Tulum: This must be the place
Coming from a person who once showed up to a Morgan Stanley interview with a colored resume, you may not think to take my advice on financial investments, but in this case, i think you should hear me out…
About 6 years ago, a little virgin beach just south of Cancun hit its tipping point when a bunch of Boho Chic settlers decided that it could be a closer alternative for the already popular & chic mediterrenean. With an added trending of spirituality and au-natual chicness, Tulum quickly became the IT place to be. Throw in the great and powerful instagram, and you now see a place where during peak season, you’ll be lucky to reserve a barstool.
Now why is this all important, and how the hell am I going to give investment advice?
1) This is important to know because although Tulum is a HOT spot, there are still thousands of acres of untouched undeveloped land. Add the fact that this land sells in pesos, well, you are looking at the steal of the century.
2) How i am going to give advice is in the following way… I know top trends and brands. Tulum is the absolute embodiment of both of those things earning itself a super gold star. Lastly, I am a girnga mexican with more connections here than I will ever understand and I have a rediculous amount of insde info.
So here we go. Im going to give you some legit facts on why to invest and then you can thank me and invite me for a drink at Gitano when you close and are raking in your ROI.
Tulum offers unbeatable investment returns on property rental income
The growing number of tourists to the region makes Tulum a haven for investors looking for a viable market to invest in.
Purchasing land for a vacation home in Tulum offers an investor unbeatable investment returns. When not in use by his own family, the vacation homes present the exciting opportunity of becoming income producing endeavors. With many of the developers offering Airbnb managment assistance, this really makes it a no-brainer. Lastly, combined with the fact that the price of Tulum real estate is still comparatively lower than other beach holiday destinations makes the area perfect for investments.
It is said, on average, a person will reach their ROI fully within 3-5 years max.
Foreigners can own property in Mexico
Investors who are not residents of Mexico are often deterred because they are unsure about the rules of real estate investment in Tulum. However, the rules for buying property in Tulum are quite simple. The law declares that foreign investors buying property within 50KM of the coast is required to set up a fideicomiso or a Corporation*. a fideicomiso is nothing but a three-party fiduciary trust *(you can also choose a corporation which is better for commercial real estate) *.
This trust allows a financial institution to hold the property title in the investor’s name. If the land complies with all prevalent building and other laws, the investor is free to do as he pleases as the rightful owner of the property.
It offers capital protection and portfolio diversification
The Tulum investment market is much more than just an opportunity towards gaining excellent rental income and swiftly appreciating real estate. It also gives a hedge against possible inflation over time. It also offers the necessary diversification of the investor’s portfolio.
Real estate in Tulum is also an opportunity for getting additional level of capital protection. This is because it is a hard asset. Both the land and the property retain their value independent of the market fluctuations and nominal value of paper currencies.