Baby boomers are getting the best of both worlds when they invest in recreation real estate. In addition to having the use of the property, and rental income when they’re back home, they also have a familiar place to retire to when the time comes.

Buying recreation real estate is big, whether the property is a few hours from home or far away. In today’s market, it’s more important to pick up a solid performer when you buy recreation property. The initial cost of the property, its income generating potential, maintenance and care while you’re away and the potential for passing it on to children or selling it later are all things to consider when buying.

A home in Puerto Vallarta is an excellent investment, provided that it is properly located. Right now, developers have a number of projects under construction in Puerto Vallarta. High rise condominiums, resorts, and hotels are all being built. For the person who is torn between buying and building, you’ll get a much better return on your investment by building a property than you will by purchasing one whose value has already appreciated significantly.

Finding a desirable residential building site inside the city of Puerto Vallarta will be difficult. Most of the ocean-front and ocean view properties have been purchased by developers. Mexican law also limits the amount of coastline that can be developed.

A better alternative for the residential investor is to find property located outside the city, but close enough to take advantage of all of the services, activities and events in Puerto Vallarta. Ocean-view property is in high demand, as many potential retirees from all over the world flock to Mexico to snap up “bargain” properties.

By locating residential property outside the city, the smart individual investor can construct a relaxing, pleasant getaway that will have enormous appeal. Using the fideicomiso trust, investors can also name successor beneficiaries when the trust is established so there will be no difficulty in passing property on to children or grandchildren.

The flood of retirees expected to take up residence in Puerto Vallarta will complicate the investment picture. While the value of the land is certain to rise, acquisition of undeveloped residential real estate may become very difficult in the not-too-distant future. For investors who are considering a purchase of Puerto Vallarta real estate, the time to act is now!

Photo Credit: Chris Cockram