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Buying a plot to build in Tulum

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Understanding the process of buying a plot in Tulum

Many investors and buyers in Tulum look at the option of buying land and building in Tulum.

There are a number of reasons for this.

Firstly in terms of quality housing at present the market is limited.

Most of Tulums growth has been recent and focussed on condominiums and apartments.

With more and more Jungle land being segregated and sold for residential housing the option to do a self build in Tulum and Quintana Roo in general has grown.

When considering buying land in Tulum there are a number of factors a buyer should consider.

 What is the access to the plot. Difficult access and inability to move lorries and machinery to site for the build phase can increase build costs significantly.

What is the build density and limitations. Each plot in Tulum has a designated use under the urban plan. Will therefore the plot provide sufficient scope for the property you wish to build in Tulum.

Most residential plots whilst allowing for a range of density of build, do limit the plot to one structure. This means that any accommodation over and above the one house in Tulum may have to be integrated or appear to be connected to the main building.

Most new plots in Tulum from newly segregated land tend to be longer rand narrower rather square.

Mayan History

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What are your future requirements for the land

Consideration to what type of property you build, whether it will fit the shape, and its entrance needs to be ascertained. Corner plots for instance will provide more scope than ones in between two other plots.

Unlike similar areas in for instance the US in Quintana Roo there are no planning regulations around Hurricane and earthquake restrictions. More flexibility within density of build will be available. Densities do dictate however whether the Tulum property can be one storey or two and overall height.

Many new and upcoming areas of Tulum do not at present have access to Town Water. It would however be highly unusual, in fact impossible for a plot not to have a natural underground supply in this area of Quintana Roo. You do however need to ascertain where the supply is in relation to the house you wish build.

Access to electricity or the cost of running main electric to the property is also something to explore before buying.

Be sure you understand your needs and what is possible on the plot you want to buy.

Solar in theory is great but from a day to day practical point of view may not be ideal.

More and more people are using Solar panels but not batteries and connecting to CFE the electric company in Tulum.

The energy generated during the daytime is converted by an invertor.

You therefore download to the grid and then only pay for consumption above what you have yourself generated.

Whether this option is viable depends on location and access to the grid.

Cenotes Tulum

Get good advice before committing to buy

Another important consideration when planning to build in Tulum is a soil test. The soil test establishes where you can build. Also what lies beneath the surface that could hinder and in crease costs of build.

This could include underground caverns and caves which litter the Quintana Roo and Tulum region. It is more costly to do a soil test before you have a project in mind. In this case a soil test will have to be all encompassing, testing large parts of the plot.

If you have a basic design in mind with help from our Tulum Architect you can establish where on the plot the property will be. This means the soil test can be more specific and cost less to undertake.

If you buy a plot within a new development some things you need to consider when buying a stand alone plot in Tulum wont apply.

Often main utilities or the equivalent are already in place. It may also include tests of the land to establish what lies beneath each plot.

This will give you more safety and security before you commit your own funds to the purchase. However the plots will cost more.

A good Tulum building company and experienced Tulum Architect can help you from the start. Assist your search to establish the purchase of the right plot. One that is in fitting with your desired end project.

Sourcing good real estate brokers, a quality builder and Architect in Tulum, helps ensure you don’t make a mistake when buying land.

Therefore appoint a team with knowledge of the area and the planning rules,

This ensures that what you want to build will be feasible and cost effective to construct in Tulum.

Builders in Tulum

How do I decide which builder to appoint when constructing in Quintana Roo

Appointing a builder to build your home in Quintana Roo is a big decision.

If you don’t know the area how do you decide who to appoint to construct your house or commercial venture in Tulum. Also  undertake a reform. In addition how do you differentiate between a good building company and a bad one.

Recommendations

Recommendation and personal advice is always helpful. Even with a personal recommendation you need to be careful. How long ago did they have the recommender have their Quintana Roo house built. Also are the workers still the same, are the owners still the same.

Many things can happen between when the recommended builders in Tulum built and now.

Price

Price is of course a factor when making a decision on what Quintana Roo construction company to instruct. As a general rule of thumb cheapest is not always best. If you have a tight or defined budget you are better off requesting the best you can get for your money. This is better than just appointing a building company who quotes to your budget, immaterial of what you ask for.

Will the cheap quote mean you hit with hidden extras.  On top of this being provided with sub standard workmanship or sub standard materials. These factors can be the downfall of only being price driven. Bear this in mind when making the decision which builders in Tulum to appoint.

