A Compelling Legacy Investment On The Caribbean
Coast Of Mexico’s Riviera Maya

Four hotels, 11 specialty restaurants, 22 bars, seven pools, three spas, five tennis courts, a basketball court, a beach club, and a shopping center. Plus an 18-hole Championship Par 72 and an executive 9-hole Par 27 golf course designed by Robert Trent Jones II.

In terms of amenities and infrastructure, Bahia Principe Residences and Golf on Mexico’s Riviera Maya near Tulum, is probably the most impressive projects in the region.

This exclusive luxury development located on Mexico’s Caribbean coast spans over an area of 300 hectares. The development is unique in that there is a diverse selection of high quality residential product options including luxury turnkey villas, condos and multiple lot sections for custom homes.

The group behind the development has implemented a one-of-a-kind strategy where they have integrated their business units to create a business model that take advantage of the company’s core competencies. For example the tour company feeds the hotel company, the hotel company feeds and manages the resorts, and the resorts provide much of the amenities and infrastructure for the developments. In addition to that, the development is anchored by four five-star hotels, a resort and a world-class golf course which adds huge value to home owners.

Terrazas by Bahia Principe

Terrazas by Bahia Principe is a new contemporary styled condo complex neatly nestled within Bahia’s Riviera Maya Golf Course. It includes four buildings with a total of 60 one-, two-, and three-bedroom units from 68 to 252 square meters (738 to 2,720 square feet). The buildings feature an innovative design based on overlapping rectangles that results in large open spaces, big terrace areas, and cutting-edge floor plans.

In addition to having access to the amenities of the five-star hotel resorts in Bahia Principe, residents of Terrazas will have access to the sub-community’s own amenities, as well. In Terrazas residents will enjoy two lagoon-styles pools with recreational areas, a playground for children, an outdoor social area for grilling and BBQ´s, two multi-purpose rooms, and a gym. Plus residents will have 24/7 security and concierge service.

The buildings in Terrazas are unique in that each building has 15 units with four distinct floor plans.  In each building there are three three-bedroom penthouses, two two-bedroom garden lofts, four two-bedroom units, and six one-bedroom studio units. Each unit comes with fully-equipped kitchens with granite countertops, marble and ceramic tiled floors, high quality wood finishes, and expansive floor-to-ceiling windows with views of the surrounding golf course. Further, all units will utilize mini-split type air conditioning.

The two level three-bedroom penthouse unit is 252 square meters (2,720 square feet) including 145 square meters (1560 square feet) of outdoor space. It features a large master suite with a large private terrace area and two other bedrooms with their own private balconies. It has three full bathrooms, a laundry room, and a large modular kitchen with a combined living and dining area that leads into a small terrace. Plus it has a large sun roof for sunbathing with a plunge pool along with a rooftop garden.

The two level two-bedroom garden loft unit is 154 square meters (1664 square meters) including 49 square meters (527 square feet) of outdoor space. It has two full bathrooms, a laundry room and a sleek styled kitchen with a bar. It features two large terrace areas that are easily accessible from the first level living room and the entertainment room on the second level.

The standard one level two-bedroom unit is 126 square meters (1362 square meters) including 30 square meters (325 square feet) of outdoor space. It features a large master suite with a private balcony. It has two full bathrooms, a laundry room, and a large kitchen with a bar. Further, there is a large terrace that is easily accessible from the living room.

The one-bedroom studio unit is 68 square meters (738 square feet) including 9 square meters (100 square feet) of outdoor space. It has one full bathroom that is accessible from both the living room and bedroom plus a laundry area. It features an L-shaped modular kitchen that opens up to a combined living and dining area. There is also a small terrace area that can be accessed from the bedroom and living area.

Why Terrazas Makes Sense As An Investment

Terrazas makes sense from an investor perspective for a couple of reasons. Firstly, Terrazas is situated in a master-planned beach front resort community located in ad established tourist hotpot in one of the most visited countries in the world. In fact, according to the United Nations World Tourism Organization’s annual report, Mexico is the second most visited country in the America’s in 2014, with over 29 million visitors–an increase of 20.5% over the previous year. Even more, the region where Terrazas is located has been designation as a zone for tourism development.

In addition to being situated within a five-star resort with world-class amenities with plenty of activities, Terrazas is located minutes away from four nature-based theme parks, the Mayan ruins at Tulum, and the ancient Mayan city of Chichen Itza, a UNESCO World Heritage Site.

The group behind the development has over 30 years of experience in real estate development, international hotel management, and tourism. Plus they have an integrated administrative and marketing infrastructure in place that will ensure optimal short-term rental occupancy levels. As a matter of fact, the developer has created a turnkey rental program that condo owners can participate in. This professionally managed rental program sources renters, checks them in, and provides concierge service for them on your behalf. In other words, you can practically earn rental income on autopilot.

The developer has projected annual occupancy rates for the condo units of 45%. However, considering that the area where Terrazas is located in established and growing tourist region, these projections are very conservative.

In this region of Mexico there is nine months of high season and two months of low season each year. The remaining month of the year is considered “prime season” and is made up of two weeks over Christmas and two weeks over Easter.  Without a doubt, the short-term rental potential here is strong.

If you prefer to earn rental income on autopilot, then you could simply put your unit in the rental management program, where they take care of everything from the marketing, booking, and administration of your condo unit. The rental management fee is 30% if your gross rental income. With a 45% occupancy rate, you could achieve a 5.62% net rental yield with a one-bedroom studio and a 7.40% net rental yield with a two-bedroom garden loft unit.

However, to maximize your rental yields you could take on a more active role in renting out your condo unit in addition to the turnkey rental program. With the emergence of websites like Airbnb and VRBO, finding short-term renters has never been easier. Plus you reduce you rental management fee to 10% of your gross rental revenue. In this case, the rental management fee includes administration, check-in, and housekeeping.

There is definitely a capital appreciation play here. You are getting in at the pre-construction phase plus Terrazas is part of one of the most exclusive property developments along Mexico’s Caribbean coast. That is to say you should expect strong capital appreciation within 36 months.

Ideal For An Investor Looking For A Vacation Home
That Generates Rental Income

Ultimately, the play for this investment is short-term rental cash flow. It’s located in an established tourist area where rental demand continues to grow. Furthermore, short-term rental allows you and your family to enjoy your condo yourselves.

This investment is ideal for an investor looking for a vacation home the family can enjoy that generates turnkey rental income over the long-term. In fact, this investment should produce hassle-free rental returns on autopilot for generations.

The prices at Terrazas start at US$155,000 for the one-bedroom studio units. From there, prices go up to US$390,000 for the three-bedroom penthouse units. The developer also offers an optional furniture packages for each unit starting at US$10,000.

The developer is also offering pre-construction financing. The terms are 60% down, which is paid during construction as 20% at signing and remaining 40% in monthly installments until June 2017 when the units are scheduled to be delivered. The remaining balance is to be over 8 years at 7% interest.

As an added incentive for Live and Invest Overseas readers…and for a limited time only…the developer has agreed to include a free membership to Bahia Principe’s Riviera Maya Golf Club in the purchase of your unit. The golf membership is a US$25,000 value is good for 35 years. There is a monthly maintenance fee of US$100 per month and green fees of US$25 (normally US$230).

To ask a question, get an information package, or make a reservation, get in touch by entering your information below.

Yes, I'm interested in more information on these
pre-construction turnkey condos in the
Riviera Maya, Mexico. Please get
in touch as soon as possible
*Your e-mail will be used only to send the requested information.