From gaining a steady annual cash-flow to parking your money for great returns afterward, real estate purchase can vary according to your needs. Though over the course of time, the property values have not seen any drastic decrease but the search for continuous cash-flow and stability has resulted in people going for the former option.
Countries in the Americas have seen a boom in the real estate market. This rise is attributed to their teeming tourism, great food, and epic beaches. Countries like Mexico have become the center of attraction for tourists and expats alike.
People flooding in these countries are purchasing rental real estate and generating fix profits. A recent example is the great offer of Playa Del Carmen condos for sale.
Why Purchase Rental Property?
Before making a purchase in Mexico, one must ask as to why buying a rental property is better. To answer this question, let us look at the below-mentioned reasons.
1. Continuous Cash-flow
A rental property will generate cash-flow day-in-day-out. On top of that, owning such property will give you enormous returns in the form of appreciation. The income generated each month can be used to pay the mortgage of that property. Moreover, the monthly benefits will help take care of your additional expenses.
2. Tax Deductions
Many rental property owners based in USA and Canada think that Mexican tax laws don’t apply to them since they receive the rent through bank transactions in the country of their residence-which is not true. As a landlord, you are obligated to pay tax to the authorities in Mexico. However, you can gain huge advantages by keeping your property management, renovations and other expenses related to the property. This is known as depreciation where you can tell the government about your expenses and gain major tax cuts.
Probably the best thing about owning a rental property in Mexico is the degree of flexibility it offers. You can either rent it to a long-term tenant or shift it on per night or weekly basis. Another benefit of such property is that you can place it on Airbnb and gain huge profits.
Target Vacation Home Rentals in Playa Del Carmen
Since many tourists visit Mexico each year, it is advised that while looking for a condo to buy in Playa Del Carmen, try using it for the purpose of a home rental. This will reap great profits for you and require the services of a property management company.