Many foreigner investors are finding that with easily accessible home financing in Mexico and the hot vacation rental market, owning a second home in Mexico is now well within their reach. In fact, many buyers can purchase a vacation rental property in Mexico and have that property paid off entirely from rental income in time for their retirement. But what are the things to look at when buying a property to use as a vacation rental?
- The Location: You need to choose a vacation rental property that is in a pleasant, accessible and desirable location to easily attract guests. In Mexico, areas like Puerto Vallarta, Los Cabos, Riviera Maya and San Miguel Allende are all popular vacation rental destinations.
- The Market: Use sites like VRBO and Home Away to see what sort of rental income similar properties demand to see what type of rental income you can reasonably expect from the property you are interested in.
- The Expenses: Forbes recommends setting the weekly rental rate of your vacation property at 10 to 20 percent higher than your expected monthly mortgage payments. You also need to factor in HOA fees, insurance and property management fees as well as predicting at least a 25% vacancy rate.
- The Purchase: MEXLend mortgage broker offers home loans in Mexico in both pesos and USD to find the ideal financing for your needs.
Offering your property in Mexico as a vacation rental is a great way to offset costs and maximize your real estate investment. Contact us for more details on how to make your dream of purchasing a vacation home in Mexico a reality.
