If you’re looking for a way to invest that’s going to give you good returns you could be forgiven for thinking that you’ve missed your chance at the vacation let market in big Mexican hotspots like Cancun and Puerto Vallarta… it’s just not true, however! Vacation rentals in Mexico are still a great investment.
Investing in Property for Vacation Rentals in Mexico
It used to be the case that foreign national could not buy property within the “restricted zones” of Mexico (those being the areas roughly 62 miles or 100km from the coasts and national borders), but since the introduction of the Fideicomiso system this is no longer so! Foreigners can buy property almost anywhere in Mexico now, so once you’ve found and locked in your ideal one you can begin making it work for you.
Income from Vacation Rentals
The vacation property market has grown by 9% in the last year, and so it should come as no surprise that you can build a reliable and lucrative second income out of a desirable vacation let. Better still you can keep your profit margin healthy by paying all your expenses in Pesos and setting your rate in USD. This guarantees a decent return before you even consider the appreciation in value which your property might experience over the next few years.
In the past it was possible, if somewhat shady, to keep rental income from Mexican properties under the radar, but this is no longer the case. New tax legislation is enforced thoroughly so talk to a tax attorney to keep you on the right side of the law.
A home in paradise
Not only will you be able to make money from your investment, but you can use and enjoy your property too! This is an investment in your future vacations as well as your financial stability so make sure you keep a week or two of the high season for you and your family.
What do you think? Want to buy a vacation rental in Mexico?