Benefits of buying a luxury property in the Riviera Maya.

As well as the pros and cons of buying luxury properties

The acquisition of a house supposes, without a doubt, an important investment of resources, not only monetary but also time and effort focused on the search for the ideal property. However, everything gets complicated when what you are looking for is a luxury property. As we have already touched on in previous articles, the definition of luxury contemplates, above all, rarity and extreme quality in design and finishes. That is precisely what raises the cost of any property. That is why today we present you the benefits of buying a luxury property in the Riviera Maya

However, there are important differences regarding the purchase of properties of average cost or low cost. As is to be expected, any real estate investment, however small it may be, implies a certain degree of stress due to the different variables that are at stake and that range from the profitability of the property to an ROI that is sometimes not as good as expected to factors that directly affect added value such as insecurity or a bad location. Any investment indeed carries risks and it always falls to the real estate advisor to lead the investor on the path with less uncertainty.

Below we can see a table where the most expensive cities in the world are located to buy a property. Whether due to their quality as financial, commercial, or tourist centers, or all together, the real estate offered in these cities demands high prices. However, the table presents the average prices throughout the city but excludes the idea of the cost of property on the beach. A clear example is the case of Los Angeles, California where the average is USD 679,220 but where a residence facing the sea in Malibu, for example, exceeds four million dollars.

Position	City	Average Price USD
1	Hong Kong	$1,235,220
2	Singapore	$874,372
3	Shanghai	$872,555
4	Vancouver	$815,322
5	Shenzhen	$680,283
6	Los Angeles	$679,220
7	New York	$674,500
8	London	$646,973
9	Beijing	$629,276
10	Paris	$624,299

Investing in the Riviera Maya is, without a doubt, a very good option given the significant rebound in tourism that the region is presenting. The natural wonders of the region, its turquoise sea, exuberant jungles, cenotes, underground rivers, and cultural offers make the Riviera Maya the right place to buy a luxury property. Here the average cost of a property with these characteristics is USD 803,334. Considering that we are talking about locations facing the sea or very close to the beach in high-end developments.

Acquiring a luxury property has the main advantage that generally the value of both the property and the community where it is located is already established, which means that in that sense there is no risk while generally, these houses are on much larger lots. and the build has so much more character.

Also, as in all types of investment, we must consider the pros and cons and how they will affect performance. Here are some of the pros:

Extras: High-end neighborhoods, condos, and communities often include extras you won’t find in a typical home purchase. If you are looking for a community pool, home maintenance, or other special amenities, they are often included in your Association dues. Plus, the house itself likely has some unique features (think elevators, large garages, and guest suites).

High resale value: If you plan to eventually sell, the buying cycle may be long, but you’ll likely see a better return on your investment. Of course, this is subject to market conditions and the state of the home at the time of sale.

Tips for Luxury Real Estate Buyers

If you think luxury real estate is the way to go, here are a couple of buying tips that we at Select Riviera Maya Real Estate suggest:

Always work with a local broker: Many real estate agents who work in the luxury market have a wealth of information when it comes to specific neighborhoods, condos, and new construction. Work closely with the agent to find the right property for you.

Consider the total cost of ownership – be prepared for hidden costs like emergency maintenance. It is best to look beyond the mortgage payment and make sure that your financial situation allows you to prepare for the total cost of ownership. Mortgage professionals are a great resource to help make sure you’re not taking on an unnecessary amount of financial risk.

Hire a lawyer when necessary: While real estate agents and mortgage companies are helpful, properties like condos often come with a higher volume of documents and additional monthly or yearly fees. It may be helpful to have your attorney review these legal documents before closing.

Cons?

There is only a couple.

It is important to understand that luxury real estate acquisitions are not always ideal. Depending on the age of the home, maintenance, and repairs can really add up. Plus, you’ll likely pay a lot more for homeowners insurance.

The other is that the adrenaline and emotion lead you to make a purchase that you cannot afford. Therefore, the recommendation of Select Riviera Maya Real Estate is that you always buy properties that are below what you can afford. We already talked about the volatility of the real estate market before. Don’t let that take away your sleep.