Careful With These Red Flags When Investing in Real Estate

It's well known that investing in real estate is an excellent opportunity to build an inheritance and diversify income. Much is said about how we can maximize our investment; however, little is said about the risks we are exposed to, such as being victims of real estate fraud.

The Federal Consumer Attorney's Office (Profeco, in Spanish) 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, in Spanish) estimated that every year approximately hundreds of millions of pesos are lost due to illegal actions in the real estate sector. *¹

Here's how not to be another victim:

Main Warning Signs

Attention! Here are the most common signs to identify a potential scam:

• Advertising of fake properties with images downloaded from the Internet.
• Non-existent purchase/sale contracts.
• A requested payment in advance to set aside the property, supposedly.
• The developer and real estate advisors are not registered with any regulatory body.

There are more signs of risk, such as being unable to give you complete information about the project or the promise of investment returns that are too attractive to be true (if they promise you an ROI of more than 20%, run away from there!).

Signs That Your Investment is Safe

Instead, these are some signs that will give you the certainty that you are leaving your investment in the hands of professionals:

1. They have physical offices where you can meet real estate advisors.
2. They have a verifiable track record, including completed projects and positive reviews from real customers.
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

Grupo Emerita, a developer with over 30 years of experience, has one of its most comprehensive projects in the prestigious residential complex of Kaybe: Peregrina. It has 3 levels of apartments starting at 43.82 m², which are ideal for buying and renting when not in use.

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

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