In today’s economy, it is more important than ever to evaluate your investments. In order to preserve your wealth, build assets and enjoy a comfortable lifestyle, you must invest wisely. Owning property in Los Cabos, Mexico provides a unique opportunity to capitalize on a good investment, while also improving your standard of living.
With over 2 million people visiting the Los Cabos area each year, and over 1 million Americans now living full time in Mexico, it’s obvious that the appeal of this amazing area begins with the lifestyle offered here. There are few climates in the world that can compare to that of Los Cabos. The average temperature, year round, remains at a comfortable 75 degrees. Remarkably, there is typically only 10 inches of rain annually, averaged over approximately 14 days. Even humidity remains low at 63.8%, largely due to the mountainous terrain that surrounds the area.
With this ideal climate, as well as thousands of miles of prestigious ocean front land and prime real estate, it’s only natural that Los Cabos has become one of the fastest growing states in a country that ranks within the top 10% of worldwide economies. Mexico prospers on a strong banking industry and benefits from crude oil income, precious metal mining and cash real estate investments.
Currently, both the Mexican government and international developers are responding to the obvious appeal and pouring billions of dollars into the tourism infrastructure on the west coast of Mexico. Far from the trouble of the US/Mexico border towns, and detached from the mainland, Los Cabos is safe, secure and economically stable. In Los Cabos alone, billions of dollars have been invested by both the Mexican government, as well as various private and corporate investors to enhance an already vibrant tourism industry. The extensive list of celebrity golf courses, five star hotels, spas and resorts, and world class fishing brings additional luxury and beauty to an already attractive investment.
Along with the desirability of the area for both visitors and residents, comes the subsequent need for more service related industries and the influx of even more corporate investment. For instance, global companies, such as Costco, Walmart and Home Depot, have generated new markets and supply lines to Los Cabos for sought after products. A landmark merger of AT & T and Telmex (the local Mexican telephone company) resulted in the installation of high-speed fiber optic Internet along the entire coast of the Baja. The increase in both corporate and leisure travel to the area resulted in major airport enhancements and expansions.
Of course, owning property in Los Cabos means that you get to enjoy the lifestyle as well. Year-round activities abound with everything from world-class fishing and boating, famous surf breaks and snorkeling, unbelievable whale watching and scuba diving, as well as adventurous ATV, aerial and ecological tours. All these local activities offer you an active lifestyle today and well into your retirement. Meanwhile, these attractions ensure a steady stream of tourism, which in turn helps provide a stable infrastructure.
Numerous international flights have been added, as well as a variety of direct flights to Los Cabos from various locations within the US and Canada. After a significant rise in the use of private sector travel, the airport even dedicated one of the three main terminals to the private air lift, making corporate travel even more accessible. These are important considerations for the numerous global business travelers currently residing in Los Cabos, who enjoy the freedom to work from various locations, but require the technology and accessibility to keep tabs on their business.
Consequently, as real estate values in the US have suffered a drastic decline, many sections of Mexico, including Los Cabos, have held reasonably strong. This less volatile environment can be attributed to several influences such as a large percentage of cash investments, conservative lending policies that significantly reduce the risk of loan default and the growth of infrastructure that has brought in various trade and commerce. Additionally, even though the US economy has been struggling recently, research indicates that many people are still traveling and choose to take more frequent, less extravagant trips to destinations such as Los Cabos that offer a significant value.
Ownership in Mexico is even more attractive when you consider the extremely affordable property taxes, insurance and labor in the region. For example, the owner of a $6.9 million home inside a Los Cabos golf resort pays a mere $1,800 in property taxes a year. That alone is a significant comparison. Also, since the majority of construction in the area is concrete, property maintenance costs remain low and inexpensive labor allows owners to easily hire cleaning and grounds keeping staff at an affordable cost.
As you can see, there are a multitude of reasons why owning real estate in Los Cabos makes a wise investment. When you consider the measurable growth, the significant stability and the ideal lifestyle that Los Cabos offers, you will see the opportunity that presents itself. Whether you are considering a rental property or a part-time residence here, each option has advantages. High tourism rates ensure that your rental property will have high rates of occupancy and thereby produce income. Additionally, a second or part-time residence will allow you to personally savor the Cabo climate and lifestyle, while the steady rise in prices means that your property will help you to build wealth.