Visiting Tulum Mexico

[Matthew Swearingen]

I'm heading to Tulum area at the end of April. I was given some information by an agent from the company called Agency. Anyone heard of them?

They have developments in Bacalar, Playa del Carmen, Puerto Aventuras, Puerto Morelos and Tulum.

Within Tulum they have the following developments:

Aldea Savia

Amena Laveta

Amana 

Kaybe 

Habeneros

Actually here's the link to their website: https://susannrottloff.com/new...

Does nay one have any information on any of these developments. I want to use it as a vacation home for me and possible STR. I was told that some developments control that management side but you have to be careful what the HOA fees are and what they charge 20% of rent for Airbnb.

[Mike Lambert]

@Sherry W.

As an owner of multiple properties in the Riviera Maya, I agree with some of your comments. However, others are factually incorrect and potentially misleading. Here's my take on what you wrote:

1. You wrote that "You don't need to be licensed or any type of certification to sell real estate in Mexico." That is factually incorrect. That was the case 15 years ago when you bought but things change in 15 years! The reality is that anybody who's involved in the sale of real estate in Mexico has to be licensed at the state level. In Quintana Roo (the state in which Tulum is located), the registration and accreditation is granted by SEDETUS. Moreover, Mexico has an association of realtors at the federal level, the AMPI, which is the equivalent of the NAR in the US. Personally, I'd only deal with agents that are members of AMPI.

2. I agree with your comments about property management. Mind you, we're on BiggerPockets here and a lot of members are active short-term rental investors who have understood that they can relatively easily put the systems in place to self-manage their property at a distance and have a more profitable short-term rental. Basically, you spare money and you have a good and trustworthy property manager (yourself).

3. I mostly agree with your advice about not buying on the other side of Highway 305. You can buy cheaper property there but it's a poor location for short-term rentals because you're too far from the beach. However, it can make sense if you buy for your own use and/or if you want to rent long term to Mexican families. For example, I know of developments along Coba Road a few kilometres away from the town in which you could buy a 3-bedroom villa with private swimming pool for the price of a studio closer to the beach. That can be a great deal for certain people, especially if they want to be in a quieter place while still being a few minutes away from the town. Let's be clear. I'm an investor so I'd never buy there. Yet, if people ask me for advice, I respond taking into account their situation, objectives and preferences, not mine.

4. I agree that you need to be cautious when you buy pre-construction. However, the tone of your comments make me think that you're suggesting to avoid buying pre-construction. If that's the case, I totally disagree. The entire construction industry in Mexico is built around pre-construction sales when it comes to western-style properties. All the condo buildings you see in Tulum, Playa del Carmen and elsewhere in Mexico have been marketed pre-construction. For a simple reason: it's a win-win for both parties. Mexican developers don't have access to cheap financing from the banks like their counterparts do in North America. So, it's advantageous for them to offer properties at a heavily discounted price so they can be financed by their buyers. How many stories of condo projects gone wrong (real or imagined) have you heard of? Compare that with the thousands and thousands of condos that Mexicans and foreigners alike have been buying pre-construction over the years without having any problems. Fear mongering never helps anyone.

For sure, you need to do your due diligence because there are developers that are dishonest and might flee with your money and others who could mismanage their project and run out of money before they ever get to complete their project. Mind you, I'm extra cautious myself and I only buy from developers I personally know and trust and they have impeccable track records.

And when you get your pre-construction property delivered, it isn't a nightmare to get everything set up. Think about it. If if was, everybody would know from social media and we wouldn't be in a situation in which a record number of foreigners are buying property in Mexico.

5. When it comes to the problems of expensive beach clubs and parking, there are solutions for that. For example, I know of projects that are or will be close to the beach, have their own beach clubs and their own private transportation to the beach and the town. That solves all the problems you mentioned. And, also, as the town develops, you can bet there will be transportation to bring people from the town to the beach.

@Matthew Swearingen I hope I brought some clarity and not more confusion!