Rules of a Smart Real Estate Investor in Puerto Vallarta

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RULES OF A SMART REAL ESTATE INVESTOR 

 

Investment in real estate could be a good business but there are some recommendations that you should consider before undertaking this diversification.

1. Review the legal documents of the property you are buying to avoid any future problem. The goal is to buy an legally bulletproof investment. Make sure the property tax payments are up to date and that if there is a lien on the property. It is even recommended that you check who is the owner, and if he is married ask if the espouse agrees to sale the property.

2. Make a market analysis. Check the comparative properties in influence area of the property; find the price per square meter for you to compare of the property you are interest. If the price is above market levels but think there’s an expectation of strong growth ahead with the purchase, just take note that your risk is higher.

3. Analyzes growth. Find out if there are plans for development in the area, for example, if there are plans for new roads or mall. Remember that this can stall your appreciation a while and then result in attractive growth.

4. Check the structural condition of the property. A structure with failure may cause you extra costs in the remodeling you plan to make to the property. Find an expert who will ensure that the structure is healthy.

5. Remember that investing in real estate involves patience, as you will need to be checking if your tenants is paid or not, if rents. If you have a building, then you should consider administration and maintenance costs.

6. Consider the mortgage to make the purchase. Interest rates are at the lowest levels in the history of Mexico and this tool can help you finance the purchase will run out of cash. It also lets you take advantage of the tax deductibility of the rent and get life insurance, unemployment and property damage.

7. Ensure your bricks and your investment. The last thing you want is to buy an apartment and not have it insured. Assumes this spending to meet contingencies and not lose your investment.