Little Gems of Chemuyil

I occasionally receive inquiries from people interested in a small basic affordable home in the Mayan Riviera. Until now, I have had to say, "I'm sorry". Our beach front properties generally start at $400,000USD. and near the beach properties start around $175.000USD.

There is only so much beach front property in this world and it is sold at a premium. You may run into reasonably priced land in a desolate area that has no infrastructure like utilities, roads, other human life. Unless you like camping a lot and are up to being dropped from a helicopter or have a sailboat with the time to sail to your destination (take plenty of mosquito nets) you will not be able to vacation there.

If you are looking to invest in land at rock bottom prices to sit on and wait for future development, it is an option to purchase land like this. At one time the Mayan Riviera was just such property. Local families fortunate enough to have squatted on and then been given land rights with titles when the State of Quintana Roo was constituted in 1974 (it is the newest state in the Mexican Union) and began to regulate such things didn't realize even then they were sitting on a gold mine.

My first foray to the area was in 1988. Cancún was in its heyday with more concrete being poured each day than anywhere else in the world. I am making that up but it can't be far from the truth. There was a rickety one lane highway that went south past Puerto Morelos, Playa del Carmen and south to the state capital of Chetumal. On the way one could stop to see the ruins at Tulúm. It was considered adventurous and exotic and required hiking boots and a machete if you were smart.

Women dressed in huipiles and men in guayaberas and the only shoes in sight were rubber flip flops. Housing for the most part was stick shacks with thatched roofs and dirt floors. Only the middle class could afford cinder block & concrete construction.

In Playa del Carmen women sold fruit and children peddled gum to passengers taking the ferry from the wooden pier to Cozumel. The only industry was the Coca-Cola bottling plant at the edge of the highway. Transportation was by foot, bicycle and moped. Cars were a middle class luxury.

I have heard people say, "I wish it were like the old days, it is so built up now, it's ruined". My opinion is that line of thought is selfish. The Mexican government, in an effort to improve the country's economy and quality of life realized that with a spectacular Caribbean coastline it could look to tourism to help solve its woes. That logic made tourism the country's #1 industry and its promotion has allowed the entire world to visit and greatly elevated the quality of life for millions of Mexicans. It also helped pull the country out of its 3rd world status.

One of the beautiful aspects of development in the Mayan Riviera is that indigenous Mexicans greatly respect nature. They have ensured the development of the region will be respectful and includes biospheres and construction low to the ground with low density. Low density ensures plenty of green jungle to remain so that a concrete jungle does not take its place. That in turn has a consequence, price.

The limited amount of beach front coupled with low density construction means guaranteed natural surroundings will remain but at somewhat of a premium. And that is what makes it all that much more valuable in my opinion. Property value in the region increases 12-15% per year. It is a secure investment with a great return that will continue to appreciate for at least the next 10 years. You can't purchase a condo of comparable quality on a beach of comparable quality in the US for what you can in the Mayan Riviera and you simply won't have the appreciation value year after year.

So what about these little gems I mentioned in the beginning?

I ran into them kind of by accident and couldn't believe it. I am an organizer and luckily I saved all the inquiries from people over the past year asking me for low-cost properties in the region who I had not previously been able to help.

The Mexican government created a housing development for low-middle class workers in an area between Playa del Carmen and Tulúm near Chemuyil, a village with very little infrastructure. These types of housing projects are common and financing is offered at a ridiculously low rate for Mexicans in an effort to afford citizens the opportunity to own their own homes. I this case, the project was a bust. The location was not attractive, 20 minutes by car to the nearest town, Playa del Carmen. Though utilities are in place and the pristine beach is under a 10 minute walk, most locals do not own vehicles and modern conveniences are simply too far away.

The government sold the project to a private investor. That investor is selling the 188 homes to foreign investors. The homes are basic 2-bedroom, 1 bathroom, living room & kitchen with a small backyard.

$37,500.USD plus closing costs

That's why they are little gems. They are not luxurious. By American standards they are like a small 2-bedroom apartment or mini condo. They are appropriate for 4 adults or 6 if you put a sleeper sofa in the living room and don't mind sharing the bathroom. These homes could be added onto in the future up to a third floor. It is the affordability and the location that are the attraction.

The homes are in a development with paved streets and all utilities. The come completely empty, no appliances, air conditioning, nada.... For approximately $2,000.USD you could purchase everything you need if you have fairly modest taste. The closing costs are approximately 7% of the purchase price and include everything you need to have ownership of the home including taxes and a Mexican Bank trust (necessary for foreigners purchasing property near the beach).

If you are interested in learning more, please contact me. I am doing this not for the commission, it is a very minimal amount compared to those paid by the sellers of the average properties I deal with. I am doing it to share...............

These homes make owning a little gem possible for just about everyone. If I can help you with more information on these little gems of Chemuyil please call me @ 570-592-8378 or email me @ karla@firstinvestmentrealestate.com.