The real estate market is growing by leaps and bounds in Mexico, and with that growth unfortunately comes various real estate developers who are not the best to work with.
If you want to make a good real estate investment from abroad, it’s important to choose a trustworthy developer. This will be a company in which you can be sure that there will be no problems related to the project’s quality, delivery timeframes or legalities.
But how do you find the right real estate developer? Here are some key points to consider prior to committing to a developer.
Research the History of the Developer
Knowing the history of the developer is as essential as knowing their track record for reliability and professionality. Check on their delivery times, work quality, infrastructure, and administration of the company.
Search for reports, press releases, forums, and real estate websites. You can also look for ways to contact previous clients to ask how their experience was with that developer.
Request a Comparative Market Analysis
Ask the developer to explain the market you’re interested in.
A good developer should be able to give you a real estate market evaluation that will show you current listing prices of properties that are similar to the one you’re planning to buy. In this market analysis, you should be able to see the price per square foot (or meter), how much you can charge for renting the property as well as the increase in capital gains and more.
Compare the Amenities
The best developments will always offer amenities that give a huge added value to the properties. Parks, recreational spaces, outdoor pool, gym, running trails, etc. Developments in beach destinations may even have beach clubs for relaxing comfortably by the ocean.
Don’t forget to compare the amenities offered by the various developments and choose the one that interests you as well as those amenities that you’ll actually take advantage of.
Ask for Sample Units
The developer you choose should always have at least one sample unit to show you (house or apartment, depending on the type of property you want to buy).
This is an important consideration since some properties look nice on paper, but can feel very different when you’re actually seeing the building. Spacial dimensions, orientation, finishes, etc, can feel different in real life. If the developer can't show you a sample property, it may be best to find one who can.
Ask About Financing Options
Finally, and most importantly for many, review the financing options of the developer you’re considering. For many, one of the most viable ways to buy a new property is through financing.
But buyers beware:
Most developers say they offer financing during the construction stage, but in reality, it’s financing ONLY during the construction phase and they don’t turn over the property until it is paid in full.
That can be a few, short months which makes it no longer a viable option.
Ensure your developer can offer you true financing that you can finish paying while you’re living in your home, either through a bank mortgage or that the developer itself can offer direct financing.
At TAO, we’re specialists in luxury real estate developments in the primary tourist destinations in Mexico. We offer direct financing as well as advice for obtaining a bank loan abroad.
Read more about our financing options:
How to Finance Luxury Real Estate in Mexico
If you’re interested in investing in real estate in Mexico, contact us today.
We’re one of the largest and most trusted real estate developers in Mexico and we have various luxury residential complexes in destinations such as Los Cabos, Puerto Vallarta and San Miguel de Allende, the Riviera Maya: Playa del Carmen, Tulum , Akumal and Puerto Aventuras.
Get in touch with us and one of our real estate advisers will gladly assist you to answer all your questions and guide you step by step to acquire the best property in Mexico.