Buyer's Guide

The Cabo San Lucas Real Estate Buyer's and Trends Guide 

Buying real estate is a big, long-term decision, and as such, you can't just wing it and call it a day like with grocery shopping or fetching yourself a snack at the drive-thru. Good decisions net you picturesque investments as economically promising as the beauty of their natural backdrops, while hasty, unwise decisions give you dull, over-glorified money pits that you'd be better off selling for less than half of what you put into it--if you're even lucky enough to get to that price range. 

So why settle for your run-of-the-mill real estate investment in bleak, monotonous suburbia? Why spend your hard-earned cash on something you'll only come to regret sooner or later? Why not think outside the box for once and take the alternate, sun-bathed route instead? The sun-bathed, and ever-expending, Cabo San Lucas route to be exact.

Why Should You Buy Cabo San Lucas Real Estate?

Cabo San Lucas isn't the go-to in good old Mexico for nothing. True, beach locations are, by default, something we're drawn to, something we like to picture ourselves in as a sort of symbol of status, but, as with everything in life, not all beaches are created equal. Thanks to it sunny day's year-round, amazing locales, awe-inspiring vistas, top-of-the-line Mexican and international cuisine, and an ocean as clear and blue as its skies, Cabo sits comfortably atop the figurative totem pole of seaside getaways, both for vacation goers and for savvy real estate investors, such as, perhaps, yourself.

With all those qualities (and let it be known that I was only scratching the surface there), it should really come to no surprise that Cabo San Lucas is not only the top trending vacation destination in the American continent, period but also one of the top spots favored by tourists looking for repeat visits and permanent residency.

The Modern Hot Buyer Trends of Cabo Real Estate

Trends are a good measuring stick. After all, some stick and some don't, and in Cabo's case, the real estate buyer trends are as reliable, and permanent, as they come. To make a long story short, regardless of the level of luxury you're aiming for, when it comes to purchasing Cabo real estate, there are two main trends you should wrap your head around. 

First, rent. Cabo real estate investors will, more often than not, and after a reasonable amount of time (i.e. enjoying the property for a while), put up their acquisitions for rent. Why do they do this? Dividends, that's why! Sure, 1/2000th of the purchase price doesn't sound like much, on paper, but when you consider that it's the nightly rent we're talking about here and that the lowest purchase prices go for upwards of 400,000 USD then it's pretty clear why renting is such a booming business in San Lucas. Seriously, check out a nice property, grab a calculator, and do the math. Those numbers don't lie.

Second, good old purchase. Now, this option might not yield rental money per se, but even if all you want is to relax and enjoy the calm, fine living of Cabo San Lucas, there's still some mighty fine return on investments to talk about. Packing anywhere from 10% to full-on 100% (depending on the location), the hefty, piling returns of Cabo real estate are as tantalizing as the backdrops and lifestyle themselves. A win-win scenario, if there ever was any.

As you can see, the latent moneymaking possibilities are right there, ripe for the picking, be it for the yearly, increasing the value of a home property or of a rental asset (the former of which can easily become the latter should you want to).  

Purchasing Cabo Real Estate Explained Nice and Easy!

Of course, we can't just jump in throw cash and call it a day, there's procedures to follow, and in a foreign country, it's usually in these itty bits where problems tend to arise. As such, I'll give you a run-through of how things work down here, a sort of, reader's digest explanation of how to handle yourself in the Cabo San Lucas real estate market.

Set your sights on what you want and be quick about it 

Knowing what you want works wonders, relationship, fancy, ten-page dinner menu, and real estate wise. A market as coveted as Cabo means that the faster you boil down your options and desired qualities of your would-be property, the quicker you'll be able to get a tour and get the deal going before someone else. It might sound obvious, and even somewhat on-the-nose, but believe me, you don't want to waddle around, debating as to whether you want this or that, while everybody else is already shaking hands and signing papers.

Ask questions. Make an Offer. Know your stuff!

Love at first sight is great and all, but don't let first impressions cloud your judgment when it comes to real estate. Ask everything you can, and I do mean everything. Does it have property taxes? Are there any measures of security to speak of? Any fees I should know of? If most of these clarifying questions check out then you're 90% likely to be looking at a sweet deal and should move onto the next step of the process: the offer.

