All Forum Posts by: Sebastian Papworth

Hello @Kay So

Sure thing ill share the contacts for the property managers in a DM. 

Mar y Miel`s first phase was on the market for some time so maybe they had to offer strong incentives to buyers, when did your friend buy? I'm thinking your friend bought at presale maybe at family & friends price list and got a large discount. I am reviewing our internal MLS and the lowest price I see on the first phase was actually in MXN so maybe it has to do with an exchange rate, converting the MXN price to USD in our current exchange rate the starting price for phase one was around 320K USD for a 2BD 2.5 Baths. I am trying to remember when they launched the first phase I'm pretty sure it was 2019 3 years back, congratulations to your friend she got a really good deal! According to our STR market studies villas, houses, and townhouses rent really well, I personally like the architect and the design of the Mar y Miel villas, I don't think paying double is the best way to go right now, we can help you sending you comparable properties so you can decide which is the best way to go and what options you currently have.

To answer your last question: Yes it's normal for developers to raise the prices we call it controlled appreciation (if you invest in the initial stage of the project you will get the highest discount, the risk is also higher during this stage) and also there is a market appreciation over time if your friend bought when they initially launched back in 2019 and now the prices have doubled that means around a 30% yearly appreciation which can happen in Tulum. 

It's not normal for developers to give a 50% discount it's actually a huge red flag. Usually, discounts are lower than 10%, If I see something higher than that the prices might be inflated or there is something going on. 

 Hope this helps! 

Hello @Akshar Deri

I am the owner of Jungle Realtor a boutique agency with licensed buyers representatives in the state of Quintana Roo (where Tulum, Playa del Carmen, and Cancun are located). 
 I wouldn't suggest contacting the listing agents directly mainly because: 

You’re not going to get a better deal by going directly to the listing agent, they represent the seller and are just trying to get the seller the best price & terms and some can only sell their exclusive listings so they will offer a biased opinion. I would suggest getting a local bilingual licensed buyers agent you trust that has access to the entire market & can share the best options for your needs/wants. 

I shared more reasons for why working with a buyers agent in this thread: 
https://www.biggerpockets.com/...

Safe investing! 

Hello @Dennis Kraft

Just found this article about this sargassum processor to recover beaches and found it relevant to share in this conversation.

All the best 

https://www.riviera-maya-news....

Hello @Ryan Mattis

I am a broker/owner of a buyers agency based out of Playa del Carmen & Tulum. I know you have already received an answer to most of your questions however I can add some info, I hope it will come in handy.

Has anyone here from Canada purchased in Playa Del Carmen? Is this a terribly challenging process or can it be fairly straightforward? 

Most of our clients are from US & Canada, actually, one of our best advisors is from Vancouver, he has invested in multiple properties here and he used to be a realtor in Vancouver as well. 

Are there local realtors/lawyers that you trust? (I find this part initially challenging, is there somewhere I can vet people out, outside of google reviews) 

I am a licensed real estate agent so it's pretty obvious I am going to talk about the benefits of working with a trustworthy realtor let me give you some key points: 

1. NO MLS: Since there is no official multiple listing service in the area it's hard to know very important stats that really help you out in picking the best investment property and making sure your offer and negotiation get you the best deal. We have an internal MLS with historic purchases in the area and useful stats.

2. Off Market properties: Some agencies have access to listings that are not public and are not available to all investors. 

3. Developer track record: You might see a presale project you like with amazing renders and good prices however we have been in the area for over 8 years so we know which developers have a good reputation, have delivered projects on time, and with good quality finishes. 

4. Buyer's agent cost: The cost of a buyer's agent is paid by the seller so this service doesn't cost you anything, and it can save you a lot of money and problems if you get a good reputable licensed realtor. 

5. Buyers agent vs sellers agent: If you go directly to the developer they most likely will have an in-house agent that works with the developer, so his opinion will most likely be biased because most likely he can't sell anything else, plus in the negotiation, you wouldn't have anyone working on your side. 

6. Reputable realtor with a long term vision: I agree there are a lot of new real estate agents that are not licensed and might not have a lot of experience and information and only have their commission in mind and not your needs / wants and best interests, however, you can't judge all agents like this. There are very reputable agents with tons of experience in the area, I would ask anyone you decide to work with some basic questions: If they have a license if they are a part of a real estate association like AMMI, AMPI, or CANACO, if they have invested in real estate in this state, and how long have they been in business in the area. For a reputable realtor & owner of a brokerage firm, it's all about long term vision, we are able to close so much more business if a client is happy, most of our business is based on referrals and repeat customers so it doesn't matter how high the commission if I am going to risk my reputation which can bring me so many more referrals and the peace of mind of walking on 5th av. with my family.  

