By Justine Schock, REmexico Real Estate Agent, Justine@CaboRealEstate.com
Los Cabos is booming with new luxury development with price tags that mirror many major cities in the U.S. I always chuckle when I work in our Cabo San Lucas office and watch people looking at listings in our window, many of which are multi-million-dollar beachfront homes or villas in very exclusive neighborhoods. Sometimes a person will stop, think for a moment, get very excited and rush in the front door exclaiming “These prices are in pesos right?” Sorry to burst your bubble...that 4 BR/4BA beachfront estate on the East Cape is in fact $2.5 million USD. Just because you’re in Mexico doesn’t mean the real estate is cheap. In fact, you will find some of the most expensive homes in the whole country here in Cabo. But fear not, if you have dreams of living in paradise or owning an investment property, it CAN be accomplished for as little as $100,000 USD. In this article I will touch on a few homes and neighborhoods that won’t break the bank.
First let’s start in Cabo San Lucas where there are listed condos in communities like Almalfi, Bahia del Tezal, Luna del Tezal and others for $100,000-$200,000 USD. If you’re willing to spend a bit more, you can purchase a nice starter home on the corridor like Casa 17 Las Palmas, currently listed for $230,000 USD. Casa 17 is located about 10 minutes outside of downtown Cabo. With 3 BR/3 BA and plenty of outdoor living space, this home would be perfect for a couple or small family.
In San Jose del Cabo, you can find affordable homes in developments like Club La Costa, La Jolla, Laguna Vista, Peninsula condos, and Loma Linda just to name a few. We currently have a 1 BR/1BA furnished Club La Costa Phase 1 condo with golf course views listed for only $114,000 USD! Just up the road in Laguna Vista is Casa Kathy, a 2 BR/2 BA ground floor condo with spectacular views of the Sea of Cortez all the way to Punta Gorda. This unit has been partially remodeled and comes fully furnished, listed for only $234,000 USD.
Fractional ownership is another option if you enjoy resort style amenities without a luxury price tag. Fractional ownership is not the same as timeshare. With fractional ownership, you own a piece of deeded real estate that you share with other owners (typically 2-8 weeks per year). If the value of the property goes up, so does your equity in that property. Villa La Estancia and Esperanza are two excellent fractional options. At Villa La Estancia, you can find a 2BR/3BA, 2,100 sq. ft. ocean front 1/8th share villa(which gives the owner 6 weeks of usage every year) starting around $140,000 USD. While at Esperanza, a 1/24th ownership 3 BR/3 BA fully equipped villa with ocean views starts around $105,000 USD.
A few other important notes:
1. Mexico has a 2% acquisition tax in addition to other
closing costs of roughly 4-5%. It’s always a good idea to set aside at least 6-7% of the purchase price to go towards closing.
2. Los Cabos is primarily a cash only market however some seller and developer financing options are available. Just keep in mind that down payments and interest rates are higher than you are probably used to, with shorter terms to pay off your loan.
So there you have it. Your dream of owning real estate in Los Cabos IS POSSIBLE with a little patience and a good real estate agent guiding you through the process!