We take a close look at dazzling properties
Try as you might, there’s no denying it. The symptoms are all there. You’ve fallen for Los Cabos. There’s nothing left for you to do but find a home of your own, right here in paradise. Purchasing a home here is easier than you think, and the property can be an excellent investment.
Los Cabos has many communities in all price ranges and architectural styles. Working with your professional real estate agent, you’re sure to find one that is right for your needs. Here’s a brief sampling of what agents might show you.
Name: Ventanas del Mar (Ventanas Residences, Phase II)
Location: Tourist Corridor, near Cabo San Lucas
Description: The second phase of the wildly popular Ventanas Residences project is located directly adjacent to the original product and offers many of the same features that made the first phase most real estate agents’ best bet for affordable homes. Pretty exterior architecture, wide streets, lush landscaping, and outstanding community centers are the hallmarks of the developments from Portus, Ventanas’ developer and builder. When the housing market began to falter, Portus was able to react quickly and retooled its designs to minimize costs and maximize living spaces without sacrificing high-end finishes. The result of this reorganization is a community of elegant, affordable homes in a welcoming environment. Although fewer floor plans are offered, homeowners still have many options they can add, including enclosed garages (the homes come standard with a covered carport), private pools, and other modifications to the floor plans. Buyers are also able, if purchasing a home that has not been completed, to select stone and cabinetry colors.
Units: 107 single-family homes, 36 condominiums
Price range: Homes from $219,000 U.S., no condominiums available (sold out)
Best feature: The Ventanas del Mar clubhouse, which is scheduled to open in February, is even larger and contains more amenities than the original project now known as Ventanas del Cortes. Two pools, hot tubs, fire pits, a children’s area, a chapel, a health club, a media room, and a convenience mart are planned. They will more than meet the needs of the 143 homeowners who will share them. The developers, based on comments from owners in the first phase, are also planning to expand the restaurant and add a full-service spa. And, in a first for Los Cabos, they are including a dog park for four-legged family members.
Name: Capella Pedregal Residences
Location: Downtown Cabo San Lucas, just inside the Pedregal gates
Description: Accessed by traveling the only privately owned tunnel in México, Capella is one of the few deeded fractional options in Los Cabos. Within this development, the owners receive both title and title insurance. The fractional offerings are on the Pacific side immediately adjacent to the überposh Capella resort. The three- and four-bedroom furnished residences come with high-end finishes, gourmet kitchens, concierge service, and private plunge pools. In addition, each home is equipped with its own majordomo, a private butler who manages all the details of everyday life so that the residents can concentrate on the important work of relaxation. The development includes three restaurants, pools, a complete health club, a gift store, a world-class spa, and a full-service salon. An optional package will add a fraction of a yacht as well. The harbor-side casonas (mansions) are full-ownership opportunities. The seven homes offer three or four bedrooms, pools, and unique indoor-outdoor spaces. Owners will have access to the amenities of the oceanfront development. Several building lots are also offered, including a very large mountaintop space.
Units: 31 oceanfront residences (fractional ownership), 7 harbor-side casonas (full ownership), 12 homesites
Price range: Fractional ownership ranges from $225,000 to $440,000 U.S., full ownership from $1.2 million to $1.9 million U.S., homesites from $550,000 to $8 million U.S.
Best feature: If you want to be truly spoiled when you’re in Cabo, then this is your community. This is luxury … done right.
Name: Ventanas de Cabo (Ventanas Residences, Phase III)
Location: Tourist Corridor, near Cabo San Lucas
Description: The most recent phase of the Ventanas projects, Ventanas de Cabo, is located slightly higher on the mountainside than Ventanas del Cortes and Ventanas del Mar, but Portus is staying true to the winning formula that has made it the best-selling developer in Los Cabos. Architecturally similar to the sister communities, the homes feature a style that is sometimes described as “Updated Mexican with a Baja Twist.” The gated community will feature wide streets, a large community center, and tropical landscaping. In addition to the community pools, private pools are an optional add-on as are enclosed garages. A model home is complete and ready for viewing; at press time the development was approximately one-third sold. Financing is available through the developer.
Units: 63 single-family homes, 36 condominiums
Price range: Single-family homes start at $295,000 U.S., condominiums are priced starting at $190,000 U.S.
