May 12, 2023

Investment properties to consider when buying real estate in Tulum

Investing in real estate is one of the 5 safest investments you can make in your life. However, many investors doubt which property to invest in, therefore in this article we present all available options of investment properties in Tulum, with their advantages and disadvantages.

Tulum is a tropical paradise in the heart of the Riviera Maya with great urban and tourist potential. It is one of the best cities to live in Mexico due to its rapid growth in innovations in mobility and real estate. The lush tropical nature, which surrounds the region, is one of its main attractions, not to mention its beaches with turquoise waters and crystal-clear cenotes.

Before making any decision, we recommend you read our 8 tips to invest in real estate wisely. Then, take a look at the 4 options of investment properties you'll find in Tulum:

Buying a house in Tulum

Buying a house in Tulum can be an excellent long-term alternative either to convert it into your new home, use it for vacation rentals, or resell it at a higher price. Here are the advantages and disadvantages of this investment option.

House in Aldea Zamá as an investment property in Tulum.

Advantages of buying a house in Tulum:

  • Freedom to build or modify it to your liking and choose the furniture that you like the most.
  • There is privacy and space to accommodate large families.
  • These are properties that you can pass on to next generations.
  • A house in Tulum can be an excellent retirement option.
  • Long-term value appreciation, so you will always have an asset available to resell or to profit from by renting it out.

Disadvantages of buying a house in Tulum:

  • A large initial investment is required, as mortgages typically cover up to 80% of the home's value.
  • The acquisition process is longer and more expensive, than that of the properties mentioned in the continuation of this article.
  • High maintenance costs generate expenses that you must incorporate into your monthly budget.

Buying a condo in Tulum

Kitchen at investment property in Tulum, project called Mayab Tulum
This one bedroom apartment with its private pool at Mayab Tulum is one of the most attractive pre-construction investment opportunities in Tulum.

A lot of investors are inclined to buy an apartment in Tulum, considering the variety of new developments and pre-construction condos that currently exist in the Riviera Maya.

Advantages of buying a condo in Tulum:

  • Smaller size of the investment than that of a house.
  • Maintenance costs are much lower, and the common areas are included in the payment of the condominium (homeowner’s association) fee.
  • It is easier to rent out a condo as a vacation home.
  • There is a great offer of pre-construction and finished condos on the market, fully equipped and even furnished.

Disadvantages of buying a condo in Tulum:

  • Less space and privacy, since the common areas and amenities are shared with other owners.
  • You must assume expenses and modifications to the real estate development that the homeowner’s association decides.
  • Some families feel that owning an apartment on the beach obligates them to spend their vacations in the same place. However, you can rent it out during holidays and with that money discover new destinations.

Invest in hotel rooms in Tulum

The concept of investing in a hotel room is relatively new in Latin America. It consists of acquiring a hotel room and renting it per night, being a great opportunity in tourist markets such as Tulum.

Advantages of buying a hotel room in Tulum:

  • Tulum's tourism sector continues to grow, being an ideal attraction for tourists who want to come for a vacation to Tulum to enjoy this incredible town in the Caribbean.
  • Tulum's climate is ideal throughout the year; therefore, hotels are welcoming tourists all year round and one night can cost up to $200.
  • The fact that the property is rented per night makes it a much more profitable investment than renting a property for a longer period of time, e.g., a month.
  • A hotel room will always be in excellent condition, as maintenance is the responsibility of the hotel. This way you will not have to worry about maintaining and fixing your property.

Disadvantages of buying a hotel room in Tulum:

  • Hotel rooms are subject to hotel management – it approves all changes and modifications. This way, you may feel that you do not have much freedom when it comes to managing your property.

Buying land in Tulum

Another real estate investment option in Tulum is to purchase a plot of land with high residential or commercial potential. Tulum is a growing town, that seeks to execute new residential and commercial projects as long as the principles of sustainable development are respected.

Advantages of buying land in Tulum:

  • It is a safe and profitable long-term investment, since if you choose a land with the right conditions, located in a growing area of ​​Tulum, its value will go up.
  • You are free to build whatever you want on that land, from a house, commercial or residential development, etc., or hold the property until the value goes up.
  • The size of the investment needed to purchase the land is much smaller than that of the finished property.
  • Competition among buyers on the land market is low, which means you can get a better deal.

Disadvantages of buying land in Tulum:

  • It may not be easy to find land for sale in a good area of ​​Tulum with a high residential potential. The best areas have already been occupied by real estate developers.
  • You need to obtain a building permit to be able to perform any kind of construction work on your land in Tulum.

Acquiring investment properties in Tulum sounds like an exciting venture! It's essential to gather all the necessary information to make a well-informed decision. Understanding the process is key, so diving into our guide on How to buy property in Tulum is a great start. From navigating local regulations to finding the suitable property, there's a lot to consider. What are you most curious about in the process?

Your dream condo in Tulum.

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