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LOS CABOS REAL ESTATE
Land of Dreams by Randy Turner
| Welcome to the Los Cabos area of Baja California Sur where miles of pristine beaches outline a magnificent peninsula dominated by mountains and a desert of incomparable beauty. Once a hidden enclave of celebrities and big game anglers, accessible only by private plane or boat, Los Cabos has quickly become a world-class vacation destination and a place for those looking for that dream home in paradise.
Fortunes were first made and then lost by pirates raiding Spanish galleons loaded with treasure. Today it is happening all over again, without the cannon fire or flash of swords. The new mother lode is real estate and this unique opportunity has not been seen since Palm Springs, thirty years ago. Can you imagine if you had invested back then? Whether your dreams are for a rancho surrounded by the regal mountains and the surreal beauty of the desert or for a million dollar estate perched over the majestic Pacific Ocean, Los Cabos has something to offer everyone. The boom is on and construction of homes, resorts, hotels and condominiums is advancing at an unbelievable pace. Los Cabos is the fastest-growing resort area in North America. This relates into a great place to invest in real estate with peace of mind. The U.S. Department of Commerce estimates that tourism will gross $1.5 trillion U.S. dollars by the year 2010, becoming the largest industry in the world. The World Travel and Tourism Council, along with the American Express Foundation forecast a growth of 160% in Mexico's tourism income in the first decade of the new Millennium. Tourism fosters development, and according to the Central Bank of Mexico, Mexico ranks eighth in the world in terms of visitor arrivals. Over $750 million U.S. has been invested in Los Cabos since 1997 in hotel developments and golf courses, with nearly 4,000 rooms under development or about to be started, together with 126 holes of championship golf. The Political Risk Services considers Mexico among the top 30 countries with higher safety standards for medium and long-term investments. Mexico is the United States' largest trading partner, with 87.5 % of its exports and 74.5 % of its imports (1998 est.). Trade with both the U.S. and Canada has nearly doubled since NAFTA was implemented in 1994, providing international in-vestors with an additional level of confidence. Now Mexico is the only nation in the world with analogous trade agreements with multiple partners like Chile, Costa Rica, Colombia, Venezuela, Bolivia, Israel and the European Economic Community. Such a high level of confidence is an invaluable asset for investors. American citizens now experience withholding tax benefits through a bilateral Mexico/ USA fiscal treaty that avoids double taxation. Real estate brokers in the Los Cabos area enjoy a high degree of customer confidence since the majority of brokers and agents belong to the Association of Mexican Real Estate Professionals (AMPI); and are also affiliated with associations in Canada, the United States and the Inter-national Real Estate Association. Los Cabos also has its own Multiple Listing Service (MLS) and is dedicated to insuring ethical and professional business practices by member brokers and agents. Just recently, nine countries, Australia, Brazil, Canada, Ireland, Holland, Norway, Russia, Singapore and the United States have formed an international real estate consortium. Mexico (AMPI) has been invited to become a member of this group. The Los Cabos MLS has a web site, www.loscabosmls.com, that affords prospective buyers the means to search current listings to enable them to more efficiently find that special home or property. The buyer's interest is better served if they deal with members of these organizations. Los Cabos is an area that includes about half of the lower Baja peninsula south of La Paz and stretches from the great Pacific Ocean to the tranquil Sea of Cortez. All the land in between San José del Cabo and Pescadero, in the Municipality of La Paz, give potential buyers many options. San José del Cabo San José del Cabo is a small colonial Mexican town that has been known for centuries as an oasis of the southern Baja peninsula. Priding themselves on quiet, park-like settings and traditional ambiance, San José is rated as one of the cleanest small cities in Mexico. San José remained little known until the Cape region started to attract sportsmen and sun lovers in the 1970's. The downtown area has been renovated and many of the colonial homes now house beautiful garden restaurants, shops and galleries. The Rio San José flows underground through San José into the Sea of Cortez and forms a wonderful area of plush growth and palms surrounding a tranquil freshwater estuary. This beautiful lagoon protects more than 200 species of migratory birds. Bird watchers may enjoy many hours entranced by the variety of species and their