Los Cabos, located in the southern tip of the Baja California Peninsula, is a popular tourist destination, known for its stunning beaches, picturesque desert landscapes, and high-end luxury resorts. The area comprises two cities, San Jose del Cabo and Cabo San Lucas, connected by a 20-mile long Tourist Corridor. The region offers a variety of neighborhoods that cater to different lifestyle preferences and budgets, making it an attractive destination for those looking to own real estate in Los Cabos.
San Jose del Cabo: This city, located at the eastern end of the Tourist Corridor, is known for its historic center, a charming mix of colonial-style buildings, art galleries, and fine dining restaurants. It offers a more relaxed, traditional Mexican lifestyle and is popular among expats and retirees. Neighborhoods such as El Encanto, Los Patios, and El Dorado are well-established communities with a variety of homes, including single-family homes, villas, and condos. Prices in these neighborhoods range from $200,000 to $2 million.
Cabo San Lucas: This city, located at the western end of the Tourist Corridor, is known for its vibrant nightlife, marinas, and water sports. It appeals to a younger, more active crowd and is popular among those looking for a more lively atmosphere. Neighborhoods such as Pedregal, Santa Carmela, and Quivira offer a range of properties, including hillside villas, golf course homes, and ocean-front properties. Prices in these neighborhoods range from $500,000 to $10 million.
Tourist Corridor: This 20-mile stretch of land connecting San Jose del Cabo and Cabo San Lucas is lined with luxury resorts, golf courses, and upscale residential communities. It offers a mix of both relaxation and entertainment, and is popular among those looking for a bit of both. Neighborhoods such as Cabo del Sol, Costa Palmas, and Puerto Los Cabos offer a variety of homes, including ocean-front villas, golf course homes, and condos. Prices in these neighborhoods range from $500,000 to $10 million.
East Cape: This area, located east of San Jose del Cabo, is known for its rugged desert landscapes and world-class surf spots. It offers a more remote and secluded lifestyle, and is popular among outdoor enthusiasts and water sports enthusiasts. Neighborhoods such as Los Barriles and Punta Colorada offer a range of properties, including beachfront homes, villas, and lots for those looking to build their own dream home. Prices in these neighborhoods range from $200,000 to $2 million.
Todos Santos: This charming town, located an hour north of Cabo San Lucas, offers a more laid-back, bohemian lifestyle and is known for its art community, local coffee shops, and organic farms. It appeals to those looking for a more traditional Mexican experience and is popular among artists and retirees. Neighborhoods such as El Pescadero and Los Cerritos offer a range of properties, including single-family homes, villas, and lots for those looking to build their own home. Prices in these neighborhoods range from $200,000 to $2 million.
When buying a home in Los Cabos, it is important to consider factors such as the proximity to the beach, access to amenities, and the overall quality of the neighborhood. Working with a reputable agent for real estate in Los Cabos and a local attorney is also recommended to ensure a smooth and stress-free transaction.
While Los Cabos offers a wide range of neighborhoods to choose from, each offering its own unique lifestyle and attractions, it is important to consider the local infrastructure and services when buying a home in Los Cabos. This includes access to quality healthcare, shopping and dining options, transportation, and security.
In terms of healthcare, Los Cabos offers a range of facilities, including private clinics, hospitals, and emergency services. The quality of healthcare in the area is generally considered to be good, with many expats and retirees choosing to make Los Cabos their home for this reason. However, it is important to research the options available in the specific neighborhood you are considering, as the quality and accessibility of healthcare services may vary.
When it comes to shopping and dining options, Los Cabos offers a wide range of options, from high-end luxury shopping centers to local markets and street vendors. In Cabo San Lucas, there are several large shopping centers and upscale restaurants, while in San Jose del Cabo, there are more local shops and traditional Mexican restaurants. The Tourist Corridor also offers a mix of both high-end and local options, making it a convenient location for those who want easy access to both.
Transportation in Los Cabos is generally good, with taxi and ride-sharing services widely available, as well as a local bus system. However, it is important to consider the distance from your home to the nearest transportation hub, as well as the quality of the roads, when choosing a neighborhood. In some more remote areas, such as the East Cape, transportation options may be more limited.
