Whether you have been to Cabo San Lucas several times or only read about it, one thing is certain – the tourism business is booming. Now is the perfect time if you have been considering investing in Cabo’s real estate.
Many ex-pats from Canada and the US own vacation homes in Cabo. You, too, can join this group of ex-pats and diversify your real estate portfolio. Owing a vacation home in Cabo isn’t all about having a home in the world’s most famous beach destination. But it can also bring a return on investment.
Real estate pundits acknowledge that owning real estate in Cabo brings in more income than owning one in Florida or California. Considering how easy it is for ex-pats to obtain visas and buy property in Mexico, there is nothing that should hold you back from making this significant financial move.
Before buying a property in a resort city, it’s normal to have some doubts. That’s why we took the initiative to compile this quick guide on why you should invest in Cabo’s real estate.
1. The US and Canadian Dollar is Stronger than the Mexican Peso
Cabo is always packed with tourists from the US and Canada because the currencies from these two countries are way stronger than the peso. Therefore, as an ex-pat, you are assured of getting better value.
Investors buying property in Mexico with dollars are assured of impressive deals. The costs of buying the property and making renovations to suit your preferences will be lower. Compared to buying property in your country of residence, investing in another country with a weaker currency is better.
2. Massive ROI
Real estate is always known to bring a return on investment, irrespective of where you invest. However, you will be glad to know that the ROI you get from Cabo real estate is massive. Did you know that owning a vacation rental in a prime resort city such as Cabo San Lucas can bring an ROI of 7% to 10%? This is more than you will get in any part of the world.
The high ROI is because Cabo is always attracting tourists every season. If you own a vacation home and equip it with the best amenities, you are assured of more than 80% occupancy per year. Even during low seasons, you will always be making money.
3. Cultural Diversity
Other than the financial gains, the shared cultures between Mexico, the US, and Canada are valid reasons to invest in Cabo’s real estate. The close borders between these three countries have led to cultural familiarity. A good example is how much Canadians and Americans love Mexican food.
When you go to Cabo, you will meet lots of ex-pats. Therefore, investing in local real estate is safe since you are not alone.
4. Traveling to and from Cabo is Effortless
Since Cabo became a tourism hotspot, the transport sector has been significantly enhanced. Whether you are coming from the US or Canada, connecting flights make traveling to this destination effortless. When you invest in Cabo real estate, you don’t have to rely on employees to know the status of your property. You can travel to and from easily and manage your property without complications.
5. English Speaking Community
Let alone ex-pats, a good number of the locals in Cabo San Lucas have learned to speak English to communicate better with tourists. Cabo is mainly a resort city. Therefore, most of the locals interact with tourists daily. If you are worried about the language barrier, make plans to visit this beautiful city. Everyone from grocery store owners to taxi drivers will communicate with you in English.
Even though the pandemic had affected Cabo’s real estate, it’s slowly bouncing back. Owning a property in this beautiful resort city can drive steady income to your pockets. After retirement, you can also consider moving to Mexico as an ex-pat.
Before you invest in Cabo’s real estate, it’s a good idea to visit and scour the market. We have some exclusive luxury properties with extraordinary amenities. You can stay in one of our luxury villas as you explore the market. While at it, you can be inspired by our real estate designs for your future vacation home.