Cabo often comes with a high price tag due to several key factors: strong demand, its reputation as a luxury destination, and its remote geographical location. High Demand: As a top vacation spot for North American travelers, Cabo sees significant tourist traffic—especially during peak seasons. This high demand naturally leads to elevated prices. Luxury Destination: Cabo is known for its premium offerings, including upscale resorts, gourmet dining, and exclusive experiences. The abundance of high-end options raises the cost for visitors. Geographical Location: Situated at the southern tip of the Baja California Peninsula, Cabo is almost like an island and relies heavily on imported goods and supplies. This logistical challenge contributes to higher operating costs, which are often passed on to consumers
Real Estate in Los Cabos has appreciated in the order of 10% per year since 2021. Demand remains particularly strong in the luxury segment. For more information about the real estate market check out our quarterly market report.
Yes! Los Cabos (which includes Cabo San Lucas and San José del Cabo) is generally considered a safe destination for tourists, especially when compared to some other parts of Mexico. Read more about Cabo here: Questions and answers
Yes! Mattress sizes differ from country to country, and Mexican-made sheets do not fit US and Canadian mattresses. Bed sizes can vary worldwide due to differences in manufacturing and various countries’ criteria. Read about bed sizes here: Bed sizes in Mexico
Yes, absolutely. Renting out your home or condo to offset operating costs and generate a return on investment is a highly common strategy for buyers in the region. Read about investment properties here: Los Cabos Investment Properties
Cabo offers reliable power and water services, provided you buy a property equipped with a proper cisterna (water storage tank) to handle local rationing cycles, and you keep your CFE electricity bills paid on time. Read about services in Cabo here: Home Services
HOA dues vary depending on the community scale and layout. These dues cover 24/7 gated security, common area landscaping, pool maintenance, waste removal and amenities. Read about HOA dues here: Understanding HOA dues
Capital gains tax (Impuesto Sobre la Renta) is calculated at either 25% of the total declared sale price or up to 35% of the net profit (sale price minus your legally documented capital improvements, original purchase price, and closing fees). Read about capital gains taxes in Mexico here: Capital Gains Taxes
While water and basic services are relatively low, CFE electricity bills can scale quickly during the hot summer months (June–September) due to heavy air conditioning usage. Many full-time residents and investors actively install solar panels to mitigate these seasonal spikes. Read our CFE Blog here! Read our Home Services blog!
Annual property taxes (predial) are remarkably inexpensive compared to North America. They are based on the municipal assessed value of the property and are typically less than 0.1% of the asset’s real value. Additionally, the government offers a 10% to 20% discount if paid early in January or February. Read about Property Taxes here: Property Taxes