5 Points to Consider Before Investing in a Mexican Development
Purchasing a condominium in Mexico is an exciting venture, and there are plenty of new buildings on the market. Before handing over your money consider these 5 points and as always we remind our readers to hire a lawyer licensed in Mexico to review the sales agreement and carry out due diligence on the property.
- Can you trust the developer? What is the business model and are their other projects successful? Check out the developer’s reputation and experience before you invest.
- Does the property have a business model that guarantees long-term appreciation? Who is the administrator and what is their commitment to the property?
- Return On Investment (ROI) How long will it take to see a return on your investment? Are there any hidden expenses that will affect your ROI? Speak to other owners about their occupancy rate. What amenities and associated brands does the project offer? For instance, a pool, a private beach club, maid services, spa, and fitness center will increase rentals. Do they provide professional marketing and management to maximize the ROI?
- Most investors do not live in Mexico full time, and they need to ensure their investment is in good hands. Do some research on the property’s management; they are there to handle rentals, maintenance, and administration. Your investment should be free of worries and added expenses.
- Carefully review the HOA (Homeowners Association), some associations contain rental restrictions or restrictions regarding amenities, children, pets and additional expenses you need to be aware of before investing.