In 2022 real estate in Los Cabos has increase its value more than in any other real estate market in Mexico.
Due to the high surplus value that the real estate market in Los Cabos is showing, smart investors are taking advantage of that, whether it is to acquire a second home or to relocate entirely. In addition we continue to see new luxury resorts and community developments.
In our article we explain the reasons why acquiring a property in Los Cabos is a great investment you can make.
Why Investing in Real Estate is Good Decision?
Historically long term Real Estate investing has outperformed every other asset class over the past 20 years. The real estate sector has many advantage. For one, it is easy to buy and finance. There are no insurmountable financial barriers to entry. It’s easy for most investors to improve their properties, use the tax advantages and generate passive income through renting.
Real Estate investment offers constant and reliable results:
- Offers predictable cash flow
- Increases its value hedging against inflation levels
- Provides high performance potential and long term appreciation
Los Cabos in 2022 has shown record growth and it is not stopping. Investors securing a property now will be able to enjoy an outstanding quality of life and potential investment income for the years to come. Additionally the infrastructure continues to grow exponentially making this destination easily accessible and attractive for millions of tourist, homeowners and investors.
Cabo Real Estate Capital Gains
The Real Estate Capital gain is the gain obtained as a result of a positive difference in the price at which a property was purchased and the price of its sale. In Mexico Real Estate is sold in USD and recorded in Pesos. Long Term Capital Gains in Los Cabos is 35% however there are many legal ways to offset and reduce your tax implications.
Let’s have a look together at a few reasons that make Los Cabos and Baja California Sur the right choice for many investors.
1. Quality of Life
The beaches and landscapes of Baja California Sur are beautiful, but it is not just for this reason that each year more than 5 million tourists arrive in Los Cabos.
The climate of Los Cabos is divine, with more than 320 days of sunshine a year. The mountain ranges rise more than a mile above sea level and offer incredible scenery.
The peninsula of Baja California Sur has excellent transport connections either by air, sea or land with a world-class infrastructure.
Los Cabos offers all the comforts of first class living. Excellent schools, hospitals and shopping centers. Restaurants with innovative concepts, cultural and sporting events.
In addition, Los Cabos is a safe and quiet place where your family members can be comfortable, whether on vacation or living here.
2. The Growth of Los Cabos
Los Cabos is a constantly growing destination that is experiencing a boom in tourism.
While other real estate markets in Mexican destinations have experienced a decrease in demand such as in the Riviera Maya, foreign and national investment and demand in Los Cabos are stronger than ever.
Real Estate Developments are happening on a large scale and of the highest levels, with accessible and attractive pre-sale prices.
3. The Possibility of Direct Financing
Several Local banks such as Intercam and Morgage companies such as Moxie offer loan options for foreigners looking to invest in Cabo.
Additionally, some pre-sale properties offer direct developer financing plans with attractive rates from 0% for 2 years to 7.62% for 15 years +. (as of September 2022)
Interest paids on loans for Cabo properties are tax deductible for foreign purchasers in their home country. Financing options are available in Mexican Pesos or US Dollars and can be adjusted depending on down payment amount and financing factors.
4. Earn Passive Income
The high demand in Los Cabos as a tourist destination offers the opportunity to generate passive income through vacation rentals and medium or long-term rentals depending on the property and its location.
In every income segment there is a strong demand, from tourists who spend a week in our beautiful destination to visitors, mainly Americans and Canadians, who enjoy the winter months in Los Cabos.
Property management companies facilitate the rental process and ensure the maintenance of the property providing owners “peace of mind”.
You control the rental calendar, and on the dates that your property is not rented, you can enjoy it with your family and friends.
5. The Quality of the Real Estate
Los Cabos has properties at all price levels. From affordable apartments located in key areas to spacious residences in exclusive communities like Pedregal or Palmilla.
There exist investing in real estate opportunities at all price points of the market.
The attractiveness of all the properties is the high quality of construction and design, as well as the variety of amenities offered by the developments.
You can find spectacular golf courses, private beach clubs and infinity pools with breathtaking ocean views.
Los Cabos offers the most complete and highest quality real estate purchasing opportunities in all of Mexico, ensuring an excellent return on investment, consistent weather, convenient location, and an amazing lifestyle!