Purchasing Real Estate in Tulum as a Foreigner
Tulum is now one of the most popular destinations in the world with a flourishing real estate market. According to the data released by the government, over 150 families arrive in the city every week with an estimated increase of 12,000 people that visit the city every year.
To drill down into these statistics further, Playa del Carmen welcomes over 11,000 people every year, and has been one of the fastest growing cities in the region for the past 15 years.
From an investor’s perspective, Tulum is even more attractive, because in Tulum the number of visitors per year is still rising.
In an article titled ‘Why Invest in Tulum in 2016,’ we mentioned that “Tulum is not just about beach. The town has quickly become a favorite destination for eco-chic travelers, fashionistas and savvy tourists looking for something outside of mega resorts.”
Tulum is also a haven for retirees, making it a perfect place to purchase real estate.
Why purchase real estate in Tulum?
In a volatile investment world, “leading stock values are constantly changing and provide opportunities for diversification on micro market movements.” So aside from investing in different stocks, an investment in real estate is a great way to diversify your portfolio. Real estate is a physical investment, meaning you can sell it even if its value depreciates. In the case of Tulum, however, real estate won’t depreciate anytime soon given its status as a popular tourist hotspot with profile on the up.
How to purchase real estate in Tulum?
There are currently many areas that are being developed in the city such as La Veleta and Aldea Zama. Purchasing a property in Tulum can be an enticing prospect due to the competitive prices, but you would first need to acquire a legal title. To get it, you need a real estate agent that can help you acquire a property in a safe and legal manner.
Here are 5 things to consider when purchasing real estate in Tulum:
1. Real Estate Agent
Make sure that you get a certified real estate agent. This is very important as he or she will guide you through the process of purchasing a property.
2. Purchasing land through a bank trust
As a foreigner, you must use a bank trust or “fideicomiso” if you want to purchase land within 50 km from the coastline, and 100 km from the international border. Residential properties outside of restricted areas can be purchased without a bank trust. Another way to buy land in Mexico is to register a Mexican company or to use an existing company.
3. Purchasing land via a bank trust
This is the most popular option for foreigners. A bank trust is a real estate trust where the bank holds the deed for the purchaser. The bank becomes your trustee, and you are the beneficiary of the trust. As beneficiary, you can sell, lease, or pass the property to anyone. A trust is granted for a 50-year period and is renewable.
4. Registering a company
Purchasing land by registering a company is a good option for those who want to own a commercial property in Mexico while conducting business within the country. This applies when the purpose is to rent the property, or to own more than one property in Mexico.
5. Title Insurance
When purchasing property, you need insurance to protect your land from any legal problems that may arise. While it isn’t a requirement when buying land, a good real estate agent will advise his or her clients to get this extra layer of protection.
Mexico’s economy is booming in terms of retail, exports, and tourism. Tulum remains a popular tourist destination, which makes it a hotspot for business ventures.
Originally published here