For a few years now, Los Cabos has been one of the best places to invest, either for land banking, or to purchase properties to rent while you are away.
This makes to owners a solid cash flow, you can manage it by yourself or hire a property management company to do it for you for a percentage of the earnings, this is the most popular way to do it, since you just leave all the little things to a professional and you just worry about collecting earnings.
Talking about the rental market in general, now with this world pandemic, people are searching for more privacy and less people around, this is the perfect time for rentals like Airbnb to really take off like a rocket, since you can choose to stay in private properties with amenities and only a few residents, so you are not really living with another 1,000 guests, and that really makes the difference for cleaner and secure areas to enjoy in a more private setting.
The chart below shows that in the last years, the only way to go for Airbnb rentals is up, we can expect the same behavior this 2020 and in the following years.
Now with the natural growth of the world population and the high demand for well-located housing and rentals around Los Cabos, there is a lot going on in terms of construction. There are several new developments happening right now and very well located.
The price range varies, starting for the $133,000 USD to $850,000 USD, it's all related to location, the number of bedrooms, amenities on-site, and distance to a safe swimmable beach, and things to do around.
Sure there are some condos +$1M USD, but in this article, we are focusing on investments where you can actually see a return of investment in your lifetime, so no pricey listings.
The pre-construction investments are always a good idea to get the lowest for a sale price that´ll ever be on a brand new condo, besides of having a white canvas for you to decorate the way you like it, and facilities that have never been used by others before. There are ways to take advantage in this situations, either you buy a condo in the pre-construction phase and then re-sell it when everything is done, prices will go up and you can expect your investment + some extra cash, or keep the condo and rent it out for a while, get some earnings, enjoy it by yourself and after a while, re-sell. It's really up to you, the only certain thing is that you´ll make money.
Pre-construction financing: In pre-construction, there is no such thing as financing, this term usually refers to a completed project, meaning that it would have to be already built, and there are limited options.
The pre-construction "financing" today refers to a deal with the developer that includes a usual 20% to 50% downpayment and zero-interest monthly payments or payments according to the construction progress to gain more certainty in your investment.
There are also key points to consider when you invest in a pre-construction phase such as:
Who´s the developer?
What's his experience?
What's the construction progress?
Location
Amenities
Appliances included
Approximate return of investment for rentals based on a 60% occupancy yearly, which is a reserved down to earth projection.
Reviewing the contracts and payments.
The usual paperwork you need as a foreigner to purchase a property in Cabo:
-Passport
-Birth certificate
-Marriage certificate (if you are legally married)
-Immigration status
-Proof of address
Now the good stuff!
Pre-construction opportunities in San José del Cabo
Cardinal Living in San José del Cabo | Starting at $133,000 USD to $405,000 USD
With a contemporary style and finishings, Cardinal Living in San José del Cabo features views to downtown, the on-site property management will take care of your condo for you while you´re away, a small shopping plaza downstairs allows its guests to have a variety of options right there, the private rooftop and pool is one of the best amenities.
There is literally no other option like Cardinal in downtown San José, enjoy hotel-like services like reception or concierge, the underground parking will allow you to park securely every time, a little storage included for your personal belongings when you rent out the property, the delivery is estimated to July 2021.
Location
Ladera San José | Starting at $255,000 USD to $350,000 USD
A Unique, Nature Neighborhood under construction, 3 model condos to choose from with balconies and terrace or garden to enjoy the mountain or ocean view. 24/7 security, 4 stories buildings with 2 towers and elevators, All bedrooms with balconies, walking closets and bathrooms.
Laundry closet, European kitchen style; -appliances included. (fridge, washer or dryer not included) Your property includes the Social Club Membership, walking trail and contemplation decks. optional: the a/c system, solar panels and upgrade brands. Club House, with Restaurant, Sports Bar, kids club, junior club, playground, BBQ area, family and adults pools, yoga pavillion, etc.
Location
Palmilla Dunes | Starting at $789,000 USD
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Open floorplans with spacious areas that blend with the modern design , pocket sliding doors and a spiral stairs case to access the huge terrace to enjoy the sunrise in the sea of cortes or the sunsets over the mountains.
Luxury finishes and high-end appliances makes this development one of a kind, not to mention the countless amenities already in place at your disposal. Delivery time around 12 months.
Location
Pre-construction opportunities in Cabo San Lucas
Cardinal Living | Starting at $245,000 USD to $347,000 USD
Featuring mountain views and bay area views, Cardinal Living in Cabo San Lucas is one of the best investments right now with one of the shortest delivery time-frame around Cabo.
They are almost completed with the overall construction but there is still some finishings to be done, a master bedroom features a great walk-in closet and bathroom, enjoy hotel-like amenities and services in your new condo, high-end appliances included.
Location
Carena Residences | Starting at $248,000 USD to $639,000 USD
One of the best looking developments in all of Baja, the modern architecture of Carena is something unseen in Los Cabos, its kind of a breakthrough for Los Cabos in the overall architecture and design of the area. 2 and 3 bedroom condos available, and the best of all its location! no need for expensive taxi rides to your favorite spots, with only 1 block away from the beach and marina, Carena makes the perfect rental place to invest, your guests will love it!
The rooftop amenities and services allow owners to fall in love with it every time. The payment plans for Carena are 30% downpayment after that 24 Monthly payments with zero interest and the delivery estimated is October 2022.
Location
Marea Los Cabos | Starting at $264,000 USD
New condos right next to City Club in Cabo San Lucas, 2 blocks away from medano beach, enjoy your private terrace, and a bunch of amenities like swimming pool, gym, business center and rooftop areas with firepits, concierge on-site.
Designed by "Taller Aragones" the same builder of Viceroy Los Cabos, with its unique design, Marea Los Cabos has a similar feeling in a more affordable price range and better location to enjoy what Cabo has to offer.
Location
In a nutshell rental properties is one of the best investments you can do today, great locations still available on pre-construction prices.
Connect with me for details and property investments in Baja
Luis Acosta
Real Estate Advisor
luis@bajasmart.com
Mobile: 624 156 5337