Investment in Cozumel.

[Augustus]

Currently capital gains taxes in Mexico are around 27-32% mas o menos. That could cut into your resale profit. Course that could change.

 

[CZMDM]

To buy a condo as a form of investment: The rental market is over-saturated, especially in these economic times. I have never met anyone that has really made this work. The only time I saw buyers make a really good profit was when El Cantil was built. The economy was still in fairly good shape and many people who bought into it at the preconstruction price flipped them before construction was finished for a heafty profit.

 

[raywings]

Two things - square footage pricing and annual holding costs which would or could be HOA, elec, maintenance etc... basically any dollar you have to spend over the year as part of ownership.

The Landmark is around over $400 a square foot (A million dollar 5000 sq ft property is only $200 a sq/ft.) and annual holding costs are well over $12,000.00 at a minimum.

That's pretty high dollar to me for Cozumel from what little I know of it.

American banks have been willing in the past to lend to purchases in Mexico. I have not looked into it much since the bank crises so that may be gone now.



They can look like they aren't millionaires, but they can't hide their properties from me and I don't see a good size of high end properties.

Take a look at an island like St Barts or the development going on on Virgin Gorda in the BVI for the measuring stick I am comparing too in regards to my statements of the potential for Cozumel.

Cozumel is a diving and cruise ship destination. (as of right now) which equals cheap, cheap and cheap visitors for the most part.




This is one of the selling points to the Landmark as I was explained to. They are apparently fully funded and aren't relying on the sales to fund the construction. They are also very forthright in doing anything that is required to elevate worries of the project not being completed such as offering a performance bond.

Lip service or reality? I don't know. It's easy to say anything before you sign on the dotted line.



That would be might thoughts also.

I thought the Oasis was a pretty good project with a lot of room for appreciation. They were under $200 a sq ft, very well located to town for rental opportunity and had a great view. The finishes were top notch and the design was well thought out. I was very disappointed to see that the place looked about exactly the same as it did one year ago when I was last there with virtually no progress made. I had hoped to look into that project again while I was there to see how it had come along in a year and see how the pricing had changed.

I was also very interested in San Miguel Oasis and did extensive research and talked with the sales manager and the land owner in Cozumel. I have never seen anything so complicated. It would take writing a book to explain the mess surrounding the project. The following is my own opinion and evaluation of the situation:

This project will only be viable when land owner and current occupants find new investors and select a new developer. With the current economic conditions, the land owner is not in any hurry to make the change, as he is watching the current developer self destruct in a lengthy lawsuit that is doomed from the start. Mexican laws are very clear regarding land ownership, and there have never been a single case like this that ever prevailed in Mexican courts.

While others on this board may disagree with me, I am very certain of my findings. I heard so many so called facts, only to find out they are based on misguided and unfounded legal theories that are mathematically impossible. I know how to cut through the chase and ask the right pointed questions.

The best thing that can happen to Oasis is for the current occupants to work with the land owner and take control of the project and find other investors and a new developer to complete the project. It is best if they keep the investors and developer as different entities, or else it will be a conflict of interest, like letting the fox watch the hen house, which is what got the project in trouble in the first place.

The sooner they figure out how to make this happen, the quicker the project can get underway. Only then will I be interested. Nice location, and hopefully prices will be good after restructuring.
Ray

 

[Aigtbootbp]

I am by no means any sort of real estate (or any other type) mogul but I would be very willing to bet property values in CZM are just going to keep going up.
I have no idea how other forces like hurricanes, changes in the laws/government would affect this sort of thing though.

 

[caseybird]

Rental is not the investment objective.
Personally I believe Roatan so far looks like a much better investment on paper (except for the political climate), I'm just wondering if Cozumel has the potential to compete for my dollars?

So go buy in Roatan.
Why are you trying to get people to convince you that Coz is a good investment? It's full of distressed property, plenty of open space to begin more badly planned projects, and we're in the midst of huge real estate deflation.
Love the place for diving, for appreciation, might as well roll the dice in Las Vegas.

 

[caseybird]

Oh yeah, they have hurricanes there too.
At least in Vegas, you'll get free drinks.

 

[cvchief]

Anyone notice this thread is a little OLD... Not quite DD, but close....

 

[caseybird]

So? did M buy?

 

[cozumelian]

Personally I'd buy land at the moment, not condos, I think there is more room for appreciation long term, assuming you work the current depressed market to your advantage and negotiate a good price, which is likely to be way below the advertised price.

Long term does mean that too, you've got to be prepared to sit on your investment for a few years at least, preferably more, but the benefit of land is it doesn't have such high maintenance costs in the meantime.

As much as I love Cozumel, land on the coast around the Tulum area may be a better deal right now. With the new international airport there looking almost certain to go ahead the area is going to boom. This boom may spillover a bit into Cozumel too, but I wouldn't like to bet on it.

Let me disclose my interests too before I'm accused of un-declared self-promotion. I've been involved with Mexico real estate marketing for a number of years and also work with This is Cozumel, which does have a real estate section, but we are not brokers and refer enquiries to a trusted local real estate partner.

Buying real estate in Mexico is arguably safer than other parts of the Caribbean, but not regulated as well as the USA and many other countries. So choosing the right people to advise you is very important (anyone who knows the Tony Gentile story will tell you that!)

First hand recommendations are great, so trusted opinions on here can be a help, although there are probably better "social media" (not dedicated to scuba) that are better places to look, Cozumel My Cozumel and Trip Advisor for example, and also even Facebook pages.

The only problem with land, of course, is that you can't stay in it while on a diving vacation!

Ian

P.S. cvchief, forgive my ignorance, but what's a "DD"?

 

[montanagal]

DD--possible Dead on Delivery