There are 3 ways that you can invest in the Mexican Riviera Maya (Cancun, Playa del Carmen, Tulum) if you don’t have the cash.
1.- Pre-sale financing:
Pre-sale developments have a future delivery date. As a future investment, this allows for you to get a payment plan, from the signing of contract up to delivery. Delivery could be in 6 months, 12 months or in some cases even 2 years time.
The rule of thumb for pre-sale development payment plans is 30% downpayment and the rest can be allocated in monthly, semestral or even ballon construction benchmark payments up to delivery. This allows you to have a longer payment plan and it moves from an all out cash purchase to an up to 2 years financing plan.
2.- Developer Financing:
Some developers (not many), have a long history of building developments in the area and have many more planned for the future, their reputation, history and future stake in the area allows them to offer “developer financing”.
In some cases you can find developers where you can mix both pre-sale and developer financing. Meaning you can acquire property for as little as 20% downpayment – 30% upon delivery – and the remaining 50% payed out over a 5 year financing directly with the developer.
*Interest rates vary from developer to developer, so make sure to ask what the annual interest rate that developer is offering is.3.- IRA/401k & Cash Mortgages:
Most IRA`s – 401k’s can be cashed and used to invest in property in Mexico, for this you need to consult with an IRA/401K specialist so they can advise you if yours is eligible for this process, if it is, they’ll be able to help you set it up, withdraw the money and make your investment in the area with absolutely no problem.
Cash Mortgages is just what it sounds like, instead of using your 401K or IRA fund, you take a cash mortgage to fund your investment in the area, this has to be done in your country/city of residence with your bank and is completely up to your credit and what your bank policies are.