Mexico, Mazatlan, colourful old town streets within the historic city center
Mexico is probably the most promising markets for foreign real estate investments.
It is home to several well-known cities that constantly attract tourists, retirees and digital nomads on account of their status. This ensures that you’re going to have little to no problems when renting or selling your property.
Mexico has some restrictions on foreign property buyers that potential investors should concentrate on. You need a Fideicomiso (a Mexican bank trust) to purchase property inside 64 miles of a global border or inside 32 miles of the coast, an area generally known as the Exclusion Zone. As the owner, you’re the beneficiary of the trust.
Mexico is definitely accessible by plane or automobile, so if you would like to use your property as a second home or retire to Mexico, this is definitely possible.
Take advantage of the present strength of the US dollar against the Mexican peso in these markets, which offers you excellent living and money flow potential.
Where to purchase property in Mexico
1. Puerto Vallarta
“The Night of the Iguana” put Puerto Vallarta on the map within the Sixties. Puerto Vallarta became synonymous with sun, beaches, excellent restaurants and natural beauty.
Cities as well-known as Puerto Vallarta offer benefits for real estate investors. Their public image is the fundamental reason why anyone visits and invests there in the primary place. If you invest and choose to sell, it should be much easier in a prestigious area like Puerto Vallarta.
Location is crucial while you resolve to purchase a property. Puerto Vallarta stands out from other Mexican cities because of its ocean views and dramatic scenery. The city is situated where the Sierra Madre meets the ocean. The farther you go from the coast, the upper town gets. Even in case your property is not right on the beach, you’ll need unobstructed views of unforgettable sunsets.
Puerto Vallarta is simple to go to because there are a minimum of 20 nonstop flights from cities across the United States and 15 nonstop flights from Canada.
Puerto Vallarta has many attractive neighborhoods with different characters and lifestyles that cater to the wants and desires of a wide selection of individuals.
Investors proceed to decide on this branded city on account of its high occupancy rates, excellent construction quality, lively rental market, vibrant lifestyle and extensive tourist infrastructure.
2. Mazatlán
Mazatlán offers among the best beach lifestyles Mexico has to supply.
Visitors (your renters) flock to Mazatlán to benefit from the recently renovated historic center. They are drawn by the delicious cuisine, charming plazas, live music, theater and impressive architecture.
Mazatlán also boasts one among the longest beachfronts in Mexico. This city is way from recent; it’s one among the country’s established beach resorts on the Pacific coast. However, it has often been ignored by investors and second-home buyers. However, Mazatlán has experienced an actual estate boom lately and its popularity is growing.
Despite the rise in real estate prices, homes here still sell for lower than comparable Mexican cities. It is cheaper than Playa del Carmen and Puerto Vallarta and offers similar lifestyle and real estate options.
Mazatlán is a predominantly Mexican destination, much more so than Puerto Vallarta. This city has a big expat population and English is widely spoken, but most visitors come from other parts of Mexico.
Another attractive factor for investors and visitors is the range of housing options in Mazatlán. You should buy on the marina or in its bustling business district, the Golden Zone. You can make a choice from a quiet beach away from the hustle and bustle or a busy but well-maintained beach. Golf and boating communities and quiet inland neighborhoods are also popular options. You can find something for everybody.
Inventory is tight on this city, but there are still opportunities with room for investment growth.
3. Durango
Durango offers sunny and mild weather, inexpensive cost of living, a clean and secure environment and excellent real estate opportunities.
Set against a mountain backdrop, this vibrant and modern city encompasses a colonial center with stunning architecture paying homage to Europe. Downtown Durango has been restored and visitors can enjoy an area filled with trendy cafes, shops, bars, clubs, food stands and live music.
In 2013, the Mexican government accomplished a 225-kilometer highway from Mazatlán to Durango, reducing travel time between the 2 cities from eight hours to only over three. This made Durango an lively domestic tourism marketplace for locals trying to escape the warmth on the coast, as Durango offers mild and sunny weather year-round. The highway runs all of the option to McAllen, Texas.
The real estate market in Durango is primarily frequented by Mexican buyers and although prices have steadily increased over the past five years, this has helped to make sure they’ve remained inexpensive.
I suggest investors spend money on colonial properties suitable for short-term rentals and situated as near the town square as possible. There is already a healthy short-term rental market in Durango, so you should have no problem keeping occupancy rates high.
There is less of an lively English-speaking expat community on this city than in Puerto Vallarta and Mazatlán, so should you plan to make use of the property, keep that in mind. You will probably be in a more authentic Mexican environment and it’s a private favorite for everlasting residency for several real estate investors I trust.
Durango offers inexpensive real estate, big city amenities, 4 mild seasons, and is a fantastic lifestyle location where you may also successfully operate a rental property.
Where you mustn’t buy property in Mexico
1. Tulum
Tulum is one among Mexico’s iconic beach towns. Today, it is taken into account a predominantly luxury beach town, and the actual estate prices reflect this. Although the tourism market is lively in Tulum, your return on investment is not going to be as high as within the Mexican towns mentioned above on account of the high price you might have to pay to enter this market.
Elsewhere on the Yucatán Peninsula, investors can find inexpensive properties at much lower prices.
Tulum also has a status for being a celebration destination that draws predominantly young and chaotic people. This inevitably results in a better risk of property damage and noise pollution, which might negatively affect the curb appeal of your property.
Additionally, despite higher real estate prices, the realm lacks amenities in comparison with other destinations in Mexico.
2. Baja California
Baja California boasts beautiful coastlines and proximity to the U.S. border, but it surely also has significant drawbacks that might affect your investment potential.
In some areas of Baja California, rapid development has created an oversupply of residential properties, which has saturated the market and might make renting a property difficult.
This market can also be heavily influenced by fluctuating demand from American buyers. Markets like Puerto Vallarta and Mazatlán profit from healthy demand from each locals and foreigners and offer higher long-term stability.
Baja California’s infrastructure and amenities cannot compete with comparable investment markets within the country.
Baja California is the driest state in Mexico on account of limited aquifers, so the region is combating a dwindling water supply. Freshwater shortages are widespread on account of unsustainable groundwater extraction, poor water management, and climate change. This ongoing problem impacts the rentability of your unit and might make life difficult if you would like to sell.
