I’m so excited and proud to be sharing the outcomes of shopping for a pre-construction property in Mexico (particularly Tulum), from my new condo! Many individuals, together with myself, have been skeptical about this course of, however I’m completely satisfied to share that largely all the pieces went easily!
On this put up I’ll go over the method and the continuously requested questions on it!
NOTE: Like my condo, this put up is a work-in-progress! It’s written in largely story-telling format as nicely, so examine again for extra tales as I proceed to place my residence collectively!
Why I Determined to Purchase a Pre-Building Property in Mexico
For starters, let’s speak about why I selected Mexico. That’s simple for me; I LOVE it right here! I’ve been forwards and backwards to Riviera Maya (largely Playa del Carmen) for years due to how lovely and digital nomad-friendly it’s. It’s solely an hour flight from the place my mother lives in Florida, and the standard of life right here is totally unimaginable.
Now for why I made a decision on pre-construction as an alternative of an already constructed property. Additionally simple; it’s a hella lot cheaper! Positive it takes longer and appears dangerous, however I saved about $75k, and now my completed property is already value that rather more!
Why I Selected Tulum to Purchase My Property
A number of years in the past I used to be very Anti-Tulum. As one of many authentic “journey influencers”, I now generally get aggravated with what has develop into of it (everybody performing like they’re one and taking infinite selfies in every single place, which occurs rather a lot in Tulum).
Then I really tried residing there for a couple of months and noticed a special facet of it. There’s a lot unimaginable nature apart from the seaside, just like the jungles, cenotes, lagoons, and ruins (not nature however you already know what I imply). Upon additional exploration of the seaside zone, I discovered it was like a Caribbean model of Bali, however with Mayan tradition as an alternative of Balinese Hindu.
Tulum can be approach much less chaotic and modern-commercialized than Playa del Carmen, and I really feel extraordinarily stress-free residing a easy but fabulous life right here. Effectively, once I’m really right here. I nonetheless journey full time for work.
Anyway, some extra tremendous necessary the reason why I selected Tulum to purchase my property;
Tulum had the most cost effective costs for pre-construction properties versus Playa del Carmen
The architectural designs in Tulum are precisely my type
Tulum is among the present hottest cities on the earth, so potential to lease my place out is excessive
They’re constructing an airport and including a luxurious outside mall, which may even improve guests
Do I Suppose or Fear that Mexico is Harmful?
Would I reside in a spot if I assumed it was harmful? No. So take into consideration that and likewise why I’m selecting NOT to reside in USA.
I personally suppose it’s ridiculous how scared persons are of Mexico. Positive, there are some areas with excessive crime, however hiya, have you ever not heard concerning the day by day shootings in USA? We’ve had perhaps 5 shootings in the previous few years in Riviera Maya, and so they have been cartel-related, that means not focused at vacationers.
Vacationers, expats, foreigners, are all principally protected right here, as a result of that’s how the locals earn cash. I journey and reside in Mexico solo, and I don’t suppose it’s harmful.
Try my security posts about it although:
Can Foreigners Purchase Property in Mexico if it’s Close to a Seaside or Border?
YES! The legislation that forbade shopping for property in Mexico close to a seaside or border is like 200 years outdated, and it was as a result of that is how USA took over Texas and California. Now, the federal government has created a very simple loophole round this!
It’s referred to as a “fiedecomiso” (translation: “financial institution belief”), and it’s principally a contract you and the developer signal, then do all of the funds by way of a 3rd celebration financial institution. So principally the developer offers the property to the financial institution, and you purchase it from the financial institution.
Do You Want a Residency? Or to Keep in Mexico a Sure Quantity of Time?
No and no. Bear in mind, these properties are geared toward international traders, that means they anticipate most consumers to by no means even come there. You don’t must reside in and even be in Mexico to purchase a property.
That being stated, you additionally don’t want a residency or citizenship, until you need to keep greater than 6 months at a time (the everyday customer visa). Residency additionally will get you some reductions although, so perhaps one thing to contemplate. You may get your residency or long run visa by way of the identical legal professionals you utilize to purchase the property.