Making an offer is easy. You just need to know the true/approximate value of a property, which you can find out by consulting local real estate agents and/or comparing prices of similar options, that way you can have the proper backbone to your arguments when debating about the matters of overblown price tags. 

Knowing your stuff goes a long way when trying to find the right place and the right price, and even in the worst-case scenarios, where something doesn't check out or the seller simply won't go lower despite the place really not being worth that much, you'll have done yourself a favor

Follow the rules and Follow Through

This is about the only shortcoming of Cabo real estate. Purchasing a property takes time and paperwork, and there really isn't a way around it. With that said, however, it's far better to view things in perspective, especially when we're talking about foreign property laws. A lot of people fumble and freak out when they talk purchasing processes, a lot more do so when far from home, but don't worry, I'm here to show you that it's not as daunting as it seems.

First off, you need to get that accepted offer. Once the seller says yes, it's all a matter of gathering documentation in order to start the closing process (transferring the property to you). This is done with the help of closing officers (real estate agents) and an added third-party escrow account that holds onto the money until the transaction finalizes. That way no one can mess around with your funds until the property is yours to keep (and should anything happen along the way it'll be protected by law.

Now, with that out of the way, you need to tackle the Fideicomiso. To make a long, convoluted story short, the Fideicomiso is a bank trust, a part of the purchasing process that allows you to get all the perks and benefits of ownership, under Mexican Law. 

How exactly do you get a Fideicomiso? Simple, you go to a Mexican bank, and ask for one. Yes, it's that easy. The bank acts as the "trustee" and you the "beneficiary" of the trust. This way the property is technically yours while abiding to foreign ownership restrictions. The bank will only follow your instructions and while, yes, they may keep most of the paperwork and nitty-gritty aspects of the process, the rights of the property are yours, to buy, sell, rent, or improve as you wish!

Lastly, there's the closing date. The big day where you finally sign your new property (with the aid and presence of the Notary [required government trained real estate agents]) and where you pay the seller for it. That's it, once you've cleared out these two steps you've officially concluded the purchasing process. As for the date, it's up to you. Come to an agreement with the Notary and the seller (preferably after the initial offer), since you all need to be present for the deal to be considered valid, and meet them at the accorded time. You don't even have to do it physically, thanks to modern conventions, virtual meetings are now just as valid! 

On average the process as a whole will take around 40-60 workdays, which may seem like quite a hassle, but hey, you don't get yourself a vacation home every day, now do you?

Looking Towards the Future with your Cabo Real Estate Purchase

To say that the Cabo San Lucas real estate scene is booming would be the understatement of the century, and boy is it not slowing down any time soon. Just for context's sake, real estate companies have cashed in over 200 million USD in accepted Cabo offers alone as of 2021! Yes, you read that right, that's over a 100% increase compared to 2020, and that's only one company we're talking about!

Cabo is, without a doubt, the Wild West in terms of opportunity, a true hotspot mainstay of vacation homes worldwide. Bidding wars and promising developments popping out left and right, ever-increasing demand, and that tried and true Baja California qualities to back it up, all par for the course for Cabo San Lucas.

Purchasing Your Home in Baja 

Any major purchase requires research, careful analysis, consideration, and thought, especially in a foreign country. Home buying isn't any different! Determining the right location, the number of bedrooms or bathrooms needed, and outdoor space are the easier things.

However, there are many other factors to think about in your home or vacation home search in Mexico. From your initial search to the moment you get the keys to your new home, Baja Homes for Sale will be there, guiding you through the process. 

As area experts, we can help educate you on the different neighborhoods, schools, and other local community amenities that suit your lifestyle.

Home Buying Can Be Easy

As your buying agent, we can help streamline the process of buying a home and make it easier for you. We've aligned ourselves with the top professionals in the industry, and once an offer has been accepted, we will personally help facilitate the process to close on the home by guiding you through the entire buying process as it is different than the process in Canada or the US.

Curious about what's happening in your neighborhood? You can create a custom market report to see what's active, under contract, and sold in your neighborhood! 

Considering selling or refinancing your home? Get an INSTANT property valuation now!

Contact us today to find out how we can be of assistance to you!