Los Cabos Property Guide: Answering Your Most Pressing Questions

Imagine starting each day with panoramic views of the Sea of Cortez, spending your afternoons on pristine golf courses or pickleball courts, and ending your evenings with spectacular sunset views. Los Cabos was once a humble fishing village and is now home to the most desirable luxury real estate market in México.

However, purchasing property in this paradise comes with unique regulations and considerations that often catch first-time international buyers by surprise.

At Goldsmith Group Los Cabos, we've successfully guided countless clients through the intricacies of Cabo real estate. During our recent interactive session at the San Jose del Cabo Art Walk, our seasoned real estate professionals fielded numerous thoughtful questions. Here, we've compiled the most frequently asked questions with straightforward answers based on our deep local knowledge.

San Jose del Cabo vs. Cabo San Lucas: What's the Difference?

Cabo San Lucas is known for its lively atmosphere with its marina, restaurants that maintain their energy well into the night, and the exciting energy that many vacation homeowners desire. It's ideal for those who want to be at the center of activity.

Beyond its renowned nightlife scene, Cabo also has a big wellness community centered around yoga, pickleball, and much more. You’ll also find many exceptional culinary experiences including the refined dining at Don Manuel's at Pedregal, authentic Italian flavors at Salvatore G's, and the craft beer experience at Baja Brewing, which features impressive rooftop views.

San Jose del Cabo is known for the historic Art District, characterized by colonial architecture and charming cobblestone streets. This is where the Thursday evening Art Walk has become a cherished tradition among locals and visitors alike.

The evolving culinary scene emphasizes locally sourced farm-to-table ingredients, exemplified by dining destinations like ACRE Restaurant nestled among palm trees, the magical setting of Jardin Secreto (The Secret Garden), and the innovative farm-to-table concept at Flora Farms—all highlighting San Jose's connection to the surrounding landscape.

While often described as peaceful, San Jose del Cabo also offers plenty of lively and adventurous experiences, including the popular Saturday Organic Market, various sports and entertainment events at the Convention Center, and an active nightlife centered around Plaza Mijares.

Connecting these two cities is The Los Cabos Corridor—the scenic coastal stretch featuring luxury resorts, world-class golf courses, and communities designed to maximize the stunning ocean views.

How Can Non-Mexican Citizens Own Property in Los Cabos? Understanding the Fideicomiso

The fideicomiso is a bank trust established under Mexico's Foreign Investment Law that allows non-Mexican citizens to purchase property within the restricted zone (50km from coastline and 100km from international borders). Authorized by the Mexican Ministry of Foreign Affairs and formalized through a Mexican Notary Public, this legal mechanism designates a Mexican bank as trustee to hold the property title, while the foreign buyer becomes the beneficiary with complete ownership rights.

This trust operates for a renewable 50-year term and provides beneficiaries with full authority to use, renovate, rent, sell, or bequeath the property. Major financial institutions commonly serving as trustees include Banco Santander, BBVA Bancomer, Banamex, and Intercam, each maintaining specialized departments for managing these trusts.

Which Los Cabos Neighbourhoods Offer the Best Investment Potential?

The premier golf communities consistently show strong appreciation and rental appeal:

Cabo del Sol combines luxury with convenience. Jack Nicklaus' Cove Club Course anchors this oceanfront community, where properties feature dramatic Sea of Cortez views. The resort infrastructure supports a robust rental market for owners looking to generate income when not in residence.

Palmilla residents enjoy exclusive access to a championship golf course and one of the area's few swimmable beaches in San José del Cabo. Its proximity to the One&Only Palmilla Resort and Shoppes at Palmilla creates a positive effect that enhances property values throughout its beautiful neighborhoods.

Querencia elevates exclusivity with its Tom Fazio-designed course and member-only approach. Unlike communities that embrace resort energy, Querencia intentionally cultivates tranquility—appealing to buyers who prioritize privacy alongside refinement.

Diamante features a magnificent 10-acre swimmable saltwater lagoon—the largest in North America. This prestigious community boasts world-class amenities including two signature golf courses (a Davis Love III Dunes Course and a Tiger Woods designed El Cardonal), a 14-acre practice facility, spa services, multiple dining venues, and a dedicated concierge team. The private setting and controlled access make Diamante particularly attractive to those seeking both luxury and convenience.

Los Cabos offers numerous communities to choose from. Your ideal neighbourhood ultimately depends on your lifestyle preferences, desired amenities, and budget.

