Whether you are buying a primary residence or a vacation home, there is something wonderful about being the first person to own and occupy a new place. Imagine coupling the delicious smell of the beach with that unforgettable new home smell! In Riviera Maya, as elsewhere, there are continuous opportunities to purchase new property, often in the pre-construction stage. Regardless of where you buy, doing some due diligence to check out the developer is the smart thing to do.
Many people buy with an eye to rent out the property part of the year. Especially if you are buying from outside Mexico, there are several considerations to keep in mind to make sure your investment is sound.
What is your time frame?
Do you want to take possession by a certain time? Do you need to see a quick return on your money? The time frame from when you sign the contract of purchase and sale and make the initial 30 percent down payment can span 2 years and more. There can be unexpected delays and changes that require the ability to weather these uncertainties. As long as you look at the property acquisition from a long term perspective you will keep a good investment. If you look at the purchase as a quick flip, you might be disappointed.
How stable is the developer?
The initial 30 % down payment flows through to the developer and is not held in escrow. Therefore, it is of utmost importance to consider the financial stability of the developer, the under lying title and permits involved, and the protections provided in your purchase contract. All these should be reviewed by a lawyer locally, here in the Riviera Maya, for your benefit, before signing and making the initial deposit. You don't want to lose money to beautiful plans and an unstable developer.
When do you take ownership?
One last piece of information to consider on preconstruction property purchases is the delivery of title of ownership. Even though you have taken physical possession of your condominium or home or land when it is complete, and you have paid for it and can begin using it, the title of ownership may take 6 months or a year or longer to be delivered to you.
The Riviera Maya area is mesmerizing, but don't get carried away and make a purchase you will regret. Do your due diligence and do it well. In doing so, you can make a safe and well planned preconstruction investment in your vacation home and receive healthy returns - and a heavenly location.
Judi Shaw and her team at Living Riviera Real Estate are well versed in the pros and cons of pre-construction buying will help you make the best decision. If you decide that being pre-construction is not for you, we can help you find in dream home in Playa el Carmen or other inviting locations along the Riviera Maya.