7. Contacts: As we know who the best developers and deals are we also have the best contacts for: Real Estate Law firms, financing companies, Premium bank reps to open Mexican bank accounts fast, Notaries, Inspectors, Builders, Accountants, Property Managers, photographers, furniture stores, carpenters, handyman & maintenance people, etc. 

8. Bilingual realtor: Make sure your agent speaks really good Spanish, remember that you are in Mexico and all the agreements and important paperwork you will sign are in Spanish, some are translated however it's important to keep in mind that the Spanish version will prevail. We always advise you to get a lawyer that represents you, he will take care of all the legal clauses, however, there are commercial clauses that some attorneys don't know that can be negotiated or don't know what amounts can be negotiated, like penalties, transfer of rights, etc. 

Any reputable property managers in the area? Obviously, I won't be able to tend to things from Canada: 

I know a very reputable property manager in PDC, he is also from Canada so I am sure you will be happy with him, I'll send you his contact via DM. 

If you are already working with a buyer's agent, great if not we can help out by sending you comparable properties, sending you a very useful buyer's guide. 

Safe investing!

Hello @Denise Ausderau

I have worked with a couple of property managers in the area both as an investor and as a buyers agent. In my experience, there are always pros and cons about each one, there are multiple options in Tulum and PDC. I can share the ones we have used and know they are trustworthy. Will send you a DM.

Hello @Deisy P.

Congratulations on investing in Tulum, and almost getting your unit!
I am Sebastian Papworth a buyers agent at Jungle Realtor, we haven`t closed any properties on iiK, however, I liked the style of the project since I saw it, I am excited to see it finished, we have closed a couple of units on another project from the same developer CEREN in PDC, I know the person who runs the sales and marketing of both projects we are both colleagues in the Mexican Association of Realtors, I am sure they can help you out.
If it's in the promissory agreement signed by the developer they have to honor it, it's good that you haven't paid off the remaining balance until you reach an agreement.

If you need any extra help send me a DM and we can chat directly.

All the best!

@Michael Donald

I have worked with a couple of property managers, in my experience, there are always pros and cons about each one, there are multiple options in Tulum. I can share the ones I have used and know they are trustworthy. Will send you a DM. 

@Tak Ogihara

Sure thing, I hope this helps you in your decision process. I work in a very similar way to what you just shared so I hear what you say. I would say there is no perfect investment however it definitely has to make sense and feel right. I wish you the best of luck on your investment and hope you find the property that meets your needs/wants at the best possible price! Anything I can help feel free to ask.   

@Mike Lambert

Thank you for sharing your personal opinion and interpretation of this analysis.

People compare PDC & Tulum all the time and they ask us our opinion almost on a daily basis. I base my answer on their needs/wants and expectations. As an investor in both cities, I see different pros and cons. I try to stick to data to stay as objective as possible and help investors reach their own conclusions. 

Here is the source for the two million tourists: https://www.kayak.com.mx/Tulum...

"Tulum has become one of the main destinations in the Riviera Maya, a place that receives almost two million tourists each year despite the fact that its population barely reaches 20,000 inhabitants." 

If indeed this article is talking about the visitors of the ruins, how many tourists do you know to stay in Tulum on average a year?

Do you really think ADRs for beachfront hotels are similar in Tulum to PDC? 

How many years behind do you calculate Tulum is compared to PDC? 

I have seen people in bigger pockets forums talk about the supply of properties in Tulum surpassing the demand, based on the numbers I have seen returns are very solid post-pandemic, I have made multiple projections and analyses based on our internal MLS and I am curious to hear what you think.

It's important to note that in Tulum you are able to buy clear titled properties within walking distance to the beach, not everyone knows about them and there is a very short supply, but they do exist. 

Something that I like about PDC is that it's a more mature market and its geographic location makes beach access very simple, I like the walkability of the city, and since it's in the middle of two golf courses so downtown growth is limited. 

I do see Tulum growing consistently, something important: services and infrastructure need to grow along with private development, parks, and green areas have to be assigned. Also, affordable housing is needed for people that work in Tulum because more and more people will move to Tulum to build the airport, train, and other projects. I have seen the urban development plan of the "new Tulum" and there are definitely big plans for the city and municipality. 

If you are interested in investing in Tulum or Playa del Carmen we are one of the few licensed boutique brokerage firms representing buyers.