Property Services
Xmex Investments has a ten point checklist that every property must measure up to. Every Property is evaluated for; 1. Location 2. Purchase Cost Value 3. Property Appreciation 4. Quality of Construction 5. Rental Demand 6. Rental Management 7. Property Management 8. Administration 9. Security 10. Return on Investment (ROI)
Important Value Added Services
Consultation & Advice
Take advantage of our free information Zoom meetings were we will tell you all about owning a Vacation home on the Mexican Riviera. Free consultation on all aspects of; 1. Moving permanently or long term vacation to Mexico. 2. Buying Property in Mexico. 3. Selecting & Buying the right choice of property. 4. Buying in the right location. 5. Buying the right Return on Investment 6. Setting up the correct Financial Strategy. 7. Choosing the right Rental Plan. 8. The services we offer to fulfill your dreams. 9. The costs and expenses involved AND how you can cover them with little to no out of pocket expenses.
Financial Strategy
Xmex Investments designs a Financial Strategy that will suit your lifestyle, your budget and your wealth building goals & objectives. Topics discussed in our 2nd Zoom meeting as well as going over your FAQ's. Choose from the; 1. Vacation Plan 2. Investment Plan 3. Retirement Plan Each plan is designed for your specific wants, needs and wishes.
Business Structure
We will put together the correct business structure that will suit your current and future needs. We may opt to buy your property in a Bank Trust known as a Fideicomiso if you believe you only ever want to buy one property. Alternatively if you decide you like the longer term Retirement Plan with multiple properties then we would suggest a Mexican Corporation. Anything can be changed along the way, but we strive to put the best plan in place from the beginning to avoid additional fees and costs in the future.
Banking
Setting up, administrating, and monitoring of local Mexican bank account. Only certain Mexican Banks will allow a foreign owned entity such as a business to have a bank account. One of our preferred banks is CI Banco. Our Administration department will give you access to Monthly statements and reports.
Property Research
Xmex Investments has a ten-point checklist that every property must measure up to. Every Property is evaluated for; 1. Location 2. Purchase Cost Value 3. Property Appreciation 4. Quality of Construction 5. Rental Demand 6. Rental Management 7. Property Management 8. Administration 9. Security 10. Return on Investment (ROI)
Location - Location - Location
A very important step in the process is to discuss what part of the Riviera Maya is your preferred location. We will discuss the following points: • Your preferred part of the Riviera Maya, Cancun, Playa Del Carmen, or Tulum, or other. • Any special needs pertaining to your selected location. • We will also discuss the rental demand and ROI and growth for this location. Location is very important as it will determine your level of enjoyment when vacationing there. You will need to be near the beach OR the town area so that you can go to nice restaurants. Amenities are also a factor for you and your rental guests. You want to be near everything but not so close that you endure noise pollution. The location (and Property Type) of the property is probably the biggest single factor in the success of your business and wealth building goals.
Property Selection
Our Property Type page goes into detail on the typical designs, size and layout of property styles on the Riviera Maya. A studio may suit you and your partner perfectly. With two small children on the sofa bed however, it will be a little cozy long term. So, it is very important to select the right property type based on the "I definitely must have" compared to the luxurious "I wish I could have". It is a balanced blend of practicality, and budget, mixed with the type of vacation you want. We will offer advice on what will suit best based on your current and future needs. Once we identify the correct property we can move on to Property Acquisition.
Property Aquisition
Everything today is moving towards online sales. We buy food, clothing, electrical goods, and even cars....all without physically seeing them before we purchase. Property is no different. In fact visiting an empty greenfield site with a container will not help or benefit you any further than viewing the property location on Google Maps and checking out the images and specifications. To get the best buying power, discounts, special offers and reduced purchase price, the only way to buy is "off the plan". Because we only work with trusted and financially secure Developers, this mitigates any undue risk. You may wait a year for the delivery of your new Condo but how exciting to come and visit the site when you can actually walk through your own doorway. Technology of Google Earth, video presentations of the renders & finishes, community pools and amenities, and our research now make it possible to buy from the comfort of your own living room.
Construction & Inspection
Construction quality varies enormously in Mexico and goes much deeper than just the finished product to the naked eye. The quality of the entire building process will have a direct relation to your wallet and outlay in future repairs over the years to come. We only select trusted Developers and we check on the construction at every stage of the build. We do not want burst water pipes, cracks in walls, mislaid tiles or damaged kitchen cabinets. The finishing practices are closely scrutinized so that the end product is delivered to you with complete peace of mind. We will perform a final walkthrough on hand-over and itemize any faults for immediate repair or replacement. We also oversee the furniture package as all our units come fully 100% complete with everything you need.
