28 July 2018
Speaking about Cancun and the entire coast of the Riviera Maya, we consider this region as one of the most popular resorts in Mexico. Every year, more than 20 million tourists from all over the world choose such cities as Cancun, Playa del Carmen, Tulum, Puerto Aventuras and Akumal as their primer holiday destination. Moreover, the development of the tourism business has also pushed other sectors of the economy to grow rapidly. The Riviera Maya is currently experiencing a big construction boom. The region of Cancun and surrounding cities are also becoming a popular place to live due to its quality of live and, of course, its climate.
What is being considered as a budget real estate in Mexico? These are houses, townhouses or apartments worth up to 100 thousand USD. Just to specify, the most of all the price of real estate in Mexico is affected by the price of land. The closer to the sea, the more expensive the land, and therefore your future property. Often, the owners of such real estate or real estate developers don’t pay commissions fee to the realtor. The commission fee of the realtor company and the cost of making the transaction falls on the buyer's expenses. On average, the amount of commissions is about 6-7% of the real estate buying budget. This will include remuneration to the broker, notary services, and registration of documents in the Bank. The realtor's commission fee for such transactions will be around 2-3 thousand US dollars.
There are several types of budget real estate in Mexico. But, as we said above, they have one thing in common – distance from the sea. However, in some cases, the distance from the property to the sea can be as small as 3-7 km but the property’s price is still below 100 thousand US dollars. For such price in Mexico, you can buy a condo with 1-2 bedrooms, a large living room, a private courtyard, parking at the house. Almost all major cities have built and are building gated residences with small condos, houses and townhouses. In such protected residences, there is a common recreation area – a swimming pool, a barbecue area, and a children's playground. All of them are located at a certain distance from the sea and are more similar to standard residential areas in other countries of the world. Not only foreigners, but also Mexican citizens who work here like to live in such residences.
The 3-4 stairs buildings are the main type of property which is built in the Riviera Maya area. Developers are required to finish properties fully decorated, with plumbing, kitchen with the working surfaces completed and kitchen furniture. Sometimes the price includes the kitchen itself and built-in wardrobes. The construction quality of budget real estate and repairs can be different. Therefore, it is necessary to take seriously the choice of the developer when buying on the primary market or the owner, in case of buying a secondhand property. It is better to spend a few days and explore the entire Riviera Maya, than then suffer with additional repairs. During this research, you will be able to look also at other cities and may change your original plans regarding the place to live.
Budget real estate in Cancun is mainly apartments in condominiums or houses in gated residences located in areas far from the city center and the resort area. Don’t be afraid, most of these areas look very nice and presentable, have their own infrastructure, good roads, round-the-clock security. In Cancun, you can buy a cheap apartment or even a house in the center, but this will be a secondary market’s offer and often the conditions of such real estate leaves much to be desired. And the cost of major repairs or reconstruction can be up to 50% of the price of housing.
Budget real estate in Playa del Carmen is similar to Cancun, but in Playa del Carmen up to 100 thousand US dollars it is possible to buy a small studio or one-bedroom apartment in 3-4 blocks from the sea. There is also a large selection of houses and apartments in gated residences 15-20 minutes away from the sea.
Also, do not forget about the locals. The growing economy of the state of Quintana Roo requires human resources. The state government is even running an advertising campaign in Mexico, encouraging citizens to come here to live and work. Whole blocks and neighborhoods are being built for Mexicans in all the cities along the coast. This property does not spoil us with large square footage and quality finishing materials, but it has attractive at prices. Apartments in such new buildings cost from 30 thousand us dollars, townhouses or houses-40-60 thousand us dollars. Many foreign clients also consider such offers, both for their own housing and for investment.
Advantages of budget real estate:
- Low cost compared to major cities in Russia, Ukraine, Europe, and even Mexico. Many Mexicans invest in real estate Riviera Maya, because in the capital and other major cities of Mexico, housing prices are much higher. Most probably, it is not possible to buy an apartment by the sea for such money in any other country.
- Investment opportunity. Often, the cost of such housing increases by 100% in a few years, because the area is "overgrown" during this time with infrastructure and becomes convenient for living or recreation.
- Possibility of renting. Clients buy several objects of budget real estate for rent. Such housing is always in demand, both among tourists and locals. The income may be small, but more stable than renting out a luxury Villa on the beach.
- The ratio of price and quality. If you spent time and chose a budget property with good quality construction work, then this is a very profitable purchase. Also, do not forget that all construction in Mexico is capital. Here it is the Islands of the Caribbean Sea, where you will be offered outwardly good-looking housing, which is built of plywood.
- Low cost of servicing your property. The cost of monthly payment for utilities can be from 500 pesos per month (water, gas, electricity biils are not included in the price). This price includes cleaning of the residence, cleaning of the communal pool, security, lighting.
Disadvantages of budget real estate:
- The distance from the sea. It can be 3 km or 10 km, so if you are promised to sell an apartment in Mexico cheap with sea views, do not believe it. In any case, whether you live far away or close to the sea, you just need to have your own car. And then this minus can be safely crossed out )))
- The quality of construction. To reduce the cost of property many developers sin the quality of work. Also, do not write off the laziness of Latin-Americans. If the construction process is not monitored by a good foreman, then this house is not worth buying. We offer our clients only proven developers who do not save on materials and finishing. If you buy a budget property on the secondary market, we recommend hiring a technical consultant to survey the house or apartment.
- The neighborhood. Of course, no one is insured to get noisy and restless neighbors in luxury apartments on the beach. But the chance to get them when buying budget real estate increases many times. If you buy a property on the secondary market, we recommend that you check your future neighbors before the transaction, come and take a walk in the area at different times of the day. If you buy a new building, ask the developer about future residents. If you love Mexican songs, Mexican food, dancing and fun, and want to adapt faster and learn Spanish, then this minus can turn into a huge plus. And do not be afraid, Mexicans are mostly kind and good people, they are friends with their neighbors and most importantly, they immediately consider you their own-Mexicans!
- If you have any questions about buying a property in Mexico, on the Riviera Maya, contact us or see the options on our new website https://realcaribbeanestate.com/
