The real estate market in Cabo is moving and if you’re thinking of buying you’d better get to it. Here is Casa Mas Cerveza, currently the most affordable home in the gated community of Pedregal. Four bedrooms, three and a half baths, only a two block stroll to the marina.
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over thirteen years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
You’ve still got a week left to save big on your property taxes here in Cabo! Yes, depending on your definition of big.
When clients ask me about property taxes, especially if they are considering moving here, I always tell them not to worry. Annual property tax is simply not an issue here. For example, one of our listings is a three bedroom home in a gated community known as Maranata with community pool and party area. It is located on the corridor only about 3 minutes outside of town, and has lovely ocean views. I just looked up their annual property tax: the princely sum of $1004 pesos. Yes, that’s PER YEAR. At today’s exchange rate that is equivalent to about $75 USD. Again, that’s your property tax for the entire year. See, property tax is the least of your budgetary concerns.
But wait… there’s more! If you pay your property tax (in Spanish this is called the Predial) in January the city offers you a 20% discount. Which brings the taxes on this home to about sixty bucks: you’d drop that much on dinner without flinching. For payment in February the discount is 10%, and in March 5%, after that you pay the full amount. Amazing, eh? One of the big differences in cost of living here versus the US or Canada.
Now, how are you going to pay these ridiculously cheap taxes? It’s actually quite simple even if you don’t know a word of Spanish. Considering my clients told me at lunch last week their property manager quoted them a fee of $75 to do it for them it might be a fun adventure you can take on.
What you will need is a copy of last year’s receipt. It’s half the size of a sheet of paper and very colorful, with script running vertically that says ‘Los Cabos Recibo de Pago’. Your name will appear on it, and the words Impuesto Predial. Just take that to the Delegation (City Hall) and show it to the nice person directing traffic inside the door. The Delegation is the very large building flying an even larger Mexican flag all the way up Hildalgo Street almost to the Bordo bypass road. They’ll send you to a cashier who will take your money, print, stamp and give you this year’s receipt. This time of year it can get crowded with people rushing to take advantage of the discount, so try to go first thing in the morning. Only pesos are accepted.
That’s the basic course. For those wanting a graduate seminar:
If you know the Clave Catastral you can check your balance online at http://www.eloscabos.gob.mx/ . The Clave is your tax ID number and is generally found on the first page of your Fideicomiso.
The tax is much higher for unimproved lots, as much as ten or more times the rate for a finished home or condo. This is to encourage development. If you are building a home here do not pay off the builder until he or she provides you with copies of the paperwork manifesting the construction.
If you don’t pay your property tax there are fines, penalties and interest that will be due. But, if you look sufficiently penitent (and have cash to pay in full) they can be reduced.
The one and only debt that cannot be taken out of escrow when you sell your home is the Predial. So you might as well keep it paid up: when the property sells they’re going to get it anyway, and having to negotiate a reduction in fees may delay closing.
So that’s the scoop on annual property tax, and it’s only one more great reason to move to Cabo.
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over thirteen years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
You’ve still got a week left to save big on your property taxes here in Cabo! Yes, depending on your definition of big.
When clients ask me about property taxes, especially if they are considering moving here, I always tell them not to worry. Annual property tax is simply not an issue here. For example, one of our listings is a three bedroom home in a gated community known as Maranata with community pool and party area. It is located on the corridor only about 3 minutes outside of town, and has lovely ocean views. I just looked up their annual property tax: the princely sum of $1004 pesos. Yes, that’s PER YEAR. At today’s exchange rate that is equivalent to about $75 USD. Again, that’s your property tax for the entire year. See, property tax is the least of your budgetary concerns.
But wait… there’s more! If you pay your property tax (in Spanish this is called the Predial) in January the city offers you a 20% discount. Which brings the taxes on this home to about sixty bucks: you’d drop that much on dinner without flinching. For payment in February the discount is 10%, and in March 5%, after that you pay the full amount. Amazing, eh? One of the big differences in cost of living here versus the US or Canada.
Now, how are you going to pay these ridiculously cheap taxes? It’s actually quite simple even if you don’t know a word of Spanish. Considering my clients told me at lunch last week their property manager quoted them a fee of $75 to do it for them it might be a fun adventure you can take on.
