Don’t get discouraged as you have not missed the opportunity of making money on Mexican real estate in sought out destinations such as Puerto Vallarta, Los Cabo and Puerto Vallarta, because there are many of opportunities that is still available. Foreigners can easily start property investment with vacation rentals in Mexico, and Craigslist and Airbnb are a couple of websites where you can advertise your vacation rentals in Mexico.
Property Investment for Vacation Rentals in Mexico
Property investment for vacation rentals in Mexico is readily available for foreigners throughout Mexico, except there are regulations for any real estate property purchases that is within the restricted zones (50km on the coast and 100km near the borders). When you have purchased your real estate property in Mexico, then you can begin by letting that property work for you by putting it up for rent long or short term. Recently, vacation rentals are being sought out by tourists coming to Mexico and the demand is only rising. During the last year there was a growth of nine percent in the real estate industry for popular destinations and sought out locations in Mexico, and occupancy rates are even higher in these locations.
Income on Vacation Property Investments
A major attraction for foreigners who purchase real estate in Mexico is the chance for income. Foreigners can advertise their vacation rentals in Mexico and the rent will be in US dollars, so you will get the most money and an income that will be stable, and this is true if you plan on renting out the property during peak season, which is during the winter months. You will be charging rent in dollars, but your maintenance and expenses will be paid out in pesos, so you will get a good return with your investment, even before your vacation property is appreciated.
Vacation Property Investments that You Can Use
You have the opportunity to use your real estate investment for your own use or for a vacation rental for extra income, and if you decide to use it for yourself, then you will have a beautiful vacation home that is your own in Mexico. You have the right to rent it out or use it for your own enjoyment. Foreigners can make a property investment with vacation rentals in Mexico or use the vacation property themselves.
Tax Must be Paid on Vacation Rental Income
During the past few years, any income from vacation rentals in Mexico was often not noticed, but with the new tax laws that has been revised states that property investors and owners must pay taxes on any vacation rental income that is received, and this is very enforceable. To ensure that you don’t get on the wrong side of the law, you should consult with a tax attorney in Mexico.