Finally, security is an important consideration when buying a home in Los Cabos. The area is generally considered safe, with low levels of crime and a strong police presence. However, it is always important to research the crime rates in the specific neighborhood you are considering, just as you would when purchasing anywhere and take steps to secure your home, such as installing a security system or hiring a security guard.
For those looking for a more serene and peaceful lifestyle, neighborhoods such as El Encanto, Los Patios, and El Dorado in San Jose del Cabo may be a good choice. These well-established communities offer a mix of single-family homes, villas, and condos, and are known for their relaxed, traditional Mexican atmosphere.
For those looking for a more active and vibrant lifestyle, neighborhoods such as Pedregal, Santa Carmela, and Quivira in Cabo San Lucas may be a good choice. These areas offer a range of properties, including hillside villas, golf course homes, and ocean-front properties, and are known for their lively atmosphere and access to water sports and nightlife.
For those looking for a mix of relaxation and entertainment, neighborhoods such as Cabo del Sol, Costa Palmas, and Puerto Los Cabos in the Tourist Corridor may be a good choice. These areas offer a variety of homes, including ocean-front villas, golf course homes, and condos, and are known for their stunning beaches and access to high-end amenities.
For those looking for a remote and secluded lifestyle, neighborhoods such as Los Barriles and Punta Colorada in the East Cape may be a good choice. These areas offer a range of properties, including beachfront homes, villas, and lots for those looking to build their own dream home, and are known for their rugged desert landscapes and world-class surf spots.
Finally, for those looking for a laid-back, bohemian lifestyle, the historic town of Todos Santos may be a good choice. This charming town is located about an hour north of Cabo San Lucas, and offers a range of properties, including traditional Mexican homes, beachfront properties, and charming bed-and-breakfasts. Todos Santos is known for its vibrant arts scene, relaxed atmosphere, and stunning natural beauty, making it a popular destination for artists, writers, and nature lovers.
Los Cabos offers a wide range of neighborhoods, each offering its own unique lifestyle and attractions. When buying a home in Los Cabos, it is important to consider your individual lifestyle preferences, budget, and the quality of local infrastructure and services. With the right research and preparation, purchasing a home in Los Cabos can be a rewarding and enjoyable experience. Whether you’re looking for a relaxed and peaceful lifestyle, a vibrant and active lifestyle, a mix of relaxation and entertainment, a remote and secluded lifestyle, or a laid-back and bohemian lifestyle, Los Cabos has something to offer everyone.
Explore exclusive villas in Cabo San Lucas, including the scenic Palmilla area, the prestigious Pedregal district, and the serene ambiance of Puerto Los Cabos.
Mexican Trust – Fideicomiso
By far the most asked question during the process of purchasing real estate in Mexico. Don’t let legal terms confuse you. You rightfully and legally own your property. It is very simple actually, and no, it is not a 99-year lease. The concepts and processes are pretty straight forward. As a foreigner, two ways you can own real estate in Mexico are:
- Mexican Corporation
- Mexican Trust called Fideicomiso
FIRST OPTION: MEXICAN CORPORATION
A Mexican corporation is incorporated and owned in a fee simple title to property, regardless of size, location, value, or purposes of it. This is generally recommended for investors that are looking to develop and/or acquire more than one real estate transaction.
Mexican corporations work in a similar way to American corporations, and there is no limit as to the number, citizenship, or nature of the shareholders. Check with your legal representation as there are multiple corporate structures and some of which are more beneficial to foreigners.
Also, for tax purposes, developing and/or commercial expenses are better deducted through a corporation than through a Trust.
SECOND OPTION: MEXICAN TRUST OR “FIDEICOMISO
This method is the most utilized for a private investor or a residential piece of property, without commercial purposes.
Mexican law provides that foreign individuals and/or entities (including foreign trusts) may own fee simple title to land in all of Mexico, except in the so-called “Restricted Zone”, which is the strip of land that goes along the shores (50 kms. inland) and the borderlines (100 kms. inland). Therefore, when land is purchased directly or indirectly by foreigners through foreign entities or trusts, it is typically bought through a Mexican trust or “fideicomiso”.