Property Appreciation
The Mayan Riviera is a stretch of coastline on the Yucatan Peninsula running across outside Cancun in the North and the ancient Mayan town of Tulum in the south. This region is home to the tourism hot spots of Cozumel, Playa del Carmen, Tulum, and Puerto Aventuras, offering an electrifying mix of events, dining, shopping, and memorable adventures that you won’t find anywhere else! With tourism numbers on the increase and demand overtaking supply, this region is rapidly growing in popularity. With this in mind, now is the best time to start real estate investing in Riviera Maya, Mexico. This magical region lies south of Cancun, offering modern infrastructure and easy access for all visitors from around the world. The Mayan Riviera is the hottest and fastest-growing real estate market in all Latin America and gives a better value for your money more than any other famous beach destination that is fortified with first-rate amenities, luxury services, and modern infrastructures. The real estate market in the Riviera Maya is attracting a lot of people from around the globe. This is because buying a home or condo in this city is not complicated and it is better than staying in a hotel. Also, many prefer to spend their vacation enjoying the balmy breezes from the Caribbean. Riviera Maya’s real estate market is among the most successful markets with a national increase in sales of 8-10% annually. This represents 8.9% of revenue collection of the Gross Domestic Product making it a big profit maker in the region. With this, Riviera Maya real estate will never depreciate. There are many types of properties in Riviera Maya’s beachfront areas. It encompasses luxurious houses that overlook the Caribbean Sea and its beautiful white-sand beaches. There are some communities that provide executive style properties that offer many moderate facilities. Apart from the rapid property appreciation, affordable prices and the above-mentioned advantages and extremely low taxes, there is one more very significant aspect we need to take into consideration and that is the cost of living. When you know the exchange rate from dollar to peso, the cost of food, entertainment, vacation along with low insurance costs will be moderate. Thus, making everything within your reach affordable. Mexico has shown to be less expensive when it concerns real estate and the cost of living. If any or all the aforementioned information seems attractive, why wait? Make your decision now and contact us! There is absolutely no reason why you shouldn’t enjoy a luxurious lifestyle at an affordable price in Riviera Maya.
Checklist 1 & 2
Throughout the entire process, Xmex Investments will be checking on the initial plan and target dates etc. We will be visiting the construction site on a regular basis and obtaining updates directly from the Developer on completion dates and deadlines. We will also check that the Financial Strategy is sound, that we have everything ready on the Business Structure and Banking facilities, Accounting and Tax. Checklist 1 is performed throughout and during construction and will ultimately hand over to Checklist 2 & the Rental Management and Rental Plan.
Return on Investment (ROI)
Mexico’s housing market remains healthy, amidst improving economic conditions. The nationwide house price index rose by 7.72% during the year to Q2 2021, following y-o-y increases of 6.59% in Q1 2021, 5.38% in Q4 2020, 5.02% in Q3, and 4.78% in Q2, according to the Sociedad Hipotecaria Federal (SHF). When adjusted for inflation, house prices increased 1.67% y-o-y in Q2 2021. On a quarterly basis, house prices rose by 2.29% (0.87% inflation-adjusted) during the latest quarter. By metropolitan area, Tijuana recorded the biggest y-o-y house price growth of 10.51% (4.31% inflation-adjusted) during the year to Q2 2021, followed by Guadalajara (9.14%), Puebla-Tlaxcala (9.05%), Monterrey (8.74%), Querétaro (7.22%), León (7.21%), and Toluca (6.61%). In Valle de México, house prices increased modestly by 3.65% (-2.17% inflation-adjusted). Mexico’s housing market takeoff comes after it has suffered prosaic growth for a decade, in real (inflation-adjusted) terms, despite strong nominal growth: MEXICO PRICE INDEX, ANNUAL CHANGE (%) Year Nominal-Inflation Adjusted 2009 4.75-0.75 2010 3.70-0.53 2011 5.90-2.32 2012 2.90-1.17 2013 4.07-0.40 2014 5.12-0.90 2015 6.71-4.34 2016 5.82-2.49 2017 8.56-1.85 2018 9.35-4.32 2019 7.66-4.58 2020 5.38-1.79 Sources: Sociedad Hipotecaria Federal (SHF), Global Property Guide The secret is Mexico’s enormously strong domestic market, particularly the rising middle class. In 2020, the country’s middle class was estimated to account for almost half of the total households, at about 16 million. They are expected to continue growing, with about 3.8 million more households projected to move into the middle class by 2030. Moreover, most Mexicans who move generally prefer to buy rather than to rent. Around 82% of Mexicans want to buy a property, as opposed to 18% that prefer to rent, according to Lamudi. Foreign demand is also robust. Despite the pandemic, American and Canadian buyers continue to return to Mexico, after a several-year slump, thanks to low oil prices and the strong US dollar, pushing home values up. More than 1 million Americans live in Mexico, and more than 500,000 own homes in the country, according to a Forbes article. For instance