Hi there!

It's my first post on this forum, but I've been reading it for a while!
I'm thinking about doing my first overseas investment.
I am looking a property to buy and then rent it (summer vacations), and expecting a really good rental income.
From your knowledge, where is the best place to buy? Where are the hot spots regarding rental income ?
I am thinking about buying in Cancun, I was there in 2006 and that was really the most tourist city I've ever seen!
What's your opinion about Cancun? Is still worth it?
I live in Portugal, so I have to spend most of the time here... do you think that property managers are trustful? Specially while the owner is most of the time abroad?
So many questions, I know!

I hope to hear some feedback soon!
And by the way... Merry Christmas!!
Sophie

Hi Sophie,

I'm certainly no expert in Cancun or Mexico,however do you not think it may be better for you to invest a bit closer to home ,after all Portugal is one of the most popular european holiday destinations.
I don't know if Cancun property prices are lower then Portugal but you certainly wouldn't have the headache of having to trust an agent.

High season in Cancun is winter as it is predominantly an american market. If you are renting out the majority of your marketing should be aimed at american citizens.

Before you buy you need to know a lot about hurricanes, a lot about Mexican land law because your ownership will have to be through the form of a bank trust and you need to be really wary over which developer you buy from. It's an interesting market and well priced for a Caribbean destination - I used to own a house there - but you need to be very aware of the problems.

K

Hello,
Thank you so much for both your answers!

********* sometimes I think I should invest in Portugal and I know that this would save me from a lot of headaches!
I am looking for a valuable property to invest, I want to rent it the entire year.
I thought about Lisbon, but houses in Lisbon are quite expensive...and the Algarve, the high season is only about three/four months, and I really don't think that's an easy job to rent a property there the entire year...The time that I've spent in Cancun, gave me the idea that are tourists there coming all the time! Maybe I am wrong... but I don't think so.

Kirazli was it a good experience having a house in Cancun?
From your experience, do you think it's easy to rent a condo in the Hotel Zone for the entire year? Do you still think Cancun is a good place to invest?
Have you ever heard about a condo called Cancun Plaza or even the Solymar ??

Thank you!!

I know the area pretty well because I still run a message board for the area. The market is pretty good but its a lot more crowded than when I used to own there. You are looking at USA citizens in the winter, season starts Christmas and runs through until around May and then you have Europeans in the summer months but it is a lot quieter.

If you have a decent property you need to watch out for the party hard spring break crowd that can trash your place.

Hurricane season is really really important and personally I could not bring myself to recommend beachfront anywhere along the coast unless it had a massively substantial seawall that could hold up to a stalled Cat 5 (Wilma stalled over the place for 48 hours!).

Solymar has been around forever and is at the low end of the rental spectrum. Prices don't seem to have increased much since I sold my place 2.5 years ago so maybe you could get higher growth elsewhere. The new off-plans are keeping the resale prices low despite the great views of the older properties.

K

I will have to think about this really well....
I'm also thinking about other locations...
I'm not sure what to do... I will be in Cancun in the beginning of 2008, and I'm still searching for the best properties to invest.

Thank you so much for your answers Kirazli !

Have a good look sophie before you decide there is certainy plenty around in and out of Cancun,Wish you well.