THE DEFINITIVE GUIDE

HOW TO BUY A PROPERTY IN THE MEXICAN CARIBBEAN

This guide will show you exactly how to go from dreaming of buying a property to holding the keys in your hand.

Including:

  1. Why Mexico should be on your radar
  2. Location, Location, Location
  3. Benefits of using a Real Estate Developer
  4. Get your legal questions answered
  5. Know your finance options
  6. Lots more

So if you want to learn how you can own a slice of paradise, this guide is for you.

Let's get started!

Hi, We’re SIMCA.

We’re the #1 Real Estate Developer for the Southeast of Mexico. In 2005 we launched SIMCA, although we’ve been building homes long before that.

We’ve endured market crashes, global changes, and the current COVID pandemic and we’ve come out stronger than ever.  

Our clients are:

  • Investors
  • 2nd home buyers or retirees (ex-pats)
  • Real Estate agents

More than just Real Estate!

Learn more about our project here.

Thanks to our creativity, innovation, and connections in the real estate industry we continue to build new relationships, developments, provide resources, and make it easier for our clients to buy properties.
After you read today’s guide you’ll feel comfortable knowing WHY, WHERE, and HOW to invest your hard-earned money in Mexico for the most profit.

CHAPTER I

Why Mexico?

  • Culture Add picture
  • Weather
  • Activities 
  • Reasons to invest or own a second home

Why Mexico should be on your radar?

1. Lifestyle

When we talk about Mexico in this guide, we’re talking about the Riviera Maya and the Yucatan peninsula. 

This area of the Mexican Caribbean separates the Gulf of Mexico and the Caribbean Sea which extends down to the border of Belize.  You should definitely add this to your list of places to visit.

Known for its impressive architecture scattered throughout the jungles, the Ancient Maya civilization relied heavily on religion, mythology of gods, astronomy, mathematics and their calendar system.

Even though the Mayan civilization lasted over a period of 3000 years, today the Mayan culture is still evident in the vast diversity of the land.

You’ll find the Mayan influence in the architecture, cuisine, and local traditions. Europeans, Americans, Canadians, and even Mexicans come to the coastal areas of Mexico to experience the lifestyle.

Mexico offers: 

  • Ideal Weather
  • Best Beaches
  • Activities
  • Shopping and Dining

2. The Ideal Weather

The Riviera Maya enjoys a warm tropical climate of about 82 degrees all year long. 

That sure beats shoveling the snow!

The best times to visit are from the end of November to April.  Rainfall fluctuates depending on the season and becomes more prominent in June when hurricane season starts.

3. Best Beaches

Caribbean beaches, swaying palm trees, turquoise green waters with an average temperature of 84 degrees.

It’s dreamy, don’t you think? 

It’s no wonder vacationers flock here to swim and dip their toes in the waters of the Riviera Maya from January to December. 

It’s perfect for all your water activities.

4. Activities

According to Statista travel and leisure, 6.15 million foreign visitors arrived in Southeast Mexico in 2019. This is estimated to be an increase of 1.8% compared to the previous year.

There’s never a lack of activities for the laid back vacationer to the adventure thrill seeker.

From dining to shopping to scuba diving around the Mesoamerican reef, it’s all available to you!

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5. The Communities 

Playa del Carmen, Tulum, and Merida are top destinations around the Yucatan and Caribbean Sea with expats escaping the rat race and looking for a better life.

Each location offers something different. Investors, retirees, and second-home buyers all benefit from something at each destination.

  • Cost of living: Lower than other Caribbean resort towns.  Live the lap of luxury with gardeners, housekeepers, and lower taxes.  
  • Proximity to other countries: Typically within 3-5 hours from departing the US you can be basking on a tropical beach.
  • Safety: Merida in the Yucatan is considered the second safest city in the Americas.
  • Healthcare: For a fraction of the price you can receive excellent healthcare with private and public health programs.
  • Culinary: Some of the top cooking classes are in the Yucatan.  Mexico offers cuisine that dates back to the Mayan roots.

Benefits of Investing in International Real Estate?

Benefits of Investing in International Real Estate?

Mexico is a top destination to invest your money… whether it’s for rental yields or capital appreciation.

Even during a pandemic, there are positive effects on the luxury real estate market.

Buying international real estate typically is something you hear about with the ultra-wealthy, but SIMCA makes it possible for new or savvy investors, and people looking to move overseas who want to profit off the growing real estate market.

Some of the reasons to invest in Mexico property include:

  • Tax strategy
  • Establishing a second residency
  • Currency diversification
  • Rapid capital appreciation
  • Modern infrastructure
  • High occupancy rates
  • Rising tourism
  • Great returns on investment

Premier Offshore Tax & Corporate, Inc. is a leader for U.S. tax compliance and doing business offshore. They even believe now it’s a smart time to invest in Mexico. 

