Baja / Los cabos

[matt]

Hi all – am thinking about buying a lot or home in the San Jose Del cabos or east cape area. Am wondering what you have been hearing about the market and its future outlook. It seems to have peaked shortly after our peak and then collapsed and stagnated since 2008. Recently hurricane odile really hammered the area. Properties seem to stay on the market a very long time so am wondering if this is a buying opportunity. Lots of big name hotels moving in… Very low property taxes and healthcare… Short flight from so-cal and popular with Canadians… Can still purchase a largish oceanfront lot on the east cape for a few hundred thousand. Oceanfront or nice gated community ocean view home in the 1m plus range…. And all the way down to small ocean close casitas for a couple of hundred k. Would love to hear your thoughts.

[HLS]

Simple question WHY??
Even if all your assumptions are correct,
You have unknown risks in a 3rd world country.
What are you trying to accomplish ?

You think the legal system will treat you fairly if you ever have a dispute ?
Do you know what the title rights are in Mexico
and how good title insurance is there ?
Are you a Mexican citizen ?

PS: the Canadian dollar is ‘relatively’ weak.
I don’t know what the laws are for foreign ownership there but I’d NEVER consider buying property in Mexico.

You are also dealing with potential income tax concerns/double taxation no matter which border you cross.

[FlyerInHi]

Sounds like a nice lifestyle.
I don’t really like Mexican culture or cuisine so it’s not for me, but people love it. The online pictures look good

As far as buying in Mexico, plenty of people have done so successfully, so you can too.
LJ banker, who posted here bought in Mexico. He said he loves it and loves the health care. So it can be done if that’s what you want.

[scaredyclassic]

The robosigning lawsuits were in full swing while I was in escrow, I barely trusted the u.s. title system…mexico…I think I’d rent…but I’m scared.

[mixxalot]

Definitely get a Mexican lawyer familiar with real estate laws as they pertain to foreign ownership.

[matt]

Thanks for the feedback. I neglected to mention my wife is from Mexico so we can own free and clear any property including close to the coast. As to why are we interested?

1. Oceanfront home under 1m… 1 acre lot, steps down to secluded beaches that stretch for miles … Could never afford anything similar in San Diego… Made of real concrete not sticks… Property taxes of a few hundred dollars per year
2. Gorgeous clean ocean, surf, fishing, snorkeling, great water temp
3. Low cost healthcare
4. Low cost help/ maid
5. Nice climate not as humid as further south
6. 2 hr direct flight from San Diego
7. San Jose is a very nice town with low crime restaurants galleries… Had a seafood feast with beers for 20 bucks

Main concern is hurricanes and liquidity (as mentioned property doesn’t seem to be moving very fast)

[livinincali]

[quote=matt]Thanks for the feedback. I neglected to mention my wife is from Mexico so we can own free and clear any property including close to the coast. [/quote]

This is one big advantage you have. You aren’t faced with as big of a risk concerning “corrupt” government. As for hurricanes, a concrete structure should hold up to a hurricane fairly well but you could certainly end up with some damage. I don’t have any idea about property insurance in Mexico or if you can even get it. Most insurance companies don’t insure against the inevitable.

As for liquidity it probably isn’t that liquid. The housing market in San Diego over $2 or 3 million dollars isn’t very liquid either. There aren’t many Mexican nationals that can afford coastal property in Mexico so you’d have to hope that the Mexican government establishes stronger property law protections for foreign nationals. That way people might feel safer about investing a significant sun of money in Mexican property. It’s probably not the best bet in the world but who knows.

[FlyerInHi]

[quote=matt]Thanks for the feedback. I neglected to mention my wife is from Mexico so we can own free and clear any property including close to the coast. As to why are we interested?

1. Oceanfront home under 1m… 1 acre lot, steps down to secluded beaches that stretch for miles … Could never afford anything similar in San Diego… Made of real concrete not sticks… Property taxes of a few hundred dollars per year
2. Gorgeous clean ocean, surf, fishing, snorkeling, great water temp
3. Low cost healthcare
4. Low cost help/ maid
5. Nice climate not as humid as further south
6. 2 hr direct flight from San Diego
7. San Jose is a very nice town with low crime restaurants galleries… Had a seafood feast with beers for 20 bucks

Main concern is hurricanes and liquidity (as mentioned property doesn’t seem to be moving very fast)[/quote]

It’s a lifestyle. Do it!
I’m imagining a house with large bay windows onto the ocean!