Playa del Carmen, one of the largest cities on Mexico’s Riviera Maya coastline, has seen a sharp uptick in demand from homebuyers seeking refuge from pandemic-related lockdowns. “We have a history of traditionally being a buyer’s market because there’s just a lot inventory – I like to say there’s a lot of candy in the candy store,” said Judi Shaw, the owner of Living Riviera Maya Real Estate. “But suddenly we had a lot of longstanding inventory get snapped up last year and early this year. So that’s making it more of a balanced market.” This is supported by other local real estate experts, including Jason Waller, the owner of Playa Real Estate Group: “We have a lot of clients from New York, and a lot of people are looking for beachfront houses so they can enjoy life on the beach if there’s another lockdown, instead of being stuck in a condo in the city and hating their family, said Waller. In the past three years, the value of the Mexican peso (MXN) depreciated by 6.1% against the US dollar, to reach an average exchange rate of USD 1 = MXN 20.087 in August 2021. Since the Mexican housing market is not driven by speculators, it has been resilient despite the pandemic. In fact, house prices are expected to continue rising during the remainder of the year, according to local real estate experts. During 2020, the economy tumbled by a huge 8.2%, its biggest annual contraction since the 1930s, according to the National Institute of Statistics and Geography (INEGI). But economic conditions are now dramatically improving. Mexico’s economy recorded a whopping 19.6% year-on-year growth in Q2 2021, after eight consecutive quarters of economic downturn, as the country battled the twin impact of the COVID-19 pandemic and energy shortages. Because of the economy’s strong performance during the latest quarter, the International Monetary Fund (IMF) has recently revised upwards its 2021 growth forecast for Mexico to 6.3% from its initial estimate of a 5% expansion. Rental yields are moderately good Gross rental yields in Mexico City - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are moderately attractive. In previous years, Global Property Guide found that rental yields in Mexico City were between 3.4% and 6.4%. Examples of yields: 4.7% to 6.35% in Alvaro Obregon, which includes Jardines del Pedregal, which hosts some of Mexico’s richest families. A typical property here might cost around US$2,500 (MXN 49,713) per square metre (sq. m.), and be rentable for a return of around 5%. A residential property in Santa Fe, one of Mexico City’s major business districts, can cost around US$2,000 (MXN 39,770) per sq. m., and earn a yield of 6.35%. In Los Alpes and San Angel yields range from 4.7% to 5%. 5% in Benito Juarez. This is the richest alcaldia in Mexico and is primarily populated by the middle and upper middle classes. The borough is home to a number of landmarks such as the World Trade Center, the Estadio Azul, the Plaza Mexico, and the Polyform Cultural Siqueiros. In Del Valle, apartments cost around US$2,000 (MXN 39,770) per sq. m. and may yield a rental return of around 5%. 3.3% to 4.2% in Miguel Hidalgo, just west of the historic centre. This contains mostly working class areas in and around Tacuba and Tacubaya, but its southwest contains some of the most exclusive colonias. Most of the diplomatic missions in Mexico City are located in the area, mainly in the Lomas de Chapultepec and Polanco area. These are highly-priced districts, with an average price of about US$4,800 (MXN 95,449) per sq. m. in Polanco, US$2,800 (MXN 55,679) in Lomas de Chapultepec and US$2,500 (MXN 49,713) in Bosque de las Lomas. Rental yields average between 3.3% and 4.2%. Strong demand from foreign buyers Despite the pandemic, American and Canadian buyers have been returning to Mexico in recent years, after a several-year slump, thanks to low oil prices and the strong US dollar, pushing home values up. For instance Playa del Carmen, one of the largest cities on Mexico’s Riviera Maya coastline, has seen a sharp uptick in demand from homebuyers seeking refuge from pandemic-related lockdowns. In the first half of 2021, Shaw said that her firm already sold the same number of properties as in all of 2020, and the average sales price was higher, at US$435,500. “We have a lot of clients from New York, and a lot of people are looking for beachfront houses so they can enjoy life on the beach if there’s another lockdown, instead of being stuck in a condo in the city and hating their family, said Jason Waller, the owner of Playa Real Estate Group. American buyers are very important as owners of beachfront properties in the country. More than 1 million Americans live in Mexico, and more than 500,000 own homes in the country, according to a Forbes article. In fact an earlier article published by Point2 Homes ranked Mexico first among 30 favourite US and Canadian destinations for second home searches. Some of the most sought after Mexican destinations on Google include Puerto Vallarta, Cancun, Playa del Carmen, Cabo San Lucas, and San Miguel de Allende. Foreign buyers are also eyeing properties in Cuernavaca’s prime neighborhoods, such as Sumiya, Palmira, and Tabachines, according to Guadalajara Sotheby’s International Realty’s agent Laura de la Torre de Skipsey. In Mexico City, foreign buyers (mostly from Brazil, Spain, and US) tend to invest in new construction or commercial