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Is Playa del Carmen Real Estate a Good Retirement Investment?

22 August, 2019

Playa del Carmen Real Estate is Ideal Investment for Retirement

If you are thinking of investing in Playa del Carmen real estate, but are unsure whether it is still a good investment, we have the answers! Named one of the best places to retire in 2019 by U.S. News and World Report, Playa del Carmen has a lot to offer.

What is Retirement Real Estate Investing?

Retirement real estate investing is the practice of buying investment properties that will provide excellent ROI and ongoing income for retirement, often by opening a Self-Directed IRA account.


Investing in real estate that's located in a top tourism destination like Playa del Carmen can provide ongoing income for retirement when you buy investment properties like luxury condos and villas that are in high demand for vacation home rentals in the Riviera Maya. The key is to invest in turnkey, professionally managed developments that don't require you to maintain a hands-on approach, so you can leave the scheduling, maintenance and other aspects of property management to the professionals. Investing this way will not only help to maximize your return on investment, but it also keeps guests happy, and - best of all - most turnkey vacation home rental properties are approved for purchase using funds in your IRA account. (More on this later!) 


Why invest in Playa del Carmen Real Estate?

If you're wondering, "Why Playa del Carmen?," for one thing it's situated less than one hour south of the Cancun International Airport in the heart of Mexico’s magical Riviera Maya region. Playa (as the locals often call it) is a thriving, international and very cosmopolitan city that boasts modern infrastructure, world-class cuisine, shopping and spas, along with some of the best beaches in the world!.

Why invest in Playa del Carmen Real Estate?

The vacation home rental market is booming in Playa and throughout the entire Riviera Maya region of Mexico, where there is steadily increasing demand for luxury condos and vacation homes. Travelers are looking for more spacious accommodations, along with a more personalized and authentic local experience than typical big-box resorts and standard hotels can offer. Best of all, despite its popularity and proven history of providing excellent return on investment, the Mexican Caribbean still offers incredible value for real estate investors, with prices that remain well below what you would find in comparable beach destinations throughout the Caribbean and the United States.

“Playa del Carmen is the most sought-after place for foreign real estate purchases in Mexico”, the former head of the Cancun Real Estate Association told Riviera Maya News. “Although Americans make up approximately 60 percent of the foreign real estate purchases in Mexico, Italians, Argentinians and Spanish buyers are also investing in the city"


How Much Can I Expect to Make from Retirement Investments in Playa del Carmen?

With all of this to offer, the amount of money you can make in Playa del Carmen from real estate investments largely depends on how the property is managed and how it was originally intended to be used. For example, some investment properties offer rapid appreciation thanks to the booming real estate market (which is great if you ever decide to sell) and in the meantime will essentially function as a "free" vacation home that pays for itself, with all expenses paid by ongoing rental income. Other professionally managed turnkey properties in Playa del Carmen are designed to provide ongoing annual income (ROI) from vacation home rentals, which also cover all of the annual expenses.

Playa del Carmen is the Most Sought-after Place for Foreign to Retire and for Purchase Real Estate in Mexico


What's the Best Way to Get Started with Retirement Investing in Real Estate?

So, how do you make money by investing in the Playa del Carmen real estate market, especially if you aren’t quite ready to retire and/or don’t want to be responsible for managing investment or rental properties full time? That is where professionally managed turnkey vacation home rentals and condos in Playa del Carmen come in! This type of real estate investment is completely “hands off” when it comes to maintenance and also provides ongoing tax-deferred retirement income if you buy property using funds from your IRA account.

The Vacation Home Rental Market is Booming in Playa del Carmen


Can I Invest my Retirement Account (IRA, 401k) in Real Estate?

The short answer is "Yes!" In fact, buying real estate with funds in your retirement account is a perfectly legal way to incorporate investment properties in your financial portfolio, thereby providing a hedge against inflation, along with essential diversification and ongoing tax-deferred income. The rules for purchasing real estate in your IRA account are straightforward, allowing investors accumulate properties that are used strictly for investment purposes. This means professionally managed vacation home rentals in a top destination like Playa are exactly the kind of property you are permitted to buy with funds in your IRA. Don't have an IRA? Not to worry - you can easily open up a Self-Directed IRA and transfer funds from your 401(k) or other retirement account for real estate investing!


What are Good Options to Invest in Playa del Carmen?

Downtown Playa del Carmen is a popular tourist hotspot that offers low cost of living, warm weather all year round, easy access to the United States and Canada, along with established expat communities and a diversity of lifestyle options. From the idyllic and very walkable new Sofia Boutique property in the heart of downtown Playa, to the turnkey new residential project known as La Residencia, and the incredible condos for sale at Phase 2 of The Fives Downtown, we can show you all of the best real estate investment opportunities in Playa del Carmen! Whether you are looking for excellent ROI, world-class amenities, easy access to the beach, fabulous architectural design (or all of this and more!), we have you covered and can help you decide which type of investment is best suited for your situation.

Do you have questions about buying real estate in Mexico? Ask us in the comments!

Want to learn more about investing in Playa del Carmen real estate? Check out our blog, Is Playa del Carmen Real Estate a Good Investment? ‘Yes,” It is!

Topics: Playa del Carmen Real Estate Investment Retirement Retire in Mexico