From the Caribbean to the Pacific coast… lakeside retreat to colonial town… Mexico throws up such a diverse range of lifestyle options that it can be hard to know where to begin your search.
But, when you’re watching things with an investment eye, there’s one way to simplify things in this country.
Follow FONATUR.
That’s the government agency tasked with developing coastal areas into revenue-generating tourist spots. It was FONATUR that built Cancun and worked all the way down, along the Riviera Maya, turning quiet beach communities into more sophisticated offerings with international appeal.
But, as investors, we’re not going to focus on what FONATUR’s already built (the best deals in those spots are long gone). We’re interested in where they’re putting the infrastructure in right now.
And, today, it’s happening in the west of Mexico—on a stretch of Pacific coast known as the Riviera Nayarit. These past few years, FONATUR has been working on this coast—and on the roads needed to get to this coast—to develop a brand-new resort known as Costa Canuva.
At an estimated cost of US$2 billion, Costa Canuva aims to attract a different clientele to that of Cancun. With a focus on luxury in peaceful surroundings, you’ll never have to worry about spring-breakers interrupting your sunset cocktail on the beach.
One of the major stages of development is improving access from the city of Guadalajara to the Riviera Nayarit. Guadalajara, with a population of 1.3 million, is Mexico’s second largest city. When the highway is finished, it will cut the five-hour journey down to half—making the coast an easy weekend escape for city dwellers.
The first phase of the highway is already up and running. Work is scheduled to pick up on the second phase (the most significant stage) later this year. With a steady flow of local tourists, it means the area won’t be dependent on international visitors.
Right now, Costa Canuva is still a construction site. It will be a few more years before all the hotels are up and running. The Ritz-Carlton Reserve is planning to open its doors in 2022, while the Fairmont Hotel is expected to open in 2023.
We’ll be keeping an eye on progress.
Meantime, just 15 minutes north of Costa Canuva, is an opportunity to buy into this up-and-coming area at an attractive price…
Welcome To Vista Encantada Eco Club
Vista Encantada means “enchanted view.” From your property here, perched on a mountain, you have a 180-degree view over the Pacific. All around you are orchards, palm trees, and lots of green space. And, there’s a constant gentle breeze blowing through.
Come evening, this is a perfect spot for kicking back and enjoying the sunset from your balcony.
This 40-acre gated community is the work of husband-and-wife team Carlos and Sandra Munguia who retired here from California. Vista Encantada has been built to enhance and preserve its surroundings. As much as possible, solar panels are used for lighting. All power lines have been buried underground. And, the couple has made every effort to minimize the disruption to local wildlife…
“We are careful to leave openings in the development walls so that the animals—foxes, iguanas, armadillos, etc.—can continue to migrate through,” Sandra told us. “Many of our fences are natural—comprised of banana trees, bougainvillea, and small palms—so that our development blends in with the existing environment.”
For the right person, Vista Encantada could make an ideal retirement home or part-year escape. But it’s also ideally located to tap into the growing number of tourists bound for the Riviera Nayarit…
When everything is in place at Costa Canuva, you—or your guests—would be just 15 minutes from its four-mile beach… 18-hole golf course (designed by Lorena Ochoa and Greg Norman)… and top restaurants and entertainment. You’d have all the atmosphere of a seaside resort without Cancun-level crowds.
Build Your Own Home… Or Secure An Ocean-view Condo At Pre-Construction Pricing
Vista Encantada has a number of opportunities…
You can buy a lot here (starting from US$65,000) and build your own home. The developers have a number of building packages on offer that start from US$95,000.
From an investment perspective, there’s an even better deal here right now…
Carlos and Sandra have developed a five-story, 32-unit condo building called “Sueños Del Mar.”
Though the units are now completely finished, as an Overseas Property Alert reader, you have an opportunity to secure one of these condos at its pre-construction price.
Prices start at US$165,000 for a one-bed, 73-square-meter condo and go up to US$349,000 for a two-bed, 200-square-meter penthouse.
Each condo has a sweeping view of the ocean and comes with a fully equipped kitchen with marble countertops, ceramic-tiled floors, and high-quality cabinetry made from locally sourced hardwood. Air conditioning and ceiling fans are also installed and a furniture package is available.
Put Your Condo On The Rental Market For A Projected Net Yield Of 11.8%
The developers are offering owners a hassle-free rental management program. They’ll take care of the administration, check-in, and housekeeping for your unit on your behalf. This includes all marketing and booking.
It’s the one-bed condos (from US$165,000) that are projected to yield the highest rental returns…
Occupancy rates on the Riviera Nayarit have been rising in recent years. Average occupancy was 75% for 2018—peaking at 91% in high season.
Taking a conservative occupancy rate of 65% in year 3, the projected net rental yield from your one-bed condo is 11.8%. (For a penthouse, the projection for year 3 is 9%.)
In addition to rental yields, you’d enjoy strong capital appreciation upside, as the region continues its development.
And, with a unit in Sueños Del Mar, you’re enjoying the advantage of pre-construction pricing… without any risk of the developer flaking out. The infrastructure is all in place and there’s plenty onsite to keep your guests entertained, including hiking trails, swimming pool, gym, putting green, and pickle ball court. You can rent mountain bikes onsite… or relax into a hammock in the shade.
Las Cuevitas beach is just over a mile downhill from the condos. Nestled in a small private cove surrounded by jungle, the water here is clear and safe for swimming. About 10 minutes north is Chacala beach—a popular fishing spot—where you’ll find a selection of bars and restaurants on the sand.
At time of writing, just 12 of these one-bed condos remain. To request a brochure with more details, go here now.
Lynn Mulvihill