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If you have ever visited Cabo, and thought about going back long after your vacation was over, you may be wondering “what is the process of buying a home in Cabo?”. In the midst of its captivating natural beauty and sunny beaches, Cabo San Lucas offers a wide selection of residential and commercial real estate. It is a very desirable location that has been attracting people with its Mexican flavor and other unique attractions for decades. This makes Cabo San Lucas one of the most important cities in Mexico.
The city’s popularity also attracts many expats and investors looking to buy a vacation home. Although the weather here is almost always perfect, living permanently in Cabo will take a little bit of work. A lot of things must be considered when buying property here. Whether you need to buy a home or an investment property, you will appreciate all the available options in this great location.
The process of buying a home in Cabo is something that you should thoroughly understand. If you want to make the purchase of your dreams come true, keep reading to learn what it takes to become a homeowner in Los Cabos.
Buying And Selling Property In Cabo
Living in Mexico can be a luxury experience for individuals living elsewhere. Compared to the rest of the world, Mexico has relatively cheaper living and residential costs. The country is a preferred destination of real estate investors. Buying and selling properties in Cabo Mexico is one of the best ways of acquiring a property at a prime location. There are many benefits associated with buying a home in Cabo Mexico. Some of the benefits that make Cabo an excellent choice to buy or sell real estate include:
A large expat community;
English speaking locals;
Increasing Property values;
A strong U.S dollar
Modern designs and infrastructure;
Good ROI (Return On Investment); and
Short travel distance.
Buying a house in Cabo for the first time can be a little overwhelming, especially for people who do not have any experience with Mexican property law. However, the process doesn’t have to be complicated. Due diligence is a must for any property buyer in Cabo. Understanding the zones, restrictions and HOA’s of popular areas will make you immensely valuable as a buyer. Cabo life at it’s finest offers a lifestyle unequaled anywhere else in the world.
Buying or selling a property in Cabo often involves many parties, each with its own purpose. Those who are working together to close the real estate deal include the buyer, seller, escrow agent, closing agent, and notary public. There are also banks and land offices that may have to be involved.
Home Ownership In Cabo San Lucas
Expats living in Cabo San Lucas and wishing to own property must adhere to the required Mexican Fideicomiso. This legal structure is the only way one can hold title to land within the restricted zone (50 kilometers of coast or within 100 kilometers of actual border).
Homeowners in Cabo San Lucas are able to become beneficiaries of a trust (the Fideicomiso) that holds the title to their land for 50 years, after which time it will need to be renewed. However, If you buy property outside of the restricted area, you can still hold title.
Los Cabos Financing
Getting financing in Los Cabos and the rest of Mexico is not common; many people finance a home purchase by putting up the whole purchase price upfront. That is not required, however. Mexican mortgages are available, although they carry high interest rates and are a very tedious process to obtain.
If you opt for Mexican financing, look for properties in new developments that offer financing options for local and expat buyers. With the down payment in hand, the buying process will be easy.
Whether you are paying in cash or getting financing from a Mexican bank, an independent escrow company will be useful. The escrow company will handle your finances and keep in touch with the closing agent to ensure that the agreed amount is transferred once the property signing is done.
The benefits this option offers are many. Having a reputable third party handling any money matters provides comfort and security for both parties. What’s more, this option can help reduce closing time by several weeks as it removes the need for checking accounts to be opened and permits local money transfers.
Mexican Property Taxes
After buying a property, you will be responsible for property taxes. As a buyer in Mexico, the amount you pay is based on two things:
How much the seller used to pay; and
How much your property was worth when you bought it.
You update your home’s value annually with your municipal authority. Any updates will affect the tax you pay at the end of the year.
Finding The Best Real Estate Agent In Cabo
As a visitor to Cabo, you may want to know the best realtor in Los Cabos to hire in order to make your dream of owning a property in this region come true. Getting a good realtor, such as the team at OCeanside Real Estate, can ensure that all aspects of the property transfer are carried out smoothly and on time. A knowledgeable and experienced agent will also guide you through the best financing option (if available) by identifying the most suitable lender for your profile.
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