Do You Personal the Property in Mexico Ceaselessly?
YES. This isn’t Bali, there aren’t leaseholds that restrict what number of years you personal a property. As soon as you purchase your property in Mexico, it’s YOURS till you promote it! Effectively, or in the event you don’t make the funds on it!
Some individuals have requested issues like, “Can the federal government simply come and take it away?” My legal professionals stated extremely unlikely, until there was an enormous political motion to socialism or one thing. And once more, perhaps in the event you don’t pay your taxes!
My Private Expertise Shopping for My Pre-Building Property in Mexico
Right here’s the best approach I can clarify my private expertise shopping for my pre-construction property in Mexico!
Could 2022: I went to Tulum and was related (through IG) with a reliable realtor…who I trusted as a result of they have been on Dwelling Hunters 😉 He related me to certainly one of their feminine realtors from Spain who additionally speaks English, in order that she may assist translate or clarify something to me.
I advised her my preferrred finances and preferences, corresponding to one bed room, rooftop pool, location, and so forth. She then went by way of her stock of present pre-construction properties in Tulum, and despatched me all those that have been a match.
The way in which I first checked out pre-construction properties was through “renders” that are digital photos of what it’s going to appear like completed. Clearly this isn’t very reassuring to purchase one thing based mostly on a digital picture, however they have been very interesting.
Subsequent I went along with her to take a look at the precise building websites. That is one thing hardly anybody does. Most individuals who purchase pre-construction are traders, in order that they see the renders and pricing, and buy all the pieces nearly.
However since I needed to really reside in mine, to not point out, it was all of my financial savings, I needed to see with my very own eyes that the development was occurring, and likewise the areas.
I didn’t have a lot luck as a result of all of the models in my worth vary have been studios, and I actually needed a one bed room.
Somebody gave me the recommendation to examine with a number of realtors as nicely simply in case. So I went with a man somebody I knew from LA referred, and he was a complete typical “machisimo” (however a gringo one) realtor. This American man handled me like my finances was low and he didn’t actually care about making the sale since his fee can be low. He additionally had a younger lovely Mexican “assistant” observe him round, but couldn’t afford to drive me to see the properties like the lady realtor did.
Anyway, he took me to 2 properties that weren’t what I requested for, and advised me he didn’t have time or one thing to indicate me the final two. That was high quality with me as a result of I didn’t like his vibe anyway. However once I seemed into one of many renders he despatched however didn’t present, it gave the impression to be precisely what I used to be in search of!
So I despatched it to the lady realtor, and she or he instantly referred to as the developer, made an appointment, and drove right down to take me to see it the subsequent day!
VISITING THE CONSTRUCTION SITE
Mexico is rather a lot totally different than the US. Within the US, there’s no approach in hell you’d be allowed to simply stroll right into a building web site. In Mexico, we did it, and likewise in flip flops, attire, and with my little Pomeranian Oscar.
The constructing I used to be considering was principally simply the naked bones, however I had religion. We have been taken to see the one completed unit that was the present room, and though it was a bit small, it was a one bed room, and that’s what I largely needed.
We began speaking with the mission supervisor (who solely spoke Spanish, so having my realtor was very useful) and he was displaying us the blue prints of what models can be found.
That is the place destiny stepped in, and why I’m SO GLAD I really went to the development web site.
There was a blue rectangle added onto one of many models with the phrase “piscinita” (translation: “little pool”. I requested what that was about, and the mission supervisor stated they’d simply determined so as to add plunge swimming pools to a couple of the second and third flooring models.
With out displaying my pleasure, I requested if they’d elevated the value due to it. He stated no, so I requested to see that unit. We went up the very dangerous-looking stairs, to a unit that was additionally stand-alone, that means it didn’t share partitions with another models.
Low and behold, it was a one bed room, one and a half rest room, and it had the little plunge pool, plus a big facet terrace, and a balcony within the bed room. Proper then and there, I knew it was the one.
With out asking anybody else’s opinion or recommendation, I advised my realtor I needed that unit, and I wired a deposit to the legal professionals I’d be utilizing for the entire course of.
