Investing in real estate in Mexico, especially in high demand destinations like Cancun and the Riviera Maya, can be one of the most successful financial decisions… provided the right decisions are made. However, there are mistakes that, due to ignorance or lack of advice, many people continue to repeat.

In this article we share the most common mistakes that we have identified as real estate consultants, with real examples and practical advice so that you do not make them.

1. Looking for the property without being financially prepared

One of the most common mistakes is to start looking for properties without having a clear picture of the actual budget. It is very common for people to start seeing options and fall in love with a property… and then discover that they don’t have the pre-approved credit or that they don’t qualify for the necessary amount.
Having a mortgage or Infonavit credit pre-approval is essential. It allows you to know how much you can invest, negotiate safely and move quickly when you find the ideal property.

We have seen many cases where buyers miss opportunities because they were not financially ready. Having clarity from the start can make the difference between getting or losing the desired property.

2. Not studying the market before investing

Another very common mistake is to choose a property thinking only that “it is going to give capital gain or good income”, without studying whether the market really supports that expectation.

We have accompanied investors who opted for saturated areas with the idea of generating income from rent, but the competition was as high or the area was not as attractive as they thought, and the property failed to cover the mortgage or generate the expected return.

Each city, and each area within the city, has a different behavior. What works in Playa del Carmen may not work the same in Bacalar or downtown Cancun.

3. Creer que el sistema de inversión es igual que en Estados Unidos

A very common mistake, especially among investors who live in the US or have had experiences in that market, is to assume that income from income will cover the total mortgage, as happens there.
In Mexico, the conditions are different:

• Mortgage interest rates are typically between 9.45% and 11%.
• The down payment required is around 30% or more.
• Monthly fees are significantly higher

This means that in most cases, the monthly rent will not fully cover the mortgage. It is essential to be clear about this from the beginning.

4. Not having the right advice

One of the most expensive mistakes we have observed is not having a professional real estate consultant during the purchase process. The purchase of a property is not only about choosing the most beautiful one: You must check the background of the construction company, real delivery times, contracts, among other key points.

We recently accompanied a client with whom we visited more than 20 properties. He finally chose one he loved. We warned him that, although the developer promised to deliver it in 6 months, the work was not sufficiently advanced and would probably take twice as long. So it was: The work was delivered a year later, as we anticipated. Our warning allowed him to adjust his expectations and make more informed decisions.

Having professional advice not only helps you find properties, it also protects you from mistakes that could cost time, money and peace of mind.

Conclusion

Investing in real estate in Cancun or anywhere in the Riviera Maya is an excellent decision… if it’s done right. Avoiding these mistakes will allow you to make safer, more profitable and more satisfying long-term decisions.

Having specialized advice from the start is one of the best decisions you can make.

Are you thinking of investing in a property?
Schedule a call with our Verena experts and ensure a smart investment without surprises.