Buying land In Cabo
About Cabo
Real Estate in Cabo is becoming a major hot spot for investment as evidenced by the amount of luxury hotels and residences that are being built including The Solaz, The Montage, The Ritz Carlton Zadun, The Four Seasons East Cap and Hard Rock Hotels. Reasons include close proximity to a major International Airport and its direct flights, an influx of companies moving from Asia to Mexico, fantastic year round temperatures, low property taxes, vast amount of activities as well as it being one of the safest locations in all of Mexico. Whether you are looking for a vacation property for personal usage, rental income, or retirement Cabo Build can support your investment.
Land Buying
One of the most asked questions is if Americans or Canadians can own land in Cabo San Lucas. The answer is Yes through a Fideicomiso, a 50 year renewable trust. The purchaser holds the same rights as a property owner in the U.S. or Canada, including the right to enjoy, sell, rent, improve the property, etc.
This is not to be confused with a land lease. The property purchased is placed in a trust with the purchaser named as the Beneficiary of the trust — the purchaser is not a lessee. If the property purchased is already held in a trust, the purchaser has the option of assuming that trust, or having the property vested in a new trust or in a Mexican Corporation. Cabo Build will provide you with the best real estate option.
These transactions can involve many parties which include the buyer, seller, escrow agent, closing agent, and the notary public. Cabo Build manages all of these real estate activities as a single point of contact.
Land Selection Process
The land selection process is one of the most critical elements to building a home. It determines the build feasibility based on several factors such a soil integrity, grading, zoning, time to build as well as HOA requirements that can drastically effect the overall budget. Cabo Build helps manage all of this on the front end in effort to ensure there is no cost creep throughout the build cycle. This early involvement mitigates the risk of both build and financial milestones.
Financing
Getting a mortgage in Cabo San Lucas and the rest of Mexico is not the norm. Land purchases are typically in cash or through a HELOC on an existing home in the United States or Canada. Unlike buying a home with huge cash outlay, Cabo Build offers a payment schedule that allows you to spread out payments throughout the build cycle preserving your cash flow.
Property Taxes
Property taxes in Cabo are extremely low, another great reason for investment in Cabo San Lucas. This is very attractive especially to people looking for a retirement property. As an example, this recent build with a land and construction value of $425K costs less than $1000 a year in property taxes.