Buying Or Renting A Vacation Villa In Mexico?
First of all, if you are not in love with a city or town in Mexico, this discussion is a non-starter. In order to even consider buying a villa in Mexico, you need to be completely sure that this is a place you want to be deeply involved in. Even if you are just thinking of an investment. Let’s say that you have fallen in love with a world-class destination in Mexico. Obviously, most of them are gorgeous beach towns, but there a few other tourist and retiree hotspots in Mexico, such as San Miguel de Allende, the Chapala Riviera in Jalisco and Todos Santos in the Baja Peninsula. Once you have defined where you want to buy, then there are a few things you need to consider before:
There is this little detail in the Mexican law that foreigners can’t buy a property within 100 kilometers of any national border and within 50 kilometers of any ocean. Which complicates things for places like Cancun, Puerto Vallarta, and Cabo. You’ll need to open a bank-managed escrow and pay a yearly fee, but apart from that, buying a property in the Mexican Riviera is possible and there are excellent options. Needless to say, when you rent a villa, the whole process is much easier and you won’t find this kind of complications with the Mexican law.
Diversity versus Home
The good thing about buying a villa is that you will make it your place. It will have your style and you’ll know what to expect every time you visit it. The flip side of that coin is that every time you will be traveling to the same place. Goodbye to discovering the diversity of the world. There are so many places to know that, as we said at the beginning, if you aren’t completely in love with one place, then you better keep renting and discovering new magic towns and stunning villas.
Obviously buying a villa means higher expenses than renting. However, if you play well your cards buying a villa could mean a better long-term deal. The vacation rentals industry is booming, and nowadays owning a villa can be a very productive business. Sure, you’ll have to hire a professional management company to promote it and find guests for you, as well as making sure that somebody will look after your property when you are not there, but the revenues will make up for that.
Elaborating on the last point, owning a property implies taking care of it. Sure, there are these professional companies that will do it for you, but as we said that comes with a cost. When you rent, you don’t have to worry about anything else, you are there just to enjoy and forget about anything else. When everything is said and done, it all depends on if you are ready to settle for a single place, or if you still have that itch to keep traveling the world. Owning a property does come with certain new worries, but it can also be a very lucrative business.