The following three persons are listed in the fideicomiso:
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- The Trustor
The Mexican owner of land that originally conveys the property into the trust
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- The Trustee
The Mexican financial institution that holds title to the property
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- The Beneficiary:
The individual(s) or entity(ies), national or foreign, of the Trust: that has the authority to instruct the Trustee in connection with the property
The purchase of property through a trust works in a very similar fashion as a regular purchase and sale transaction: the seller (‘Trustor’ or ‘Settlor’) shall execute a trust agreement, whereby a trust is created and title is conveyed to a Mexican bank (‘Trustee’) for a purchase price, and the Mexican bank accepts such conveyance, in the understanding that (i) the purchase price is paid by a third party (normally a foreigner), who is appointed Beneficiary of such Trust, (ii) the bank acquires title, acting on behalf of such third party and, therefore, (iii) the bank is not allowed to take any act or decision regarding the property unless it is instructed in such sense by the Beneficiary, who has all decision rights.
Then, in practice, although the bank has the nominal title to the property, they do not get involved at all in the maintenance or management of the property. The Beneficiary of the Trust is the person deciding about the development, lease, sale, mortgage or whatsoever regarding said property.
Typically, the bank has no activity, except in case of litigation, when the Trustee shall grant the Beneficiary’s attorneys a special Power of Attorney to appear in court on behalf of the Trustee, nominal owner of the property.
In addition, the property held in trust is kept in a “Fiduciary Division”, so it is never considered an asset of the bank, so no creditor of the bank may go after the property, ever.
When the property to be purchased is already in a trust, the buyer may elect on whether to continue on said trust (by assuming the existing trust rights of the selling beneficiary) or to terminate the existing trust and have the property conveyed into a new trust.
These trusts have a 50-year life, with the option of an immediate renewal for another 50-year period; thereafter, the property should be sold to a person with capacity to acquire title (however, the trend is to liberalize the ownership, so most likely, such requirement will be eliminated in some years).
A specific permit from the Foreign Relations Secretary is required to set up a trust and the relevant Trust Agreement needs to be contained in a Deed, signed by the parties thereof in front of a Mexican Notary Public, and should be recorded at the Cadaster Offices, at the Public Registry of the Property and at the Foreign Investment Registry. Your closing attorney will help with this process as they are regular activities for 60% of real estate that is closed in Los Cabos.
Thereafter, no further permit or notice is required, unless one or more of the parties thereof vary, or the properties subject to the Trust are modified, either by purchase of additional land, merger, subdivision, etc.
On average trustee bank charges an annual fee of around $550.00 US dollars.
This article was written by RODRIGO GOMEZ, for informational purposes only and are not legal advice or a substitute for legal counsel. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not rely or act upon this information without seeking professional counsel.
Explore exclusive villas in Cabo San Lucas, including the scenic Palmilla area, the prestigious Pedregal district, and the serene ambiance of Puerto Los Cabos.
Taking time out of a busy schedule to visit Los Cabos is a good idea any time of year. When travelers are looking to vacation in style, Los Cabos has the scenery, upscale fun, activities, and attractions that make for an unforgettable stay. With all of the activity, many owners find themselves asking, “Is now a good time to sell in Cabo.”
While a visit here is always a thrill no matter what your interests may be, those who are looking to make a more permanent investment will find that in 2023, the Cabo real estate market is primed for potential. Sellers in particular will be happy to discover that now is an ideal time to upgrade their current Cabo residence for something that elevates their year-round living and/or makes for a breathtaking vacation home.
Luxury Buyers Propel the Market to New Heights
While the global health crisis of 2020 stalled the real estate market just about everywhere for a period of time, in Los Cabos, tourism is back and stronger than ever in 2023. By the end of 2022, Forbes was highlighting Los Cabos, Mexico as one of the biggest second home markets in all of North America. This trend has seen many vacationers transition to buyers as they look for their piece of paradise to enjoy on a more permanent basis. For sellers looking to profit in Cabo, this world-class destination is offering up a strong and exciting market to be a part of as interested buyer numbers continue to grow. The team at CBRE Hotels put together a report looking specifically at Los Cabo’s market growth over the last five years and found the area is experiencing an annual growth rate of nearly 6% overall. For sellers, this is even better news.