properties, and are in the city for work. Foreign land ownership The Foreign Investment Law of 1973 allowed foreigners to purchase real estate anywhere in Mexico except the restricted zone that consists of areas within 100 km (64 miles) of international borders or within 50 km (32 miles) from the coastline at high tide. In 1993, Mexico amended the constitution to allow foreigners to purchase real estate within the restricted zone by means of a fideicomiso. Under the current system of fideicomiso, foreigners can only own real estate in the restricted zone indirectly, by setting up bank trusts. While the trustee is the legal owner of the real estate, the beneficiary retains all ownership rights and responsibilities and may sell, lease, mortgage, and pass the property on to heirs. The fideicomiso is authorized by the Mexican Government under the Ministry of Foreign Affairs. Although this system is relatively safe, it rests on the credibility of Mexico’s banking system and property registry administration, which unfortunately discourages many foreigners. The rising middle class In 2020, the country’s middle class was estimated to account for almost half of the total households. The middle class is expected to continue growing, with about 3.8 million more households to move up to the middle range by 2030. This is for several key reasons: First, inflation has halved: it was close to 10% in 2000, but between 2005 and 2020 the rate has hovered around 4%. The autonomy of the Bank of Mexico has played a key role. However, the massive gas price hikes drove Mexico’s inflation rate to a 16-year high at 6% in 2017. This pressured the central bank to bring inflation back to its +/-3% target. Currently, inflationary pressures are building up again. Second, there is now trade openness. As a percentage of the economy, foreign trade (exports plus imports) account for nearly 60% of GDP, making Mexico one of the most open economies in the world. By way of comparison, the figure is 27% in Brazil, 48% in China and 30% in the United States. This fosters competition and puts an upper limit on the price of goods in the local market. Third, there is the prudent management of public finances. Between 2000 and 2012, the fiscal deficit was below 1% of GDP and in 2019, the deficit fell again to 1.6% of GDP. Though the deficit increased again to 4.6% last year due to pandemic-induced government spending. Total public debt, domestic and foreign, stood at just 45.1% of GDP in 2019 but increased to a multi-decade high of 52.1% last year. Both the fiscal deficit and public debt are expected to gradually decline in the coming years. Fourth, financial inclusion. The population using banking services rose from 33 million in 2006 to 51 million in 2012. Yet 66% of adults in Mexico do not own a bank account. Also, the credit-to-GDP ratio in Mexico stood at just about 34% - stubbornly low relative to comparable Latin American countries. To address the problem, the government launched in 2016 the National Financial Inclusion Strategy (NFIS) to accelerate access to financial services for the population currently left out. Moreover the FinTech Law, passed in March 2018, which aims to develop Mexico’s own Open Banking Standard, is expected to help foster innovative solutions for people currently excluded from the financial system. In January 2020, the government issued its first license to NVIO Pagos México to operate as a financial technology institution under the new law. Currently, there are at least 93 fintech firms in the process of obtaining their license. Local house price variations Mexico’s most expensive houses are in Mexico City, State of Mexico, Morelos, Nuevo León, Jalisco, Nayarit and Querétaro. In Polanco and Lomas, Mexico City’s most exclusive neighbourhoods, prices of luxury residential properties can range from US$6,000 (MXN 119,300) to US$10,000 (MXN 198,800) per square metre (sq. m.), according to according to Carmella Peters Romero of Peters & Romero BienesRaices. In Santa Fe, one of Mexico City’s modern districts, properties can be bought at U$2,000 (MXN 39,800) to US$ 4,000 (MXN 79,500) per sq. m. In Cuernavaca, capital of the state of Morelos, an hour and a half drive from Benito Juarez International Airport in Mexico City, luxury homes are available at prices above US$1.5 million (MXN 29.8 million). Low-end three-bedroom homes can be bought starting from US$200,000 (MXN 4 million), while mid-range houses with three to four bedrooms are priced at US$500,000 (MXN 9.9 million), according to Andrea Dolch Espinosa de los Monteros of Mexico Luxury Estates. In Playa del Carmen, a coastal resort town along the Yucatán Peninsula’s Riviera Maya, a three-bedroom apartment is priced at US$ 460,000 (MXN 9.1 million). In Playacar, a gated community of resort developments in Playa del Carmen, two- to three-bedroom luxury homes list between US$500,000 (MXN 9.9 million) to US$1 million (MXN19.9 million). In Tulum, another resort town located in Mexico’s Caribbean coast, a three-bedroom townhouse in the exclusive gated community of AldeaZamá can be bought for about US$395,000 (MXN 7.9 million). In Cancún, a city in southeastern Mexico known for its beaches, mega-resorts, and frenetic nightlife, the average price of houses was at around US$250,000 (MXN 5 million) last year. Apartments in the area have prices ranging from US$100,000 (MXN 2 million) to US$200,000 (MXN 4 million).
