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
Full-service rental and asset management companies typically charge 20% to 30% of gross rental income for short-term vacation rentals, which covers marketing, guest services, housekeeping, and property maintenance. Read about property management here: Property Management
Well-located properties—particularly walkable ocean view condos or homes near major amenities—can realistically net between 8% and 10% ROI annually when backed by an active, professional short-term rental strategy.
Buyers typically pay a down payment (e.g., 30%) followed by structured installment payments tied to construction milestones, with the remaining balance due upon delivery. The primary reward is securing lower introductory pricing; the risk involves developer completion delays, making it crucial to work with vetted builders who have a proven track record. Read about pre-construction here: Pre-Construction – Risks and Rewards
A substantial majority—often estimated between 70% and 80%—of transactions are executed as all-cash deals, which significantly expedites the closing timeline.