Question 1

What is a trust (fideicomiso) and why do I need one in a restricted zone?

Accepted Answer

In Mexico, foreigners cannot directly own property within 50 km of the coast or 100 km of the border. The banking trust is the legal vehicle that enables this purchase: a Mexican bank acts as trustee and the buyer as beneficiary, with full rights of use, rental and sale. Setup takes 4-6 weeks and there is an annual maintenance fee.

Question 2

What are the closing and notary costs?

Accepted Answer

In the Riviera Maya, closing costs typically range from 6% to 8% of the property value: acquisition tax (2-4% depending on the state), appraisal, lien certificates, public registry fees and notary fees. We provide a detailed breakdown before you sign the offer.

Question 3

Can I buy pre-construction as a foreigner?

Accepted Answer

Yes. Pre-construction works identically for Mexicans and foreigners: you make an earnest money deposit, sign a private purchase contract, follow the payment plan during construction and at delivery the trust is set up (if applicable) and the deed is recorded. We recommend independent legal counsel when signing the private contract.

Question 4

What happens if the development is not delivered on the promised date?

Accepted Answer

Every private contract we recommend includes a delay penalty clause — typically 1-2% of the amount paid per month overdue, or full refund with interest if delays exceed 12 months. Before signing, we review this clause and verify the developer's delivery track record.

Question 5

What is the average vacation rental ROI in the Riviera Maya?

Accepted Answer

Well-located properties (tourist zones, walking distance to beach or main avenue) generate 8-12% annual net ROI under professional management, assuming 65-72% occupancy and ADR of USD 120-220. Those outside the tourist core drop to 5-7%. Our zone Intelligence Score shows these ranges in real time.

Question 6

For investment, is an apartment or a lot better?

Accepted Answer

It depends on your horizon. Apartment in consolidated zones: immediate rental cash flow, moderate appreciation (5-8% annually). Lot in developing zones: zero cash flow, aggressive appreciation (10-25% annually in the first 3-5 years) but requires idle capital. If your horizon is 5+ years and you do not need cash flow, go with land; if you want monthly returns, go with an apartment.

Question 7

How is RevPAR calculated for an Airbnb?

Accepted Answer

RevPAR (Revenue Per Available Room) = ADR × Occupancy. It is the most useful metric for comparing properties because it combines average rate and occupancy into a single number. A property with USD 180 ADR and 70% occupancy has RevPAR of USD 126. Our market report updates RevPAR monthly by zone and unit type.

Question 8

Do any banks accept mortgage financing for pre-construction?

Accepted Answer

Very few. Most Mexican banks only grant mortgages on completed, deeded properties — which excludes pre-construction until delivery. BBVA, Santander and Scotiabank have exceptional programs for certain pre-approved developments. The most common path is direct developer financing during construction, then refinancing with a bank at delivery.

Question 9

What is direct developer financing and what rates does it offer?

Accepted Answer

A scheme where the developer finances the property balance during construction and/or post-delivery, bypassing banks. Typical rates: 0% during construction (24-30 months) if you pay 30-40% down, or 6-9% fixed annual rate in MXN for 3-7 year post-delivery terms. No banking paperwork, but requires careful contract review.

Question 10

How much does a property managed as an Airbnb earn on average?

Accepted Answer

In the Riviera Maya, a well-located 1-2 bedroom unit generates USD 1,800 to USD 3,500 in gross monthly income. After deducting 25-30% property manager fee, 15-20% operating costs (utilities, cleaning, maintenance) and low season, annual net runs 8-12% on purchase price.

Question 11

Do I need to hire a property manager or can I run it myself?

Accepted Answer

If you live more than 2 hours from the property, a property manager is practically mandatory: they handle bookings, check-ins, cleaning, reviews and 24/7 emergencies. They charge 20-30% of gross income. Self-management saves the fee but requires local presence or trusted contacts — plus 10-15 hours per week of operational work.

Question 12

Where does the Intelligence Score data come from?

Accepted Answer

We combine four sources: AirDNA and Rentalizer for short-term rental occupancy and ADR, public Cadastre records for real transaction prices, continuous web scraping from Inmuebles24 and EasyBroker for listing prices, and direct developer data for inventory and absorption. The score is recalculated weekly.

Question 13

How do you filter low-quality properties?

Accepted Answer

Every development goes through a completeness score (13 key fields: real images, confirmed price, delivery date, floor plan, etc.) and an internal approval gate where our team verifies the developer, visits the site when possible and confirms legal status. Only developments with a score ≥ 70% are published.

Question 14

Do you charge buyers a commission?

Accepted Answer

No. Our commission is paid by the developer as part of the industry-standard commercial scheme (typically 4-6% of sale price). For the buyer there is no additional cost to using Propyte versus going directly to the developer — plus you get specialized advice and independent market data.

Frequently asked questions

Frequently asked questions