REAL ESTATE TREND ALERT
(FOR MEMBERS ONLY)
Wednesday, October 13, 2021
I’m close to bringing you our outstanding new RETA-only deal in Tulum, on Mexico’s Riviera Maya…
This is the pristine stretch of white sand beach where we have had a run of some of the best deals in our 13-and-a-half-year history…
Deals like…
- Gran Tulum: RETA get in of $175,000. Today’s entry price is $263,000.
- Edena: RETA price (including pool) was $149,000. Today, excluding pool, it’s $189,000. (Some agents have listed it at $199,000.)
- Tao Tulum Premium: RETA pricing was $208,440. Now listed at $311,000.
Here’s the thing…I think this might be our best deal yet. This community has a unique set of special and rare attributes unheard of in Tulum. It’s going to blow the competition out of the water. Yet, our pricing is going to be well under any similar properties nearby…and none of them have the level of amenities planned for our project.
But let me back up for a minute…
I first visited Tulum, at the southern end of Mexico’s Riviera Maya, in 2004.
Mexico’s Caribbean coast, including Tulum, has grown quickly in the past few decades, but there is still opportunity for savvy real estate investors.
While back then Cancún was going full steam and even Playa del Carmen was growing into the bustling tourist hotspot it is today…there wasn’t much to Tulum.
A backpacker and bohemian paradise of palapa restaurants and rustic cabanas on the beach. Other visitors were bused into the well-preserved Mayan ruins to the north of town but were back to their resorts or cruise ships before the day was out.
A report from the New York Times that year named it a “counterculture haven.”
One little supermarket. One ATM—that didn’t always work—which was not great considering most places only accepted cash.
But it was beautiful…the powdery white-sand beaches, the azure Caribbean waters, the fringe of palm trees.
I knew after that first visit that a place that special couldn’t stay isolated or low-key for long. Not with a Path of Progress barreling down the coast and access improving from the north, and the international airport in Cancún, the gateway to the entire Riviera Maya, expanding too.
Soon enough the international jet-set, in search of the next Bali or Ibiza, found Tulum. Fashion designers and hipsters from New York, celebrities from Hollywood, the moneyed party crowd from all over the world, descended on Tulum. Then the masses followed…
Visitor numbers exploded, the town grew, and that change continues today at a furious pace.
From 50 to 70 airlines operate from Cancún airport, with around 130 total destinations. It welcomed 25.4 million visitors in 2019. And in September of this year, more passengers arrived than in September 2019—it was actually an all-time record for that month. It’s a testament to the Riviera Maya’s popularity.
Two million people passed through the archaeological site of Tulum 2019—80% of them foreigners. In 2010, the number of visitors was just under a million. It’s doubled in popularity in just 10 years. And although this statistic deals with only the ruins, this is a good indicator of Tulum’s popularity as a destination in general.
Another good indicator: The town’s population grew from 28,000 in 2010 to 46,000 in 2020, according to census data. The majority of that growth is made up of people coming to work in the booming tourist trade.
Then there is the infrastructure…
The main highway south is four lanes and well-maintained from the airport all the way to Tulum, with a bypass that avoids traffic in Playa del Carmen. It now takes about one hour and 40 minutes to get to Tulum.
The 140-room Aloft hotel just opened in Tulum, along with luxury brand properties like Kimpton Aluna Tulum and Be Tulum (a Marriott property). Hilton is slated to open a boutique property, the Conrad Hilton. More major chains plan to open hotels in and around Tulum.
There are several large supermarkets in town now, including a few offering sections full of gourmet and imported offerings. There are medical clinics, multiple banks, and other essential services.
It’s grown up in a lot of ways—it’s certainly more convenient to get to and to spend time in.
To be sure, Tulum still retains that counterculture vibe. It’s a place of yoga retreats, Maya healing rituals in the jungle, full moon dance parties…but at the same time it’s definitely gone upmarket.
It’s the type of place where you can buy $300 kaftans from chic shop…enjoy a $600 tasting menu at a pop-up restaurant from a Michelin-rated chef…or stay in an off-grid beachside boutique hotel for $1,000 a night.
That’s not all Tulum is, to be sure. Accommodations, beach fashions, and food can all be found at a fraction of the price.
Tulum is simply a fun place to hang out and that’s what draws such a wide variety of visitors from all walks of life…from around the world.
That’s one thing I like about Tulum, there really is something for everybody…something that caters to the different markets that come here now: young couples, groups of friends, retirees, part-time expats and snowbirds, digital nomads and the newly liberated work-from-home crowd who’ve made home a tropical paradise…
In a time when Tulum is developing so quickly, finding just the right type of opportunities to invest in takes some leg work. And you have to be selective. My team and I spend a lot of time in Tulum. I’m heading there in a couple of weeks, in fact.
And the next project I have planned for RETA is truly something special…
1) Location
This community is completely unique, close to the beach and next to the national park, which means the area in front of should never be developed to spoil the views over the treetops to the Caribbean. It’s down a road that dead ends—now that’s privacy.
It’s an exclusive verdant, quiet enclave yet convenient to the beach and to the shops and other conveniences in town.
2) Amenities and community
The community itself will be a pleasant place to spend time, with its large lagoon-style pool set among lush landscaping that incorporates as much of the original jungle as possible…with a Zen garden and hammock area…palapa lounge…
The rooftop terrace will feature lounge areas with firepits, bar area, barbecue grills, infinity pool, yoga/meditation deck, and views over the national park…
Plans for our upcoming opportunity in Tulum call for a rooftop infinity pool overlooking jungle treetops. (This is a developer’s render and is not final, but it does give us a great idea of the finished product.)
There will also be a gym, co-working space, and lobby with a concierge…
My favorite part:
We—and our renters—can hop on the community shuttle that runs to the pristine white sands and the bustling town…and even to the gourmet grocery store close by when you need Cointreau for your sunset margaritas.
This is the beach in front of the beach club we have free access to.
And, I have a verbal commitment from the developer that buyers AND renters will have FREE access to one of Tulum’s finest beach clubs, which he owns, for five years. This will be a game changer for the experience of spending time or renting here.
This will make condos here stand head and shoulder above other rentals, which can mean more income…more demand when it comes time to resell. And, of course, the community shuttle will bring you right to the sand. The final paperwork on owner/renter access to the beach club is one of the last things I’m waiting on before this deal launches.
3) Price
For all this, we’ll pay much, much less than other similar sized properties nearby…$88,770…$97,962…$116,781 less…for something unlike anything that exist right now in Tulum.
4) Rentability
Thanks to the amenities, luxury feel, and prime location, these condos will be attractive to vacationers and long-term renters like work-from-homers, which is why I’m figuring on strong rental income…not to mention significant capital appreciation.
5) Payment plan
And to sweeten the deal even further RETA members will be able to take advantage of an exclusive payment plan when buying. You pay 50% during construction. Then, on delivery, you have the option of an installment plan that lets you pay the balance over five years. I’ll share full details on how this works in your full report.
I’m crossing some t’s and dotting to some I’s…but I expect this deal to be ready for release to RETA before the month is out.
Stay tuned to your RETA alerts…
Wishing you good real estate investing,
Ronan McMahon