Investing in Florida vs. Riviera Maya: Where Should Canadians & Americans Put Their Money?

As real estate prices and related costs in Florida skyrocket, many Canadians and Americans are looking south—beyond the Sunshine State—to find a better deal. Mexico’s Riviera Maya (Playa del Carmen, Tulum, Puerto Morelos and Cancun) has emerged as a top alternative for those seeking affordable property, lower taxes, and a high-quality lifestyle.

With home prices in Florida doubling in a decade, rising property taxes, expensive home insurance, and a weakening Canadian dollar, many investors and retirees are shifting their focus to Mexico’s Caribbean coast. In this article, we’ll compare the real estate market in Florida vs. Riviera Maya—including capital gains, financing options, and taxes—to help you decide where your investment makes the most sense.

1. Pros and Cons of Investing in Florida vs. Riviera Maya

Florida: A Pricey but Established Market

✅ Established real estate market with a strong economy.
✅ Reliable rental demand from snowbirds and tourists.
✅ Proximity to Canada & the U.S. with direct flights.
✅ Strong appreciation in high-demand areas like Miami, Fort Lauderdale, and Orlando.
❌ High property costs – A home that was $250,000 a decade ago now costs $600,000+.
❌ Rising insurance rates due to hurricanes and climate risks.
❌ Soaring property taxes that increase yearly.
❌ Expensive cost of living – groceries, utilities, and daily expenses are costly.
❌ Weaker Canadian dollar – makes U.S. purchases more expensive.

Riviera Maya (Playa del Carmen, Tulum, Puerto Morelos, Cancun): Affordable & Growing

✅ Lower property prices – Luxury condos with ocean views cost a fraction of Florida’s prices.
✅ No property taxes or low annual fees compared to Florida.
✅ Lower cost of living – Rent a luxury condo for $1,500/month, dine out for $10, and enjoy affordable healthcare.
✅ Growing rental market – A major tourist hub with increasing demand for vacation rentals.
✅ Warmer climate year-round – No hurricanes like Florida.
✅ Thriving expat & investor community – Many Canadians & Americans relocating permanently.
❌ Less structured legal system – Buyers must use a Fideicomiso (trust) or establish a Mexican corporation to purchase property.
❌ Cash-based economy – While financing options exist, mortgages are less common than in the U.S. and Canada.
❌ Due diligence required – It’s important to work with a reputable real estate agent and legal team.

2. Market Comparison: Capital Gains, Financing, and Taxes

Capital Gains & Property Appreciation

• Florida’s real estate market has matured, with appreciation slowing in many areas.
• The Riviera Maya, on the other hand, is experiencing rapid growth—Playa del Carmen REMOVE TULUM has seen property values increase by 8-12% per year. Is that a fact?
• Pre-construction condos in Mexico may take up to 30% in value before completion, making it a strong option for investors looking for capital gains.

Financing Options

In the U.S. & Canada

• Canadian and U.S. buyers can use home equity loans from their country to fund purchases in Florida or Mexico.
• Traditional 30-year mortgages are available in Florida but come with high interest rates and insurance costs.

In Mexico

• Mexican banks offer mortgages, but rates are higher (8-12%) and often require large down payments (30-50%).
• Developer financing is common, especially for pre-construction properties, offering 0% interest for 1-3 years.
• Private lenders provide financing for foreign buyers—take our  Free 2-minute Real Estate Investment Quiz in Playa del Carmen to self-assess your situation and explore options.

Tax Comparison: Florida vs. Mexico

• Florida has property taxes ranging from 1-2% of home value, plus additional taxes for non-residents.
• Mexico’s property tax (Predial) is extremely low, often under 0.1% of property value per year.
• No capital gains tax in Florida for U.S. residents selling a primary home, but foreign investors may face additional taxes.
• In Mexico, capital gains tax on property sales is calculated based on a progressive scale (up to 35%) but can be reduced through deductions. You can be exempted once every three years if you are a Mexican Resident.

3. Florida or Riviera Maya: Which Is Right for You?

✅ If you want stability and structured financing, Florida may be a better option. 

✅ If you want high appreciation potential, lower costs, and tax advantages, the Riviera Maya is the clear winner. 

✅ If you’re looking for an affordable tropical retirement or investment, Mexico is a growing hotspot.📢 Take our Free 2-minute Real Estate Investment Quiz in Playa del Carmen, Mexico, and let us help you find the best property for your goals!