Best feature: Higher on the mountainside, Ventanas de Cabo provides even more panoramic views than those found in the earlier phases. Some homesites provide sweeping views of the Cabo San Lucas Bay and arch at Land’s End. The homes have been configured to maximize the view from the main living areas of the house.
Name: Pedregal de Cabo San Lucas
Location: Directly behind the arch in downtown Cabo San Lucas
Description: Pedregal was one of the first gated communities on the Baja Peninsula, and it remains one of the most enviable locations in Los Cabos. For more than 30 years, the developer has sold building lots on a tract of land that covers a mountain with views to the city, Cabo San Lucas Bay, and across to the Pacific Ocean. On these lots, families have built astounding custom homes. As the developer offers only a few lots for sale at any given time, the neighborhood has been shaped gradually, growing into a stable yet vibrant community. The amenities of Pedregal include a tennis club, health club, restaurant, playgrounds, and beach. The homeowners association has built a private desalinization plant that is currently supplying all water to the residents.
Units: 43 developer lots (resale inventory is also available)
Price range: $125,000 to $2.4 million U.S.
Best feature: Pedregal has always been about the amazing views, but owners here also enjoy proximity to downtown Cabo San Lucas. There are very few places where you can build your home to enjoy the view of the sun rising over one body of water and also see it setting over another. Pedregal de Cabo San Lucas is one of those rare opportunities.
Name: Las Villas de Mexico
Location: Within Club Campestre in San José del Cabo
Description: Las Villas, a HOMEX development, provides condominiums and villas within the new high-end Club Campestre master-planned community in San José del Cabo. There are eight clusters with each one having a community pool, barbecue area, and fire pit. In addition, Club Campestre’s facilities include a beach club with restaurant and pools on a safe swimming beach, an 18-hole Jack Nicklaus golf course, a tennis club, and pools. Shopping and recreational areas are planned for Club Campestre. Las Villas de Mexico offers luxurious details; finishes include travertine marble floors, granite countertops, stainless appliances, and solid wood cabinetry. The condominiums feature underground parking for two cars per unit. The developer is one of México’s largest builders; for the Las Villas project, the goal was to provide traditionally designed, carefully constructed buildings with first-class services.
Units: 266
Price range: $8,985,000 to $9,554,985 pesos, or approximately $691,150 to $734,998 U.S. depending on the exchange rate on day of closing
Best feature: The Club Campestre Beach Club is both spacious and elegant, located on a pristine stretch of beach on the Sea of Cortés. All owners in Las Villas are eligible for membership in the beach club.
Name: Maraluna Residencial
Location: Tourist Corridor, just 5 kilometers from the center of Cabo San Lucas
Description: Maraluna Residencial is currently under construction, and pre-sales are being accepted with special prices and terms for the early buyers. This gated community will be made up of single-family homes in an updated traditional Mexican style; amenities will include a clubhouse with two pools, gym, spa, and concierge services. Finishes for the homes will include alderwood cabinetry, marble floors, granite countertops, crown molding, and cantera exterior columns. All homes will be automated by iPads, making it possible for residents to control their lights, TV, air-conditioning, and sound system remotely. Although Maraluna’s not located on a golf course, owners will have the option to purchase special golf packages at several local courses.
Units: 140 single-family homes are planned
Price range: $490,000 to $690,000 U.S.
Best feature: The expansive views from the rooftop terrace; this area of town is known for spectacular vistas, and Maraluna should be no exception.
Name: Hacienda Beach Club & Residences
Location: Médano Beach in downtown Cabo San Lucas, adjacent to the marina
Description: Hacienda is a 22-acre private beach club and residential community that offers resort-like amenities only a few steps from the marina and downtown Cabo San Lucas. Located on Médano, considered by many to be the best beach in the area, Hacienda consists of 109 homes with three distinct styles: two-story detached beachfront villas, view-oriented attached resort residences, and penthouses atop four- to six-story buildings. Amenities include concierge service, restaurants, beach club, and pools. The management also provides rental services for owners who wish to offer their homes for rent when not in use.
Units: 109
Price range: Resort Residences (condominiums) start at $650,000 U.S., penthouses start at $2.86 million U.S., beachfront villas start around $5 million U.S.
