Watch out for these red flags when investing in real estate

It is well known that investing in real estate is a great opportunity to build wealth and diversify your income. There is a lot of talk about how we can maximize our investment, however, little is said about the risks we are exposed to, such as falling victim to real estate fraud.

The Federal Consumer Protection Agency (Profeco) reported that, in 2022, real estate fraud was among the 10 most frequent complaints in Mexico, while the Mexican Association of Real Estate Professionals (AMPI) estimated that every year, hundreds of millions of pesos are lost due to illegal actions in the real estate sector.*1

Here’s how to avoid becoming another victim:

Main warning signs

Attention! These are the most common signs to spot a possible scam:

• They advertise fake properties with images downloaded from the Internet.
• They do not offer purchase agreements.
• They ask for an advance payment to supposedly reserve the property.
• The developer and real estate agents are not registered with any regulatory authority.

There are more warning signs, such as not being able to provide complete information about the project, or promising investment returns that are too good to be true (if they promise you ROI over 20%, run!).

Signs your investment is safe

On the other hand, these are some signs that will give you confidence that you are leaving your investment in the hands of professionals:

1. They have physical offices you can visit to meet the real estate advisors.
2. They have a proven track record with completed projects and positive reviews from real clients.
3. They are transparent about their projects regarding technical details or construction progress.
4. They have the necessary accreditations and offer legal certainty.

Peregrina, a profitable and safe investment in Tulum

One of the most complete projects by Grupo Emerita, a developer with over 30 years of experience, is Peregrina. Located in the prestigious Kaybé residential complex, Peregrina features 3 levels of apartments starting at 43.82 m2, which are ideal to purchase and rent out when not in use.

Discover Peregrina’s 4th level, full of charming amenities, and also, take advantage of the attractive benefits available for a limited time to those who purchase an apartment in Peregrina! Start your path to paradise here.

Source 1: Hablemos de dinero.

You might be interested: Peregrina, a real estate project within Kaybé.