Why There Has Never Been a Better Time to Buy a House in Cabo Than Right Now!
Los Cabos, Cabo for short, has been much in the news lately. But then, that’s often the case. Cabo is a vacation playground for millions of tourists annually, among them some of the world’s most famous–and media scrutinized–actors and athletes.
Everyone loves Los Cabos, it seems, and why not? It’s a paradise, boasting over 350 days of glorious sunshine per year on average, and over 100 miles of gorgeous coastline with beachfront ocean-view vantages. The only surprise really is that it has taken so many people so long to realize Cabo can be much more than merely a vacation playground.
It can also be a home, either full-time or as a secondary residence. But the realization has finally happened on a significant scale, and Los Cabos is now in the midst of its biggest ever building and development boom.
So if you think there has never been a better time to buy a house in Cabo than right now, you’re right. Because the best locations–that is to say, the best beachfront sites–are going fast.
The Value of Scarcity in Los Cabos Real Estate
It may seem strange to talk about scarcity at a time when so many new Los Cabos, México real estate opportunities are opening up, but let’s be honest… Not all properties are as sought-after or spectacular as others.
One of the most notable aspects of the current building boom is that, for the first time, developers are taking advantage of some of the jaw-dropping settings located just outside Cabo San Lucas and San José del Cabo.
Homes in these new communities are in hot demand for several reasons, the most obvious being that they offer a level of beachfront privacy impossible within the boundaries of a modern city, yet they remain conveniently close… so close that homeowners —like El Encanto de la Laguna ones, can still enjoy easy access to the most excellent shopping, restaurants, nightlife, and events.
Benchmark luxury brands Ritz-Carlton and Four Seasons have both built a resort and residential developments to take advantage of this unique attraction –beachfront privacy plus convenient city access– but they were beaten to the best such location by an exciting luxury community known as El Encanto de la Laguna.
Only a few minutes by car from San José del Cabo and its international airport, El Encanto de la Laguna nonetheless feels secluded and removed… a secret oasis, one whose palm-shaded beachfront vistas and gated luxury lifestyle are reserved for a privileged few.
And very few of its stunning, elegantly designed properties remain unsold.
So in this sense, when to buy and where to buy in Los Cabos are really variations of the same question, because when you buy determines what’s available.
If you want the best, in other words, now is an excellent time to begin looking for your Los Cabos dream home. Here are a few factors to keep in mind as you get started.
The Value of Relative Location
We mentioned location in terms of Los Cabos, but it should also be considered within the broader contexts of the Baja California peninsula and of México because these geographic considerations are essential and offer added value.
Did you know, for instance, that not only do luxury beachfront homes in Los Cabos list for significantly less on average than similarly situated properties in the U.S., they also provide their owners with a lower cost of living and much lower property taxes?
It’s true. The property tax rate in Los Cabos–0.1% of the value at the time of purchase, assessed annually–is well below that of every state in both the U.S. and Canada. The rates for California, Texas, and Vancouver, for example, are 0.79, 1.86, and 0.25%, respectively. And the cost of living in Los Cabos, although high by Mexican standards, is considerably lower than any comparable area within the boundaries of its North American neighbors.
As for beachfront real estate. Look at the list prices for homes in California versus Baja California Sur–say beachfront luxury homes for sale in San José del Cabo at El Encanto de la Laguna–and you’ll notice that the difference in homes of similar size and setting is measured in the millions of dollars.
Los Cabos isn’t the only place in the world you can find values on beachfront homes, but it is the only place that lies in such close proximity to the United States. New homeowners, therefore, are never more than a short plane flight away from visiting friends and family, and language and cultural acclimation issues are minimal.
As a matter of fact, there are an estimated 15,000 U.S. and Canadian citizens who maintain full or part-time residences in Los Cabos, and close to a million on the Baja California peninsula as a whole. So there’s a thriving community of people with similar backgrounds living here already, with many more expected to join this growing demographic in the coming years.
The Value of Los Cabos Real Estate as an Investment
Based on the value of buying beachfront real estate in Los Cabos relative to the U.S., you might think the investment potential is limited. Not so.
Buying real estate in Los Cabos is not only a safe investment, but the upside potential is also immense. And this is an investment that can pay dividends immediately, not just at some indeterminate time in the future.
For starters, you, as a homeowner, can choose to rent your property when not in residence or utilize it solely as a rental. This allows you to make mortgage payments with rental earnings while also building equity you can use to leverage additional investments.
Not interested in renting? Your home is still paying off as an investment. Notably, it’s acting as a hedge against inflation. Since housing prices and increases are correlated, your net worth is rising concurrently to the cost of living. It’s also adding diversity to your portfolio with a physical asset almost guaranteed to appreciate well over time.
Properties on beachfront land never depreciate for very long, after all, because the land of any kind is a finite resource, and this is the most sought-after kind there is. On the contrary, the long-term resale potential of such scarce and scenically set homes is beyond measure.
The Value of Opportunity
Life moves fast. The golden opportunities of today may no longer be there tomorrow.
Meaning: You can always buy a house in Cabo or even buy a condo in Cabo, but you can’t always buy one in El Encanto de la Laguna. Opportunities are limited.