Best feature: The old saying is true: location, location, location. Hacienda Beach Club & Residences has one of the best locations in México. Residents will rarely, if ever, need access to a car as they can walk to fine dining, shopping, and fishing venues. And then, there is that beach…
Name: Lomas del Desierto
Location: FONATUR section of San José del Cabo
Description: The most recent addition to San José del Cabo’s inventory is Lomas del Desierto in the exclusive FONATUR Golf area. These lots are being sold by the government agency responsible for developing resort areas and were not on the market until just prior to this magazine going to press. The ocean-view building lots range from 425 to 886 square meters, or 4,573 to 9,533 square feet. The development offers underground utilities, and the homesites offer ocean views. The government is offering one-year financing at 0 percent interest, an eight-year financing plan, or a 5 percent discount for cash purchases.
Units: 55 residential lots
Price range: $1,151,682 pesos to $2,208,823 pesos (approximately $91,000 to $174,865 U.S.)
Best feature: The views and location make Lomas del Desierto an excellent opportunity in one of San José del Cabo’s most envied neighborhoods.
These are just a few of the excellent opportunities in the Los Cabos real estate market. Prices are at their lowest in recent memory, and this season may be the best opportunity to acquire your vacation or retirement home here. As always, work with a professional real estate agent and be sure the title is properly transferred into your name via a fideicomiso (trust). This trust, which is described in Article 27 of México’s constitution, is the only proper form of title for foreigners for residential properties within 50 kilometers of the ocean and confers on the foreigner all the rights, privileges, and benefits of a Mexican citizen as they pertain to that property. Such an important step should never be skipped. A title insurance policy is an excellent investment as well. Your real estate agent will guide you through the process, making sure your transaction is safe, secure, and of course pleasurable. Welcome to your new home!
Real estate expert Carol S. Billups is broker-owner of a full-service brokerage based in Cabo San Lucas. You can search the multiple-listing service on her website, www.reloscabos.com, or read her real estate and lifestyle blog at www.caborealtor.wordpress.com. Billups urges readers to work with Asociación Mexicana de Profesionales Inmobiliarios-member real estate agents who are bound by a code of ethics to be sure their investment is safe and the trust recorded properly.
New & Notable
What’s the Buzz in Los Cabos?
Another New FONATUR Offering
Just after our real estate feature went to press, Los Cabos Magazine received word that FONATUR, the government agency responsible for developing tourist destinations including Los Cabos, has released another subdivision of building lots for sale to private individuals of any nationality. This new development, Rancho Misiones, is located in the popular FONATUR section of San José del Cabo. The area is within walking distance of beaches, golf course, restaurants, and shopping. These lots feature ocean views and underground utilities. An important feature for many buyers is that there is no homeowners association and, accordingly, no HOA dues.
Rancho Misiones consists of 21 residential lots and one lot suitable for a condominium project. Because the seller is the Mexican federal government, the prices of the lots are quoted in Mexican pesos; the residential lots range in price from $736,712 to $1,123,998. Using a 12:1 exchange rate, the prices in U.S. dollars range from approximately $61,392 U.S. to $104,482 U.S. The actual price will be determined by the exchange rate on the day of closing before a notary public. The condominium lot is priced at $5,892,103 pesos or approximately $430,080 U.S. A 5 percent discount applies to cash purchases, and the government will finance for one year at 0 percent interest with a 30 percent down payment. The government also offers eight-year financing with only a 10 percent down payment.
When purchasing from FONATUR, the price is not negotiable and you must use the documents the government supplies. The government has fast-tracked the paperwork for these closings, which must be accomplished within 30 days of submitting your offer. Your real estate professional can supply more details.
Real Estate Show Debuts
LiveCabo.net, Los Cabos’ only predominantly English radio station, has announced plans to debut “HomeQuest,” a new feature that will air weekly. I will host the segment and answer listener questions about all phases of real estate transactions in Los Cabos.
“HomeQuest” will air at different times daily along with music, news, and weather reports. Any real estate related topic is welcome, from the best place to search for properties online to how to move your belongings to México. Send your real estate questions by going to www.LiveCabo.net and clicking the dialog box above the photo of the arch or by e-mailing livecabo@gmail.com. You may also submit questions to this magazine for possible inclusion in a future article as well as the “HomeQuest” program.
Has the Market Recovered?
