If you wonder if this is a good year for buying or selling real estate in Mexico, you have come to the right place. 2020 might have been a tough year for the world, but the real estate market in the Riviera Maya is looking at a bright future. In this article, we will explain in detail what perspectives you can look forward to when buying or selling a property in Cancun, Playa del Carmen, and its whereabouts during 2021.
Is Mexico real estate a good investment?
Yes, and we can prove it. Mexico, as a country, has the perfect geography. Its people have the right mindset. The Mexican market is close enough to the United States to become a buoyant economy. The country is what we call a cash market. This means that Mexicans count more on their cash than on their investments or commodities with future returns. This opens an extraordinary window of opportunity for reliable investment opportunities such as real estate. Even after global economic crises (like the Mexican collapse in 1994 or the US crash in 2008, the Mexican real estate market has remained stable for investors from all over the world. Even though sales were lower in 2020, we can expect this to change in 2021 radically.
Do foreigners invest in Playa del Carmen and Cancun?
Usually, Americans, Canadians, or Europeans come to the Mayan Riviera to spend some weeks during the snow months. As soon as they arrive, they fall in love with the place. After they go back home, they find themselves planning to come back as soon as possible. Given the exchange rate, the warm weather, and the Riviera Maya’s beauty, retiring and living here is a plausible plan for many. The Cancun Airport connects all major cities in Mexico and the rest of the world. The lifestyle is relaxed. Playa del Carmen has grown into a diverse and culturally intense community where both Mexicans and foreigners share interests in building a sustainable city for the people who live in it.
Should I buy real estate in Cancun and Playacar during 2021?
Yes! The year 2021 will see real estate developers offering excellent exchange rates to attract both Mexican and foreign investment to their properties. If you are paying in USD, consider the COVID crisis increased to 35% the value of one dollar against the Mexican peso. If you pay in cash, owners and developers are willing to offer considerable discounts since the Mexican market has always preferred money upfront. Why? Mexican mentality works as a problem solver in the short term. Not many people purchase real estate with a mortgage. Owners can then buy their next house or condo almost immediately. So if you have the money and are waiting for the right time, 2021 is the best year to invest in real estate.
Should I buy a new or old property in Mexico?
Probably 2021 will be the best year to buy a new property in the Mexican Riviera. Tourism was slow for most of 2020, so not many owners are trying to sell their houses or condos right now. The government might try to implement measures to help the Mexican economy back on its feet, but people are doing their share. Developers and builders are offering high discounts for pre-sale real estate. These discounts can go from 3% up to 20% of the final price. Lawyers and notaries are also helping by not charging some of their services. In pre-COVID times a notary might charge up to 5% of the property’s value as a closing cost. By 2021, they will be offering new low rates and even free title reports.
How can I make a good investment in Playa del Carmen real estate during 2021?
There are two things you need to make sure you do:
- Get help from a professional. You may think you can buy a property in Mexico on your own. But between figuring out contracts, notary appointments, registration procedures, certified documents, and more, it is easy to get lost, especially if you are a foreigner. Get help from a bilingual licensed attorney in Mexico. With their help, your investment will be safe. For example, in the Riviera Maya and Cancun area, Lorad Business Consulting is a local law firm specializing in foreigners’ real estate investments. They can help you decide the best strategy to get the property safely under your name.
- Decide what this investment is for. Is it a summer home? Do you want to get rent from it? Your lawyer can also present options to you regarding the best strategy to get the most from your money.
How will we go house hunting during 2021?
Things have changed for sure. Many developers and agents are prepared to show you excellent views of the properties online. They have drone-captured images and 3D renderings of both the inside and surroundings of all their properties. You might be sitting in a cold New York apartment while happily looking for what will be your new home in Cancun or Playacar next year. If you are already in the zone, agents will probably provide you with hand sanitizer, shoe covers, and face masks to visit the different properties. Make sure the houses have the windows and doors open and that you don’t touch anything while visiting. You will use your camera to capture details of interest and inspect the place further online.
What does the future look like for the Mexican Caribbean?
It looks brilliant in a nutshell, especially if you want to keep your money as a tangible asset in real estate. You can purchase a house or a condo and rent it, which will provide a steady income, or use it yourself to live in and see the best return for it in a few years in the future. Think of choosing a pre-sale offer that will offer a discount during the first half of 2021. When you receive the property in the second half of 2021, tourism will probably be back on track. Then you will be able to rent it fast. Remember that many jobs will still be remote during 2021. This means many people will be looking for fabulous places where they can work from home. They will be willing to pay rent for your property in this paradise.