House Hunting in … Mexico

U.S. BUYERS BEWARE! The fluctuation of the peso can have a HUGE impact on the Mexican capital gains tax you must pay when you sell your property. For example, when I purchased my property from a developer in Puerto Vallarta the peso was valued at 13 to 1 US dollar. You’ll find that prices for real estate in Puerto Vallarta is nearly exclusively denominated in US dollars. This is especially true of any new development. Transactions by U.S. buyers are paid in U.S. dollars and then converted to pesos on the contract. If I sell my property today, the peso is valued at 19 to 1 US dollar! I as the seller have to pay the difference in the value of the decrease of the peso as a CAPITAL GAIN. There is no way to avoid this. The Mexican Notario (goverment related lawyer) collects all the money from the sale and only pays the seller after the Mexican government receives their cut. In addition you must pay a capital gains tax any for appreciation.

I was in Tulum several years ago to visit the Mayan ruins which are impressive and well maintained. The beaches were lovely when I visited. But I've been visiting the Yucatan for decades and it is getting too built up and handling the sewage and the traffic is difficult. It is brought home to you when snorkeling that the pollution is happening and the sea life looks very bleached and compromised in the last 20 years or so. This is an international problem not limited to the Caribbean. I was surprised to read about the crime as the Yucatan is Mexico's greatest tourism area. I've always felt safe there and Europeans come in large numbers in addition to Americans. Several commenters are negative about the concrete exteriors and interiors. They are generally beautiful and well made all over Mexico. It is easy to keep those houses clean and it is also cooling and it is very hot there. Paying 4 to 5 million dollars for a house that is so vulnerable to hurricanes is madness though.

Better to rent if you only spend a few months a year there—even if you are filthy rich

Why are they allowed to build this in a biosphere reserve?? Oh yes, I get it; government corruption.

Too many negative comments and how does one deal with all that concrete flooring? Carpeting?

Tulum lacks the infrastructure to handle the population growth happening now. Sanitation systems are already inadequate with raw sewage showing up on streets in town and on the beaches. The membrane of the town dump failed this year leaking all its filth and toxins into the ground and water supply. The limited water resources are being overused resulting in shortages. Traffic is a growing problem. More and more cars, no parking lots, and a lack of public transportation are creating traffic jams alongside the beach road. These problems are getting worse, not better. Add in a skyrocketing crime rate, and Tulum is clearly in crisis. Potential buyers must carefully consider these issues before purchasing.

"rapid development" is the antithesis of "eco-minded". So are monstrous mansions. Just because they have a thatched roof doesn't make them "eco" friendly. Eco friendly means a small home, no more than what you actually need. And the land being used to grow food, raise animals, aid wildlife. This is just pretentious arrogance.

Is it safe? Not only isolated but seems as though anyone can just sneak into your house and rob you. I would be worried in a home as open as this in the US, let alone Mexico.

Anyone who has ever been to the Tulum area and thinks it's some kind of an ecological paradise is a fool. There is no adequate infrastructure on the entire Costa Maya. The best thing that anyone can do for the environment in that area is not buy a place there.

Stunning but I have safety concerns, sorry it's Mexico.

Who can afford this ? Oh right. Some people have loads of money.

So if you are rich enough and arrogant enough you can buy a piece of almost certainly stolen land with a faux Mayan villa in a World Heritage Site. Yuck to the buyer; yuck to the seller. There is nothing ecological about trashing a World Heritage Site with houses for people who think they are Marie Antoinette cavorting with the peasants.

this is an amazing property, we are looking forward to work with you, or the future buyer, been looking for properties for a long time in that coast and this is on the top, no to big easy to maintain and at easy reach. will be very interested to rent it for some good clients for a couple of weeks, we understand seaweed is seasonal, with such an amazing property i guess you can have it clean, of course you have to love the place. about the bad advertising about the seaweed is good cause it keeps bad people away, its seems that finally now its been cleaned and maintained. Congratulations on this property, we hope there would be more like this.

Tulum is the antithesis of ecological. The tiny, fragile peninsula is overwhelmed by buildings, people and cars. The sanitary infrastructure is insufficient to cope with the trash and waste and crowding, and the beaches bear witness to it: an unimaginably gross mixture of seaweed and trash, swarmed by hordes of flies, greets beach walkers at the water and high-tide line. This is swept every night in front of hotels/restaurants, so those areas are cleaner, but each little wave on the beach carries a load of detritus you cannot bear to step in with bare feet. As for the more natural areas, described in this article, those beaches are not swept, and visitors will be devastated to find that plans to walk miles on pristine beaches free of development are impossible. The Yucatan peninsula must have been one of the most gorgeous places on earth before development, but it broke our hearts to see the filth.

This gentleman should tell his US clients who are using their IRAs to purchase that this is not allowed...unless they are buying it only as an investment property vs. using it themselves, even occasionally. If it is being bought as investment property they lose the benefits of depreciation and loss writeoffs since IRAs don't need those, being tax free. Also there are hoops to jump thru in such a "self directed IRA" needed to buy investment real estate. You need a trust company involved. The only way to use an IRA to buy a vacation home to use for yourself is to cash in the IRA and pay tax on the distribution amount, and any penalties if under age 60...and then use the remainder to buy the house.

Something to consider if you're buying in Tulum -- saragassum seaweed. Climate destruction will have and effect on real estate. I'm surprised by these articles in the Times. The last one featured Sanibel without mentioning the awful algae blooms. https://www.forbes.com/sites/priyashukla/2019/07/20/cancun-is-currently-under-siege-by-a-stinky-seaweed/#611a49b150b5

Look at these photos, and take notice of how narrow is the strip of land on which this home is located. The next major hurricane that hits the Yucatan coast will wash this house into the adjoining lagoon. Reminiscent of Fire Island on Long Island, where people constantly rebuild and expect taxpayers to prop up their protective dunes when they are washed out to sea.

Tulum has been my first choice for many years.