How to buy property in Tulum, Mexico? All you need to know

In recent years, Tulum has become one of the most attractive cities in the world. Incomparable landscapes, paradisiacal beaches, quality of life and high economic returns have become very powerful arguments for both tourists and investors. For this reason, buying a property in Tulum can be one of the best decisions of your life. 

The reasons stated in the previous paragraph become more relevant if we take into account the constant nominations of Tulum as the best beach destination in the world in the World Travel Awards, as well as being considered one of the best cities to live in Mexico by Forbes.

What you need to know before buying property in Tulum

You can find all kinds of homes for sale in Tulum. However, before you buy you have to go through an internal process to know what you really want.

Do you want a property to get an economic return through vacation rentals? Are you looking for the house of your dreams? A second home with all kinds of luxuries? A place to retire to after retirement? The ideal house or condo for you may vary depending on whether your intention is to invest or for personal use. 

In addition, you will also have to take into account other considerations, such as the specific legal framework in Tulum. Can a foreigner buy a property? The costs derived from the purchase of the property is also a factor to keep in mind at all times, as well as the different financing options. Nor should you ignore the importance of the neighborhood you choose or the quality of the construction materials, two factors that can vary considerably in price.

Can a foreigner buy property in Tulum?

The answer is clear: YES, however, you must be clear about the concept of bank trust. That is, the contract you must have with a Mexican bank, which would act as the trust institution authorized to carry out your wishes. Through this process, you can take between 60 and 90 days to complete the purchase of your property and have the right to use, occupy, lease, improve and sell it.

Another option would be to create a Mexican corporation. However, this process is only recommended if you intend, along with other investors, to purchase different properties. 

How much does it cost to buy property in Tulum?

As we have mentioned above, there are different factors that can make the price of a property vary considerably. In addition, if you are considering becoming an owner, you should calculate that the total price of the property will rise between 6% and 7% at the mercy of additional costs such as acquisition tax, registration fee, municipal guarantee and fees, among others.

In this aspect, you should also consider that the real estate tax is usually 0.1% of the value of the property. Finally, the Homeowners’ Association (HOA) fees are also a consideration, with costs starting from $2.5 USD per square meter per month, depending on the included amenities.

If you are considering pre-construction properties, developers usually ask for a refundable deposit of $5,000 USD and buyers usually pay an amount close to 30% of the total price of the property. Likewise, the final 30% is paid upon delivery of the property. However, there are financing options available for more flexible payments. 

If you want a study on how much your dream property would cost based on all these variables, we advise you to contact professionals in the sector who are specialists in Tulum.

Is it a good investment to buy a property in Tulum, Mexico?

Tulum’s popularity has surged in recent years and has caught the attention of many investors. In addition to the incredible white sandy beaches and stunning natural scenery, the wide variety of properties that can be found are now also part of this wonderful landscape. Tulum has become a tourist attraction for those seeking a mix of relaxation and luxury, as well as for those who prioritize the most ecological areas.

Its privileged geographical location is also a strong argument for investors. Located in the heart of the Riviera Maya, Tulum is very close to other fantastic places in Mexico such as Playa del Carmen or Cancun.

So, whether you are looking for a property for your own use or to get a good return on investment, Tulum is a good choice for investment. 

Steps to buy a property in Tulum

Buying a property in Tulum can be very easy or very difficult depending on the depth of knowledge or professional guidance you have. For this reason, in addition to advising you to contact the best specialists in the sector, we recommend that you follow these three steps to achieve a simple and efficient purchase.

1. Choose if you are looking a property for your use or as an investment

This is the first fundamental question you should contemplate. You also have the option of complementing the best of both worlds by using the property as a vacation home and renting it out for the rest of the year to cover expenses and even make some profit. However, it should be noted that this section is especially essential when choosing the property.

For example, if what you prioritize is the tranquility to be with the family, we would recommend a property on the outskirts of the city isolated from the busiest areas. On the contrary, if you are looking for a great profitability during vacation periods, our advice would be to look for a property close to the most important places in Tulum with the best amenities and a great amount of services for future tenants.

2. Research Tulum and familiarize with its real estate market

Before selecting a property, it is also of utmost importance to understand the idiosyncrasies of Tulum and to understand the current context of the city. The inauguration of the international airport, the national park and the implementation of the Mayan Train have given another dimension to Tulum, attracting a large number of investors in recent times.

With this in mind, we advise you to first do some research on your own about the different areas in Tulum to get your own criteria to fit your needs. Aldea Zama, region 15, Selva Zama or La Veleta are some of the most sought after areas at the moment. It is also essential to combine this search for information with local knowledge. Under this premise, we offer you a free advice call with our best agents.

3. Get in touch with a real estate agent that helps you in the process of buying a property

After doing these previous steps and being clear about the type of property you want, you should contact a real estate agent to guide you on the legal steps to follow and formalize the transaction.

The bureaucratic processes can be really overwhelming for someone who is not familiar with them. If you are interested in buying a property, contact Jaguar Tulum Real Estate to get the best advice from people who live in the city and know it better than anyone else.