Have you been considering buying real estate in Los Cabos? If you have, then we have some helpful tips that you can use before you just dive in. We have provided all you need to know about buying real estate in Los Cabos in a short article. Read on…
Closing procedures when buying real estate in Los Cabos
Generally, the real estate closing procedure in Los Cabos takes 30 to 45 days, and your real estate office and the local public notary should take care of the paperwork and the escrow payments. You (the buyer) will be paying the closing costs and the seller of the property will be paying all of the real estate fees and any capital gains taxes. You and the seller will have to be present during the closing unless you choose to be represented by your attorney. Attorneys are optional when buying real estate in Los Cabos and recommended for foreign investors.
Property Taxes in Los Cabos
You might be worried about property taxes when buying real estate in Los Cabos. The property taxes in Los Cabos are generally low and they are known as “predial”, which is the mil rate of 0.08% of the property’s assessed value that will have to be paid during the time of the property sale.
Maintaining your real estate in Los Cabos
If you are purchasing a condominium, then all of the common areas will be maintained and protected by the Condominium Owners Association. Monthly fees are paid and each building will be maintained with these fees. Owners of different types of properties in Los Cabos that will be away for a while should think about hiring a property management company to maintain your real estate in Los Cabos.
Insurance Policies when buying real estate in Los Cabos
There are a variety of insurance policies and types of insurance in Los Cabos, which would include earthquake, liability, and property damaged. The insurance policies in Los Cabos are very affordable and if you have a claim you can have it written in your insurance policy that all claims should be paid out in US dollars and currency. You might also consider Title insurance when buying real estate in Los Cabos, although generally, a local notary in Mexico should protect you from such types of problems.
Real Estate Financing in Los Cabos
Generally speaking, all of the real estate purchases in Mexico are done with a cash transaction, but lately, mortgage financing is becoming a more viable option for residents despite very high-interest rates when buying real estate in Los Cabos. As a buyer, you will need to provide your own real estate financing in Los Cabos, and you can do this with an equity loan, a personal line of credit, or a second mortgage.
Rental Income Potential in Los Cabos
There is a large market for rental homes and condos in Los Cabos. If you purchase a high-quality real estate in Los Cabos and you rent the property out at a competitive price, then you can expect an occupancy of 70 to 80%.
Profits when buying real estate in Los Cabos
Buying real estate in Los Cabos is a pretty safe investment, though the concept of earning high amounts from property speculation is a fairly nascent idea in Mexico. The traditional buyer of real estate in Los Cabos tends to be focused on purchasing a second home for their vacations or to retire at, which makes the real estate market stable. If you are wanting an upwards rise in real estate prices for your property, then you should purchase real estate in tourist areas, such as Los Cabos.