The luxury real estate in Los Cabos provides an even more exciting prospect for those looking to sell as the most exclusive inventory remains relatively low. This provides sellers with a greater amount of control over their selling price and how they choose to accept property offers. Overall, sellers are seeing increased interest in luxury properties from American and Canadian buyers. With new direct flights between Los Cabos and Europe, the expectation is that sellers will be seeing an influx of European buyer interest in the near future as well.
Market Factors to Consider in 2023
In Los Cabos, those looking to sell are still seeing the high-end market range as listing above $1 million. At the end of 2022, resale was accounting for around 90% of property sales in Los Cabos with 30% to 40% of all residential sales falling within the high-end market category. From the U.S., there are a high number of buyers hailing from California and Texas, while market interest is also being noted as primarily coming from Chicago, New York, and Mexico City.
According to the Cabo Real Estate Services 2023 first-quarter market report, the market continues to flourish for sellers. In quarter one, the Los Cabos real estate market saw over $500 million in sales as opposed to quarter four in 2022. This puts sales volumes up by 48% and a total of 545 houses and condos sold within the first quarter timeframe. The most lucrative price point for sellers is holding steady between $2 million and $5 million listings. Quarter one inventory remained steady as well and real estate agents were seeing existing properties moving briskly. Overall market direction is noted as strong in Los Cabos in 2023, particularly for existing properties as opposed to new construction.
When You’re Ready to Sell, Partner with Cabo Platinum
Those who own homes in Los Cabos know just how appealing this sunny and one-of-a-kind destination can be year-round. That said, there’s no reason not to upgrade when you’re looking for something new in Los Cabos. Whether you’re looking forward to a new view, are hoping to swap neighborhoods, or just want to be closer to places you love to spend time, the team at Cabo Platinum is always here to help.
Our Cabo real estate services are world-class, and we know the Los Cabos real estate market fluently. We help homeowners looking to sell market and price their homes competitively so their new journey can get started faster than ever. Our guidance and assistance with financial planning can make all the difference when it comes to creating a real estate transaction that’s smooth and streamlined. We know how to navigate market fluctuations and help place your home in front of the eyes of buyers who are looking to close quickly. We’re also ready and waiting to help you find your new home once your current residence is ready to hit the market.
Luxury real estate is our passion and our area of expertise. When you’re looking to learn more about how we can help you sell your home and find the next residence of your dreams, simply reach out to Cabo Platinum. Our team of expert real estate advisors can’t wait to hear from you!
Crucial Things to Know About Buying a Villa in Cabo San Lucas
When you make the decision to enter the real estate market in Cabo San Lucas, you’re deciding to invest in one of the most sought-after beach destinations in the world. Though it can feel overwhelming to find the perfect property in the perfect location, our team at Cabo Platinum Villas has the expertise and local knowledge to make your dreams come true. Before you take the plunge, there are a few things you should know:
Purchasing Experience
Here at Cabo Platinum, we have just announced an exciting partnership with Berkshire Hathaway Home Services. By partnering with one of the industry leaders in brokerage, Cabo Platinum Villas can provide a shockingly seamless experience for all those looking to invest in the Cabo San Lucas real estate market. If you need something a bit more commercial, our team is equipped to provide those services with a best-in-class approach as well.
Investment Return
The real estate market in Cabo San Lucas has been providing massive investment returns for decades. There’s a reason this lively waterfront community draws visitors from all over the world to invest in properties: it’s unlike any other. In 2017 and 2018, Cabo San Lucas set a record for the number of visitors in a year, 70% of which were repeat guests. You can’t visit Cabo just once, so invest in a property that you can come back to, knowing that your investment will pay off financially, too.
Property Options
The most difficult part of navigating the real estate market in Cabo San Lucas is the fact that it is so diverse; it’s important that you figure out what type of property you want, the location you’re looking for, and the amenities that are non-negotiable. Our team of accredited real-estate experts knows the areas like none other, making Cabo Platinum the perfect guide to finding you exactly what you’re looking for.