What you will need is a copy of last year’s receipt. It’s half the size of a sheet of paper and very colorful, with script running vertically that says ‘Los Cabos Recibo de Pago’. Your name will appear on it, and the words Impuesto Predial. Just take that to the Delegation (City Hall) and show it to the nice person directing traffic inside the door. The Delegation is the very large building flying an even larger Mexican flag all the way up Hildalgo Street almost to the Bordo bypass road. They’ll send you to a cashier who will take your money, print, stamp and give you this year’s receipt. This time of year it can get crowded with people rushing to take advantage of the discount, so try to go first thing in the morning. Only pesos are accepted.
That’s the basic course. For those wanting a graduate seminar:
If you know the Clave Catastral you can check your balance online at http://www.eloscabos.gob.mx/ . The Clave is your tax ID number and is generally found on the first page of your Fideicomiso.
The tax is much higher for unimproved lots, as much as ten or more times the rate for a finished home or condo. This is to encourage development. If you are building a home here do not pay off the builder until he or she provides you with copies of the paperwork manifesting the construction.
If you don’t pay your property tax there are fines, penalties and interest that will be due. But, if you look sufficiently penitent (and have cash to pay in full) they can be reduced.
The one and only debt that cannot be taken out of escrow when you sell your home is the Predial. So you might as well keep it paid up: when the property sells they’re going to get it anyway, and having to negotiate a reduction in fees may delay closing.
So that’s the scoop on annual property tax, and it’s only one more great reason to move to Cabo.
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over thirteen years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
This is the pool house, one of 19 unique, beautiful and diverse structures in Villa Faro, one of my favorite listings. Just looking at the photo is so calming. What do you think?
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over thirteen years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
I remember a few years back hearing an agent, while showing a house with no view, telling the prospect that ocean views are highly over-rated. “In fact, after a few months, you don’t even notice them any more,” is the gist of his comment, “So they really aren’t worth the extra expense.” Bull Hockey. Obviously. I’m pretty sure I’ll never get to the point of not enjoying an ocean view, and it’s been waaay more than a few months. Case in point: yesterday our real estate association’s monthly meeting was held at a beach club half-way between Cabo San Lucas and San Jose. So while I was *SUPPOSED* to be listening to the Mexican bank trust officer explain the Foreign Investment Clause* I was really looking at and taking this video of the beautiful unspoiled setting.
Nope, never going to get tired of it. And neither will you.
* The Foreign Investment Clause is part of the law governing how foreigners can own property in coastal areas of Mexico. If you are looking at a property over 2,000 m2 (one half acre) you’ll need to address it. In the briefest sense, over this size property you will have to promise to invest a certain amount improving the property within 24 months of purchase. There are special circumstances that may apply so be sure to work with an experienced real estate agent and attorney.
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over eleven years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog http://www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
Yesterday our team had the pleasure of viewing Cabo’s newest deeded fractional offering: the Auberge Private Residences at Esperanza. This 5-star luxury resort has made two of their buildings available to sell as deeded fractional. Deeded fractional is quite different than timeshare: you actually receive title to the property. But you share that title with a number of like-minded individuals. Your title allows you to enjoy the property for a certain percentage of the year and you don’t have to carry the expense of maintaining that property when you’re not actually using it. This is a great option for those who are still working and have a limited amount of time they can spend in Cabo.
What I like about Esperanza is that it is so peaceful; this is a very low density resort community. The three and four bedroom condos are huge, they’re about 3,000 square feet of air conditioned space tricked out with all the super high end amenities. I will admit the kitchen is a bit of a disappointment, but that’s OK in a fractional. For a full time residence for someone who enjoys cooking some upgrading of appliances would be necessary. But if you’re only here a week or two it is perfectly adequate. The rooms are spacious with tons of deck and patio, and the baths are quite luxurious. The clubhouse and common areas are lovely with gorgeous landscaping. Most residents travel around the resort by golf cart; one is included with each unit. And of course there’s the Auberge management. ‘Nuff said. What really got me fired up is that the developer has created a 1/24th share which buys you two weeks of dedicated use and unlimited ‘space available’ use for only $99,000. And, that includes membership in the private beach club. While we were there I shot this little video of the beach club. Hope you enjoy it!
Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over eleven years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog http://www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.
Real Estate In Cabo 