Monday, August 16, 2010
Dear Reader,
As a Pathfinder reader, you know how bullish I am on the Tulum area on Mexico’s Rivera Maya. Mexico’s best beaches are here. A new international airport is on the way. Major road improvements between Tulum and the existing international airport in Cancun’s are well advanced. A government plan calls for tourist numbers in this area to increase from 2.9 million to 11 million by 2020. Bordered on one side by a UNESCO protected reserve, and the other by those white powder Caribbean beaches, Tulum has a relatively small amount of land to develop. That means a supply constraint—at a time when demand is set to surge.
Today, Cancun…and even Playa del Carmen is maxed out. The next hotspot on this stunning stretch of coast is Tulum.
Twelve minutes from Tulum and within Gran Bahia Principe (a beach and golf resort), you’ll find a new project called Tao. This deal has my attention because:
-Rental yields will likely be strong…occupancy also. Even at 50% occupancy, you could cover property costs and still net 6%, leaving you to enjoy the property when it’s not rented out.
-There is the prospect of strong capital appreciation. Values could be up to 30% higher within two years.
Gran Bahia Principe
Tao is located within the Gran Bahia Principe Resort. This 2,700-room beachfront resort boasts 5-star amenities, including 11 gourmet restaurants and 21 bars. The Robert Trent Jones II golf course opened late last year. I played the course when I visited in March this year. The course is truly world class.
The design makes the most of the cenotes (natural wells) dotted throughout the course. The new 7,600-square-meter clubhouse is slated to open next month. Clubhouse amenities include tennis courts, a spa, and restaurants overlooking the cenotes and the golf course. A shuttle bus takes you to and from the beach and main hotel amenities every 10 minutes. Residents and visitors have full use of the resort’s amenities…restaurants, the beach, the medical center and the shops.
Gran Bahia Principe is owned by Spanish company, Grupo Pinero. They own Europe’s second biggest travel agency Soltour, which sells and runs 2.5 million vacations every year. They also own 18 other five-star resorts.
This group is strong and solid. They have invested tens of millions in the golf course and infrastructure in this resort. You can see the quality and the investment.
We don’t need to rely on the developer’s promises to build the roads or infrastructure. It’s already there.
The golf course side of the resort is dotted with multi-million dollar homes. They look like they should grace the pages of glossy architectural and design magazines…sleek, luxurious, with high-end finishes and materials.
Tao is right on the golf course. You won’t sacrifice any of the luxury, or sleek design: The materials and finishes will be a similar standard as in the multimillion-dollar neighboring homes. Smaller homes, higher density, and clever use of outside space have allowed developer Benjamin Beja to deliver a more affordable property, without sacrificing on high-end finishes.
You don’t have to worry about maintenance of the communal gardens. This is all taken care of. You can just lock the door and leave…hassle-free. Perfect for “simplifying your life” without compromising on those comforts!
Townhomes at Tao
The first phase of Tao is the release of 2,100 square foot (including exterior space) townhomes. Remember, construction quality and finishes will be on a par with the multi-million dollar homes nearby. They have to be. The resort’s owners wouldn’t allow it otherwise. Benjamin has nailed the concept. These are just the type of units—in the right resort and in the right area—that today’s market demands. High quality, comfortable and spacious, and hassle- free.
Tao: An Income Opportunity
Right now, there is a shortage of rentals in the Gran Bahia Principe resort….a shortage even before the new airport lands three million visitors a year directly in this area. This resort is operating at 96% occupancy this year. That’s nearly 2,700 rooms filled every night. The resort frequently has overflow. Many visitors to the resort who currently stay in one of the hotels would prefer the privacy and flexibility of a townhouse. For a family or friends traveling together, a townhouse will be more cost effective. Rent one of these townhomes, and you will still have access to the resort’s amenities on your doorstep.
I ran some numbers. Rent your townhouse 50% of the time at pretty conservative nightly rates: ($110: June, July, August, and September; $140: March, May, and November; $180: January, February, and April; $250: December) and pay your management company 30% off the top, pay your condo fees, and you would net in the region of 6%. I believe occupancy substantially higher than 50% is achievable here.
Tao: The Prospect for Capital Appreciation
This area is seriously on the up, and I consider this the best opportunity in this area.
I expect prices to rise rapidly as these units are released. Last year, Real Estate Trend Alert members bought condos at the neighboring condo hotel, built by the same developer, in the same resort for $199,000. Ten months later, similar units were selling for $249,000. This is a similar early-in type deal. I won’t be surprised if values are up to 30% higher two years from now.
Right now, you can benefit from pre-release purchase prices that start at $269,000. Benjamin’s team is standing by to send you a full information pack (including floor plans and renderings) and answer any questions you may have. I strongly urge you to get in touch today.
You can also visit and see this opportunity with your own eyes, and meet the team behind the project. Just get to Cancun airport, and Benjamin’s team will take care of the rest…accommodation, transport, meals…for only $180 per person…for three days.
Contact Benjamin’s team today to find out more about Tao, and the upcoming chill weekends. Visit and see this place for yourself. You’ll have a great time. I know I did when I went on one of these trips in March.
Ronan McMahon
P.S. RETA members save $10,000, cutting the start price to $259,000…and benefit from attractive developer financing (as low as $1288 a month)…along with a free appliance package (including plasma TV, stove, washer/dryer, dishwasher and refrigerator), and a free chill weekend trip. Click here to find out how you can become a RETA member today.
Posted Under:
mexico, rental yield, appreciation potential
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