Rental Plan
The Rental Plan is a key component of the Financial Strategy and Business Structure and will be the success of your Vacation/Investment property. It is here were you decide exactly how you divide up your allocated 3 months. You may choose to keep a month for you, family & friends, and rent out the Condo for 2 months to cover your costs. You may also decide to keep the whole 3 months for yourself OR rent out the unit 100% of the time as it was for investment and not vacation. We will go over the benefits of each plan using real figures and expected rental returns. Most of our Developers offer a guaranteed rental return for Year 1 OR Years 1-3, some even longer but with reduced percentage%. In short, a typical plan as first mentioned were you vacation 1 month a year and rent it out the remaining time, will yield enough return to usually cover most of your annual outgoing costs (including your loan repayment on the principal amount $, HOA and electricity/water, misc costs). This means that you get a FREE vacation every year that would normally cost $3,000 to $5,000 just for the hotel.....,AND.....your Investment is going up in value every year,
Rental Management
Management Services Xmex Investments provides full-scale Rental Management services to Riviera Maya Homeowners. Property Management 1. Regular Property Inspections 2. Payment of All Property Expenses 3. Routine and Contracted Maintenance & Repairs 4. Housekeeping Services 5. Supervision of any Onsite Caretakers 6. Concierge Services for Owners 7. Monthly Owner’s Statements & Complete Record Keeping 8. Year-Round or Part Time Care Rental Management 1. Full Rental Management or Supplemental Services for those who RBO 2. Extensive Marketing Program 3. Automatic Online Booking System, Fully Integrated with Major Booking Engines 4. Hosting and Concierge Services for Guests 5. Home Inspection Post-Rental 6. Housekeeping Services Condominium Association Management 1. Supervision of All Employees 2. Supervision of Maintenance Program 3. Organization of Association Meetings 4. Administration & Clerical Work 5. Bookkeeping Services 6. Coordination of Association Attorney and Accountant 7. Concierge Services for Owners
Accounting Services
Xmex Investments provides all necessary Accounting Services to manage and oversee your property Financial transactions and your Company Compliance. Some of the full suite of services include overseeing; 1. Monthly Rental Book Keeping 2. Monthly Utility bills such as HOA Maintenance, Electricity etc 3. Repairs or maintenance 4. Miscellaneous transactions 5. Disbursement of annual dividends to Shareholders.
Bookkeeping
There are two components to managing the financial responsibilities of the business. The Accountant usually oversees all duties performed by the Bookkeeper. The Bookkeeper Service that we provide will take care of all the day-to-day financial operations and will perform such actions as inputting all Data into the system, Banking of Rental Income and Disbursements, HOA-Maintenance & Utility payments, Etc.
Administration
Administration services to assist all shareholders with any aspect of their investment. (This is not an automated system but a real person) Includes; 1. Advice and oversight on all services offered by Xmex Investments. 2. Administration and oversight of Property Management & Property Rental Plan. 3. Point of contact for any assistance with the property, repairs or rental bookings Etc. Our Administration can be contacted by Messaging Service (Whatsapp), Telephone and Email.
Immigration & Visas
Xmex Investments offers all necessary Immigration Services to assist any Shareholder with correct Immigration and Visa applications. The process is now quite detailed and has to be done the right way from the Start. Our team will direct you on what supporting documentation you will require, will complete the initial application on your behalf and lodge it in the correct manner. Services include Temporary Visa and Permanent Visa assistance, Registering for CURP, and Tax identification numbers. Assistance with Mexican Driving License applications.
Frequently Asked Questions (FAQ)
In this section you will find answers and information on most of your questions, so please read in the first instance. If you have a question that is new, please contact us via Messaging (Whatsapp), Telephone or email. We may even choose to add your question to our FAQ Section.