The Steps to Take to Find your Dream Beachfront Home at Cabo San Lucas, BCS, Mexico
It’s not far-fetched to assume that almost anyone has had thoughts of having a second dream home, set in an exotic land with a stunning ocean view, capped off with an enrapturing culture. Indeed the dream of those seeking the high-end, luxury lifestyle.
That is why it is even less far-fetched to put Cabo San Lucas, Mexico—and much the rest of the Baja (San Jose del Cabo, La Paz, Todos Santos, etc.), atop the list of these brand-new vacation home fantasies.
Of course, not all fantasies have to stay as they are. Should you be one of those select few raring to make that brand-new beachfront home a reality, then you’re in luck because you’re about to read a digest-sized version of the “dos” and “don’t” of the Baja market (and the rest of Mexico by proxy).
Know the Basic Terms and Concepts of Mexico’s Real Estate when Searching for Beachfront Homes, Condos, Resorts, and More
You should do well before getting yourself a lawyer (or two, in this case, one for property and one for general advisory) and a quality real estate agent—all of which should be knowledgeable about the terms and conditions of the BCS location to remember the old saying. Two, or three to four, heads are better than one.
Not that you need to be an expert in every detail of high-end, luxury, beachfront sales or have a law degree to get some grasp of Mexico’s tricky ownership laws, at least not for the bare essentials. You only need to know the foundation, lest you want to lose yourself in the blue that is the Baja’s beachfront real estate scene (Cabo San Lucas, San Jose del Cabo, Todos Santos, and much more included).
So let’s get started with this quick BCS ownership crash course, shall we?
Know about Mexico’s Fideicomiso or Bank Trust, the Key for Buying Homes or Condos in the Baja South Market
First off, let’s start with the most crucial fact: Mexico doesn’t allow foreigners to buy or build residential properties 31 miles from any coastline. Yes, I know what you’re thinking, and no, it does not mean that your fantasies of living at your luxury, high-end, dream home are as good as done. That’s where the fideicomiso comes in.
A fideicomiso is the local real estate bank trust, an agreement made to benefit the foreigner (yourself) while the bank takes all the fiduciary obligations.
In practice, you won’t have to bother much about the little details and conditions while still having full ownership, i.e., all the legal rights to lease, sell, or even will the property. You must pay an annual fee to keep the fideicomiso up and running, but it’s a small price, about 500 USD.
Additionally, should you, or the future owners, hit the 50-year mark, you can pay the modicum sum of 900 USD to renew the trust for another 50 years.
Ejido: A Complicated Term for Land Ownership and One you Should Avoid when Buying Houses or Construction Developments in the Mexican Real Estate Market
Secondly, we’ve got a term to avoid and remember when looking to buy properties (be it houses, condos, or even construction developments) at the peninsula market (and much of the rest of Mexico): the ejido. To sum things up, these are government-issued locations given to national farm owners and land workers.
Any attempt to build in an ejido will have to go through lengthy legal processes that will increase your projected expenses by a fair amount and the amount of time it takes. In short, a term best remembered and a deal best avoided, no matter how tantalizing the location may be.
Know About Mexico’s Low Tax Rates Before you Buy your New Dream House in Baja California Sur
Thirdly, we’ve got taxes. While not a term in any need of translating, this should still be something you remember. You can compare prices and opportunities and plan expenses ahead of time when you buy your new property in Baja California Sur.
Fortunately, these are lower than anything in the states, sitting at a comfortable 0.1% annual rate, with Hawaii’s 0.27% not even coming close. There you go! The available suite of basics any potential Cabo homeowner needs to know. However, we still need to find some professional aid.
Find Quality Realtor Experts to Help You When Looking for a Baja California Sur House, Resort, or Condo Property
Now that you know your basics, it’s time to safeguard yourself even further with some quality legal aid beyond your lawyers, namely a realtor agent or agency—knowledgeable about the Baja California Sur market. Emphasis on quality. Why? Because you don’t want anyone helping you, especially not in a booming house, condo, and development sale scene, you want the best.
It should come as no surprise that a market like the one in BCS attracts many a scammer. If it happens in bleak, run-of-the-mill suburbia, then it’s bound to happen in a place with quality homes and the beautiful oceanfront backdrops of Cabo. More so because of it. It’s far easier to hook someone with precisely what they want in a place where the sun shines 24/7.
Fortunately, the best available real estate agencies at the most popular locations of the Baja California Sur are reasonably easy to funnel. Besides the obvious answer of social media, there’s the tried and true method of word-of-mouth advertisement. After all, satisfied customers are the best metric, and what speaks satisfaction more than someone living the benefits of the oceanfront Cabo lifestyle in a luxury property?
Find your ideal location, look for people living close by, and start asking lots and lots of questions.
- Which realtor or agency did you hire?
- How long did it take? How much did it cost?
- Did the agreed price match the conditions of the house?
- How well did they manage the deal with all the processes?
Over time you’ll find yourself with a list of names around the BCS location, and, much like with cutting costs and corners, you’ll pinpoint the ones that best suit your needs. Provided you research them afterward, of course.
Consult and Plan for Expenses and the Future before Buying a Sale or Presale Property in BCS
Now that you’ve assembled your team of experts (lawyers, realtors, or architects even, should you think about construction or presale), it’s time to plan for expenses and the future. The benefits of the second opinions of seasoned legal counselors will more than do when figuring out the dos and do not during your upcoming purchase.
For example, a quick run through your cost budget, living preferences, and available options will yield multiple optimal choices when it comes to payment methods. Such methods include mortgage loans (there are numerous options in Mexico for foreign buyers/homeowners), citizenship processes, etc. With these, you’ll be more than able to forecast the upcoming months of paperwork, phone calls, and drives in terms of expenses.
Lastly, the funneling of properties is based on in-depth quality analysis. Such analysis carries the benefit of the expert eye. It will also give you a reasonable estimate of reparations and maintenance costs of your property down the line, as per its condition, which is just as if not more important than the price tag itself.
See, not so hard now, was it? As some would say, a little perspective goes a long way. So do go ahead and start looking. The oceanfront lifestyle of Los Cabos awaits!