Tourism Considerations
Cabo San Lucas is a popular vacation spot, and there are a few months during the year where it can feel overrun by spring breakers. Though many who own real estate embrace the lively tourism industry, it is something to consider before you purchase. If done correctly, tourism can bring in extra income during the time you’re not using your property but be sure to tell our team if that’s a route you’d like to pursue.
Amenity Access
Depending on where you decide to purchase property in Cabo San Lucas, you’ll have access to several different resort amenities and full-service experiences. If you have a list of the types of amenities that are non-negotiable for you, that can help narrow down the search to places that offer everything you’re looking for. By putting parameters on what you want, you’re ensuring our team can best support you in the search. If golf courses are important to you, great! If you’d rather spend the day at a spa or near a pool, that’s also possible. The sky is the limit – we’ll help you get there!
Remember: It Doesn’t Have to be Overwhelming
The experience of finding your dream vacation home should be one that you remember forever, in the best way possible. If you’re new to the Cabo San Lucas real estate market, let our team of experts help you navigate it. We have the best of the best waiting to serve you – give us a call today!
CLICK HERE TO CONTACT OUR VILLA SPECIALISTS TODAY
Best Way to Capitalize on a Luxury Villa in Cabo San Lucas
Buying a luxury villa in Los Cabos is an outstanding investment. There are beautiful property options everywhere in the area.
Those thinking about buying property here might wonder, how can one capitalize on their real estate investment?
Buyers can make the most of their luxury villa in Cabo San Lucas with the proper guidance and services. Property management companies like Cabo Platinum can help a homebuyer navigate the buying process to find the best investment for them. They can also help manage the property after purchase.
Want to learn more about how this works? Stay tuned. Here’s helpful information for capitalizing on Cabo San Lucas real estate.
CLICK HERE TO CONTACT OUR VILLA SPECIALISTS TODAY
Why Invest in Cabo San Lucas Real Estate
Why invest in a Cabo San Lucas property in the first place?
There are many reasons why owning property in this dynamic destination is a great idea.
Cabo San Lucas is an internationally beloved vacation spot that people visit year-round.
Most people who visit will come back over and over again.
Owning a property here and renting it out while you’re not there is a strategic move because the market continues to grow year after year.
With a seasoned advisor, luxury villa owners can take advantage of this popularity and capitalize on the Cabo San Lucas real estate market.
Using Cabo Platinum Investment Services
Getting the most out of a Cabo San Lucas real estate investment means having the proper guidance.
Cabo Platinum offers services that will help individuals make the right investment choices and manage them after purchase.
An advisor can help buyers determine what they want and find properties that might interest them.
Whether a buyer is looking for luxury real estate, a large parcel of land for resort development, or exclusive community real estate advisement, Cabo Platinum can help.
The team is well-versed in the local real estate scene and is Los Cabos MLS, CONOCER, and AMPI certified.
Cabo Platinum Investment Property Management
Purchasing a property is only part of the investment strategy. Therefore, it is essential to manage and maintain luxury villas for maximum benefit.
Unfortunately, it can be challenging to manage a property if an individual doesn’t live there full time.
Lucky for buyers who use Cabo Platinum, that isn’t an issue.
There is a boots-on-the-ground team that includes rental agents, property managers, luxury villa real estate marketing managers, and interior designers.
Cabo Platinum has the insight to mitigate risk and unlock every opportunity available to clients.
Property owners can have peace of mind that the team will take care of their property and maximize its potential.
Getting Started Capitalizing on a Luxury Villa in Los Cabos
What is the best way to start capitalizing on a Cabo San Lucas real estate investment?
The answer is to call the Cabo Platinum team of real estate advisors. Potential clients can also reach out online through the chatbox on the website.
They work with clients to manage their investment strategy. With their help, buyers can maximize the potential of their luxury villa in Los Cabos.
Navigating the Cabo San Lucas real estate scene can be tricky. Still, with the right help, buyers will find that there is infinite potential.
Looking to invest in a luxury villa in Cabo San Lucas? Contact an advisor!