With the country’s warm climate, wide variety of sumptuous and regional cuisines, and the liveliest culture and customs, it is easy to see why many consider it a dream to live in Mexico and explore the country. Buying Mexican real estate is not a new concept– many have done it before, but these recent times have made investing in Mexican real estate an even more attractive prospect. If you are interested, click here to learn more about the market. There is an overview of Mexico and Los Cabos real estate, and introductions to the home buying and selling processes here.
Mexico is a dream come true for those who want to bask in the warm climate, enjoy a variety of delicious and regional cuisine, and immerse colorful customs and traditions. And with Los Cabos’ magic, the overall experience is heightened.
If you dream of owning a vacation home or retiring in Los Cabos, continue reading this primer on Mexican real estate.
Overview on Mexico real estate
Just as any other country, Mexico’s real estate market is a cornucopia of different housing options which vary greatly depending on their location.
For instance, in the cities, you are most likely to encounter apartments and casas sandwiched between larger buildings that are mostly commercial. In the countryside and by the coast, the real estate landscape changes to give way to larger plots of land, single-family homes, estates, mountain or hillside retreats, and waterfront properties.
There are, however, things that make Mexico real estate different than other markets. For example:
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There are restricted zones, which are defined as places that are either or within 50 kilometers of the coastline and 100 kilometers from the land border. Los Cabos, as well as Acapulco, Puerto Vallarta, and the Riviera Maya are all considered restricted zones.
As such, you’re required to purchase real estate in Los Cabos by a fideicomiso or land trust, unless you plan to buy as a corporation.
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There are agricultural lands or ejido, which are owned by a community and passed onto future generations. These can also be purchased by foreigners, so long as the entire community that owns them agrees to the sale.
Los Cabos real estate
Los Cabos is considered to be one of the more, if not the most, expensive real estate markets in Mexico.
It’s all about the coastal location, the natural beauty of the place, and the prestige that comes with visiting and staying here. Los Cabos, after all, is often seen as a playground for the famous and wealthy. A-list celebrities, tycoons, and other high-profile and high-income personalities keep second homes in Los Cabos or frequent the municipality.
If you are looking for prime waterfront villas and golf course properties, Los Cabos is the place to be. And while there are developments happening around the area, much of Los Cabos is still relatively untouched and undeveloped.
Buying and selling in Mexico real estate
Buying a real estate property in Mexico
Foreigners are allowed to purchase real estate in Mexico. But as mentioned above, if you are buying in Los Cabos, you need to do it through a land trust or fideicomiso.
Other than that, the home buying process is mostly straightforward and similar to that in the United States. You’ll need a real estate agent before you shop for a home, make an offer when you find the one, and fulfill your responsibilities as stated in the purchase/sales agreement before closing. The home buying process ends on the day you “receive” the property.
Click here for a Buyer’s Guide to learn more about buying a home in Mexico real estate.
Selling your home in Mexico
Just like the buying process, selling a home in Mexico almost the same as selling a real estate property in the United States. It’s in the preparation before the sale where things differ.
For instance, there are different sets of paperwork you need to present depending on the manner you purchased your property. It is also highly recommended to obtain a capital gains study before you sell your home. The capital gains tax you need to pay depends on several factors. You might also be eligible for deductions or the one-off exemption.
Check Catherine’s Seller’s Guide to learn more about the process of selling your home in Mexico.
Improving home sites or making renovations
In Mexico real estate, it’s a good practice to keep receipts and other related paperwork when you improve on a home site or a property. This will help you prove the work you manifested and deduct the amount you need to pay for the capital gains tax once you decide to sell your property.
Finding a real estate agent in Mexico
It’s relatively easy to find a licensed real estate agent whether you’re buying or selling in Los Cabos or somewhere else. These professionals range from independent and local operators to associates in national brokerages.
While it’s true that you can handle the buying and selling process on your own, the value of working with an experienced real estate agent in Mexico is undeniable.
Real estate agents like Catherine Buchanan can offer their expertise and support as you build your real estate legacy in Los Cabos. Get in touch with her today at 503.545.1767, catherine@livebaja.com or c.buchanan@snellrealestate.com