Investinista reporting on Tulum, Mexico
Many of us is trying to get out of the Rat Race and have probably thought about living abroad. With the uncertainty of the US economy, many savy Investors of our times such as the Trumps, Kiyosaki and Buffett have began transitioning their assets adding international properties into their portfolios. I happen to go to Tulum almost on an annual basis and this is probably my 5th time there so I would like to report on the changes that I see this time around. Of course taking the advice from Amanda Han that all trips could be Investing focused, I certainly incorporated this advice into this trip. This is what I see regarding Tulum, Playa Del Carmen, Yucatán area of Mexico:
Tulum is becoming up and up: more restaurants are added and extending far inside the Biosphere towards Punta Allen. Most restauranteurs often needs to prove themselves from places like Mexico City and regions of Italy in order to get investor fundings to open their up and coming restaurants in Tulum. The whole town is certainly fitting for celebrities as they love Tulum. Dinning experience along with its excellent service with its ambience fit for the Bachlor and Bachlorrette show are becoming more creative with eco conscious cuisines and flavorful coctails. I am seeing more expats here than ever and they come from all over the world. These people tends to come to enjoy the great weather and comfortable living and were living here as investors to spiritual counselors or yoga teachers and herbalist. With Cancun airport being such an easy airport with great flights to many destinations I can see how it is very easy to call Tulum home.
Tulum Real Estate: as fancy condos are building out in Playa del Carmen, the affordable price points can be found in Tulum. I toured with an agent whom took us to 5 different properties. They were in various phases in becoming complete. One can buy a condo with entry points around $67K for a studio which probably hasn’t broken grounds yet or in its very early stages of building. My agent took us to a property that was only complete with bricks laid out up to the 3rd floor penthouse roof top. Back in the states, these types of tours would never happen without a Hard Hat which I didn’t see anyone wear. (We are in Mexico after all.). But we get the sense of the location and the feel once it is complete only by looking at the brochures. They didn’t have show rooms. However that $67K condo once it is complete, kissing that final stage of completion can go up in value to about $100K. According to my agent there are a lot of investors that do just that and making a decent return. There are some recognition that land for building is becoming scarce and many locals properties are being purchased by developers and some gentrification activities are noted. Also with the unfriendliness of the US Trump immigration harassment, many Mexicans from the US are moving back and they bring with them their US standards of living so there is more demand for housing from this group as well. In addition, the US dollars is still trading at $1 to 19 pesos, this makes Mexico a very attractive pick for many investors.
Crypto currencies: For the first time in my travel, I begin to see that crypto currencies were getting more popular. As one may have experience in Mexico, many establishments don’t like credit cards. If they take them, it is usually with a fee of 3% to 6%. On this trip to Mexico, I must have seen at least 10 restaurants that read on their menu: “Cash only, no credit cards, BitCoin, Etherum, or Ripple accepted”
So of those of you who are considering Mexico as a place to invest, I would love to hear about it. Or if you are already investing in Mexico, please share. As I love it there and I go every year, I would love to hear your take in all that is going on and what sort of investment strategies you are thinking of implementing into your portfolio. Mexico was voted by International Magazine as one of the top countries to retire a few years ago so wondering if anyone is planning on taking the plunge.