Obviously, when chatting with buyers about potential costs of ownership on the property they are buying here in Playa del Carmen, property tax is one of the first things that comes up in the conversation.
Incidentally, it’s also one of my favorite subjects to talk about because it’s one of the best things about owning property in Mexico. Check out this short video by our CMO, Steve Didier, where he explains exactly what the property tax situation is here…
Seriously? With property taxes in the United States already out of control and rising yearly, it’s a bit refreshing to know that here in Mexico they are more than reasonable. The condos and the townhome model in Caribbean Living, which was used as an example in the video, is a great example. Over 1000 sq ft with 2 bedrooms and 3 full bathrooms, a huge outdoor patio and in a brand new area of town is under $150 per YEAR.
Even a million dollar beachfront condo in the middle of Playa del Carmen is going to run slightly less than $1000 a year. That’s unheard of. And when you start looking at cost of ownership on a vacation property, that makes things a lot easier to afford. And of course, if you are looking at it as an investment property, then the numbers take on even more significance. The low annual cost of ownership really helps the ROI when you use it as an income property.
Other annual costs
In Playa del Carmen, costs of ownership are generally low. In addition to the aforementioned property taxes being low, monthly HOA fees (condo fees) are generally low as well. In the community of Caribbean Living, the HOA fees for the town home we talked about are $45/month. That covers everything including security, landscaping, the gates, pools and BBQ areas, common areas, parks and free wifi to the common areas. Plus, they repaint the exteriors of the buildings every two years to make sure the community keeps looking good.
Utilities in Playa are low as well… water will be about $8/mo, gas can vary but even if you have a washer/dryer of your own, it will be less than $15/mo. Electricity can cost you quite a bit if you run your AC 24 hours a day. But if you are reasonable with that, it won’t be much. Mine was 1000 pesos for 2 months – that’s the equivalent of about $65-$70, so $30-$35/mon. Of course, that’s just a regular condo. If you have a big house with a lot of people and all the mini splits going all the time, you can set yourself up for a shock.
Internet and cable TV is abut $35/month but you can also get satellite TV direct from the US or Canada for about $100 a month if you don’t want to miss the NFL or NHL games in English.