How to Buy Real Estate in Tulum, Mexico

Tulum Real Estate: What You Need to Know About

Located at the heart of the Mexican Caribbean shore, Tulum has grown from a hidden gem to a global hotspot for travellers in search of exclusive experiences. Two years ago, Forbes qualified it as “one of the best cities to live in Mexico”. At the time, it received more than 2 million visitors each year.

Tranquil white- sand beaches, crystal-clear waters, and tropical vegetation add to its historical charm. Tulum features all the qualities of a tropical paradise with an added touch of spiritual and ecological awareness, which gives it a unique charm that inspires travelers and expats to relocate.

We have created an informative guide for you which explains 5 of the reasons why Tulum takes is top spot in the Caribbean for Real Estate Investment.

‍

Can a Foreigner Own Property in Tulum, Mexico?

Yes. Foreigners can own property in Tulum via a “fideicomiso”: a trust with a Mexican bank facilitated by a notary. The bank acts as a trustee and follows instructions from the property owner.

Via this arrangement, foreigners can have all rights to use, occupy, lease, build, improve, and sell their property. On average, it takes 60 to 90 days to complete a property purchase.

Another way of owning property in Tulum is by creating a Mexican corporation. This is recommended when investors plan to own several properties.

Schedule a call to work closely with a trusted team of lawyers and notaries who ensure that all legal processes proceed smoothly.

How Much is The Downpayment for a Property in Tulum?

When purchasing pre-construction properties, land, or houses, it is common for developers to require a refundable deposit of $5,000 USD to secure the unit during the contract drafting process. Subsequently, buyers typically make a down payment of 30%, although larger down payments can often lead to more substantial discounts.

The remaining payments are typically made through negotiable payment plans that span the construction timeline, with the final 30% usually paid upon delivery of the property. These flexible payment options provide buyers with financial flexibility and the opportunity to manage their investment as the construction progresses.

What are The Closing Costs on a Property in Mexico?

When considering purchasing a property in Mexico, it's important to account for various closing costs that typically amount to around 7% of the property value. These costs encompass the acquisition tax, recordation fee, certificate of no liens, municipal appraisal, legal and closing fees, as well as public notary fees.

Additionally, property owners should budget for the annual property tax, which is generally around 0.1% of the property value. 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.

Lastly, don't forget to factor in the cost of furniture and appliances. To gain a better understanding of these expenses and navigate through the details schedule a call with our real estate advisors.

Can You Get a Mortgage for Property in Mexico?

When it comes to foreigners investing in Mexico, the most favorable approach for obtaining financing is often by securing a loan in their home country. In the United States, options like Home Equity Loans or Home Equity Lines of Credit (click here) can be considered. Buyers have the advantage of repaying their monthly loan payments using the rental income generated from their vacation rental property.

On the other hand, obtaining financing within Mexico typically involves interest rates ranging from 9% to 12%, in addition to applicable fees. We collaborate closely with companies that specialize in providing mortgages to expatriates looking to purchase real estate in Mexico. Schedule a call with us to determine if you qualify and explore the available financing options tailored to your needs.

‍