Get in Early on the “New Cancun”

Cancun wasn’t always packed with high-rise condos and tourist accommodation. In fact, in 1970, it had just three inhabitants. (Yes, you read that right.)

Then, in 1974, Fonatur (Mexico’s tourism development authority) kicked off a master plan to bring tourism to this sandy spit of land.

They built the infrastructure and provided the incentives necessary to attract hotelier tourists—and it worked. Last year alone Cancun airport greeted about 16 million passengers.

When developers first came to Cancun, owners of property in the area made a killing. Then, the Path of Progress moved down the coast to a little fishing village we now call Playa del Carmen. Playa was quickly developed…and for a time it was considered the fastest growing city on earth. Those who got in early made a fortune.

Now, the Path of Progress is headed for Tulum (80 miles down the coast). Imagine if you had a time machine that could whisk you back to Cancun at a time when the early buyers got in. This new community could allow you to achieve just that.

This area is easily accessible from North America. You can fly to Cancun airport (70 minutes away from this community) from many North American cities. Miami is under two hours flying time; New York, Chicago and Toronto are about three and a half hours. And Houston is just over two hours away.

When I first set foot on Tulum’s white sands close to a decade ago, I stood with a friend in a rustic palapa just back from an empty beach. This time last year, I was eating excellent Thai and Italian cuisine on this very same beach while the likes of Cameron Diaz, Demi Moore, and Orlando Bloom frolicked in the water enjoying a January break.

This coast is now jet-set chic. But, real estate prices don’t reflect this…yet.

The rental market here is ready-made—that’s before this stretch of coast starts to attract millions more visitors. It’s not just accessible and attractive to North Americans; Europeans have been coming here in large number for years. More importantly, newly (and long-time) affluent folks from Mexico City, and other major Mexican cities, are coming in their droves.

You’ll hear Portuguese spoken, too, but few Portuguese accents—they’re coming from Brazil. Each time I return Colombian flags and visitors are more visible.

Investing here is a way to profit from the emerging middle classes of South America. But, we get to do this in a place where the core and traditional markets of North America and Europe provide more demand than supply (for most of the year).

A chic penthouse on the grounds of a popular resort here will rent for $120 per day ($2,800 monthly). An up-market condo on the Riviera Maya will go for between $1,000 and $1,400 weekly (depending on the number of bedrooms).

Members of my select group of readers, known as Real Estate Trend Alert or RETA readers, have done well along this stretch of coast. Just over three years ago, many bought townhomes pre-release at a development priced from $230,000. One of these homes in that established community recently listed for $320,000.

In another part of this small resort town, members were able to buy five-acre jungle lots at pre-release prices of $65,000. Today these lots list for $100,000 or more.

Now, once again, members of Real Estate Trend Alert have an opportunity to get in at the ground floor. We also have the added benefit of experience, given how the past member-only pre-releases played out. I expect history will repeat itself, and that prices will rise strongly from the launch price.

As a member of RETA, you could even get in before the launch party. That’s because the developer is offering special members-only pricing and terms on the first 25 units sold. Once the development launches, I expect prices will rise quickly from the current pre-release price.

Launch pricing will start at $155,000 for a one-bedroom, 765-square-foot (including terrace) condo. Real Estate Trend Alert members get to deduct $10,000 from the pre-release list price of any condo or townhome. The RETA discount brings the price of a condo down to $145,000.

A classy two-bedroom townhouse of 1,697 square feet (1,179-square-foot interior space plus 518-square-foot terrace) lists for $225,000. For RETA members, the entry price for a townhome will be $215,000.

Using this RETA pricing, you’ll find the cost of a condo or townhome in this development is as much as 30% lower than comparable completed homes and condos here—and this is an area where I expect prices will soon rise further.

I told members of RETA more about this opportunity in recent weeks…and I’ll give you my full report on it when you sign up to become a member here.

Editor’s Note: Sign up here for International Living’s free daily postcard e-letters now and receive a special report “International Living’s Insider Guide to Buying Real Estate Overseas.”

LEAVE A COMMENT

Your email address will not be published.