Updated: Finding A Vacation Property in Mexico Made Easy With Our Updated Top 5 List For 2024
There are vacation properties for sale all over the world so why invest in Mexico?
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There are plenty of good reasons to invest in Mexico recently withs its growing economy and attractive exchange rate on the Peso. You might have read an article about investing in real estate or the hot Mexican stock market. Or you have vacationed here before and rented a vacation property and you thought about buying one for yourself. There are plenty of good reasons to invest in Mexican vacation properties including.
- Strong and growing economy
- Strategic location- close to one of the worlds largest economies
- Beautiful beaches
- Lots of history, culture, and charm
- Tasty authentic Mexican cuisine
- Vast natural areas with streams, forests, deserts, and mountains
- Growing tourism sector
- One of the worlds top tourist destinations
You have done some basic research and you found out that Mexico has a strong and growing economy in a strategic location with plenty of opportunities to invest in a vacation property. Mexico is also a popular location for second home ownership because foreigners can own property in Mexico.
Forbes has also recently announced to its readers that Mexico is the country to invest in 2023. Mexico has long been a destination for retirees, but Latin America’s second-largest economy is heating up and is rated as the top four places in the world to own a second home and or a profitable vacation home investment. The exchange rate is attractive to a lot of foreign investors and now has never been a better time to invest.
But Where Are The Best Locations To Invest In Mexico For Profitable Vacation Property?
Our dedicated team of real estate advisors has researched several locations based on our strict criteria and this is the list of best places to invest in vacation properties in 2023.
Tulum Vacation Properties
Nestled on the Caribbean beach with history galore on display with ancient Mayan ruins, sparkling white beaches, and a laidback lifestyle makes Tulum a major attraction for tourists in Mexico, The Riviera Maya has long been a popular tourist destination and if you come to experience the Bohemian culture here, you will begin to understand why Tulum is first on our list. Tulum’s popularity has led to the construction of beachside villas to luxury condos and everything in between, So no matter what your second property budget is there is a property here that will fit.
Pros:
- Laidback lifestyle
- More room for capital appreciation
- Variety of vacation properties
- Beautiful location
Cons:
- Not enough variety of things to do
Playa Del Carmen Vacation Properties
If you are looking for a vacation property in an established tourist hotspot Playa Del Carmen is for you. Located 64 kms/40miles north of Tulum, Playa has the same sparkling white sand beaches, endless sun, and clear turquoise blue waters of the Caribbean. The tourist infrastructure here is more established with a better variety of boutique shops, cafes, restaurant and art galleries,
If shopping is not your thing Playa Del Carmen also offers plenty of outdoor activities like zip-lining, bungee jumping, white water rafting, snorkeling the reefs, and diving. The nightlife here is also renowned with chic bars, trendy restaurants, beach-side bars, and live music events. There is something to do here for everyone.
Playa Del Carmen also offers a great variety of vacation properties to invest in. Want a quiet villa away from the beach or a luxury condo overlooking the sea? Playa Del Carment has a large variety of vacation retreats for sale for investors with a starter budget and luxury mansions for high net worth individuals.
Pros:
- Beautiful location
- Growing tourism sector
- Variety of tourist activities
- Caribbean coast
Cons:
- Not near the International airport
Puerto Vallarta Vacation Properties
Located on the Pacific coast Puerto Vallarta is a great alternative to invest in a vacation retreat as well. Located in the state of Jalisco it also has inviting beaches, Spanish colonial architecture, and novel cobblestone streets. Here you can find a large variety of boutique shops, cafes, and mouth-watering Mexican food served at charming restaurants.
The large variety in landscapes here also offers you, and foreign investors, plenty of opportunities to invest in a vacation property. Modern contemporary condo or antique colonial homes with views of the city and Pacific ocean beckon here. The Sierra Madre mountains offer a scenic backdrop with water sports galore in the Bay of Banderas nearby.
Maybe you are looking for something more modern with rooftop pools, spa, and exercise rooms? Puerto Vallarta offers this too with new buildings being built here and some more planned. Nuevo Vallarta 16kms/10 miles to the north of Puerto Vallarta has a planned community living with resort condominiums and villas situated on the beach.
Pros;
- History and culture
- Laidback lifestyle
- Lots of investment variety
- Established tourism sector
Cons:
- Less vibrant nightlife
Cancun Vacation Properties
Cancun is the most popular tourist resort destination in Mexico, with over 3 million tourists annually you can depend on high occupancy rates for your vacation property here.
The popular “Zona Hotelera” area near the beach with many hotels, seaside marinas, boutique shopping, and vibrant nightlife is buzzing with tourists year-round. Cancun located on the Caribbean coast is also home to an international airport ensuring a large influx of foreign travelers and guests.
