Waking up to the Sea of Cortez’s blue waters, spending afternoons on world-class golf courses, and unwinding with spectacular sunsets has transformed Los Cabos from a fishing village into Mexico’s premier luxury real estate destination. Yet, buying property in paradise comes with distinct rules and considerations that often surprise first-time international buyers.
At Century 21 Paradise Properties, we’ve guided hundreds of clients through these waters. During our recent Q&A session at the San Jose del Cabo Art Walk, our experienced agents addressed many thoughtful questions from attendees. Based on questions from real people, here’s what people really want to know about buying in Los Cabos—with straightforward answers based on our local expertise.
What Are the Main Differences Between Cabo San Lucas and San Jose del Cabo?
Cabo San Lucas has a more energetic vibe with a buzzing marina, restaurants that stay lively well into the night, and that classic upbeat atmosphere many vacation homeowners seek. It’s perfect if you love being where the action is.
Yet, Cabo San Lucas offers much more than just nightlife—it’s home to excellent fine dining establishments like Don Manuel’s at Pedregal, the authentic Italian cuisine at Salvatore G’s, and the craft beer experience at Baja Brewing Company with its stunning rooftop views.
San Jose del Cabo has a bit of a different pace. The historic Arts District is known for its colonial architecture and cobblestone streets where the Thursday evening Art Walk has become a beloved tradition. The emerging food scene here focuses on using locally grown farm-to-table ingredients, epitomized by destination dining experiences like ACRE Restaurant in the palms, the enchanting atmosphere of Jardin Secreto (The Secret Garden), and the pioneering farm-to-table concept at Flora Farms—all showcasing San Jose’s connection to the land.
While often characterized as tranquil, San Jose also has plenty of busy and adventurous experiences including its busy Saturday Organic Market, the sports and concert events at the Convention Center, and an active nightlife scene centered around the Plaza Mijares.
Connecting these two is The Corridor—the coastal stretch between the two cities, lined with luxury resorts, championship golf courses, and communities designed to maximize those postcard-worthy ocean panoramas.
How Can Non-Mexican Citizens Own Property in Cabo, and What Is the Fideicomiso Process?
The fideicomiso is a bank trust established under Mexico’s Foreign Investment Law that enables non-Mexican citizens to purchase property within the restricted zone (50km from coastline and 100km from international borders). Authorized by the Mexican Ministry of Foreign Affairs and formalized through a Mexican Notary Public, this legal instrument designates a Mexican bank as trustee to hold the property title, while the foreign buyer becomes the beneficiary with full ownership rights.
The trust runs for a renewable 50-year term and grants beneficiaries complete authority to use, remodel, rent, sell, or bequeath the property. Major financial institutions that commonly serve as trustees include Banco Santander, BBVA Bancomer, Banamex, and Intercam, each maintaining specialized departments for administering these trusts.
What Are the Best Neighborhoods in Cabo for Investment Properties or Vacation Rentals?
The premier golf communities consistently demonstrate strong appreciation and rental appeal:
Cabo del Sol masterfully balances luxury with livability. Jack Nicklaus’ Cove Club Course anchors this oceanfront community, where properties capture dramatic Sea of Cortez vistas. The resort infrastructure here supports a robust rental market for owners seeking income when not in residence.
Palmilla residents enjoy privileged access to a championship golf course and one of the area’s rare swimmable beaches in San José del Cabo. Its proximity to the One&Only Palmilla Resort and Shoppes at Palmilla creates a halo effect that elevates property values throughout its beautiful neighborhoods.
Querencia takes exclusivity to another level with its Tom Fazio-designed course and member-only approach. Unlike communities that embrace the resort energy, Querencia deliberately cultivates tranquility—appealing to buyers who value privacy alongside refinement.
Diamante is home to a magnificent 10-acre swimmable salt water lagoon—the largest in North America. This prestigious community boasts world-class amenities including two signature golf courses (a Davis Love III Dunes Course and a Tiger Woods designed El Cardonal), a 14-acre practice facility, spa services, multiple dining venues, and a dedicated concierge team. The private setting and controlled access make Diamante particularly attractive to those seeking both luxury and convenience.
There are many communities to choose from in Los Cabos. Your ideal neighborhood ultimately depends on your lifestyle preferences, preferred amenities, and budget.
How Much Does It Cost to Own and Maintain a Home in Cabo?
