How Much Does a House Cost in Cancun?

Affordable Beachfront Houses in Cancun

One of the biggest draws of Cancun is its beautiful beaches, and owning a beachfront property is a dream come true for many.
However, beachfront houses are typically more expensive than properties located further inland. In Cancun, the cost of beachfront houses can vary greatly depending on the location and size of the house.

Currently, there are several affordable beachfront properties available in Cancun. For example, a 2-bedroom, 2-bathroom condo with ocean views in the new Hotel Zone can be found for around $250,000 USD, while some 2-bedroom houses are listed for just south of $350,000.

Alternatively, a small beachfront house in Puerto Morelos, a town located about 20 miles south of Cancun, can be found for as little as $200,000 USD.

Building Cost vs. Buying a Property

Another option to consider when looking for a home in Cancun is building it. While this may seem like a more cost-effective option, it’s important to consider the building cost in addition to the cost of the land. Building costs can vary greatly depending on the size and style of the property, as well as the location.

Additionally, building a property in Cancun may come with risks. Construction regulations in Mexico can be more lax than in the United States, which can lead to issues with building quality. It’s important to work with a reputable builder and have a thorough inspection done to ensure the property is built to a high standard.

Tax Implications of Buying Property in Cancun

When buying property in Cancun, it’s important to consider the tax implications. Mexico has a value-added tax (VAT) of 16% on the sale of real estate. This tax is typically included in the sale price of the property.

Additionally, there is a capital gains tax of 25% on the sale of real estate in Mexico. However, there are exemptions for Mexican residents who have owned the property for at least three years, as well as US citizens who have owned the property for at least five years and meet certain other requirements.

Property Transfer and Risks of Purchase

When buying property in Cancun, it’s important to work with a reputable real estate agent and attorney to ensure a smooth property transfer. It’s also important to have a thorough inspection done to identify any potential issues with the property.

There are some risks associated with purchasing property in Cancun or any other part of the country. One of the biggest risks is fraud, which can occur if the seller does not have a clear title to the property. It’s important to work with a reputable real estate agent and attorney who can help ensure that the property transfer is legitimate.

In addition to fraud, there are other risks associated with purchasing property in Cancun. For example, hurricanes can cause damage to properties in the area. It’s important to consider insurance options and have a plan in place to protect the property in the event of a natural disaster.

Is it Expensive to Live in Cancun?

While the cost of purchasing a house in Cancun is a major consideration for many, it’s also important to consider the cost of living in the area.

The good news is that the cost of living in Cancun is generally lower than many major cities in the United States, making it an attractive option for expats and retirees looking to stretch their retirement savings.

One of the biggest expenses in Cancun is housing, but beyond that, the cost of groceries, dining out, and entertainment can also be more affordable than in the United States. However, it’s important to keep in mind that certain luxury items may be more expensive due to import taxes.

Another factor to consider when thinking about the cost of living in Cancun is healthcare. While medical care in Mexico can be more affordable than in the United States, it’s important to research healthcare options and have a plan in place to cover any medical expenses.

Cost of Buying a House in Cancun: Conclusion

The cost of a house in Cancun can vary greatly depending on the location and size of the property. Affordable beachfront properties can be found in the area, but it’s important to consider the risks associated with owning a beachfront property.

Building a property may seem like a more cost-effective option, but it’s important to consider the building cost and potential risks associated with construction in Mexico.

When purchasing a house in Cancun, it’s important to work with a reputable real estate agent and attorney to ensure a smooth property transfer and to protect against potential risks such as fraud. It’s also important to consider the tax implications of buying property in Cancun, including the VAT and capital gains tax.

Despite the risks and considerations, owning a home in Cancun can be a dream come true for many. With careful consideration and the right professionals on your team, it’s possible to find the perfect home in this tropical paradise.

For more ideas regarding investing in Riviera Maya real estate, check our article on the cost of buying a house in Playa del Carmen, Tulum, Mahahual, Puerto Morelos, and Bacalar.