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Investing in real estate is one of the safest investments you can make in your life. In particular, investment properties in Tulum are attracting significant interest from investors seeking high returns with their real estate investment in Tulum. However, with numerous options available, choosing the right investment property in Tulum can be overwhelming and uncertain. In this article, we explore all the available options for investment properties in Tulum, detailing their advantages and disadvantages.
Tulum is a tropical paradise in the heart of the Riviera Maya with great urban and tourist potential. It is one of the best cities to buy property in Mexico due to its rapid growth in innovations in mobility and real estate. The lush tropical nature surrounding Tulum is one of its main attractions, along with its pristine beaches with turquoise waters, crystal-clear cenotes, and picturesque lagoons.
Take a look at the following options of investment properties in Tulum.
Buying a house in Tulum
Buying a house in Tulum can be an excellent long-term alternative either to convert it into your new home, use it for vacation rentals, or resell it at a higher price. Here are the advantages and disadvantages of this investment option.
Advantages of buying a house in Tulum:
- Freedom to build or modify it to your liking and choose the furniture that you like the most.
- There is privacy and space to accommodate large families.
- These are properties that you can pass on to next generations.
- A house in Tulum can be an excellent retirement option.
- Long-term value appreciation, so you will always have an asset available to resell or to profit from by renting it out.
Disadvantages of buying a house in Tulum:
- A large initial investment is required, as mortgages typically cover up to 80% of the home's value.
- The acquisition process is longer and more expensive, than that of the properties mentioned in the continuation of this article.
- High maintenance costs generate expenses that you must incorporate into your monthly budget.
Buying a condo in Tulum
A lot of investors are inclined to buy a condo in Tulum, considering the variety of new developments and presale condos in Tulum.
Advantages of buying a condo in Tulum:
- Smaller size of the investment than that of a house.
- Maintenance costs are much lower, and the common areas are included in the payment of the condominium (homeowner’s association) fee.
- It is easier to rent out a condo as a vacation home.
- There is a great offer of pre-construction and finished condos on the market, fully equipped and even furnished.
Disadvantages of buying a condo in Tulum:
- Less space and privacy, since the common areas and amenities are shared with other owners.
- You must assume expenses and modifications to the real estate development that the homeowner’s association decides.
- Some families feel that owning an apartment on the beach obligates them to spend their vacations in the same place. However, you can rent it out during holidays and with that money discover new destinations.
Invest in hotel rooms in Tulum
The concept of investing in a hotel room is relatively new in Latin America. It consists of acquiring a hotel room and renting it per night, being a great opportunity in tourist real estate markets such as Tulum.
Advantages of buying a hotel room in Tulum:
- Tulum's tourism sector continues to grow, being an ideal attraction for tourists who want to come for a vacation to Tulum to enjoy this incredible town in the Caribbean.
- Tulum's climate is ideal throughout the year; therefore, hotels are welcoming tourists all year round and one night can cost up to $200.
- The fact that the property is rented per night makes it a much more profitable investment than renting a property for a longer period of time, e.g., a month.
- A hotel room will always be in excellent condition, as maintenance is the responsibility of the hotel. This way you will not have to worry about maintaining and fixing your property.
Disadvantages of buying a hotel room in Tulum:
- Hotel rooms are subject to hotel management – it approves all changes and modifications. This way, you may feel that you do not have much freedom when it comes to managing your property.
Buying land in Tulum
Another investment option among Tulum's investment property is a plot of land with high residential or commercial potential. Tulum is a growing town, that seeks to execute new residential and commercial projects as long as the principles of sustainable development are respected.
Advantages of buying land in Tulum:
- It is a safe and profitable long-term investment, since if you choose a land with the right conditions, located in a growing area of Tulum, its value will go up.
- You are free to build whatever you want on that land, from a house, commercial or residential development, etc., or hold the property until the value goes up.
- The size of the investment needed to purchase the land is much smaller than that of the finished property.
- Competition among buyers on the land market is low, which means you can get a better deal.
Disadvantages of buying land in Tulum:
- It may not be easy to find land for sale in a good area of Tulum with a high residential potential. The best areas have already been occupied by real estate developers.
- You need to obtain a building permit to be able to perform any kind of construction work on your land in Tulum.
Investing in real estate in Tulum is an exciting venture! To make a well-informed decision, it’s crucial to gather all the necessary information about Tulum investment properties. Understanding the process is key, so diving into our guide on buying property in Tulum, as well on ways to finance your apartment in Tulum can be a great start. From navigating local regulations and finding the suitable property to learning about the process of closing on properties in Tulum, there's a lot to consider. What are you most curious about in the process of choosing your investment property in Tulum?
