You may have heard of people from all over the world buying houses, condos, and villas in Cabo San Lucas. Owning property here is like getting a piece of paradise because of the fantastic ocean views, activities, and relaxation options in the Los Cabos area. But is it a good investment to buy property in Cabo San Lucas? The answer is a resounding yes!
For many property owners, purchasing real estate in Los Cabos has been a worthwhile investment, and here are 5 great reasons why.
Timing: Real estate boom in Cabo San Lucas
Los Cabos – and Cabo San Lucas in particular – has been having a real estate development surge recently, with so much new infrastructure being built in the last five to fifteen years. From resorts to apartment complexes to master-planned communities, new developments are popping up all over the city, many of which are offering beachfront locations and overlooking vistas.
However, you don’t want to wait too long to take advantage of this boom. Property prices are only expected to rise in the next few years, especially in the now-popular market of Cabo San Lucas. Properties are being snapped up fast in this region! There’s never been a better time to buy property in this Baja California city.
Location: Paradise in proximity
Cabo San Lucas has so much natural beauty that it’s quite surprising to know how close it is to major American cities. It’s a mere two-hour flight from San Diego, California and easily accessible from various other airports in the USA. This is why for US and Canadian property buyers, Cabo San Lucas is an easy choice.
For new residents, this proximity means it’s easier to relocate to Cabo, while for part-time residents, traveling to and from this city is cost-efficient.
Costs: Lower costs for high-quality life
There’s a wide price range of properties in Cabo San Lucas, accommodating lower price points. But besides property prices, it’s the low cost of living in Mexico that attracts home buyers.
Consider this: the annual property tax in Los Cabos is only 0.1%, while in California, it’s 0.79% and in Texas, 1.86%! The overall cost of living is also much lower than in other North American countries. For instance, a couple can live comfortably in Cabo San Lucas spending just $1,000 a month, or even lower if they live like locals. The cost of healthcare is also about half that of the US, and it’s just as excellent.
Price offset: Renting out your property
Many of those who buy homes in Cabo are making good returns on investment by renting out their property to vacationers. Property rentals are a thriving industry in this region because of the large volume of tourists every year. The margins are favorable, too. A home valued at $300,000 can be rented out at $160 nightly, on average. That makes a total profit of about $3,520 a month. The higher the property value and the more luxurious it is, the more profits the owner can get.
Renting out your Cabo property is ideal if you are a part-time resident of the city or are only keeping it as your vacation home. But remember, it takes effort and attention to maintain your property in Los Cabos. It’s best to have a professional property management team do the upkeep and promotion of your Los Cabos property so that it can attract quality renters.
Future potential: Cabo’s continuing popularity
Owning a Cabo San Lucas property now guarantees that you get a piece of the action as Los Cabos continues to grow popular in global tourism. After the pandemic, international travel is gradually thriving again and tourism trends are reviving fast. People who have been locked down for so long are craving a holiday on a sunny beach or even retirement in a tropical town. Cabo San Lucas will likely continue to rise as a premier destination for travelers and expats.
Get the pros to manage your Cabo property
If you’re buying a vacation home in Los Cabos, it’s wise to entrust it to a professional property manager. Come to Cabo Villa Rentals is an accredited and highly experienced property management firm with a 20-year track record in Los Cabos. We’ve effectively managed and marketed villas, condos, and houses in Cabo San Lucas, to the utmost satisfaction of owners and guests.
Let’s talk about your property in Cabo San Lucas. Call 1.800.975.5569 to learn more!