Is it Better to Buy a House or Condo in Playa Del Carmen?

If you are looking to buy a property in Playa Del Carmen, you can be faced with a decision about buying a house or condo. Although condos are much more popular, there are specific issues that potential buyers should understand. It will really come down to your circumstances and what your goals are. What are the differences when it comes to costs, resale, renting it out, mobility, and other things? In this article we are going to discuss all the differences between buying a condo and a house.  

Here’s a breakdown to help you make an informed decision or away you in one direction or the other:

Pros and Cons of Buying a Condo in Playa Del Carmen

 Pros of condo ownership:

1. Lower Maintenance: The condo association usually handles maintenance of exteriors, common areas, and landscaping. This however does not mean lower cost of maintenance. Condo owners often pay more by sq meters on average but having the condo association do it makes it a lot easier. 
2. Amenities: Pools, gyms, security, elevators, rooftop terraces, etc., are often included. Larger condo complexes offer more amenities generally when compared with smaller condo buildings. But remember, it is only a pro if it works for you. Some small gyms are just not efficient, and you still need to join a gym. There are some amenities that developers like to add in that seem like fun but are hardly used. 
3. Security: Most mid to large buildings have controlled access, 24/7 security, and front desk staff.
4. Rental Potential: It is easier to rent out short-term via Airbnb or long-term to digital nomads or tourists. Since most condos are in the downtown, this is the most rentable area of Playa. 
5.  Location: Since most of the condos are in the downtown of Playa Del Carmen, you are centrally located and have easy access to the beach and other attractions.     
6. Cheaper insurance:  Condo insurance is about 40-70% when compared to house insurance. It should be noted that not everyone gets insurance for their house or condo in Mexico. Since most people do not have a mortgage or loan, there are no requirements for insurance. Also, it can be cheaper to repair things your own compared to paying premiums each year. 

 Cons or owning a condo:

1. HOA Fees: Monthly fees (called “cuotas de mantenimiento”) can be high depending on amenities. Older condos can be as cheap as $50 USD a month, but this is rare these days. Most people prefer to buy new or newer condos. Averages HOA fees about $150 USD -$250 USD. Higher end condos can be in the range of $300 USD to $500 USD. 

2. Less Privacy: Shared walls, common spaces, and tourist traffic can limit quiet and privacy. Most condos are in the downtown area of Playa. Street noise, bars, bus pickup spots, and traffic flow are all something you should check out at all times of the day before buying a condo. Construction methods are also important to know about. Some condos have good sound deadening between floors and walls. For example: one condo I had in Playa Del Carmen was quiet, you could not hear people talking in the unit above, but when they dropped coins or rolled a suitcase on the floor, you heard it very well. 

3. Limited Customization: You’re typically restricted from making exterior changes or interior layout changes. If you buy presale, you often can get some changes for free or reduced expense. Things like balcony decor, window coverings and your personal rooftop space can have restrictions. 

4. Rental Restrictions: Some buildings limit or prohibit short-term rentals. This is extremely rare in the Riviera Maya. But as other popular tourist destinations change rules, this is something in the future that could come more into play.  Condo rules allow residents to vote on this, so this is a possibility, but most buyers like the ability to rent out units when not using them. 

Buying a House in Playa Del Carmen

 Pros Owning a House in Playa:

1. More Space: Larger living areas, private yard, pool, garden, garage, and rooftop options. Some yards are only about 50 sq feet, but it is a place to have some plants. Most houses do not have large backyards due to the costs of land. Having your own rooftop allows you an opportunity to install solar panels or solar hot water heaters, which is usually an issue with a condo. 

2. Privacy: No shared walls or hallways; your own entrance and outdoor space. Some row homes and town homes do share walls in Playa. Usually, the cheaper ones do have sound issues. We have been in some row homes where you could hear the neighbors going up and down their stairs. So just because you are looking at a house, be sure to check this, and not just the model unit. 

3. Customization: You have more freedom to remodel, expand, or design landscaping. Since most houses are in a planned community, there still can be restrictions. It will be important for you to ask before setting your heart on one area. 

4. Long-Term Living: More comfortable for families or retirees looking to live full-time or long-term. Houses are a big bonus for families. Where you choose puts you closer to schools and activities. For those looking to retire and live in their property, you have a feeling of stability and less movement of neighbors/renters in a house. 

 Cons of Owing a House in Playa Del Carmen:

1. Higher Maintenance: You’re responsible for everything: yard, pool, structure, plumbing, etc. This does not mean it is more expensive, it just means it is more your responsibility. Hiring local labor is very inexpensive, but it does mean putting up with the hassle of people not coming or finding people. Having a basic working knowledge of how things work on a house in Mexico will make it much easier for you.  If you do buy in a planned community, some of this maintenance might be taken care of. So, you might be able to find that sweat spot between owning a house and less maintenance. 

   Be sure to read our guide to maintenance for properties in Mexico. So much is different and there is a learning curve. 

2. Security: Unless in a gated community, homes have less formal security than condos. Some houses that are not in a development have high walls, cameras and gates. Home break-ins are one of the things that affect residents. See our article on crime and safety for residents’ article here. 

3. Distance from Beach: Houses are often further inland due to coastal development limitations. There are only two locations in Playa Del Carmen where there are houses close to the beach. This in Playacar Phase 1 and Corasol. Most houses are on the other side of the 307 Highway. Most ads for new properties will say it is only 10 minutes to the beach. Since Playa Del Carmen is not that big, just about everything is about 10 minutes to the beach. But now that the city has grown, parking and access to the beach is getting harder. All parking is paid parking during the day in the center and a beach day might mean going outside of Playa to a beach along the Riviera Maya. 

   This also raises the issue of owning a vehicle to get around. Most people in houses need a car to get to and from the grocery store and services. There is public transportation but most people that want to buy a house are not going to rely on a crowded combi bus to go places. So, an added expense to owning a house is planning on owning a vehicle. See our article on what parts of Playa Del Carmen are walkable. 

4. Resale Value: Condos near the beach usually appreciate faster and sell more easily to tourists/investors. If you buy presale, you can net a 15-20% higher price in a few years on a condo. Houses fall into three categories. 1. You build your own house, and you do a lot of the work planning and building it. You can do well on a resale. 2. You build a house but let a general contractor and architect do everything. It comes out great, but a lot of the costs is built into the house already and it might be harder to sell, especially a very customized house. 3. You buy a house in a planned community. The value of these are tied to how the community is aging and the value of homes in the development. Usually, the value appreciation rises slowly in these planned developments. 

What is my personal opinion about buying a house or condo in Playa?

Personally, I have never bought a house in Playa Del Carmen. I would only do so if I knew for at least the next five years I would be in Playa. Owning a house in Playa Del Carmen is more of a long-term project. 

• For those with young families, owning a house is almost a must. It gives you space and cheaper living expenses. 
• I prefer living year-round in Playa Del Carmen, so this opens up areas that are not so central to live in. I do not worry about renting my place when I am not in town. 
• Many people when they first go to a place, they imagine living in the center. Your perspectives change with time and so do your level of comfort with different areas. Often with time, you are more comfortable living further out and in neighborhoods that at one time you would not have considered. 
• If you are worried about making a return on your investment, condos are much more rentable. Condos are also much easier to sell. There is a larger market to purchase. Since people come for a week or two, people often want to be in the center of Playa and not need a car. This eliminates renting a house. 

Playa Del Carmen Property Comparison: Condo vs. House

So here is just a handy chart comparing many of the things we talked about above. 

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Mr.Yucatan

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