[Anonymous]

[quote=matt]Thanks for the feedback. I neglected to mention my wife is from Mexico so we can own free and clear any property including close to the coast. As to why are we interested?

1. Oceanfront home under 1m… 1 acre lot, steps down to secluded beaches that stretch for miles … Could never afford anything similar in San Diego… Made of real concrete not sticks… Property taxes of a few hundred dollars per year
2. Gorgeous clean ocean, surf, fishing, snorkeling, great water temp
3. Low cost healthcare
4. Low cost help/ maid
5. Nice climate not as humid as further south
6. 2 hr direct flight from San Diego
7. San Jose is a very nice town with low crime restaurants galleries… Had a seafood feast with beers for 20 bucks

Main concern is hurricanes and liquidity (as mentioned property doesn’t seem to be moving very fast)[/quote]

Why Cabo? Every advantage you mention here can be accomplished in the Tijuana-Ensenada region (except warm water) for far less money. Check out Real del Mar, gated community with ocean views and golf course less than 30m from the border.

1 million for a house anywere in Mexico is crazy overpriced.

[matt]

Thanks for the encouragement flyerinhi. My view on Tijuana and Ensenada is that it’s full of “cholos” / gang bangers… Feels less safe less clean. In Los cabos you have a tiny population and a much more pristine environment.

[Anonymous]

[quote=HLS]… I’d NEVER consider buying property in Mexico.[/quote]

Well that’s one less bidder the OP will have to compete against.

My wife and I are fond of that area and always were intrigued by those properties. We never looked at them seriously though.

Sure it’s more risky than buying in the US, but I don’t think “OMG It’s Mexico!” is an accurate assessment of those risks. If you have ties to Mexico and a competent real estate lawyer I’m sure you can make an informed decision.

Personally I would only do it with money I could afford to lose completely – which in my case is not enough to buy anything worthwhile there. If you do get something, I could be a potential part-time renter…

[Escoguy]

1. Do be sure you can get good insurance. A person I work with told me about how in Cabo after the last hurricane, some homeowners had to put up another 250K to rebuild as the insurance didn’t fully cover the loss. Do some research into this.
2. Don’t buy off plan ever in Mexico or most places in the world.
3. Get a lawyer who knows what he/she is doing.
4. Make sure the builders can post bond and the bank provides a written guarantee. Be sure you have a plan if a builder fails.

I personally wouldn’t put more than 10% of my assets (net worth) in one property in Mexico.

Good luck!

[Anonymous]

[quote=matt] My view on Tijuana and Ensenada is that it’s full of “cholos” / gang bangers… Feels less safe less clean. In Los cabos you have a tiny population and a much more pristine environment.[/quote]

Los Cabos is full of Americans and Canadians which is why it is very expensive by Mexican standards.

[temeculaguy]

I’m not a big fan of Cabo because of the landscape. I have relatives who have had a second home in Puerto Vallarta for decades and love it. For a vacation Zihuatanejo is a fave but I see how PV offers more for ownership and part time/full time living. I’ve always seen Cabo as a cruise ship stop good for a few hours, not much more. But my opinion should be taken with a grain of salt, I see all of Mexico as a great vacation spot, not an investment. But then again, my other half is of Mexican heritage, speaks Spanish and I still have to coax her to even go on vacation there. But then again she doesn’t have a romantic view of her ancestral home like others might, she owns not one Mexican flag. She reminds me regularly that her ancestors fled Mexico for multiple reasons, none of which have changed. Why would she want to go back for more than a few days except in a secluded resort. Dial up internet is also cheaper, I don’t see people rushing to buy those 14400 baud modems. I love visiting, but I wouldn’t buy property there. My Mexican future wife would kill me.

[La Jolla Renter]

I’m lucky enough to be invited to stay here every year.

http://haciendacabosanlucas.com/

Amazing condo… 3,500+ sqft, 12ft ish ceilings, with own private infinity pool and hot tub. I think the purchase price was just over $3M and another $1/2M in furnishings and art.

It sure is nice to have a few rich friends, especially really down to earth nice ones.

Additionally, I noticed that the place has what look like marine grade stainless steel ancors in the stone on the exterior around the windows and doors to board up the place prior to hurricanes.

[Author]

Posts