Abandoning the construction project one of the biggest issues in Quintana Roo

One of the most frequent issues and complaints you will hear in Mexico is that the constructor failed to finish the job. This can happen if the money runs out because they have misjudged the cost or time it will take. Unfortunately in Quintana Roo many project managers, builders and construction companies will just cut their losses and walk off site. Therefore leaving you out of pocket and without a completed project.

Worse still the workmanship done to date may not meet the standard you require. Or indeed even be safe. Putting right what a previous Tulum based builder did is costly. Far more than making the right choice at the right price in first instance.

What really counts when appointing a Tulum Builders

What really counts is the expertise of the constructor in terms of knowledge of what products can be used. I addition this how much they realistically cost. Someone who knows what cost effective alternatives are available. Also has links with local tradesman. Perhaps and most importantly wont walk away if things don’t go exactly to plan.

Nestor Quijada wants to help you achieve your dream Tulum home

To ensure you appoint the right Quintana Roo builders you need to trust and like the person who fronts that business. Natural initial instinct can play a big part in who is right for you. A building project will never go as smoothly as first anticipated. This is an unrealistic ambition. There will be issues. For instance  you may want to make changes. On top of this the weather may delay things, and sometimes mistakes will be made.

Its not about whether these things happen but about how they are dealt with.  How quickly they are resolved. Whether the builder can be flexible and adapt and work with you to achieve you dream property.

Personal interaction matters

Honesty and realism are important skills. Also how to communicate and listen to a client and their ideas and needs. Not all builders local or otherwise have these skills. Without them no matter how good they may be at building works you will almost certainly experience some problems.

Ability to work with other professionals like an Architect in Tulum. Also adapt as the build progresses to any necessary changes. Along with coming up with effective alternative solutions when an issue pops up. These factors are more important than whether they are the cheapest.

Cost effectiveness has to be measured by a number of factors. Therefore a cheap price for an unfinished poor quality construction is as useful as cheap insurance that never pays out.

Attention to detail is most important. Along with management of the quality of work that has been undertaken. Also a desire to deliver something special and taking pride in doing so. Does your builder in Tulum fill these requirements. Instead of just making money they are the key elements you should look for.

Who owns the construction company counts

A business that has grown and continues to grow without losing the personal touch is worth its weight in gold.

All the Building Works affiliated services are made up of individuals who have been selected. This is not just on price and qualifications. Also because the principals have a work ethic and service ethic. Therefore this means no matter what happens they will deliver and wont walk away. As important to all of them as making money is client satisfaction. They all desire to be proud of what they have delivered and how they have delivered it.

Why Build in Tulum

Tulum is the Future

Buying and Building a Home in Quintana Roo and Tulum

Where the Jungle meets the Sea

Quintana Roo and Tulum sit on the Carribean Sea on the Mexican Peninsular.

Whilst Cancun is well known by everyone. Has over the years developed into a very built up holiday destination, Tulum some 120 km down the coast has retained much of its original charm. Whilst new construction and developments are underway they are in fitting with the environment.

For buyers of property or those looking to buy land and build their own home in Tulum it has become a must go to destination for buying a home.

With affordable land prices for construction, options to buy beach or Jungle or live in the Pueblo, Tulum offers something for everyone buying a home.

For buying land, planning and building advice in Tulum contact us today

Homes in Tulum keeping in tune with the environment

With stricter planning rules, developed to keep in tune with the environment, Tulum provides a haven for those looking to benefit from everything the Carribean can offer. At the same time maintaining sustainable growth and protection of its natural beauty.

Where else on earth can you buy a plot and build your dream home with its own natural Cenote, or buy a home in Tulum and live in harmony with nature. Also still be only a few minutes away from some of the best beaches in the world.

A local Tulum builder can help you with your construction. Ensure you understand what materials to use. What will stand up to the environment and remain   looking good with the best possible cost prices for your construction project.

Contact us for all your Tulum building and buying a home needs

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Tulum Infastructure is Improving

Tourist destination

For longer term investment for buying a home or as a holiday destination Tulum is growing and becoming the favoured part of the Quintana Roo Peninsular. Therefore ideal for those holiday makers wishing to avoid the restrictions of all inclusive Hotels and the hussle and bustle of Cancun or Playa del Carmen.

With the Mayan Train being already under construction and plans for an International Airport near Tulum itself, it is anticipated the Tourist industry will expand in the next few years.

For retirement to the area or lifestyle changes Tulum provides everything you need for living, relaxing and working.

Want to buy land and  build in Tulum contact us today

Ensuring your real estate investment is safe and secure

As with any foreign investment whether buying land to build. Buying property for personal use or to generate an income it is important before purchasing or appointing professionals to assist you.