many colors. There are many developments in San José del Cabo from oceanfront homes and condos to golf course properties. Condominium developments offer comfortable living on some of the most desirable beaches you can imagine. You don't have to spend a fortune here in order to enjoy this perfect setting. Moderately priced condos such as La Costa, Misiones del San José and Laguna Vista, along with single family homes, border the nine-hole Campo del Golf. Prices are a lot lower than in the Corridor or Cabo San Lucas. On the beach close to downtown San José is the luxurious Las Mañanitas. With beautiful Spanish Mediterranean architecture of red tile roofs, white arches and lush green common areas, it sits on a beautiful beach offering unlimited views. Nearby, the Sampaguita Beach Resort offers nicely appointed studios, one, and two bedroom suites. Further out of town, in the Corridor, but still on a great beach are Mykonos, El Zalate, Mira Vista and La Jolla de Los Cabos. All of these condominium resorts offer sales and rentals in a wide price range. The Corridor Stretching from the tranquil town of San José del Cabo and ending at the more active Cabo San Lucas, the land along Highway 1 encompasses some of the most prestigious property in Los Cabos, and possibly the world. This is the first ocean view that visitors see as they head for Cabo San Lucas. The initial sight of blue water lapping against the shore, in striking contrast with the beauty of the desert, is unforgettable. There are some fabulous communities located on the white sand beaches of the Corridor along with many five-star resorts. Of course the big draw for more and more foreigners are the unbelievable golf courses that splash avenues of green over the hills and valleys of the desert, with fairways that seemingly flow to the sea. Cabo Bello was one of the first major developments in the Corridor and is still growing. Affordable lots and homes are available with some even offering that famous Arch view. Newer developments have been springing up such as Sierra Dorado, Rancho Paraiso Estates, Villas Peninsula, Vista Real and Punta Bellena. Playa del Ray is a new-gated community, on the beach, at the end of Cabo Bello and offers some fantastic ocean front lots. Other communities are Villa Serena and Santa Carmela, which are older neighborhoods of luxury homes with great views of the Sea of Cortez. Prospective homeowners have quite a selection of properties throughout the Corridor in a wide range of prices depending upon the amenities, infrastructure and just how close to the water they are situated. If golf is your thing, then the Corridor is where you want to be with four Championship courses to consider. Cabo del Sol covers 1,800-acres and is a master-planned community that offers luxury hotels, condominiums and elegant homes along the beautiful fairways of the eighteen-hole Jack Nicklaus designed golf course. In this same area is the beautiful Sheraton Hacienda del Mar Resort, Fiesta Americana Resort and the Puerta del Sol Condominiums. Further up the Corridor you will find the next golf course property at the prestigious Cabo Real resort. One of the largest developments in the Corridor, Cabo Real sprawls over 2,800 acres and is home to two Championship golf courses, the Robert Trent Jones II designed Cabo Real course and the newer Jack Nicklaus Signature course, Eldorado. That's not all, at least two more courses are planned for the future. Cabo Real offers home sites or luxury condos at Las Gardenias, which sits on the Cabo Real course and enjoys a panoramic ocean view backing the green-carpeted fairways. Also within Cabo Real, the renowned Rosewood Resorts Las Ventanas al Paraiso, and Villas Paraiso set the standard on the Corridor. Sitting just off the beach, Villas Paraiso is a cluster of beautiful buildings nestled around the hotel with villas of pure luxury. Next door, Casa del Mar has oceanfront lowrise buildings of elegant condominiums surrounded by lush, ample grounds, pools and a beachclub fronting the sand. The newest course, designed by Tom Fazio, and the only private golf in Los Cabos, is Querencia and along with its high end planned community of homes and condominiums, Querencia offers fantastic hilltop locations for not only fairway and desert views but also a panoramic view of the Sea of Cortez. Nearby, Palmilla rounds out the golf course and ocean developments with twenty-seven holes of golf on the first Jack Nicklaus designed course in Los Cabos. Considered to be one of the finest resort communities in the world, Palmilla stands above the crowd with its exclusive gated oceanfront communities of La Caleta, Palmilla Norte and Villas del Mar. On the course are single family fairway homes and condominiums. For help in finding that perfect place throughout the Corridor check with one of the reputable brokers in the area and they will help you narrow down your options. Cabo San Lucas On the tip of Baja California