Getting a Property Lawyer & Why I Suggest it
Usually I hate something to do with legal professionals because it normally entails some huge cash, however the property legal professionals in Mexico made this complete buying course of extraordinarily simple. I used MexLaw, who has an workplace in Playa del Carmen, however you are able to do all the pieces with them nearly.
I went into the precise workplace although (once more one thing nobody ever does since most individuals are traders) and had them stroll me by way of the entire paperwork.
They translated the entire contracts for me in English, and likewise defined what all the pieces meant in English. I can communicate Spanish, however conversationally, not contract-signing-ly.
The primary contracts I signed have been stating that I used to be placing a deposit down and had about two weeks to resolve for positive if I needed it or not. My realtor additionally submitted a type to the builders with negotiation phrases.
We needed to barter that if I put much more down up entrance in money than what they have been asking for, I’d get an even bigger low cost. Extra on that within the subsequent part.
Negotiating an Even Decrease Value
With my pre-construction property in Mexico (and all of them right here) you get main reductions in the event you pay money up entrance. That is clearly as a result of that’s how most tasks are even funded.
Most pre-construction properties supply issues like:
5% off in the event you pay 30% down, 50% within the center, 20% completion
10% off in the event you pay 50% down, 50% at compeltion
However I went forward and supplied 80% down, 20% at completion, and acquired 15% off. I feel I saved about $10k this manner.
Anyway, this wasn’t an current supply. I requested my realtor about it, she submitted it, they accredited, and my legal professionals made the contract.
Making the First Down Cost
Sending the 80% cost was pretty simple but after all, terrifying. It was nearly all of my financial savings, and I had no concept if this mission was even going to be accomplished. Really I did, as a result of one of many contracts said that if it wasn’t I’d get my a reimbursement, and if it wasn’t on time, they must pay me for every month it was late.
Anyway, I needed to ship a wire switch by way of Revolut since they don’t cost switch charges. This nearly backfired, as a result of they principally accused me of laundering cash, and made me show the money got here from my financial savings account, and likewise that I used to be buying a property. It lastly went by way of, however I used my common Financial institution of America account after that.
All transactions get logged by the legal professionals as nicely and so they despatched me confirmations from the developer.
AUGUST 2022: Checking in on Building
My pre-construction property had a end date of December 28, 2022, so all I may do for the remainder of the yr was wait. That was high quality since I had about 20 nations I used to be planning to journey to for work and enjoyable.
I got here again to Tulum after my Africa group journeys in August to examine on the progress, and it was very minimal. The truth is, I used to be barely disillusioned as a result of it appeared like there was no approach it could be prepared by December 28. Most individuals are Comfortable with late supply, however I used to be already planning a giant birthday and NYE celebration, and actually needed it to be achieved.
DECEMBER 2022: Ready for my Pre-Building Supply
I returned to Tulum after my Antarctica group journey in December. It was initially of the month, however I figured I may begin in search of furnishings and shifting issues in. However my unit positively didn’t look prepared. The truth is, the sinks, fridge, and range weren’t but put in.
Once more I began shedding religion, and hoped I wasn’t going to remorse my determination.
I bugged the developer endlessly, and he saved telling me it could be prepared, however would push the date again little by little. He stated for positive by my birthday (January 4th) it could be prepared. To me that meant prepared to remain in it. I don’t know what he meant by “prepared” although.
JANUARY 2023: Nonetheless Ready for Completion…
My NYE rooftop celebration didn’t occur, and neither did my birthday celebration. Effectively, no less than not at my condo, we positively had lots of events on the seaside golf equipment.
By January 4th, my unit was not in actual fact totally prepared, so my whole household and buddies who flew in to see it, principally simply took pictures of tequila and ate cake in an unfurnished field. I used to be disheartened, however everybody actually beloved it! This was one thing I used to be fearful about, particularly with relations. I assumed for positive they’d suppose I used to be loopy for spending my cash on a pre-construction in Tulum!