You need a team that understand the idiosyncrasies of the buying process as a foreigner, planning regulations and carefully select the team that will help you achieve your aims.

Finding the right people when buying a home is paramount. You need experts who can offer a quality service with honest and factual information and deliver quality construction 

We can help your Tulum building, construction or investment project dreams come true contact us today

What is a Fideicomisos

Property Trusts in Mexico

Fideicomisos why do you need one

In all of Mexico any land or property that falls within 50km of the coastline is deemed as falling in a protected zone.

Foreign buyers of land or property in the protected zones can only buy property in the protected zone by way of a Bank Trust or a corporation.

A fideicomiso ( Real Estate Trust) is basically a real estate trust fund these were set up to ensure foreign investment into Mexico could continue whilst denying the right to direct ownership of land or property within the restricted areas.

Contact our affiliated Lawyer in Tulum today

Foreingers can’t buy personally in Tulum

For the purchase of property in Tulum and Quintana Roo you must either have a Trust or a corporation or both.

The Trust is set up by a Mexican Bank who must be the trustees. The Banks take title of the property but the buyer is the beneficiary of the Trust. Whilst the Bank takes title of the property this title cannot be shown as an asset in the Banks balance sheet as they are merely the custodians on behalf of the buyer.

The Bank acts on behalf of the buyer and then manages the Trust in accordance with the wishes of the beneficiary.

Legal process of a Property Trust in Tulum

Permit required to set up a Trust

Before a Trust to purchase a property can be set up the Bank must apply to the Ministry of Foreign affairs for a permit. The Ministry will grant the permit based on the economic and social benefit of doing so. Buying of property and investment in Mexican real estate is considered to be of benefit to Mexico so it is standard for permits to be granted.

The ministry if outside of Mexico City is obliged to respond to the request for the permit within 30 days or it can be assumed granted but this is only one part of the process of setting up the Trust so when buying in a Trust you should take care to not to commit for the purchase to happen in limited timescales.

Banks can vary considerably in terms of cost and level of due diligence and timescales

Local support to set up a Trust. Contact us today

Mexican Banks hold the Trust

The Bank itself has other obligations when setting up the Trust for the purchase including due diligence on the property, money laundering regulations and source of funds for purchase, title deeds and the no liens certificate. All of this can take time and Mexican Banks can by nature be Buearocratic and slow.

It is also important to understand what can and cannot be held in a property trust and to gain support from a Lawyer or an Accountant who can advise on what is and what is not possible. Having a local understanding of the cost structure and efficiency of each Bank is also going to be helpful for you in terms of time and initial set up costs and annual fees.

You can reasonably expect to pay around $ 800 plus IVA for set up and similar yearly maintenance fees but each Bank has its own fee structure

When a Trust can't be used

Trust limitations

Some limitations of the trust include the fact that land or property that exceeds in size 2000 meters squared cannot be held in a Trust. This often rules out Rustica land which by its nature tends to be larger plots. You need to take great care that the measurements of the property you are buying are not miscalculated before going through the process of the Trust as this can affect its validity.

Trusts are also only meant to hold one property. It may be possible to put two adjoining properties into one Trust but this is a very complicated process. If it is your intention to buy more than one property you should consider a corporation as a longer term solution rather than setting up a new trust each time

Protection of your Mexican asset

Normally Trusts have a life span of 50 years but this can be extended and you will always remain the beneficiary. The asset will not revert to the registered title holder who is the Bank at any point. It is also possible when setting up a Trust to designate a substitute beneficiary in the event of your death. Doing so will help avoid the asset having to go through probate.

Your asset is also always protected immaterial of what may happen to you in your country of residency. If you go through bankrupcy the asset held in the Trust cannot be taken as the Bank is visible owner

Get advice to work out best structure for you

Always seek advice from a Professional

Your Lawyer can advise based on your future intentions which is going to be better for you

At any point you may sell or part with the property you retain control on what happens to the asset within the trust. Selling a property held in Trust can be done to either another foreigner or a resident of Mexico by changing of beneficiary, or the Trust disbanded to allow a local or a corporation to directly hold it

Understand the different rules

Taking advice from a Lawyer or Accountant rather than just dealing with the Bank direct is recommended on the Trust is important as each Bank has different rules.

You need to check that the trust allows for future renting of the property, improving the property or securing of build permits. There is always a round any of these issues and most Banks grant a full POA to the beneficiary but some Banks are more flexible than others and some Trusts are better than others.