Los Cabos has properties across virtually every price point, with condominiums starting around $200,000 USD in developing areas, with higher price points for newer developments or those with resort-style amenities. Luxury oceanfront villas can command $10+ million in premier locations. This remarkable diversity means there’s something for nearly every budget and lifestyle preference.
When it comes to maintenance, let’s break down the actual numbers:
- HOA fees: $100-$1,000+ monthly, varying dramatically based on amenities. Communities with extensive landscaping, security, and resort facilities command premium rates.
- Utilities: Electricity costs climb during summer months when air conditioning becomes essential, but typically range from $50-$300 monthly. Water remains affordable at around $10-$50 monthly, depending on how many people live with you.
- Property taxes: One of Mexico’s most homeowner-friendly aspects—annual property tax averages just 0.1% of assessed value, significantly lower than most North American rates.
How Long Does the Buying Process Take?
The real estate purchase timeline in Los Cabos typically spans 45-90 days from accepted offer to final closing. The process begins with an accepted offer and earnest money deposit, followed by a period of due diligence that includes property inspections and document collection. This initial phase usually takes 2-3 weeks to complete.
The next stage involves the closing agent coordinating with the Mexican Notario Public to verify property details, prepare legal documentation, and ensure compliance with Mexican law—a process that generally requires 4-6 weeks.
The final phase of the transaction focuses on closing preparations and typically takes 2-4 weeks. The exact closing date is determined by the Notario once all documentation and permits are completed, usually set within the final two weeks of the process. Cash purchases often move more quickly through this timeline, while transactions involving financing or special permitting requirements can extend beyond the typical timeframe.
The fideicomiso (bank trust) establishment represents the most variable component in the process, occasionally adding additional weeks depending on the bank’s processing efficiency and the complexity of the property’s legal status.
Are There Financing Options Available for Non-Mexican Citizens?
Financing options for non-Mexican citizens have expanded significantly in recent years. MoxiMortgage, a global mortgage company, gives you the opportunity to take out a mortgage here in the Baja or refinance your home, with competitive interest rates that weren’t previously available in the Mexican market. They require a 35% down payment but offer fixed terms for up to 30 years.
Beyond MoxiMortgage, some developers continue to offer direct financing on pre-construction properties with attractive terms to incentivize early buyers. For those preferring conventional approaches, many international buyers still leverage home equity from their primary residence or work with investment-focused lenders in their home countries who understand the unique aspects of vacation property financing.
Can I Rent Out My Property in Cabo?
Absolutely. Los Cabos’ thriving tourism industry—which brings well over 3 million visitors annually—creates exceptional rental opportunities for property owners. The region’s high-season from November through April sees occupancy rates soar above 85% in desirable areas, while the growing shoulder seasons (May/June and October) continue extending the rental calendar each year.
Tourism-focused properties in Cabo San Lucas, San José del Cabo, and along the Corridor can achieve significant returns during peak periods when visitors from the U.S. and Canada are looking for warm escapes from winter weather.
While vacation rentals dominate the market, long-term rentals (6-12 months) provide another viable option, particularly appealing to the growing community of digital nomads and remote workers attracted to Cabo’s combination of amenities and lifestyle.
If you decide to take this route, property management companies can help you handle all aspects of both short and long-term rentals for a fee of 15-25% of revenue, offering services from marketing and guest screening to maintenance and housekeeping.
Before purchasing with either rental strategy in mind, verify your chosen community’s specific policies, as some HOAs have implemented restrictions on short-term rentals to maintain neighborhood tranquility and character.
Your Paradise Awaits: Taking the Next Step
Buying or investing in Los Cabos real estate means securing your place in one of North America’s most breathtaking destinations. While property values continue their steady appreciation, the true return comes from the lifestyle transformation that awaits: mornings with coffee overlooking the Sea of Cortez, afternoons on world-class golf courses, and evenings watching the sun paint the sky as it sinks into the Pacific. This unique peninsula offers that rare combination of natural beauty, high-end amenities, and authentic cultural experiences that many search for but few decide to take the leap.
Our team at Century 21 Paradise Properties brings decades of combined local and international expertise to guide you through every step of your purchase journey. We’ve helped hundreds of clients just like you navigate the process of finding and securing their piece of paradise. The dream of owning in Los Cabos is more accessible than you might imagine—and we’re here to help you make it happen.
Contact us today to begin your journey home to Cabo!