How to reduce risk when investing on presale apartments in Tulum
Welcome again, in Tulum we have a lot of Red Flags at investing time, that's why today we have 11 things you should consider before investing.
Hello! Did you know that Tulum has become one of the most interesting places to invest in real estate in Mexico? 🌴
With its relaxed atmosphere, paradisiacal beaches, and constant tourist growth, this city in the Riviera Maya is attracting the attention of investors from all over the world. But before diving into buying a pre-sale apartment in Tulum, there are some things you should consider to reduce risks and ensure you make the best possible decision.
First, let’s talk about risks. I know the word may sound intimidating, but it’s actually a normal part of any investment. The important thing is to learn how to minimize them. How? Well, when it comes to buying pre-sale, there are some tricks that can help you navigate this process more safely, now we list some of the things you should consider:
1. Analyze the quality of communication: 🚩
The quality of promotional materials, such as renders, brochures, website, and offices, can be an indicator of the developer’s commercial knowledge and their ability to lead the project to success. Low quality in these aspects may suggest lack of professionalism and increase the associated investment risk.
2. Project financing: 🚩
It’s crucial to understand whether the developer is financing the construction with their own resources or through a bank credit known as bridge financing. Depending solely on the down payments of investors to finance the work can significantly increase the risk. It’s advisable to opt for projects with bank financing, as this guarantees a constant progress in the work.
3. Be wary of payment schemes: 🚩
It’s important to be alert to payment schemes that require high down payments during construction. For example, if a development requires a 30% down payment and 30% in installments during the construction, it could indicate an urgent need for capital by the developer. These types of schemes can increase the risk for investors.
4. Sign exclusively with a PROFECO adhesion contract: 🚩
Since the publication of NOM-247 in the Official Gazette of the Federation in September 2022, real estate buyers in Mexico have solid rights, including the right to sign contracts that are attached with a folio in PROFECO. This step guarantees greater protection for buyers and reduces the risk of any legal disputes.
5. Review project documentation: 🚩
It’s essential to ensure that the project has all the necessary documentation, such as a valid construction license, constitutive deed of the developer, power of attorney of the legal representative, land deed, among others. This documentation provides security and transparency about the viability of the project.
6. Analyze the developer’s experience and trajectory: 🚩
It’s important to investigate the developer’s trajectory and reputation in the real estate market. Do they have previous experience in similar projects? Do they have the necessary resources and capacity to carry out the project successfully? Evaluating these questions can help reduce the associated investment risk.
7. Assess the environment and surrounding infrastructure: 🚩
The project’s location is not only about the view and privacy, but also about the surrounding infrastructure and services. It’s important to consider accessibility to main roads, shopping centers, hospitals, and other basic services that may influence the demand and future value of the property.
8. Research the area’s growth potential: 🚩
Tulum is a region in constant development, so it’s crucial to evaluate the potential for growth and future development in the area where the project is located. Are there urban development plans that may positively impact the property’s value? Are there major infrastructure projects underway that may benefit the area?
9. Consider political and legal stability: 🚩
The political and legal stability of the region where the project is located can influence the investment’s security. It’s important to be aware of any changes in government policies that may affect the real estate market, as well as to ensure that the property has all the necessary permits and regulations.
10. Diversify your investment portfolio: 🚩
Although pre-sale investment may offer attractive opportunities, it’s important to diversify your investment portfolio to mitigate risk. Don’t put all your resources into a single real estate project, but consider other investment options that can provide balance and greater financial security in the long term.
11. Consult with financial and legal experts: 🚩
Before making any investment decision, it’s advisable to consult with financial and legal experts who can provide personalized advice based on your financial situation and investment goals. These professionals can help you evaluate the risks and opportunities associated with pre-sale investment in Tulum.
At Nativa, we understand how important it is for you to feel confident when investing in a pre-sale apartment in Tulum. That’s why we make sure to comply with all these points and more to provide you with the peace of mind you need. From the quality of our communication to the experience of our team, we’re here to guide you every step of the way. So if you’re considering investing in Tulum, contact us! We’ll be happy to help you find the best option for you. 🏝️