That’s luxury for not much more than the bricks-and-mortar price
March 13, 2018
“One man’s crisis is another man’s opportunity,” says real estate expert and International Living contributor, Ronan McMahon. “At least, that is the case in two of three beach towns I’m watching closely for 2018, with an eye to potential profits.
According to the report, when the 2008 crisis hit, Placencia, Belize, and Los Cabos, Mexico, both felt it, and the after-effects of that crisis are still creating opportunity for real estate buyers a decade later.
But there weren’t the big fire-sale auctions and heavily discounted deals prevalent in places like Ireland and Spain, which lured buyers looking for bargains. Instead, the markets in Placencia and Los Cabos quietly stalled as developers sat on the sidelines, waiting for them to bounce back.
“It was set to take off in 2008, but went on hold when the crisis in North America hit.”
“Those who have gotten in now are set to profit.
I’m watching this market closely and flagging exciting deals as they bubble up (including some long-held foreclosures that local banks have been reluctant to let go of).”
This is a first in Los Cabos’ history and a rare chance to get something high-end with a tiny price tag, according to the report. Pre-crisis, in Los Cabos, developers were building condos and homes with multi-million-dollar price tags.
That’s the kind of market there is in this Pacific coast destination.
But when buyers dried up, developers got more creative.
“That’s luxury for not much more than the bricks-and-mortar price,” says McMahon. “I expect the value of one of these condos to hit $450,000 or more in the next five years…and an owner could gross an income of $40,000 a year.
But I expect this opportunity to buy Cabo luxury at such low prices will pass very quickly.”
Tulúm is the end of the line for this Path of Progress.
Literally. The Caribbean Sea on one side…a huge, protected biosphere reserve on the other and strict planning and permitting rules on land south of Tulúm, means there’s only so much development that can happen.
And, once Tulúm is maxed out, there’s nowhere else for development to go.
“This is a place that’s already cool—the vacation destination of the hipster and eco-chic sets. And this is the year Tulúm grows up from hip beach town to one of the region’s fastest-growing commercial and tourism centers.
“Late in 2017, I recommended condos in Tulúm from $154,500. I expect values will rise during construction by as much as $40,500…and that, with the right marketing, one of these condos could gross up to $35,000 a year.
“I also expect real estate values in Tulúm will rise strongly in the coming years to align more with other Caribbean destinations where values are twice as high.
“Now is the moment to get in.
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