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property investment in Sayulita

Prices for houses in Playa del Carmen have been rising, but property investment in Sayulita is ahead of the curve for all the right reasons

Prices for houses in Playa del Carmen have been rising, but property investment in Sayulita is ahead of the curve for all the right reasons

For many years now Mexico has become far more than a great tourist destination. Savvy investors and business people have identified investment opportunity in many locations in Mexico. Certain towns and cities in Mexico share the unique Golden Mix of location, potential and lifestyle. Also, significant improvements in national infrastructure have helped certain property sectors to see a steady rise in real estate prices over a few years, making it a perfect time for property investment in Sayulita. 

property investment in Sayulita

Playa del Carmen is an excellent real estate example as a case study that shows how investors are increasingly re-selling at a higher price, renting out their properties as a business, or using them as a retirement home. To help our clients understand and equate all the important factors we use a growth curve to visualise the best time to get involved in a property deal. 

property investment in Sayulita

 

There are many factors to consider when investing in property. As the above curve shows it is advantageous to invest when the market prices are lower. As with Sayulita, house prices are steadily rising but still significantly lower than a more developed area like Playa del Carmen.

Private Investment

Private investment in the luxury home market closely follows the first 2 factors on the list below. Analysis of all significant factors helps us to confidently assess growth potential for your investment.

There are also many other important considerations to ensure that market prices will continue to increase, so we have listed them below to help you understand what to look for. Here are the top 8 factors that contribute to appreciation in property prices.

1.Tourism developments in Sayulita

pueblos mágicos

Perhaps the first indication of growth potential is government support and investment. Recently, Sayulita was included in the Pueblos Magicos program which included a sizeable investment in local infrastructure. The program is designed to develop “Magical Towns” that offer something unique and cultural.

Major hotels have started to open in the region, including 3 new golf courses, and other service companies are beginning to establish a presence here.

2. Historical growth in the region and projected population growth

Since the 1960’s Sayulita has been developing under the shadow of the beautiful city Puerto Vallarta. The region started developing rapidly and Sayulita quickly gained the reputation as “A Hidden Sanctuary” in paradise. Realtors and estate agents started to recognise the growth potential in Sayulita about 5 years ago and since then Sayulita and the Riveria Nayarit has expanded consistently as an excellent location for luxury property development.

property investment in Sayulita

Added pressure on the property market from new industries entering the region, a consistent increase in tourism, with new jobs being created, has increased the projected population growth in Sayulita. All of this are fantastic indicators when analysing the economic growth of a region.

3. Interest Rates

The lower the interest rate the lower the mortgage repayments and depending on how you would like to structure the investment this can be fixed or variable. Recently, mortgage interest rates are low again since the recession. All this means a well-structured mortgage on low-interest rates can reap high-end rewards in the future.

4. Global Economic Markets

The International Monetary Fund published a projection for growth in 2016 as a modest 3.2 percent but that recovery is projected to strengthen in 2017 and beyond. This is driven primarily by emerging markets and developing economies, many of which are in the southern Americas like Mexico. Read more here

property investment in Sayulita

We all know that political and environmental issues can change economics quickly but as it stands there is a much higher chance of global economic recovery and growth than another recession.

5. More Renters in the Market

There is a growing number of younger renters in the market. One of the fastest growing metrics right now is how people are spending money on experiences rather than material things. The younger generation is choosing holidays and adventures over expensive clothes and cars. This has contributed to an increase in property investment as a rental business along the Riveria Nayarit coastline as business people identify new opportunities. For example, Sayulita`s rental market has grown consistently over the past 10 years as holiday makers, adventures, and especially surfers come to discover  this unique destination.

6. Houses are more Popular than Apartments

This is sometimes a reluctance to finding an apartment to rent. Home-owners confess that renting an apartment can feel like a step backwards to move to an apartment. As a real estate investor, this is a great opportunity. From our experience, we know that homeowners often make better tenants because they treat their rental home as their own for the time they are staying there.

7. Real Estate is a great long-term investment

Real estate is still an excellent long-term investment. If you consider the growth over the last 15 years, regardless of the recent crisis, real estate within the restricted zone of Mexico is still valued much higher than it was. Also, if you decide to rent your property you won’t have a problem finding renters to pay your mortgage.

8. The Lifestyle that the region provides

While it is possible to buy luxury property in many locations across the world, one should consider the lifestyle surrounding the location. Shrewd investors select locations that offer as many lifestyle choices as possible. Culture, cuisine, leisure, health, outdoor activities, and safety are all essential elements that contribute to the growth of a region.