lies the once hidden little fishing village of Cabo San Lucas. Over the past twenty years, and especially in the last ten, growth has been phenomenal. Cabo San Lucas offers a lot for a small town. Your first sight is one you will not forget. First you notice the beauty of the desert as it blends into the ultramarine blue Sea of Cortez. As your eyes follow the rugged mountains towards the ocean you can see the majestic Arch at Land's End as the mountains dip into the sea. The modern marina makes this a popular destination for the boating community from north of the border and is the place to go to catch that marlin of a lifetime. Shopping is great and it will only get better once the new mall opens late this year. Restaurants to please any appetite and unique nightlife bring young and old alike back again and again. Cabo San Lucas has its infrastructure in place, along with modern communications and road systems. The ground work has been laid for the real explosion in real estate to begin and now is the time to act. Property in Cabo San Lucas is selling at a rapid pace and is limited. One of the oldest and most prestigious developments in Cabo San Lucas is the hilltop community of Pedregal de Cabo San Lucas. Cobblestone roads and magnificent homes with incomparable views of the Pacific Ocean and the Sea of Cortez have made this 360-acre community one of the most desirable spots in Cabo San Lucas. This development was started in 1974 by the Diaz Rivera family and today construction of homes is going at a brisk pace and what magnificent homes they are. Multi-million dollar estates dot the rocky outcroppings with breathtaking views, while on the town side, more moderately priced homes are available yet still have fabulous Sea of Cortez and Cabo San Lucas Bay views. There are prime lots available in addition to many homes on the resale market. A new tunnel through the mountain has been completed allowing access to the exclusive beachfront property near the Hotel Finisterra. For the most part though there is not much beachfront property available in Cabo San Lucas that is not taken by the many resorts and hotels that line the beaches. Villa La Estancia is the exception, now under construction and located next to Villa del Palmar on the popular Médano Beach, they are offering beachfront condominiums for a full time ownership. These upscale condominiums come in either two or three bedroom units and gives you a view beyond compare of Land's End and Cabo San Lucas Bay. Fortunately there are some great condominiums available in Cabo San Lucas that offer not only reasonable prices but also comfortable living. Marina Sol situated just a block from town one way and just a block from the main beach the other way offers condominiums surrounding a tropical courtyard oasis. If you want to be right on the marina, Plaza Nautica and Plaza Bonita offer reasonably priced condominiums that are close to all the action of downtown and have exciting marina views. Some of the most spectacular views of the Sea of Cortez and Lands End can be viewed from Misiones del Cabo, which is perched on the eastern tip of Cabo San Lucas Bay. One, two and three bedroom condos, not only overlook the ocean, but also have their own secluded beach with safe swimming and great snorkeling. With the restrictive price of beachfront or ocean view properties, more people are moving into town and the neighborhoods adjacent to the downtown district. There are some beautiful homes here and the cost is more affordable, as most don't have a view. Another option just outside of town is the Cabo San Lucas Country Club. This planned community surrounds the Dye Corporation-designed eighteen-hole Championship golf course and offers affordable fairway living. Todos Santos Todos Santos, Pescadero, and the surrounding areas, about an hour's drive north from Cabo San Lucas, are one of the few lushly vegetated settings in the Cape region. Once known as the sugar cane capital of Mexico, Todos Santos thrived until the economy and the water supply dwindled when the abundant springs dried up in 1950. But nature has its cycles and some things are meant to be. The springs rejuvenated in the early 1980's causing an explosion of growth in agriculture. This fertile basin now produces avocados, coconuts, mangos, papayas, citrus, lettuce and a pepper crop that is second to none. There is also ranch land available for ranching or just to have a place in the desert and mountains for that secluded retreat from the hectic world up north. The miles of beach front from Todos Santos to Cabo San Lucas offers some great investment opportunities and are reasonably priced at this time, but like the area around Cabo San Lucas, the water front is the first to go and seems to appreciate faster than other properties. This is an area of rolling hills and majestic mountains with unsurpassed ocean views from a desert hideaway. Water and electricity are available for most properties and