Today the strength of the dollar against the peso allows Canadians and Americans to get more for their money. 

The Mexican government continues to strategize and enhance the first- world infrastructure to increase tourism.

A Mayan train project connecting all parts of the Yucatan down to Bacalar is under discussion.  With the influx of Tulum visitors, the government is proposing a new Tulum airport. New bridges over lagoons and widened highways are all in the works. 

CHAPTER II

Location in Mexico.

  • In this chapter you’ll learn the top destinations to invest in
  • Different strategies to invest in the Mexican Caribbean

Location, Location, Location…

If you’ve ever dreamed of owning a home in some exotic location where tranquility and a laidback lifestyle is the norm, then look no further.

When discussing real estate in the Yucatan peninsula we’re talking about three distinct locations that are very profitable now.

– Playa del Carmen

– Tulum

– Merida

At each of these locations, investors can make a profitable income.

During 2019 housing prices in Quintana Roo increased by 11%.

According to the Financial Times:

 

Although security issues are a concern, safety within the peninsula and  Quintana Roo    often surpasses many of the top U.S. cities.

Playa del Carmen offers a cosmopolitan life, exclusivity, with 85% hotel occupancy up to 100% in high season.

It is known for:

– The Famous 5th Avenue shopping and dining.

– The most popular tourist area in eastern Mexico.

It’s not unheard of to get an annual rental income of $41,000, $48,000, $53,000 or even up to $57,000 gross per year.

That’s hard to match on a rental property in the United States.

 

Strategies for Investing in Playa del Carmen

  • Residence & Hotel opportunity with a guaranteed 4% ROI up to 12% ROI after a year with SINGULAR JOY
  • SINGULAR DREAM, a new development following the same business model as SINGULAR JOY
  • Market your property as a Digital Nomad destination for those that want to work from home but in paradise
  • Live full time in your condo and make money on the appreciation

 

The amenities at our properties make them a profitable investment whether you are an investor or second home buyer.  Start with the lowest price property of $174,900 at IPANA up to our properties that have penthouses and private solariums.

Tulum 

One of the best-preserved coastal Mayan ruins sits here in Tulum overlooking the tall cliffs and the Caribbean Sea. Approximately a little more than an hour from Cancun airport, you’ll be at this jet-set destination.  It’s no longer the hippie town that it once was, but has a wellness vibe that attracts Hollywood celebrities and Instagram models.

The Tulum hashtag for Instagram has well over 5 million posts with its boutique, eco-chic feel. Yoga teachers, massages, and even yoga paddleboard classes are plentiful.

According to International Living, you can Profit From Tulum’s Rapid Growth.  

Strategies for Investing in Tulum

It’s not unheard of to get $2500 per month making $10,000 for the high season and low season drawing $9000 with long-term rentals.

Short term rentals could earn you $6000 for 30 nights at $200 or 45 nights at $150 = $6750.

One strategy would be to mix up the short term with long term rentals.  Currently, the best profit option would be to purchase a pre-construction property and sit on the appreciating value over the time it would take to build.  This can be upwards of 28% from the day of sale.

The Riviera Maya is definitely one of the most desirable Caribbean coastlines available.  In fact, Tulum is setting up to be the perfect destination for those that look to work from home, but in a paradise setting.

Not only can you expect capital gains with Tulum, but you can expect attractive rental income if you choose to rent out your property. 

Some are even saying that they can’t find a long term rental for less than $5,000 a month.

Merida

Merida is located about 22 miles from the Gulf of Mexico.  With a thriving ex-pat community, this colonial destination is perfect for those that want a vibrant city life, Mayan architecture and a lower cost of living. 

Merida offers:

    • Modern infrastructure
    • Close proximity to the US 
    • 30-40 minutes to the beach
    • The second safest city in the Americas
    • World-class affordable health care

Because Merida is so close to the ports, businesses are flocking to the industrial parks.

Strategies for Investing in Merida

SIMCA helps investors secure returns on industrial projects and helps retirees and families to experience the safest community with the best amenities.

Check out a new future at Campo Magno in Merida, Mexico.

CHAPTER III

Now that you know the top destinations for living and investing…

This chapter discusses how you can find those properties with the most value.

 

Learn the benefits to using a Real Estate Developer.

Use a Real Estate Developer to Buy your Property in Mexico

Using a Real Estate Developer to purchase your property in a foreign country offers many benefits.

  • Discounts
  • Brand new developments
  •  The best locations
  • All your resources in one location

Now that’s not to say that we don’t recommend using a Realtor.  In fact, SIMCA works closely with many realtors that want to expand their business globally through our SIMCA Referral Program.

You might ask…

What Does a Real Estate Developer Do? 

According to Wikipedia, 

“Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control, and orchestrate the process of development from beginning to end.”

