. And when you factor in a decade of inflation (which comes in around -1.6%), the number you can expect to get from investing in the stock market drops to somewhere between a paltry 4.4% and 5.4%.
Thankfully, luxury condos like KASA Residences in Tulum are easily beating the stock market, offering a secure, proven annual return on investment of at least 7 percent! They function as completely turnkey, income producing rental property, with spacious units, world-class amenities and professional management on site to handle the maintenance and booking requirements, so all you have to do is sit back and collect ongoing rental income.
How do you Buy Income Property in Tulum?
The process of buying income-producing property in Tulum is simple enough to understand, but there are a few tips we want to share, so you know what to expect. From finding the right real estate investment advisor, to deciding which type of property best suits your needs and getting a with the idea of "No Worries, No Hassles Ownership," we have you covered!
Hire a Real Estate Agent Expert
First, it's essential to hire an expert local real estate investment advisor who knows the area and can help you find the best deals on Tulum real estate that are available right now. Don't be afraid to ask for references and client testimonials to make sure they have a good reputation. He or she should also show you a variety of different properties that fit within your budget and lifestyle, to acquaint you with the area and show you a wide range of available investment properties.
Choose the Right Property
When you're looking for income producing real estate in Tulum, it's also important to make sure you choose the right property and fully understand the projected return on investment for each type of property you are considering. Take a close look at the timelines and fine print. Don't be afraid to keep asking questions until you feel satisfied and are excited to move forward with purchasing the property.
Find a Condo with "No Worries, No Hassles Ownership"
As we mentioned already, unless you want to spend a lot of time personally managing, maintaining and booking your new vacation home rental in Tulum, finding a property with "No Worries, No Hassles Ownership" is also an essential step in the process! Some of the innovative new condo-hotel developments in this area - including KASA Residences - offer resort-style services and amenities, along with “No Worries, No Hassles Ownership,” which basically means buyers don’t have to do anything to maintain or rent out the property… Except sit back and collect ongoing rental income and enjoy their vacation home with friends and family, if and when they decide to pay a visit.
Do you have questions about buying real estate in Mexico? Share them in the comments!
Just click the link below to learn more about the luxury condos for sale at KASA Residences Ceiba Tulum !