Yoga and Fitness

Yoga and Fitness

 

Timing is Everything

In the 1990’s Playa del Carmen was definitely not a hot property market. This changed when it was recognised as a beach holiday destination and attracted many European visitors. Hotels and investors entered the market and the room inventories doubled in a matter of just 10 years. With the dramatic increase in growth, the year-round population boomed and the real estate market began to expand.

During the first few years of the 2000´s, many investors would purchase pre-construction condo units to sell them 12 months later with 30% or more appreciation. One realtor we interviewed about the boom remembered his clients commenting that “I should have invested in that property when I first saw it a few years ago”.

While Playa del Carmen is experiencing a downturn in appreciation values, Sayulita is perfectly situated to repeat the dramatic increases that Playa del Carmen had. For those of you who remember the appreciation wave of the early 2000´s then now is your opportunity to buy into the market before the next wave.

property investment in Sayulita

Want to know more?

Here’s our guide to Buying Property in the Restricted Zone in Mexico.

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Why Punta Sayulita is the perfect investment in location, potential and lifestyle

Why Punta Sayulita is the perfect investment in location, potential and lifestyle

Punta Sayulita is first and foremost an investment in luxury property, and when you see the statistics it stands up as very competitive in the global property market and boasts impressive growth as the leading undervalued market in the Americas.  But obviously, not everyone invests in property just for the highest return on investment. Our experience shows that contemporary property buyers require much more. They are seeking out those unique places to live where life feels exciting and fulfilled. Whether you are retiring abroad, scouting holiday homes, or developing a property portfolio, then you should consider the golden mix of location, potential and lifestyle.

punta sayulita

Punta Sayulita belongs to a small group of global locations where this golden mix of values is available. It’s about choosing a solid property investment, yes, absolutely!  But it’s also about investing in great experiences, exploring a rich and incredible lifestyle but ultimately it’s about an investment in you.

Location

punta sayulita

When talking about buying and selling property everyone knows the famous phrase “location, location, location”. Well, geographically Punta Sayulita is a perfect location on the Pacific side of Mexico just 21 miles from Puerto Vallarta. Puerto Vallarta put Sayulita and Nayarit on the map as a paradise location when Hollywood A-listers Elizabeth Taylor and Richard Burton filmed and vacationed here in the 1960’s. Since then, Puerto Vallarta has become a bustling city and as a consequence, smaller, less touristic towns have developed to cater to those looking for a tranquil location but still close enough to urban life and infrastructure. 

Flight durations from nothern America

Flight durations from northern America

Getting to Punta Sayulita is quick and easy. It is less than an hour’s drive from the airport in Puerto Vallarta. Flying to Puerto Vallarta is just 2.5 hours from Los Angeles, 3 hours flying from Denver and 6 hours flying from New York City. It’s close proximity to North America is only the primary reason Punta Sayulita’s location is considered perfect. It lies on the Pacific ocean just below the Tropic of Cancer at latitude 20.868889 and longitude 105.440833 and is surrounded by lush forest and jungle. This creates a unique location with an abundance of outdoor activities, with the every popular surfing, paddle boarding, snorkeling, whale watching and the numerous hiking, trekking, and horse riding excursions available. Read more about the eclectic and awesome wildlife in Sayulita here:

Wildlife in Sayulita

Read more about the best activities to do in Punta Sayulita and why it is considered the core of Rivera Nayarit.

Moving around Punta Sayulita requires the use of a car but many locals and vacationers use golf carts to commute from their villas and homes to the center of town or the beach. Although some of the roads are steep and windy, the panoramic views, tranquility, and privacy that Punta Sayulita offers you are second to none. It’s also important to note that although Punta Sayulita is just a town of 4,000 residents it has all the modern amenities that a large city would have, including a post office, hospital, police station, and multiple ATM machines. 

