I mentioned location in terms of Los Cabos, but it should also be considered within the broader contexts of the Baja California peninsula and of México because these geographic considerations are essential and offer added value.
Did you know, for instance, that not only do luxury beachfront homes in Los Cabos list for significantly less on average than similarly situated properties in the U.S., they also provide their owners with a lower cost of living and much lower property taxes?
It’s true. The property tax rate in Los Cabos–0.1% of the value at the time of purchase, assessed annually–is well below that of every state in both the U.S. and Canada. The rates for California, Texas, and Vancouver, for example, are 0.79, 1.86, and 0.25%, respectively. And the cost of living in Los Cabos, although high by Mexican standards, is considerably lower than any comparable area within the boundaries of its North American neighbors.
As for beachfront real estate. Look at the list prices for homes in California versus Baja California Sur–say beachfront luxury homes for sale in San José del Cabo at El Encanto de la Laguna–and you’ll notice that the difference in homes of similar size and setting is measured in the millions of dollars.
Los Cabos isn’t the only place in the world you can find values on beachfront homes, but it is the only place that lies in such close proximity to the United States. New homeowners, therefore, are never more than a short plane flight away from visiting friends and family, and language and cultural acclimation issues are minimal.
As a matter of fact, there are an estimated 15,000 U.S. and Canadian citizens who maintain full or part-time residences in Los Cabos, and close to a million on the Baja California peninsula as a whole. So there’s a thriving community of people with similar backgrounds living here already, with many more expected to join this growing demographic in the coming years.