Everything You Need to Know About Buying a Vacation Home in Cabo San Lucas

Paul Goldsmith  |  May 12, 2022

Everything You Need to Know About Buying a Vacation Home in Cabo San Lucas

Cabo San Lucas has been a popular vacation destination for decades because of its prime location on the southern tip of Baja California. The area offers everything under the Mexican sun for fun, including beautiful beaches, golf courses, fabulous restaurants, and a vibrant nightlife scene.

Many Americans and Canadians make frequent trips to Cabo San Lucas for everything from long weekends, family holiday trips, annual vacations, or even months to escape cold northern winters. If you have visited Cabo often, it might make sense to consider buying a vacation home in this city of 200,000 residents. Owning Cabo San Lucas real estate will allow you to save money by not paying for hotels and meals at restaurants; plus, it’s simply an excellent investment.

When you’re not using your vacation home in Cabo, you can rent it out to people looking to stay in a comfortable house rather than in a hotel. The income you receive from renting it out will help defray the costs of purchasing and maintaining the home. Another thing to consider before buying a vacation home is that it ultimately can be your retirement home once you’re ready to hang it up.

Why Cabo?


There are many reasons to consider buying a vacation home in Cabo San Lucas. Among them are the abundant activities on and off the water, the incredible and varied scenery, and a range of Cabo San Lucas real estate offerings such as condos and seaside homes that will be a great investment no matter how you use them.
 


The weather


It’s hard to beat the weather in Cabo San Lucas, which is warm and comfortable all year long. It has a tropical desert climate, which means there isn’t much rainfall, and it’s almost always sunny, which makes it perfect for vacations.


Easy travel


Cabo San Lucas is easy to get to from practically anywhere in the United States, particularly from the West Coast and Texas. Having many convenient flights available is a bonus because you’ll spend less time traveling and more time enjoying your luxurious vacation home in the gorgeous locale. 


Cost of living


The cost of living in Cabo San Lucas is lower than in the United States and Canada, meaning your dollar will go farther at the grocery store, restaurants, nightspots, and for expenses such as utilities. That means more money in your pocket to put toward your vacation home. You should factor in homeowners’ association dues if you buy a home in a development, but property taxes are usually lower than in the United States and Canada.


Activities



The area is filled with activities for people who buy Cabo San Lucas homes for sale. There are miles and miles of beaches where residents can swim, sunbathe, surf, and go kayaking or scuba diving. Other activities on the water include whale-watching trips and sports-fishing expeditions. Away from the water, residents can enjoy nearly two dozen championship golf courses, hiking, mountain biking, and horseback riding. There’s truly an activity for everyone in this paradise!


Sense of community


Many other Americans and Canadians live and vacation in Cabo San Lucas. Having that sense of community will make the transition easier, whether you’re spending just a few days at a time in Cabo or a much longer period after buying your vacation home.


Rentals


Cabo San Lucas is the perfect place to own a vacation home because it is a year-round tourist destination, and you will be able to rent it out when not using it. That will allow you to earn income to help offset your costs. While winter is considered the high season, the weather is great all the time. For instance, families often travel to Cabo for their summer vacations, and visitors come for golf and fishing all year long. You can count on having a steady stream of renters looking for great places to stay that offer various amenities.

Buying homes in Cabo


Despite what you might have heard over the years, it is legal for Americans and Canadians to purchase Cabo real estate, regardless of the type and how you plan to use it. But there are differences that you should fully understand before you wade into the process.

The significant difference in purchasing real estate in Mexico is how the property is held. Years ago, Mexico established a Zona Restringida, or restricted zone, within 31 miles, or 50 kilometers, of the coastline and within 62 miles, or 100 kilometers, of an international land border. Outside of the restricted zone, foreigners can own property in their name, like Mexican citizens.

However, inside the zone, which would apply to houses for sale in Cabo San Lucas, non-citizens have not been able to own property in their name but can use a trust to purchase the property. This trust is known as a fideicomiso (fee-dey-com-EES-oh). A fideicomiso can be transferred easily if you ever sell your property.

Work with an agent

 

Buying Cabo San Lucas real estate to use as a vacation home is different from buying a vacation home in the United States and Canada. Because of this, you need to hire a real estate agent who has years of experience in the Cabo market and is an expert at these transactions. Your agent will explain each step as they guide you through the process.

Be sure to check the agent’s credentials, sales stats, and references. You can read testimonials online from satisfied clients. When you interview agents, ask them to detail their recent record of success and their strategy for helping clients find houses for sale in Cabo San Lucas that make great vacation homes.

Once you’re ready to begin looking at houses for sale in Cabo San Lucas, let the resident experts at the Goldsmith Group guide you seamlessly through the process.




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