Have you been thinking about purchasing real estate in Los Cabos, Mexico? If you are, then this blog will provide you with tips and pointers that you will want to consider before you jump in head first! Below is what you should know when buying real estate in Los Cabos.
Buying Real Estate in Los Cabos Closing Process
The entire real estate closing process in Los Cabos will take from 40 to 60 days. The escrow payments along with the paperwork will be bonded together at the real estate office that you have selected and the local public notary too. The buyer will be paying the closing costs on the property and the seller will be paying any real estate fees and capital gains taxes. You and the seller will not have to be present during the closing, but the sales associate with the power of attorney can be there to represent you.
Property Taxes in Los Cabos
The property taxes in Los Cabos are usually low and they are known as “predial”. The mil rate is 0.08% of the assessed value paid for the real estate during the time of the property sale.
Maintenance for Your Property in Los Cabos
If you are a condominium owner, then the Condominium Owners Association will provide the security and the maintenance for the common areas, and this is paid with monthly fees for each condominium building. If you will be away from your property for a long time, then you may want to consider hiring a property management company, so they can maintain and look over your property for you.
Property Insurance when buying real estate in Los Cabos
There are many different types of property insurance that is affordable in Mexico and they would include earthquake, liability, property, and damage insurance. Any of the property insurance policies can be written to pay out any claims in US dollars if you wish.
Real Estate Financing
Although the majority of real estate that is purchased in Mexico is done through a cash transaction, there are mortgages that are becoming more readily available to residents, but you should know that the interest rates for these mortgages come at high rates. If you are going to purchase real estate in Mexico, then you will have to provide your own financing. You can do an equity loan, a personal line of credit through your bank, or take out a second mortgage.
Real Estate in Los Cabos Rental Possibilities
There is a large market for rental homes and condos in Los Cabos, Mexico. If you purchase a quality property in Los Cabos, then you rent it out at a competitive price, then you can expect a 70-80% occupancy.
Equity with Real Estate in Los Cabos
A short-term real estate property isn’t a concept that is applied to the Mexico real estate market. Traditional buyers are generally wanting a second home in Los Cabos so they can retire there or spend their vacations there, which is why the real estate market has stability in Los Cabos. If you are wanting the prices to rise, then you should think about purchasing real estate property in tourist areas.