Remote work has changed the way millions of people around the world experience home. Today, more than at any other time in history, homes are used to the fullest for meetings, for work or simply for moments of peace and recreation. For this reason, properties with a greater interior distribution, located in the middle of the forest or in front of the beach, and that also have amenities, are highly desirable to live in a Second Home.
This concept has gained momentum in the most important tourist destinations in the world, mainly in the United States and Europe, and today is a trend in Mexico for all those domestic and foreign investors who are looking for a home to rest for a few weeks a year, and are also interested in diversifying their investment portfolio.
What is Second Home?
In simple terms, a Second Home is an additional property intended to be used as a residence that can be lived in at any time of the year, for weeks or months at a time, primarily for vacation or recreational purposes. In addition, the second home concept also implies an investment that can bring you great returns over the years, either through leasing or through the property’s own capital gain.
Main characteristics of a Second Home
Second Home vs. Investment Property
What should be taken into account when defining a Second Home? However, what was mentioned above must be respected, i.e., private and residential use throughout the year or only for a few weeks, in addition, the property must not be under any kind of control by external management and must have a single owner.
While an investment property can be a Second Home (since you get rental income or capital appreciation over time), it could also be a commercial property, or a property that has more than one owner.
Property location
Buying a second property is a simple task as long as you have clear basic and fundamental points to choose it. Among these points, one of the most important is the location of the real estate project. Currently in Mexico there are areas such as Valle de Bravo, Jalisco, Quintana Roo, Yucatan and Guerrero have developed attractive real estate projects for Mexican and international investors.
According to data from the National Association of Home Builders, in U.S. there are approximately 7.7 million Second Homes nationwide (latest 2018 data), with the states with the highest concentration of these types of properties being Florida, California, New York, Texas, Michigan, North Carolina and Arizona. This is a case study for other emerging economies such as Mexico, a country that enjoys a great diversity of climates, soils and cultures throughout its territory.
Type of property
In addition to the location, you must take into account the type of property you are acquiring as a Second Home: whether it is a private residence, an apartment or a villa within a complex. This is important to know the type of amenities you will have: security, recreation areas, extra activities, etc.
Purpose of the property
Buying a Second Home today is an opportunity for future retirement in a highly desirable destination. Can you imagine living in the middle of the Valle de Bravo forest or in a luxurious house on the beaches of Tulum, Guerrero or Jalisco after retirement? This is the life plan of many people who, by already owning a property in a strategic destination in the city, will migrate to a much calmer pace of life, while renting their property in the city and earning an important monthly income. And on the other hand, while you get to that moment of retirement, you own a property ideal to live general weeks of rest such as Christmas.
Purchase method
Last but not least, you need to explore different purchasing modalities and define the budget you are willing to invest. Currently you can acquire properties in immediate delivery: ready to move in residences, in pre-sale: at a lower price that they will have once the project is completed.
There is a third scenario that is not in fractional mode: a scheme where you share a property with a group of investors. Find out more about this last point in How does a fractional ownership work? All about Fractional Ownership in Mexico.
5 Advantages of buying a Second Home in Mexico
1. You have a refuge in a highly desirable tourist destination.
It is no secret that the pandemic was an event that forced people to evolve the way they interact in their daily lives, which is why a Second Home is an escape from the routine that is lived in the big cities of the world. In addition, it is important that living in Mexican rest and recreation destinations, such as Tulum or Zihuatanejo, does not imply not being able to work remotely, which is why the residential projects here promote ample interior spaces, a considerable number of bedrooms and privacy whenever needed.
2. You can rent your property the time you are not using it.
With the success of companies focused on apartment rentals such as Airbnb, homeowners can put their properties to work during the time they are not using them, thus earning income to cover other expenses such as maintenance, utilities and taxes .
3. You improve your financial security with a long-term investment instrument.
Investing in real estate means protecting your wealth because your money can outpace the inflation that the world is experiencing. In addition, if you buy a property as a pre-sale, the final price that the property will have in many cases is up to 30% higher. presale The final price that the property will have in many cases is up to 30% higher, so you will obtain profits practically immediately.
4. You access a new kind of lifestyle
Many people see the Second Home as an investment instrument, but the reality is that it also gives you a new level and quality of life. Living a few weeks or months a year, in the company of only your family, friends and/or pets, gives you the possibility to build stronger relationships and create unforgettable memories for posterity. Once you access this possibility and live the best moments in the company of the ones you love the most, you will never want to get rid of your vacation property.
5. You improve your quality of life
Living in the middle of the forest or near a coast brings great benefits to your health; it lowers your heart rate and stress, and you have access to a higher quality of air than in the big cities of the world.
Destinations with sun, sea and sand all year round are highly desired by investors from the north of the world, where in their native countries temperatures reach as low as -40° C in countries such as Norway and Germany, and this in turn implies greater absorption of vitamin D for the system, an ideal element for the absorption of calcium and the prevention of bone diseases.
This is the sign you’ve been waiting for! Acquire a property in one of the best destinations in the world and earn profits over time. At Nolab we have the most select catalog of Second Home and Cross Border properties in Mexico, Spain, United States and Portugal. Contact us at and receive specialized information.
