Can Americans buy a Home in Cabo San Lucas? YES, YOU CAN!
You can buy or sell a home at any time!
Mexico is filled with opportunities for Americans to buy and invest in real estate. Los Cabos, Cabo San Lucas, and San Jose del Cabo are leading as the safest places to buy with great historical property appreciation. Cabo San Lucas Homes for Sale.
Breathtaking ocean landscape, picturesque beaches, and classic Mexican sabor (flavor) make Cabo a vacation paradise. Los Cabos offers numerous types of properties, locations, and price points. It is easy to find a dream home or an investment that will earn you generously in the future. If you want to buy a home in Los Cabos, you need an understanding of the process and the regulations. It’s more nuanced than say, buying in the US, but it’s safe and incredibly rewarding. Cabo San Lucas Homes for Sale
With advancements in the Short-term Rental Industry, it’s also easy to put our home on the market safely and profitably through an experienced, local property manager. These advancements, it’s left many Americans pondering the thought “Can Americans buy a home in Cabo San Lucas?”
A 2022 Forbes article highlights the explosive growth of US and foreign ownership in Cabo. 80% of new luxury buyers are from the US, the current property appreciation rate is 5-10% annually. Rising home prices have led to an explosion in new construction including under-$1M, gorgeous beachside condos, and significant valuation growth at all price-points
Is buying a home in Cabo San Lucas Difficult?
It’s no longer difficult. On the contrary, it’s easy to buy and sell a home in Mexico. The processes are safe, easier, and take less time. As always, a proper title search is important.
Property transactions here involve many parties. The buyer, seller, escrow agent, closing agent, and notary public. Others that may be required include the bank and the land offices.
The first thing to learn is property ownership in coastal areas like Cabo is through a common, safe, long-term, and transferrable bank trust called a Fideicomiso. It’s a Mexican property trust with an annual fee that allows homeowners to purchase lands in the zone near the border or 50 Kilometers from the coastline. Since Los Cabos is within the zone, Foreigners must use a Fideicomiso to hold title to real estate.
A property owner becomes a beneficiary of the Fideicomiso trust for typically 25 to 50 years. After the term ends, the trust can automatically renew and do so indefinitely. You can hold title without a Fideicomiso if the property is outside a coastal or border zone. The use of a Fideicomiso in no way inhibits selling a home and profiting by appreciation, just like anywhere else. It does not specifically diminish the value.
All real estate transactions in Mexico require a Notary for the paperwork and documentation. Mexican notaries have more responsibility than a notary in the US.
Choosing a Realtor
A realtor can help you understand the area, and the values, and to narrow down options based on your needs. If you’re speaking directly with the developers for pre-construction and pre-sales, an agent is of less value, but we recommend it. If you want someone to represent you, and help you through the process, an experienced agent is valuable. There is an MLS in Cabo San Lucas but search no further our website is linked directly to MLS BCS.
Why is Cabo San Lucas a great place to live?
Cost – The cost of living is lower than in many U.S. and Canadian cities. Americans who owned large houses in solid US markets like Dallas, San Francisco, and Seattle have skyrocketed in value, so they decided to cash in. They are then able to downsize in Cabo with many options of owning a condo or house at considerably less cost compared to those cities. Once you have been living here and get the lay of the land, you tend to avoid the tourist trap and higher-priced areas. Low property taxes are another benefit. The property taxes in Los Cabos are around .1%, whereas the average property taxes in the United States are well over 1%. Utilities and groceries are two other expenses that tend to be less expensive when living in Mexico.
Activities – Los Cabos has 18 golf courses, many of them world-class. There’s a rich amount of water sports to choose from year-round such as surfing, snorkeling, diving, sailing, and fishing. There’s an abundant number of land-based activities to explore including hiking, ATV tours, mountain biking, Baja racing, and more!
Crime – Cabo is safer than many major US Cities: for example, San Diego had a crime rate of 374 violent crimes per 100,000 people in 2021, and Cabo’s crime rate for 2021 was 138.26 crimes per 100,000 people during the same period.
Climate – The climate in Los Cabos is perfect. We average about 350 sunny days a year. The winter months are the best weather-wise since you will rarely use air conditioning or heat. On the other hand, the summer months here are enjoyable too, because Cabo has more of a local feel and fewer tourists. There is less traffic on the streets and hotel prices drop during the off-season, so it’s a great time to visit as well.
Cabo San Lucas and San Jose del Cabo will continue to attract expats looking to retire here. The laidback lifestyle and lower cost of living make this area the ideal location to downsize and relocate. Living in paradise also makes the family much more likely to visit. Low property taxes and owning real estate in USD are two major perks of owning a house here to live in. While you can make an argument for many places in Mexico to retire to, you no longer have to ponder “why is Cabo San Lucas a great place to live?” Cabo should be at the top of your list.
If you would like to get more information on these homes, click here for more information. Follow us on Facebook!
Preview Properties in Cabo San Lucas, click here for more information.