Pre-sale vs. finished property in Cancun: Which is the best investment option?
When it comes to investing in real estate in Cancun, one of the first decisions you must make is: should I pre-purchase or choose a finished property? The answer isn’t absolute. It depends on your goals, your cash flow, and the type of return you’re looking for. Based on our experience advising investors in the Riviera Maya, we can tell you that both options are valid, but with very different objectives.
Finished property: producing from day one
If you’re looking to start generating income immediately, there’s no doubt about it: a finished property is the best option. These allow you to put your money to work from the first month, especially if you opt for an Airbnb-style vacation rental.
We’ve seen cases of clients who, by purchasing a finished property with bank credit, were able to cover their monthly payments solely with vacation rentals. Nightly rates in Cancun are high enough to make this model viable, especially if you choose a good location and design.
Now, if you decide to rent long-term, you’ll also have a stable income, although in that case it won’t be enough to fully cover the bank loan, but you’ll be able to cover a significant portion and reduce your monthly payment.
Another key advantage of a completed property is that if the project already has a track record of occupancy and performance, you can sell it in the future by showing those numbers, which increases its value and makes it more attractive to other investors.
Pre-sale: the wealth growth strategy
On the other hand, if you’re thinking about growing your capital and can wait a couple of years, pre-sales are a powerful tool. In Cancun, there are pre-sales developments with capital gains of 17% per year and even 100% upon delivery if you buy at the right stage.
The key is to choose reliable projects and, preferably, with a smart payment plan, such as the 30/70 payment plan. With this model, you only pay 30% during construction, and you can pay off the remaining 70% at the end, either with a bank loan or your own resources. Meanwhile, your property increases in value without having to tie up large amounts of money.
What you should keep in mind is that a pre-sale doesn’t generate immediate income. It’s a strategy for asset growth, not a cash flow strategy.
What is the best option?
It depends on your goals:
- Do you want to make money now? Buy a finished property and put it into production.
- Do you want to grow your capital and can wait? A well-chosen pre-sale can give you much higher returns in the long run.
In my experience, many of my clients combine both strategies: they purchase a finished property for vacation rental and, at the same time, invest in a pre-sale that will mature over two or three years.
Conclusion
There’s no single option that’s better than another. There are different strategies for different profiles. The important thing is to be clear about your goals and to work with an advisor with local experience who knows the developments, real-time delivery times, rental yields, and financing options.
📲 Schedule an appointment with your agent, Verena, to review the best pre-sales and ready-to-deliver properties in Cancun. Investing well means investing strategically.