There are strong indications that the real estate market in Los Cabos is on the rebound. AMPI, the Los Cabos real estate association, administrates a multiple-listing service that covers all of the state of Baja California Sur. According to the service’s statistics, the recovery is well under way. Comparing the period from January 1, 2011, until mid-November 2011 with the same period the previous year, we are able to identify impressive trends. Although we still have a record-large inventory, the number of new listings was down 8 percent. More exciting is the news that the number of properties under contract (the seller has accepted the offer but the deal is not officially closed yet) is up 66 percent and the number of actual closed sales is up exactly 80 percent. Although most realtors will admit that buyers are looking at lower-priced real estate this year (in fact the average sales price is 33 price lower than in 2010), the good news is that the volume of sales is up 21 percent. Even though the sales are occurring at lower price points, the market is making up the difference in volume.
Where are the hottest steals and deals? The largest increase in number of sales of condominiums this year versus last was on the inland Cabo San Lucas side of the Tourist Corridor (up 900 percent) followed by the inland-golf area of San José del Cabo (up 550 percent). For single-family residences, the largest increase in sales volume was in the East Cape South (up 600 percent) and again the inland Cabo San Lucas Tourist Corridor (up 500 percent). For building lots, the place to be was the East Cape South, with an increase over 2010 of an astounding 2,300 percent.
Of course these are aggregate numbers and do not reflect the performance of a particular offering or community development. They are, however, an indication that the market is picking up and that buyers have the confidence to make the purchases they’ve been putting off due to the global economic situation. And, most especially, this is very welcome news to Los Cabos’ real estate community. See your real estate professional for a complimentary copy of the complete report.
Changes in México Mortgages for Americans and Canadians
The U.S. banking institutions offering mortgages on Mexican properties to American and Canadian citizens have changed, according to Ryland Apsey, president of Mexico Capital Mortgage. All transactions now require a minimum down payment of 35 to 40 percent of the purchase price (this is an increase from the previous minimum down payment of 25 percent). At the same time, the maximum loan amount was reduced to $800,000 U.S., thus making third-party financing feasible for properties priced under approximately $1.3 million. Luckily for luxury buyers, owner financing is often easiest to obtain for high-end properties. Your professional real estate agent can refer you to a reputable mortgage specialist.
Third-party financing is relatively new to the Los Cabos marketplace; it is often a very good option for buying your dream home without committing your entire savings to the effort. Third-party mortgages are available from a number of banks based in the United States. Those same banks recently withdrew their offerings for loans on building lots. Many real estate developers also offer their own financing packages, which can often be competitive with the third-party suppliers.
Property Taxes Are Due
Local expats can claim a cost of living that is much smaller than in the United States or Canada in large part because of how properties are taxed. January is the month in which annual property tax (impuesto predial) comes due for all properties in Los Cabos. This tax is still an obligation of the property owner, although quite affordable by U.S. or Canadian standards. For example, the 2011 annual property tax for a studio condominium located right on the marina in Cabo San Lucas came to $1,230 pesos. At current exchange rates this comes to an annual tax bill of a whopping $89.78 U.S. To make it better, in order to encourage prompt payment, the city offers a discount of 20 percent if taxes are paid in January. In the case of this condominium, early payment brings the total bill down to $71.82 U.S. Less than $80 covers the owner for the entire year. The taxes on single-family homes are also affordable. For example, a four-bedroom home in the posh Pedregal development was taxed $1,066 pesos in 2011, only $78 U.S. when using today’s exchange rate, less if the owner takes advantage of the early payment discounts. The city offers smaller discounts for taxes paid in February and March; after the first quarter you’ll be paying the full assessment. And, of course, failure to pay will result in a late fee. Your property manager will generally handle paying this bill. If you do not have a manager, it is quite easy to pay yourself: Simply take a copy of last year’s bill to the delegación (city hall), where they will provide you with a current bill and take your payment. Payment must be made in pesos.
Realty Executives Is Now Cabo Realty Pros
My real estate company, Realty Executives Los Cabos, has changed its name to Cabo Realty Pros, but only the name has changed. We’re still exactly the same personnel committed to offering the same great service. We’re maintaining our original guiding principles of integrity, service, imagination. The office location, telephone numbers, and website remain the same. This is merely a cosmetic change, reflecting our local focus. For more information, go to www.caborealty pros.com or call (624) 143-3011.