For those who are not familiar with Isla Mujeres here is a wonderfully shot Youtube, filmed by the very talented adrian 77190, it portrays the peace and tranquillity of the island and has some wonderful shots taken from the air, well worth watching. Isla mujeres is booming and the price of real estate is going through the roof, There are now four bedroom apartments being built which are to be sold at $2.5000.000. People may think that is a lot of money but with the astronomical cost of land nowadays, it is probably not as profitable a project as some people may think. They will sell, everything does here.
Investing in Isla Mujeres real estate is a very smart move, of course one could say that it would have been better to invest here ten years ago but the same applies almost everywhere in the world. Some are predicting that prices will triple within the three years. Most of the buyers here are cash buyers, in the sixteen years we have been building here we have never arranged finance for someone buying Isla mujeres real estate. In any event financing is very expensive in Mexico. Perhaps some of the buyers arrange finance on their existing property portfolio in the States and Canada, we never really get to find out.
The homes we are selling here are looking increasingly inexpensive but we were lucky enough to buy land some fifteen sixteen years ago when there was very little interest in land or Isla Mujeres real estate. We were also fortunate enough to buy all our materials in advance before the Peso weakened considerably against the Dollar. We estimate that we we were buying the land today - which of course we couldn't because there is no more of this prime land available - we would have to charge in the region of 400 - $500,000 more per property.
What tends to happen in our case is we sell houses and then look at their value a few years later, and feel we should have just kept them, but we went on to build more. The real problem we have now is that as much as we would like to repeat our current project, there is just no more prime land available. We have one prime location left where we plan to build a large luxury home but after that it is difficult to see where we can go with our Isla Mujeres Real estate projects.