April 18, 2024

Insider’s guide: How to buy property in Tulum as a foreigner

Dreaming of living in paradise? Tulum, renowned for its pristine beaches, lush jungles, and rich cultural heritage, has emerged as a prime destination for real estate investment in recent years. The sustainable essence of Tulum, coupled with the upward trend of tourist flow and the development of new infrastructure projects, has made investing in Tulum a top priority for many investors seeking high returns on their investments.

However, navigating the process of buying property in Tulum can be daunting for newcomers. Fear not! In this comprehensive guide, we'll walk you through everything you need to know about buying your investment property in Tulum.

Understanding the Market

Before diving into the process, it's crucial to grasp the dynamics of the real estate market in Tulum. With the recent inauguration of the Tulum international airport and the upcoming Mayan train and Jaguar national park, Tulum has witnessed remarkable growth, enticing investors globally.

This surge in demand has naturally led to rising property prices and a diverse array of buying options, nevertheless when choosing wisely Tulum still offers excellent value compared to other popular destinations.

Key Considerations

When setting out to buy investment property in Tulum, several key considerations warrant attention:

1. Legal Framework: Purchasing property in Tulum as a foreigner entails navigating specific regulations. While foreigners are allowed to own property in Mexico, there are restrictions within 50 km of the coastline. To facilitate these transactions, the condo is typically acquired through a Fideicomiso, commonly known as a bank trust. A Fideicomiso operates as a three-party agreement wherein the seller transfers the property to a bank, which then holds the legal title on behalf of the buyer. Through this arrangement, the buyer enjoys full ownership rights and privileges. Notably, the trust agreement is renewable every 50 years, ensuring long-term security for the property ownership.

2. Costs: Beyond the initial purchase price, buyers must account for various additional expenses. Closing costs, typically amounting to 5% to 7% of the property's value, encompass notary fees, transfer taxes, and registration fees. Moreover, it's crucial to ascertain what amenities are included in the property's price, such as appliances and furniture. When evaluating properties for investment purposes, interior design plays a pivotal role in maximizing rental potential. Allocate approximately 10% to 15% of the property's value towards preparing it for rental use, ensuring both aesthetic appeal and functional efficiency.

3. Financing Options: While some buyers may choose to pay in full, opting for pre-sale opportunities can unlock unique financing options like interest-free financing, with other benefits described in Investing in Tulum pre-construction: Is it a smart choice?. This allows buyers to leverage their investment without the burden of interest payments. Financing in Mexico may differ from what buyers are accustomed to in their home countries, so it's essential to explore various lenders and understand the terms thoroughly.

4. Location: Tulum offers a diverse range of neighborhoods, each with its own unique charm and appeal. Whether you prefer the bustling town center or the tranquility of the jungle, there's something for everyone in Tulum. In our guide about unique neighborhoods in Tulum we delve deeper into the unique character of some of the most popular neighborhoods in Tulum.

5. Quality: Given Tulum's demanding environment, meticulous attention to detail is paramount when evaluating properties in Tulum. From scrutinizing construction materials and architectural integrity to assessing infrastructure, fixtures and appliances, every element plays a crucial role in ensuring long-term satisfaction and savings.

6. Efficiency: With Tulum's tropical climate characterized by heat and humidity, prioritizing property efficiency is essential. Considerations such as property orientation, cross ventilation, shading, ceiling heights, window quality, and high-efficiency appliances form the foundation of a modern, climate-responsive property. Good insulation system that allows you to eliminate external noise and outside heat or humidity is also one of the important things that your condo in Tulum must have.

The cenote-pool in the real estate development Mayab Tulum
At Mayab Tulum we have made sure to implement full cycle water usage: filtration system for potable water and water treatment plant for waste water, as well as natural cenote - pool water filtration process to recreate the cycle of nature.

7. Environmental Impact: As Tulum experiences rapid development outpacing its infrastructure, environmental considerations are pivotal when buying an investment property in Tulum. Ensuring adequate infrastructure for clean water supply and wastewater treatment, along with preserving green spaces featuring local flora, not only enhances the future value of your property in Tulum but also fosters ecological equilibrium within the habitat. To delve into other sustainable building practices, check Sustainable building practices in Tulum's new developments.

Buying Process

Now that you're familiar with the key considerations let's walk through the process of how to buy property in Tulum:

1. Research: Begin by researching the market and defining your priorities, including budget, desired location, property type, size and desired amenities. Many investors doubt which type of property in Tulum to invest in, therefore in our article Investment properties to consider when buying real estate in Tulum we present all the real estate investment options available in Tulum, with their advantages and disadvantages.

2. Property Search: With your criteria in mind, start browsing listings online. There are good deals when working directly with developers; however, you can always get the help of a local real estate agent who can guide you through the process and show you different options.

3. Due Diligence: Before making an offer, conduct thorough due diligence on the property. This includes reviewing the title, verifying property boundaries, and ensuring there are no outstanding liens or encumbrances.

4. Negotiation: Once you've found the perfect property in Tulum, it's time to negotiate the terms of the sale. Research the prices of similar properties in the area. Determine your budget and the maximum amount you are willing to pay for the property. Make a reasonable offer, be patient and stay flexible throughout the process. Maintain open communication and flexibility throughout the process.

5. Closing: Once an agreement has been reached, the closing process begins. This typically involves signing the purchase agreement, transferring funds, and completing any necessary paperwork with the assistance of a notary public or if remotely with the use of digital tools to share, sign and manage digital documents.

Mayab Tulum: Your Gateway to Paradise

At LOAM Desarrollos we recognise the allure of Tulum and are committed to making your dream of owning a condo in this tropical paradise a reality. Our latest real estate development Mayab Tulum offers an opportunity to own the best investment property in Tulum's thriving real estate market.

Kitchen and living room of the condo in Tulum at the property for sale Mayab Tulum
With interest-free financing available for presale condos, Mayab Tulum makes buying property in Tulum more accessible than ever.

Whether you're looking for a vacation home, rental property, or investment opportunity, Mayab Tulum offers the perfect blend of luxury, affordability, and convenience.

Your dream condo in Tulum.

17% down payment and interest-free monthly installments.

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Amphitheater in the real estate development Mayab Tulum with 46 condos for sale.