A quick google search reveals some nice opinions about Sayulita and although it’s still largely “under-the-radar” because Puerto Vallarta is so well known and established, Sayulita enjoys all the values and benefits of Puerto Vallarta without the higher prices and city distractions. In this linked article by The Huffington Post named The World’s 12 Best Places to Live or Retire in 2016, Puerto Vallarta is numbered at 10. The article backs up everything we can say about Punta Sayulita’s exceptional location 

about-bg

“This stretch of Mexico’s Pacific coastline has already been developed to a high level. Life here can be not only comfortable but easy and fully appointed, with world-class golf courses, marinas, restaurants, and shopping. This is a lifestyle that is available only on a limited basis worldwide, a lifestyle that is truly (not metaphorically) comparable to the best you could enjoy in southern California if you could afford it. Here you can afford it even on an average budget”

Potential  

The main reference for assessing property costs is the price per square meter. It is the best way to achieve an apples-to-apples comparison among different markets. So to help position the region of Sayulita in the global market we first looked at Mexico’s property potential within the world, and then the price per meters squared comparison between locations in southern America. 

So let’s put Punta Sayulita in a global perspective shall we?

In the linked article by The Telegraph entitled Place in the sun? Where to invest in undervalued property in 2016there are 2 graphs detailing the most overvalued locations in the world and the most undervalued. From an investment point of view, the undervalued markets are of a lot more interest because there is a lot more potential for growth. 

In the graph on the right, you can see that property prices in the USA and many countries in Europe are classified as overvalued as demand grows higher coupled with a shortage in supply.

“As Britain and Sweden have demonstrated, a shortage of supply can mean prices rise even where they are already “overpriced”.

Overvalued Global Property Markets

In sharp contrast, Mexico is positioned in the undervalued graph with 8% annual growth. This means that as annual growth continues, there is a window of time to invest until the property prices catch up with the most expensive locations and trends change. 
 

Undervalued Global Property Markets

 

Now, if you look at the average price per square meters for property investment in different countries in the same continent, then Puerto Vallarta is identified as very competitive. As we discussed above Puerto Vallarta was the first location to be discovered and developed and is the airport destination to get to Sayulita.

However, because Punta Sayulita is less than 1 hours drive from the airport and is situated on the ocean, surrounded by forest and enjoys a higher level of tranquility, we believe it is better suited to those who like a little more seclusion and quiet while enjoying the easy access to all the amenities of the bigger cities.

 

Furthermore, the price per square meter for Sayulita is even more competitive yet offers more benefits for lifestyle.

A good investment is about getting the most for money while minimizing risk.


In the linked article below, by The Huffington Post, Puerto Vallarta is listed at no.7,  at $1,273 per square meter which offers fantastic growth and potential. This places Sayulita among the top locations when considering location, convenience and growth potential. 

Live and Invest Overseas Survey Ranks the Cost of Property Purchase In 20 Top Latin American Markets

Let’s consider a comparison with an overvalued property in Hawaii. Hawaii is the new hot property location within the United States in 2016. The cost of square meters in the center of Honolulu, Hawaii, is $4,815 which is quite a price jump from $1,273 for the region of Sayulita. If you consider that both locations can offer the same approximate level of lifestyle and luxury amenities, then the logical investor would certainly look to a location like Sayulita. Why? Because you can buy a lot more for each dollar invested.

Hawaii Beach Property

Hawaii Beach Property

It is an interesting exercise to consider what added value you can purchase with the extra money. Perhaps your new property can have a lot more space, more bedrooms. The difference in costs between Hawaii and Mexico could mean the purchase of a car or boat for your new property.

Your options within the housing market expand as the cost per square meters lowers. But this is an even stronger point when you can match the perfect lifestyle with a lower cost of living like we have in Punta Sayulita. Basically, you get a lot more value for your hard earned dollar/pound/ euro or peso.

punta sayulita

Beach Property Punta Sayulita



Lifestyle

The all-year-round warm climate influences much of the lifestyle in Sayulita with water sports and surfing extremely popular. There is never a bored moment in Sayulita with a huge selection of activities attracting fun-loving healthy people.

While there are many places for Mexican food, Sayulita has developed to cater for the international market and the cuisine, restaurants and nightlife now have a wide variety of styles and tastes. 

Like all Mexican towns, Punta Sayulita has its own unique culture and traditions and once a year celebrates Festival Sayulita which year so far is getting bigger and bigger. In 2015 Punta was also added to the exclusive list of “Pueblos Magicos” or “Magical Towns”. This honor has been given to just 111 towns across Mexico and is a project to develop special symbolic features, legends, and history. 

pRZb4v

Here’ s a quick look at 6 secrets of Sayulita which details different activities available in Punta Sayulita

 

The “Golden Mix” of conditions is definitely a solid basis to start your search for the perfect property that suits you, but nothing beats the actual experience of visiting Punta Sayulita to feel just how unique it is. We are offering a Punta Sayulita Discovery Experience which provides you with a FREE stay of 4 days and 3 nights at our guest villa. It is an experience you will never forget ! Follow the link above to book now.

