Q: What are the true costs of owning a vacation home in Los Cabos and maintaining the property?
A: A very common and good question for those of our clients considering purchasing a vacation home in Cabo. The monthly and annual costs can vary on HOA/Maintenance fees, or CFE Zone (Local Electric) and services at your property specifically.
However, what we like to suggest to our buyers is getting into a rental program so that your new vacation home actually provides a source of income. The rental market is strong in Southern Baja and has been for some time. Joining a rental program and management service can help in a variety of ways. You can rent on a daily/weekly/monthly basis to qualified renters and turn your home into an investment property, not just a vacation property. This also assures that the property will always be looked after, kept in good condition, and managed properly which will save you money on deferred maintenance in the long run.
Another great part about owning a Vacation home in Mexico is that property taxes are considerably lower than in the States. Of course this is always subject to changing laws and can depend on the property, area of Los Cabos, and development, but on average, property taxes are less than in the States.
There are annual fees to be considered when purchasing your home. Fideicomiso trust fees are usually in the ballpark of $450 per year. This will depend on which bank holds the trust and which year your FIdeicomiso was established.
With affordable annual costs and the option of renting your home, I think its a great time to invest in Los Cabos for now and the future. We are seeing great opportunities for buyers to still capitalize on great deals and new inventory to the market. And most important to remember, when you purchase real estate in Cabo, you are buying a quality of life we are incredibly lucky to live.