Key Factors When Investing in Vallarta · Nayarit – Part I

By Jorge Chávez
Oct. 11, 2022

Without doubt, Vallarta · Nayarit is a region with many attributes that make it an attractive place to reside or visit. Among many factors, its natural beauty, climate, and culture make our corner of the Mexican Pacific one of the most desirable places in Mexico to buy a property.

As a guide, Daniela Alvarado, an independent real estate agent, shares some key factors to consider when planning to invest in real estate.

Key Factors When Investing in Vallarta · Nayarit

Define the Investment Objective

“As obvious as this sounds, the first step is to define the objective of the investment. You need to consider the amount and the type of use you will have for the property, and that will help determine the right type of property to purchase. Do you want to buy it to live in, to rent it or to resell it? Identifying these things first will make it easier to find the best area in which to purchase.”

Choosing a Real Estate Agency

“Purchasing a property should not pose concerns or problems, quite the opposite, because it is an investment that will secure your finances and future. That said, it is very important to research the reputation of the real estate agency that you are considering, as it will be the one that will advise you throughout the buying and selling process. Working with a solid company with experience in the local real estate market is ideal, as it ensures that they have the knowledge about the areas where you should invest, where the growth of the region is headed and the type of property that is appropriate for you and your needs. These factors should be especially taken into account when it comes to buyers who do not live in or are not very familiar with our region.”

Thinking Long-Term

“A common mistake when investing in real estate is believing that the return on investment will be immediate. Although it is common to purchase properties to rent them and thus generate income, the reality is that the best way to grow your money over time is through smart investing.”

“The value of a property, for example, does not depend on the buyer, but on the location and the homes proximity to services. A smart buyer will acquire properties in an area that in the long term will attract people looking to invest in that neighborhood. For me, having that forward-thinking vision is the key to the real estate business.”

Analyze the Market

“Since we are talking about thinking long-term and seeing the possibilities of an area, we must also ask ourselves and observe what the potential is for the neighborhood. What will be built there? What are the market trends for the area that I want to invest in? Since much of Vallarta · Nayarit’s inventory is bought during the pre-construction phase, it is very important to analyze different areas to be able to take advantage of a good opportunity. In other words, you need to learn to see beyond the current state of an area and focus on the services that currently exist there or that will be built, like hospitals, plazas, schools and shopping malls.”

“Analyze the market—who is buying and where are they coming from? What are the growth rates? These types of questions will help define the type of property you want to acquire, as well as how you’ll be able to utilize that property. For example, buying an apartment near the beach will allow you to rent it when you are not using it. Buying a house near a university will allow you to rent it or sell it more easily to a family.”

Observe the Equity Value

“Understood as the increase in the value of a property, that is, the difference between the purchase price and the sale price, equity value is increased generally thanks to the area in which the property is located. Undoubtedly, this is one of the main points to consider when investing in Vallarta · Nayarit real estate. In addition to shopping centers, developments, schools, hospitals, air and land accessibility, there are factors like security, which can greatly influence an increase in home equity. With a simple exercise, you can determine if a property is convenient or not: if in the future you want to sell it, how easy or difficult will it be to close a deal with a buyer? If the answer is difficult, then it’s probably not a good investment. If, on the other hand, the conditions are conducive to an easy sale then it may be an excellent opportunity.”

In the second part of this special feature, five further key points to consider when investing in Vallarta · Nayarit will be revealed.