How to Buy Property in Los Cabos

By Mishan Andre, a Local Real Estate Expert

Buying property in Los Cabos is one of the most exciting and rewarding decisions you can make. Whether you’re dreaming of a vacation home, an income-producing rental, or a full-time move to paradise, the process in Mexico is very achievable for foreigners – as long as you understand how it works. This guide will walk you through everything you need to know, from financing and legal structure, to finding the right property and closing the deal.

Los Cabos, located at the southern tip of Baja California Sur, includes two main towns: Cabo San Lucas and San José del Cabo. Each offers a different type of lifestyle:

Cabo San Lucas – vibrant, lively, and ideal for vacation rentals and nightlife.

San José del Cabo – more laid-back, cultural, and residential.

With one of the strongest tourism sectors in Mexico, high rental demand — including some of the highest average daily rates (ADR) — and continued development, Los Cabos has become one of the top destinations for buyers searching for Los Cabos homes for sale, luxury villas, and beachfront properties.

Cabo San Lucas vs San Jose del Cabo Real Estate

Step-by-Step Process to Buy Property in Los Cabos

 

Define Your Goals

1. How many bedrooms do you need?

This directly impacts both price and rental potential.

2. Where do you want to be?

Cabo San Lucas vs. San José del Cabo

Beachfront vs. Cliffside

Gated community vs. standalone home

3. What is your real budget?

And more importantly:

How much cash do you have available today?

If financing, what monthly payment are you comfortable with?

We often recommend working backward from your available capital and comfort level to determine the right purchase price.

Understanding Financing in Los Cabos

Here’s the reality: about 85% of all real estate transactions in Los Cabos are cash purchases. Foreigners can finance property in Los Cabos through two main options: a Global Mortgage available to U.S. citizens, or developer financing with 50-60% down and 6-8% interest. See more details below.

Option 1: Global Mortgage (Traditional Financing Alternative)

Available to U.S. citizens

Typically around 10% interest

Short-term loans (usually 3–5 years)

Best suited for:

Buyers expecting liquidity soon (selling a business, property, etc.)

Those needing bridge financing

Option 2: Developer or Seller Financing

This is more common in:

Pre-construction developments

Select resale properties (less common)

Typical structure:

50–60% down payment

Remaining balance paid over 3–5 years

Interest rates around 6–8%

Example:

$1M property

$600K down

$400K financed over 5 years at ~7%

** Important: These are negotiated terms, not guaranteed. Sellers may counter—or decline entirely.

How Foreigners Can Buy Property in Cabo Mexico

 

Can Foreigners Own Property in Mexico?

Yes, foreigners can legally own property in Mexico. The most common method is through a fideicomiso (bank trust), which allows non-Mexican buyers to securely purchase property in restricted zones like Los Cabos while maintaining full ownership rights.

What is a Fideicomiso?

Founded in 1973, the Fideicomiso is a Mexican bank that holds the proeprty title in a trust

You are the beneficiary with full ownership rights

You can:

Sell

Rent

Remodel

Pass it to heirs

Think of it as a secure legal structure—not a limitation.

Types of Properties Available in Los Cabos

Los Cabos offers a wide range of real estate options, including:

Beachfront homes in Los Cabos

Luxury villas and estates

Ocean view condos

Gated community homes in areas like Pedregal, Palmilla, and Puerto Los Cabos

Whether you’re searching for Cabo San Lucas homes for sale or a quieter option in San José del Cabo real estate, there are opportunities for every type of buyer and investment strategy.

The Buying Process (Step-by-Step)

1. Property Search

We identify properties based on your:

Budget

Location preference

Lifestyle goals

Rental income potential

2. Make an Offer

Once you find the right property:

Submit a written offer

Negotiate price and terms (including financing if applicable)

3. Accepted Offer & Escrow

Deposit typically 5–10%

Funds held in escrow (often through a U.S.-based escrow company)

4. Due Diligence

This includes:

Title verification

Permits and zoning

HOA review (if applicable)

5. Closing with a Notario (Notary)

In Mexico, a Notario Público (otherwise known in the United States as a Notary) is a government-appointed attorney who:

Verifies legality of the transaction

Finalizes title transfer

Registers the property

 

Closing Costs & Ongoing Expenses

Closing Costs

Typically 5–7% of purchase price, including:

Notario fees

Transfer tax

Trust setup (if applicable)

Annual Costs

Property tax (very low compared to U.S.)

HOA fees (if in a community)

Trust maintenance fee (~$500–$1,000/year)

 

Is Cabo Real Estate a Good Investment?

Yes, Cabo real estate can be an excellent investment, particularly for buyers interested in short-term vacation rentals. With strong tourism demand, luxury villa rentals in Los Cabos can generate attractive returns depending on the property, location, and management strategy. That said, performance varies based on your goals. Some investors prioritize appreciation and personal use, while others focus on maximizing rental income and occupancy rates. At Cabo Platinum, we specialize in both real estate and high-performing vacation rentals, helping clients structure their investments for optimal returns based on their budget and long-term objectives.

Rental Income Potential

Well-positioned properties in Cabo can achieve strong annual returns, especially in the luxury rental market with consistent year-round demand. Many buyers specifically target Los Cabos vacation rental investment properties due to the region’s strong tourism and high nightly rates. With the right property, owners can generate substantial rental income in Los Cabos while still enjoying personal use. Los Cabos is a high-demand luxury rental market, especially for:

Beachfront villas

Properties with ocean views

Homes in gated communities

Many buyers offset ownership costs—or generate significant income—through vacation rentals.

Common Mistakes to Avoid

Not understanding true budget (cash vs. financed)

Focusing too much on price instead of location

Skipping due diligence

Assuming U.S.-style financing options exist

Not working with a local expert

 

Final Thoughts

Buying real estate in Los Cabos is not only possible for foreigners—it’s often simpler than people expect once you understand the process.
The key is clarity:

Know your budget (especially cash available)

Define your goals

Work with professionals who understand the market

From there, it becomes an exciting journey toward owning a piece of paradise.

Thinking About Buying Property in Los Cabos?

Whether you’re just starting your search or ready to make an offer, our team specializes in helping clients navigate every step of the process—from identifying the right property to negotiating terms and closing smoothly.

Reach out today – we’re happy to help you explore your options.

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.