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 investment property here that will provide excellent appreciation and ongoing rental income.
Home to iconic Mayan ruins overlooking the Caribbean Sea just south of Cancun and downtown Playa del Carmen in Mexico’s Riviera Maya, the lifestyle here has long been characterized by stunning vistas and the best beaches in the world. It was always just a matter of time before investors started realizing that Tulum real estate is offering 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”.
Best Ways to Make Money in Tulum
Buying real estate in this area is one of the best ways to invest money right now, with luxury condos like Villas Las Palmas Phase 3 in Tulum beating the stock market and offering 8-14% return on investment. How does this work? Simple: Most stock market average annualized long-term expected return models use between 6-7%, which is also what most people are planning to get for their retirement savings. Sadly, when you factor in a decade of inflation (around -1.6%), that number drops to between 4.4% and 5.4%.
On the other hand, real estate provides a natural hedge against inflation and has consistently delivered returns of 10 percent or more. In addition, compounding those 10 percent returns from real estate investments can provide the added benefit of 50 percent more income compared to other types of investments.
What’s more, the innovative new condo-hotel developments in this area also offer resort-style services and amenities, with “No Worries, No Hassles Ownership,” which 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 Villas Las Palmas Phase 3!