Aug. 25, 2023
The Ultimate Guide to Buying Property in Los Cabos
by Justine Schock, Elite Real Estate Los Cabos, Partner
Los Cabos is a beautiful area located at the southern tip of the Baja California Peninsula. It is known for its stunning beaches, world-class resorts, easy flights from the USA and Canada, and a luxurious lifestyle. If you are considering buying property in Los Cabos, there are many things you need to know. In this ultimate guide, I'll cover everything you need to know to make an informed decision.
Know the Market
The first thing you need to do is research the real estate market in Los Cabos. This will give you an idea of what properties are available, their prices, and the different areas where you can buy. You can browse online listings, tour with your ELITE Real Estate Advisor, and attend open houses to learn more about the area. I always advise my clients to rent a car for a few days and throughly explore the area to see what feels like the best fit for the lifestyle you are trying to achieve.
Choose the Right Location
Los Cabos municipality is divided into two main cities: Cabo San Lucas and San Jose del Cabo. Cabo San Lucas is known for its vibrant nightlife and tourist attractions, while San Jose del Cabo offers a more relaxed and artistic Mexico experience. If you prefer to be off the beaten path, locations like Pescadero, Cerritos or Todos Santos on the Pacific coast or small communities along the East Cape may be right for you. Choose the location that suits your lifestyle and needs.
Determine your Budget
Once you have an idea of the market and the location, you need to determine your budget. Consider the cost of the property plus closing costs of approximately 4-6% of the purchase price. You’ll also want to factor in yearly property taxes and trust fees, utilities, monthly HOA dues, and the cost of routine maintenance and Property Management. Be realistic about your budget and make sure you can afford the property without stretching your finances too thin. While some local financing options are available, most foreigners find it more beneficial to secure financing in their home country and pay cash for their property purchase.
Get a Professional Inspection
Before buying any property, it's important to get a professional inspection. This will help identify any issues or repairs that need to be addressed before you close the deal. You don't want to be surprised by unexpected repairs or issues after you've bought the property. ELITE works with a number of reputable local inspectors who can provide a comprehensive report in English before you proceed with buying a home.
Work with a Reputable Agent
Buying property in a foreign country can be complicated and confusing, so it's important to work with a reputable and knowledgeable agent. Look for someone with experience in the local real estate market, great past client testimontials, and an agent who has puchased in Los Cabos themselves is always a bonus! They can help you find the right property, negotiate the best deal, and ensure that all legal requirements are met. Lastly, always make sure the agent you choose has an active real estate licence in the State of Baja California Sur and is a member of MLS BCS.
Understand the Legal Requirements
Buying property as a foreigner requires certain legal requirements, including obtaining a Mexican Trust (Fideicomiso) or forming a Mexican corporation. Make sure you understand these requirements and work with a qualified attorney to ensure everything is done correctly. ELITE works closely with many Closing Attorneys in the area and can recommend a couple who may work best for your particular deal.
Enjoy your New Property
Finally, once you've closed the deal and the property is officially yours, it's time to enjoy it! Los Cabos offers a variety of activities and attractions, from relaxing on the beach to exploring the local culture and cuisine. Enjoy your new property and all that Los Cabos has to offer.
BONUS TIP
For those looking to cover the costs of owning or make some extra money from their investment, ELITE Vacations Los Cabos can help! With full service Vacation Rental Management, Property Management and Concierge Services, we are happy to answer any questions you may have about renting your new home.
In conclusion, buying property in Los Cabos can be a smart investment for those seeking a luxurious and laid-back lifestyle. Just make sure you do your research, work with reputable professionals, and understand the legal requirements. With the right guidance and preparation, you can find the perfect property and start enjoying all that Los Cabos has to offer!
If you are ready to purchase Real Estate in Los Cabos, or wish to know more about buying property in Mexico, please email us at Info@ERELosCabos.com or visit us at www.EliteRealEstateLosCabos.com.