These Real Estate Buys in Mexico Could Have Doubled Your Money – Where’s Next?

Close on a decade ago I first stood on the white sands at Tulum, Mexico. Playa del Carmen was my base for this trip, and I saw first-hand what was happening. Playa was taking off—as were its real estate values.

Ninety minutes down the coast (before the road improvements) Tulum was a secluded piece of paradise. It was an empty beach—there wasn’t a single soul. I drove down a potholed, rutted, sand road with a friend. From an empty rustic palapa (hut), we gazed out at the turquoise waters. She had promised to bring me to a piece of paradise, and she delivered.

The macro case for the Tulum area was rock solid. But there was no actionable opportunity that ticked all my boxes—yet. So I waited patiently for five years before the time was right to act. Then my boots on the ground research uncovered a golden opportunity.

In 2009, I first visited a resort here. I already knew the developer from his stellar work elsewhere. Like me, he had spotted the potential of going east toward the Tulum area. So much so that he moved his family there.

First, he decided to build high-end suites to cater for the high-end market coming here. His 400-plus suites quickly sold out. I told members of my Real Estate Trend Alert (RETA) about this opportunity and several of them bought 602-square-foot suites here from $127,000 in 2009. I recently saw one listed for $265,000—a $138,000 increase.

My relationship with this developer—and the special pricing deal I negotiated with him—paid off again for RETA members on his next project: 2,637-square-foot luxury homes. These homes came with a promise of plush amenities, including pools and a facility offering yoga, steam baths, a gym, alternative treatments, and more. The first member of my Real Estate Trend Alert group to buy one of these homes paid $349,000 in 2010. Today the list price for these homes is $525,000—a $176,000 increase.

Next, the developer began work on some townhomes here. The first RETA member to buy a townhome in 2010 paid $228,600. Right now, one of these townhomes lists for $325,000—a $96,400 increase.

The next phase to be released was the condos…the first RETA member to pick up a condo in 2010 bought for $147,000. Today, this condo would list for $210,000—a $63,000 increase.

(All of those prices quoted for RETA members were special members-only pricing, by the way. They couldn’t have got those prices anywhere else. I negotiated steep discounts on each opportunity…as well as special financing with low, manageable monthly payments.)

The value of real estate in Tulum will continue to grow in the coming years. For a start, there’s a chronic shortage of the right hotel and short-term rental spaces. That’s partly due to a massive nature reserve near here. Because of preservation laws, development here is strictly restricted.

Additionally, the popularity of Tulum is growing rapidly with wealthy vacationers and second home owners. When I visited, Cameron Diaz and Demi Moore were visiting, too. Increasingly those wealthy vacationers are coming, not just for North America or Europe, but from Mexico, Colombia, and Brazil.

So when the developer showed me his plan for the lofts he’s building here now, I was excited. The lofts will nestle in the most appealing corner of this community. These luxurious units will make for perfect rentals. Thanks to the members-only pricing I’ve negotiated, my RETA readers will be ahead from the get-go.

The launch price for these lofts is $154,500 and I expect prices to rise from here. The RETA price is $141,500. RETA members can also buy with manageable monthly payments of $550 and some balloon payments along the way.

Even as values rise at these lofts, they’re still within an affordability sweet spot. If values rise to $250,000-plus they are still affordable to their target market—perfect when we want to exit.

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