Investing in property abroad can be intimidating if you’ve never done it, so many would-be buyers miss out on the incredible opportunities presented by alternative investments like Playa del Carmen real estate. We hope these smart tips for buying investment properties in Playa will give you a better understanding of how to buy property abroad and will help you find the right investment property for your needs.
Mexican Property Laws: Buying Property in Mexico As a Foreigner
First and foremost, it’s important to establish once and for all that YES, foreigners can legally own and buy property in Mexico, even in the "Restricted Zone" (see more on this below). In fact, changes in the constitution over the years have made it easier than ever for foreigners to buy real estate in Mexico and right now is a great time to buy! In these areas, “restricted” is simply referring to the Mexican federal government’s requirement for foreign buyers to set up a bank trust known as a fideicomiso in order to hold the title.
What and Where is the Restricted Zone in Mexico?
According to the Mexican constitution, the Restricted Zone includes property within 64 miles of any international border and within 32 miles of the coast. In these areas, “restricted” is simply referring to the rules governing real estate transactions that involve foreign buyers.
What is a Fideicomiso?
A fideicomiso is a type of bank trust that gives the beneficiary absolute control of the property. You can choose to enjoy the land, lease it, make improvements, mortgage the property, sell it, designate the property for inheritance or give it away. In other words, your property is held under a fiduciary that is managed by a bank in Mexico on your behalf, and you get to call all the shots.
“The fideicomiso is a bank trust wherein the bank (trustee) holds the trust deed for the purchaser (beneficiary)”, writes Global Property Guide. “While the trustee is the legal owner of the real estate, the beneficiary retains all ownership rights and responsibilities and may sell, lease, mortgage and pass the property on to heirs”.
Authorized under the Ministry of Foreign Affairs, the bank is also required to validate ownership as well as insurance, and to confirm that the property is free of any liens. The trust is initially granted for a 50-year period, but the owner can easily renew it, sell the property, or transfer it to an heir.
Working with a Real Estate Agent
One of the most important parts of buying real estate in Playa del Carmen – or anywhere else in Mexico for that matter – is finding a trusted real estate investment advisor to help guide you through the entire process. When you are investing in property in a foreign country, it’s more important than ever to find a realtor you can trust.
What Do Real Estate Consultants Do?
First and foremost, working with an experienced real estate investment advisor should protect you from falling prey to bogus deals. In addition, he or she should be able to answer any questions you might have about owning real estate in Mexico, and they should also be able to guide you thorough every step of the process. This includes everything from helping you find the perfect property that will perfectly suit your unique needs, to getting you the best possible price and making sure all of the required paperwork is in good order prior to closing.
At Investment Properties Mexico, we specialize in helping our clients every step of the way, from finding the best type of property to suit individual needs, to working with an English-speaking Mexican attorney who has our best interests at heart, to getting the best return on investment every time. In order to find a realtor you can trust, be sure to ask for referrals and see what other clients have to say about their experiences.
Choosing a Property Type: What Type of Investment Property Works Best for Me?
Now that you have a better understanding of how to buy real estate in Playa del Carmen and ensure you are protected during the buying process, it’s time to talk about what type of investment property works best for your situation. Whether you simply want a vacation home for your family to enjoy, are looking for a turnkey vacation rental that will serve as a reliable income producing property, or are more interested in buying land in the path of growth that you can sell for a huge profit at a later date, Playa del Carmen real estate has something for every type of investor.
Full Time Home:
- If you want to live in Playa del Carmen all or most of the time and require more space, a full-time private home is probably your best bet.
- Buyers who wish to visit Playa regularly and bring friends and family along once in a while should consider investing in a turnkey vacation home.
Income Producing Property:
- Investors can also earn fantastic ROI from ongoing rental income with income-producing vacation homes in Playa del Carmen.
- Buying vacant land lots in the path of growth is another smart real estate investment strategy that is available in Playa del Carmen.
When deciding what type of property to buy, keep in mind that in Playa it’s also possible to have the best of both worlds! Since steadily rising tourism numbers continue to create demand that outpaces supply, there are turnkey vacation home rentals in Playa del Carmen that offer great ROI and a hassle-free ownership experience. This is possible thanks to the booming real estate market in the entire region, which also supports rapid property appreciation and virtually guarantees that Riviera Maya real estate will never depreciate.
How is the Lifestyle in Playa del Carmen?
The lifestyle in Playa del Carmen is laid-back with a distinct cosmopolitan vibe, offering easy access to the best beaches in the world, along with a wide variety of incredible activities that just can't be found anywhere else! The cost of living is also very affordable, and the overall quality of life is unbeatable, with ample opportunities to kick back and enjoy yourself while shopping and sampling world-class cuisine in Playa's thriving, walkable downtown. And if adventure is what you crave, the world's second-largest barrier reef lies just offshore, offering easy access to some of the best boat tours, snorkeling and diving excursions available anywhere, while the entire Riviera Maya region is home to many different archaeological sites where you can explore breathtaking ancient Mayan ruins.
Where to Invest in Playa del Carmen?
When you're ready to buy real estate in Playa del Carmen, it's important to know the best places to invest, whether you're looking for high return on investment or easy access to the beach. Making an educated decision is always the best way to invest in real estate in a foreign country, and Playa is no exception. Work with your experienced real estate investment advisor to find a property that provides easy access to everything the Riviera Maya has to offer and be sure to check out the innovative income-generating turnkey investment properties in Playa that offer rapid appreciation and a hassle-free ownership experience, with professional on-site management ready to handle all maintenance and booking concerns.
Do you still have questions about investing in Playa del Carmen real estate? Post them in the comments!
Click the link below to download our FREE detailed guide, Buying Safely in Mexico and learn more about smart real estate investment in Mexico!