What Are the Costs of Owning and Maintaining a Los Cabos Property?

Los Cabos features properties across virtually every price range, with condominiums starting around $200,000 USD in developing areas, with higher prices for newer developments or those with resort-style amenities. Luxury oceanfront villas can reach $10+ million in premier locations. This remarkable diversity means there's something suited for nearly every budget and lifestyle preference.

For maintenance expenses, here's a breakdown of typical costs:

HOA fees: $100-$1,000+ monthly, varying significantly based on amenities. Communities with extensive landscaping, security, and resort facilities command premium rates.

Utilities: Electricity costs increase during summer months when air conditioning becomes necessary, but typically range from $50-$300 monthly. Water remains affordable at approximately $10-$50 monthly, depending on household size.

Property taxes: One of Mexico's most homeowner-friendly aspects—annual property tax averages just 0.1% of assessed value, significantly lower than most North American rates.

How Long Does It Take to Buy Property in Los Cabos?

The real estate purchase timeline in Los Cabos typically spans 45-90 days from accepted offer to final closing. The process begins with an accepted offer and earnest money deposit, followed by a period of due diligence that includes property inspections and document collection. This initial phase usually takes 2-3 weeks to complete.

The next stage involves the closing agent coordinating with the Mexican Notario Public to verify property details, prepare legal documentation, and ensure compliance with Mexican law—a process that generally requires 4-6 weeks.

The final phase of the transaction focuses on closing preparations and typically takes 2-4 weeks. The exact closing date is determined by the Notario once all documentation and permits are completed, usually set within the final two weeks of the process. Cash purchases often move more quickly through this timeline, while transactions involving financing or special permitting requirements can extend beyond the typical timeframe.

The fideicomiso (bank trust) establishment represents the most variable component in the process, occasionally adding additional weeks depending on the bank's processing efficiency and the complexity of the property's legal status.

Are Financing Options Available for Non-Mexican Citizens?

Financing options for non-Mexican citizens have expanded significantly in recent years. MoxiMortgage, a global mortgage company, offers the opportunity to secure a mortgage in Baja or refinance your home, with competitive interest rates that weren't previously available in the Mexican market. They require a 35% down payment but offer fixed terms for up to 30 years.

Beyond MoxiMortgage, some developers continue to offer direct financing on pre-construction properties with attractive terms to incentivize early buyers. For those preferring conventional approaches, many international buyers still leverage home equity from their primary residence or work with investment-focused lenders in their home countries who understand the unique aspects of vacation property financing.

Can I Generate Rental Income from My Los Cabos Property?

Absolutely. Los Cabos' thriving tourism industry—which attracts well over 3 million visitors annually—creates exceptional rental opportunities for property owners. The region's high-season from November through April sees occupancy rates exceed 85% in desirable areas, while the growing shoulder seasons (May/June and October) continue extending the rental calendar each year.

Tourism-focused properties in Cabo San Lucas, San José del Cabo, and along the Corridor can achieve significant returns during peak periods when visitors from the U.S. and Canada are seeking warm escapes from winter weather.

While vacation rentals dominate the market, long-term rentals (6-12 months) provide another viable option, particularly appealing to the growing community of digital nomads and remote workers attracted to Cabo's combination of amenities and lifestyle.

If you decide to pursue this route, property management companies can help you handle all aspects of both short and long-term rentals for a fee of 15-25% of revenue, offering services from marketing and guest screening to maintenance and housekeeping.

Before purchasing with either rental strategy in mind, verify your chosen community's specific policies, as some HOAs have implemented restrictions on short-term rentals to maintain neighbourhood tranquility and character.

Your Los Cabos Dream: Making It Reality

Purchasing or investing in Los Cabos real estate means securing your place in one of North America's most stunning destinations. While property values continue their steady appreciation, the true reward comes from the lifestyle transformation that awaits: mornings with coffee overlooking the Sea of Cortez, afternoons on world-class golf courses, and evenings watching the sunset paint the sky as it disappears into the Pacific. This unique peninsula offers that rare combination of natural beauty, premium amenities, and authentic cultural experiences that many seek but few decide to embrace.

Our team at Goldsmith Group Los Cabos brings decades of combined local and international expertise to guide you through every step of your purchase journey. We've helped hundreds of clients just like you navigate the process of finding and securing their piece of paradise. The dream of owning in Los Cabos is more accessible than you might imagine—and we're here to help you make it happen.

Contact Goldsmith Group Los Cabos today to begin your journey home to paradise!