My Household’s Suggestions
My mother was skeptical when she first noticed it again in August, however in January she was actually proud and excited. My aunt and uncle, and likewise a cousin, who’re all massive in actual property, stated it was very nice and in a wonderful space. So though I used to be bummed I couldn’t present them the ultimate consequence, I no less than had assist!
FEBRUARY 2023: Nonetheless Ready…
I stayed in Tulum at an condo close by for 2 months ready for my condo to be prepared to remain in. It sucked as a result of I used to be losing $50/night time staying only a few blocks away from a property I owned. However there wasn’t a lot I may do.
And I didn’t need to keep there anyway as a result of about twenty employees have been nonetheless there day by day. As a substitute I tried to begin furnishings purchasing, which was an absolute nightmare.
Furnishings Purchasing in Mexico
In different areas of Mexico like Mexico Metropolis and Puebla, this is able to have been rather a lot simpler. However in Riviera Maya, not a lot. There are a couple of muebles shops (“furnishings) in Playa del Carmen, however many are very costly! The cheaper ones usually are not precisely cute. However that’s the place most traders furnish these locations with.
I needed my place to be good and distinctive, so I spent infinite days making an attempt to determine the furnishings scenario. Most of which have been failures, however I lastly figured it out.
For my couches, I randomly discovered handmade bamboo benches at a store close to Coba ruins. I purchased three of them plus a desk for about $400 and offered one of many benches for $150. The bench I selected for my lounge I then wanted to determine easy methods to get cushions for.
So I discovered a “sasteria” (translation: seamstress) in Tulum. I purchased the material and stuffing in Playa del Carmen, took the measurements of the bench, then she made me the entire cushions and pillows, plus a canine mattress, for about $45.
Discovering a mattress was an absolute nightmare. And I do actually imply “discovering”, as a result of Amazon delivered my first mattress to the mistaken place and I needed to seek for it for 2 months with out luck. I even put up flyers for my lacking mattress…
By the way in which, Amazon.mx works nicely right here, so long as you give the precise right deal with, which I didn’t have for the reason that constructing was nonetheless beneath building. Therefore why my mattress ended up within the mistaken spot.
I acquired impatient and ended up ordering a small kitchen desk and a mattress I didn’t love, however was do-able, off the Mexican division retailer web site Coppel.com. My constructing developer felt unhealthy about my lacking desk and went and picked it up for me in Playa, however I had already left for my travels by then.
The remainder of the objects for my condo I discovered both on the Chedrauli Selecto (like a elaborate Walmart in Tulum) or Amazon. All of my decor although comes from my worldwide travels!
APRIL 2023: Getting Able to Return to Tulum
Between March and April, I had hosted two massive group journeys in India and Japan, and likewise went to Bangladesh, Malaysia, Papua New Guinea, Palau, Philippines, and Indonesia. Throughout that point, I additionally constantly bugged the constructing developer about my condo being prepared by the date I used to be set to reach on Could 6.
We coordinate on whatsapp all through April, largely me asking time and again concerning the fridge being put in and my mattress put collectively.
He organized for me to pay somebody 1000 pesos ($50) to place collectively my mattress, desk, and to hold some issues up earlier than I acquired there so I didn’t arrive to nowhere to sleep. Sooner or later, he despatched me the images of the mattress being arrange, and I practically screamed.
There have been TWO beds in my room. The second selection one I ordered from Coppel, and the freaking one which was lacking for 2 months from Amazon. He had no concept the place they discovered it, however knew I used to be very aggravated, and stated they may take one out once I acquired there.
Earlier than getting again to Tulum, I ended in Florida to select up my canine, and any US Amazon objects I had ordered that don’t ship to Mexico. I introduced over two huge suitcases with residence objects, and my international decor, which was drastically cheaper and safer than transport (don’t ship to Mexico, it’s unattainable).
MAY 2023: Arriving at my New Dwelling in Tulum!
On Could 6 I arrived in Cancun, rented a automobile, stopped at Dwelling Depot to get curtain rods, then lastly pulled as much as my model new condo in Tulum. Building on my unit was formally completed, and for the primary time, I may sleep in my little residence (I’m calling it “CasitAlyssa”), even when it did have two beds in it.
…to be continued