Many of those who invested in Isla Mujeres real estate did so because they could see the growth potential in property values which have provided them with substancial gains over the years and continues to do so. What had often not been anticipated was the substancial annual income that these properties are able to produce.
This income potential has attracted a new breed of buyer into the Isla Mujeres real estate market; those who have capital to invest and have realised that they can achieve returns that would be unthinkable in other investment mediums, or at least not without taking substancial financial risks.
If we take an example of a property costing $900,000 USD, it is quite realistic to achieve between $550 and $800 USD rental per night and. After rentals have had an opportunity to build up, it is not unreasonable to expect the property to be let out for 200 nights per year. Taking a fairly conservative average of $500 after expenses that represents $100,000 - 11% pa. And still leaves 165 nights a year when the property is available for your own use. Or viewed slightly differently; enjoy a 10% pa return and use the balance of the rental income to pay all your expenses whilst you enjoy your 165 days on this wonderful peaceful island.
Some owners of Luxury Isla Mujeres real estate live in the properties and when they have a rental client they move out. There are some very respectable albiet slightly dilapidated studios that can be rented in the centre of town for $50 USD. They are nevertheless clean and quiet and have air conditioning. It's not luxury living but when you are enjoying the difference between $500 and $50 per night, very acceptable indeed.
The quietest residential part of isla mujeres is the south point, which is very peaceful and yet just a short taxi ride to the bustling centre of the island.
However wherever you are purchasing property on the island the demand for holiday rentals is such that an investment into Isla Mujeres real estate is always going to be a very sound investment indeed.