Cabo is a popular vacation destination for both the wealthy and working class. It’s known for its affordable condos, which range from affordable to very expensive in the newer developments. A home in Cabo San Lucas can cost anywhere between $50,000 and $5 million.
Cabo has experienced rapid growth over the last 10 years. Many affluent people have built vacation homes here, making it an upscale retirement haven and a popular tourist destination. Below is an overview of the costs of buying a home in Cabo San Lucas. All real estate prices are updated regularly with the latest market rates.
The prices listed here are accurate as of June 2018. If you are interested in learning more about buying a home in Cabo San Lucas, read on to find out all you need to know about real estate, taxes, and more…
Prices by property type
- Condo costs – $56,000 to $398,000
- Villa costs – $197,000 to $5,950,000
- House costs – $289,000 to $5,950,000
Condo costs
Condo prices in Cabo are very affordable compared to other parts of Mexico but vary in location and quality. Condos in the new developments can be costly, but prices in the poorer areas or older developments can be as low as $20,000 for a small studio.
Because condos are the most common type of home in Cabo, prices vary widely according to location, amenities, and quality. The average condo price in Cabo is between $60,000 and $100,000 for a 1 bedroom unit in a poorer area. Condos in newer developments can cost anywhere from $100,000 to $400,000.
Villa costs
Villas in Cabo range from small vacation homes to 5-bedroom luxury mansions. Prices vary depending on location, amenities, and size, but you can find affordable options in many areas. Villas in the new developments are expensive and start at around $200,000.
Smaller vacation homes in other areas may cost as little as $50,000. Luxury villas with many amenities and a prime location can cost up to $5 million.
House costs
Cabo is a popular retirement destination for wealthy people, so there are many large houses for sale. House prices vary by location and amenities. Cabo San Lucas is not a good place to find affordable housing.
Average house prices are between $290,000 and $500,000, even in the poorer areas. Large luxury homes can cost upwards of $5 million.
Common costs of buying a home in Cabo San Lucas
- Down payment – $10,000 to $400,000
- Mortgage rate – 6.5% to 11%
- Title insurance – $500 to $3,500
- Escrow fees – $500 to $3,500
- Real estate agent fees – 1% to 5%
- Property taxes – 1.5% to 2% of the appraised value of the property
Tax on Buying a Home in Mexico
The Mexican government taxes all properties that are bought by non-residents. If the property is bought through a Mexican real estate agent, they will collect the taxes on your behalf.
If you buy the property directly from the seller, you will have to pay the taxes yourself. Both new and used homes are subject to tax. The buyer has to pay a 10% tax on the property’s value above $250,000.
If the purchase price is above $750,000, the tax increases to 11%. This tax is known as a “relocation tax”. You are not required to live in the property or even visit Mexico to pay this tax.
Final Words
Buying a home in Cabo San Lucas can be challenging, especially for first-time buyers. There are many costs associated with the process, and real estate laws are different in Mexico compared to the US. If you are interested in how to buy property in Cabo San Lucas, you should hire a real estate agent before you make a trip to Mexico.
They can help you find a good house at a fair price and assist you with the paperwork. They can also help you negotiate with sellers and explain the buying process in more detail. Cabo is a beautiful place to live, and owning a home here can be highly rewarding.
It’s important to do your research and find the right neighborhood, type of house, and price range that suits your needs and budget.