You might say, that sounds like a lot of work.  And, yes it is. That’s why it’s so important to find a trustworthy developer that has the right connections so that your project finishes and has the resilience to survive global issues that come up.

It’s important to work with a company that can adapt to the growing needs of the community and keeps up with the ever-changing demands in the real estate market.

SIMCA Real Estate continues to be the top developer in Mexico’s Caribbean and offers a variety of projects that include:

  • Gated communities
  • Mixed community projects
  • Luxury and Budget-friendly condos

If you’re interested in learning more, don’t hesitate to reach out for a discovery call.

CHAPTER IV

Now that you know how you can get the best deals on properties in the Mexican Caribbean…

 

Let’s look at some different types of Properties:

 Different Types of Properties in the Mexican Caribbean

SIMCA offers properties to provide passive income through rentals and capital appreciation with long-term ownership. 

  • Luxury or budget-friendly condos 
  • 5-star resort style living 
  • Spec or pre-construction
  • Live in it or rent it out

Merida, known as the industrial powerhouse is a great opportunity for investors to rent out warehouses and lots to businesses coming into Mexico.

If investing isn’t on your radar, Merida is the perfect colonial town for expats and retirees.

Either way, you’ll be profiting by: 

  • Currency diversification when buying in a country using a different currency.
  •  Investing in an insurance policy in case any political unrest occurs.
  • Establishing a second residence in case you need to ever leave the country.

As Ronan McMahon says,

“ Real estate is the most versatile asset you can own.  It offers so many different ways to maintain and grow wealth.”

Rental Income ROI can be between 8-13% and capital appreciation can be upwards of 28% when you purchase pre-construction properties.

social security
Check out SIMCA’s properties based on the different destinations that you might be interested in.

CHAPTER V

Legal Issues to Buying Property in Mexico

No matter where you buy property, legal issues Always exist. 

 

It’s no different in Mexico.

That said, here are a few key ideas you want to know about:

Legal Issues for Buying Property in Mexico

Buying property in Mexico might be scary at first.  Especially if you’ve never purchased a property outside of your home country.

It’s important to:

  • Work with a reputable Title Company
  • Work with a Realtor or Developer with a strong track record 
  • Use a Notary Republic.  They register your deed with the land registry office to make it legally yours

Risks When Buying Property in Mexico

 

Invest the right way, you’ll have a positive impact on your finances and personal lifestyle here in the Riviera Maya.

You might even hear people say things like, “Do you really own it?”

The answer is YES, once you buy your property the way we are suggesting, you will own it.

It’s not a lease.

It’s not a timeshare. You have full ownership rights and can visit anytime you want.  You can move into it even if you bought it as an investment or sell it anytime you want.

But first let’s go over some of the financial options for Buying Real Estate in Mexico.

CHAPTER VI

Financial Options for Buying Real Estate in the Mexican Caribbean

So, you’ve made it this far.  I bet you are Getting excited.  

 

This chapter discusses some of the ways to come up with the money for your property.

Until now, you might not have thought it was possible, now you can totally see yourself buying a place.

 

So let’s get into the $$$

Your Financial Options

Cash is King and that’s how most transactions are done in Mexico.  But with the strength of the dollar against the peso, you can get so much more for your money than you could in your own country.

Sometimes up to 70% less than what you’d find in the U.S. for a similar property.

Financial Questions that People ask

  • Can a U.S citizen get a mortgage? 

The only way you qualify for a Mexican bank loan is if your spouse or you qualify as a citizen.

Or, you can use a third-party mortgage broker who has connections with private investors.

  • Can a foreigner use a self-directed IRA in Mexico?
Yes. You can invest with your IRA or 401K on properties in Mexico.

Things to remember with a Self-Directed IRA

  • It can’t be a 401K from your current employer
  • Make sure you find the right custodian. 95% of custodians don’t allow foreign real estate investments
  • No co-mingling personal funds with IRA funds
  • You can’t use the property for your own purposes
  • You can’t borrow from the account
  • You can’t combine IRA money with after-tax money in the same offshore account
  • There are tax costs associated with using your IRA

Finding Cash 

Consider working with a mortgage broker in the United States to help you structure the best financing options for your property.

Conclusion

I hope this guide helped you realize that investing in a Mexican property is easy if you follow the advice presented. 

Get ready to diversify your portfolio or live your new life.

Below you’ll find the outlined steps.  Schedule your discovery call to answer more questions.  We always love helping people figure out ways to live the laid-back lifestyle and profit in one of the most beautiful destinations.

Now we’d like to hear what you have to say: Where would you like your next home?  Is it Playa del Carmen, Tulum, or Merida?

caribbean beach with hammock

Is it an investment property or your dream destination for a tranquil lifestyle?

Let us know by leaving a quick comment below or schedule your discovery call.

Download a PDF Version of the Guide

Not quite ready to get started? Grab a PDF Of this guide to print or store on your computer to save for later.

 

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