those that do not currently have them are using solar power and private water tanks or wells. Dream no more about sitting on your own patio sipping a cold cervaza or margarita while listening to the pounding surf of the Pacific Ocean. The East Cape The East Cape is across the peninsula on the east side, along the calm waters of the Sea of Cortez. It encompasses the areas of Buena Vista and Los Barriles and points north, through to Cabo Pulmo and Las Frailes to the south. The area east of San José del Cabo, past the fishing settlement of La Playa, is also referred to this way. The East Cape draws salt-water enthusiasts from the world over for its great fishing and clarion waters. Beachfront properties are available here in good numbers but due to the popularity of the area, prime locations are selling at a fast pace. Miles of beaches and limitless desert beauty reminds you of what Cabo San Lucas was twenty years ago. World-renowned for its many angling opportunities, the East Cape offers, not only great fishing, but windsurfing, surfing, kayaking, diving and a multitude of other outdoor activities. Seclusion is the big draw for the adventurous looking for that perfect home in an isolated environment. Most properties at this time are using solar power and truck in their water. As more people build here, services are sure to follow. Buying Property in Mexico's Restricted Zone What about buying real estate in Mexico's Restricted Zone? Article twenty-seven of the Mexican Constitution restricts foreign ownership within the Restricted Zone, all land within 62 miles of any border and 31 miles of any coastline. This meant that Baja California was unavailable for foreign investors looking for property investment in this paradise. The Mexican Government, realizing that they had nothing to lose and a lot to gain, finally began taking steps to alleviate the problem of foreign ownership and in 1973 the government enacted the Foreign Investment Laws which were modified in 1989 and again in 1993 to incorporate NAFTA and its provisions. The creation of a land trust (Fideicomiso) made it possible for foreigners to own property in the desirable restricted zone. The bank trust is simple. The title to the property is put in the land trust and the buyer is designated as the beneficiary. The beneficiary has complete control over the property and can rent, sell, build or modify as long as he stays within local building and zoning laws. The bank holds the property in trust and basically works for the beneficiary to insure that all administrative and procedural protocols are taken care of. This is all set up in a 50-year renewable trust as stipulated by the Foreign Investment Law of 1989. This trust can be renewed every fifty years by making application with the bank and title is for perpetuity. You cannot be turned down for renewal for any reason. Protected by the Federal Govern-ment against bankruptcy, banks and therefore, bank trusts are basically backed by the government. Finally, financing is becoming available in Los Cabos from American institutions for the first time. Along with title insurance, buyers can enjoy peace of mind. When you buy your slice of heaven you will incur some costs and should be aware of them. Closing costs on a real estate transaction will in most cases run between 4% and 7% of the purchase price and is the buyer's responsibility. This includes a 2% acquisition tax. You can expect to pay up to $5,000 USD a year in annual trust fees, taxes, utilities and homeowner's dues, if applicable. Trust fees are reasonable with many owners paying around $350 USD annually for the administration of their bank trust. Annual costs for modest single family homes without monthly homeowners dues are much lower, some as little as $500 USD. Building on that perfect lot is not as hard as you might imagine as long as you hire a competent builder. All you need to get started is a building permit and the approval of your plans from the city. Check references and go with a reputable company to avoid problems. Ask your agent for advice on known companies with a history of dependability. Then ask to view some of the other construction the builder has done and make an educated decision. Los Cabos is truly a tropical paradise with miles of beaches, world class golf and fishing, five-star Resorts, unbelievable night-life and dining experiences, scuba diving, snorkeling, surfing and desert adventures. These reasons, along with the friendly people and perfect weather, have created a location where international visitors are taking advantage of the real estate opportunities available here. Dream no more and do what other dream seekers are doing by getting in on the boom of Los Cabos. |
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Copyright ©2001 - Joseph A. Tyson - All Rights Reserved
Los Cabos Magazine - Los Cabos Visitor's Guide - Tyson Promotions - Promociones Tyson, S. A. de C. V.
Last revision: 07 September 2001