For further details about the hidden santuary of Punta Sayulita down our brochure here

 

the restricted zone in mexico

Buying Property in the restricted zone in Mexico

The creation of the restricted zone in Mexico was part of the recent changes in laws and regulations in relation to buying property in Mexico. These changes have made investing in property a lot easier, a lot less complicated and a lot more attractive to foreign investors.

the restricted zone in mexico

To this end we have written a guide to buying property in the restricted zone in Mexico. Is it really a compilation of commonly asked questions from our clients. We hope that it will ease you worries and remove any obstacles there may be ahead of you. Our team at Punta Sayulita has the experience to help you every step of the way.

The most important thing that you should know is that buying property in the restricted zone in Mexico is completely legal and 100% secure.

In the Mexican constitution the restricted zone is defined as all land located within 100 kilometres of any national border and within 50 kilometres of any ocean. It also states that no foreigner is allowed to purchase direct title to land within the restricted zone. However, Mexico’s Foreign Investment Law allows foreigners to acquire indirect title to land in the restricted zone by one of two methods; through a Mexican corporation or through a bank trust (fideicomiso).

A little Spanish will go a long way here in Mexico and although many people and places will speak English having some words and phrases will open doors and encourage positive relationships.

The Fideicomiso

In regards to buying property here, an important word that you will need to know is Fideicomiso. Pronounced “Fee-day-coh-MEE-soh”. Mexico created the Fideicomiso to encourage foreign investment in the highly desirable areas, particularly along the coastline.

the restricted zone in Mexico

City Hall in Mexico City. Photo by Wayne Marshall

Here´s a simple breakdown of what you need to know:

– A Fideicomiso is a real estate trust that is held at a Mexican bank of your choice, for example  HSBC or Santander.

– The Fideicomiso was set up to allow foreigners to buy prime Mexican real estate in the restricted zone in Mexico

– The bank acts as a Trustee

– You maintain complete control over the trust (operates like a Living Trust in the United States)

  Fideicomiso gives you complete control over the property which allows you to lease, rent, mortgage, sell, improve and will your property

– The Fideicomiso only acts as stewards of the trust. The trust is the beneficiary’s property and cannot be used by the bank in any way.

– The trust is for 50 years and can be renewed for additional 50 year increments at any time. The cost is approximately $500 USD

– Each trust is guaranteed indirectly by the government

We recommend that non Mexican property buyers have title insurance for property transactions as it is seen as an insurance policy for property ownership. Title insurance companies can also be used as escrow agents which is the safest way to close the property transaction and ensures that all money is returned should the property deal fall apart.

Having a reliable real estate company in Mexico to help you organise all the official paperwork and closing costs. Typical buyer’s fees include a 2% acquisition fee, a 1% recording fee, a 1% notary fee and a  $3,000 USD attorney fee

Buying property through the Fideicomiso can cost approximately $1,500 USD set up fee, $500 registration fee and a $500 annual fee there after.

Setting Up a Mexican Corporation

Most investors buy property in Mexico using the Fideicomiso but you can also set up a corporation if that is better suited to your needs. It is common to buy property through a corporation when your intention is to use the property for commercial reasons. You might plan to use the property in summer but rent or lease the property for the rest of the year. Also, buyers interested in multiple properties often choose this option.

Here´s some introductory information about setting up a corporation in Mexico.

– There are 2 main types of corporations in Mexico.

The LLC is a limited Liability Corporation and the LLP which is a limited Liability Partnership

– Foreigners can own, operate and manage Mexican corporations but none of the corporations investors can be Mexican

– a corporation in Mexico it has the legal capacity to buy property anywhere in Mexico, including the restricted zone

– There are no restrictions on foreign owned Mexican corporations who are dealing and developing in property so the advantages there are huge.

– The attorney’s fee is $1,500 USD to set up a corporation and there is an accounting fee of $100 per month thereafter

Approximate costs when buying property through a corporation are a $1,500 set up fee and a $100 a month accounting fee.

Punta Sayulita prides itself on it´s customer service. We feel that it´s the most important part of our business. Our experience has shown us that buying property, no matter where in the world, can sometimes be complicated, stressful and that often the legal expenses and responsibilities can set up roadblocks to buying that perfect property you have already fallen in love with.

Our team at Punta Sayulita will advise you every step of the way.

the restricted zone in mexico