Cancun’s growing tourism sector means a large variety of vacation home investments. From totally new construction to older colonial homes and everything in between. Cancun is also home to a beautiful Puerto Cancun marina development and many boutique hotel developments.
Pros:
- Strategically located
- Developed tourism sector
- Large variety of things to do
- Marina living
- International airport
Cons:
- Higher Prices
Los Cabos Vacation Properties
Last but not least is Los Cabos, close to many USA airports by being situated on the Baja Peninsula in Mexico. Los Cabos is popular because of the culture and living here is similar to the southwest American lifestyle. Modern construction, shopping, and fun in the sun are the major attractions for Los Cabos.
Home to PGA approved golf courses, modern tourist resorts, and strikingly beautiful beaches with plenty of water activities. foreign travelers are sure to enjoy their stay here. Saltwater sportfishing is also a major attraction here in the Sea of Cortez.
So if you are looking for a villa overlooking the sea or a luxury home on the golf course or something in between Los Cabos has a vacation property for you.
Pros:
- Close to the USA
- Similar lifestyle to many foreign investors
- Large variety of things to do
- Large variety of modern vacation properties
Cons:
- Higher prices
Conclusion
Mexico is a large country (14th largest in the world) and offers a huge variety of vacation property investments. From laid back lifestyle in Tulum, a luxury home in colonial Puerto Vallarta, to vibrant vacations in Cancun or Los Cabos. Mexico offers something for every vacation property investor.
Which vacation property is best for you? We have narrowed down your choices to a few prime tourist locations and we offer you more detailed information from our local team of real estate investment advisors. Contact us today for a free consultation to find your perfect vacation property today.
Honorable Mentions
Tourist destinations in Mexico that didn’t make our top five but still interesting options for many vacation property buyers.
- Mexico City – has no beach but is a popular destination for tourists and business travelers. The economic hub and capital city of Mexico with a impressive display of Mexican history, shopping, and culture.
- Merida- Natural beauty and a large dose of Mexican historical culture on display are just some of the reasons to visit this tropical paradise. Investing in a plantation or a coffee farm, or a boutique hotel are possibilities here in the Yucatan state.
- Bahia de Navidad – A large community of American and Canadian ex-pats live here and there is a good reason why. A safe and growing community with less dependence on tourism. Farming, fishing, and retirees are common here.
- Guanajuato- A quaint small city out of the tourist spotlight but that is its charm and attraction. Slow and easy Mexican lifestyle. Siesta time!
- San Miguel de Allende- Another non-touristic destination with an abundance of Mexican charm and hospitality that is sure to please.
- Durango – Away from the coast and surrounded by mountains, forests, and deserts this may be one of the most affordable vacation property destinations in Mexico for foreign investors. But don’t let the low prices fool you. Durango attracts its fair share of tourists coming to see the locations of over 140 famous movies filmed here.
FAQ’s About Investing In Mexico
- Can foreigners invest in Mexico? Yes, but there are some restrictions for buying close to the Mexican border and the coastlines. Consult with one of our advisors for exact details.
- Is it safe to invest in Mexico? Yes, Mexico is a large country and there are areas that caution is suggested for foreigners but the large majority of Mexico is safe for foreigners.
- Where are the best places to own a vacation property in Mexico? In the proceeding article, we outlined what we think are the best opportunities for high occupancy and good ROI.
- Do I need to speak Spanish to invest in Mexico? No, most legal services have an English speaking representative and the growing ex-pat community of English speakers in Mexico ensures you will find someone that speaks English. Also, most of the locals are friendly and speak some English as well.
- What are the transaction costs to buy a vacation property? Depending on the exchange rate of Peso and USD the average closing costs are 2.5 to 6% of property value. Here are some typical costs
- Acquisition tax – 1%
- Foreign affairs permit – Peso 16,900
- Preventive Notice – Peso 300 to Peso 800
- Fideicomiso set-up fee and first-year maintenance fee – Peso 18,560
- Notario fee – 0 .75%
- Local Transfer Fees- Peso 3,360
- Public Registry Fee – Peso 4,000
- Property tax certificate – Peso 300
- Certificate of Freedom of Liens – Peso 600 to Peso 800
- Appraisal – 0.35%
- Fees are subject to change and will vary with the value of the property purchased.
- Can a foreigner get financing in Mexico? Foreigners can get loans here but it is hard to qualify and interest rates are usually high (11 to 18%)
- Do sellers offer to finance real estate? Very rarely but it is something you can ask.
- Are there English speaking real estate advisors in Mexico? Yes, Pivot Media Group offers full investment consulting services in English for vacation properties. Contact us by going to the contact page and filling a form or calling us today.
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