Every eight seconds a baby boomer retires. For some, the recent economic downturn has left them faced with a difficult decision: With their IRAs and savings now worth much less than they had anticipated, these would-be retirees must either continue to work beyond what they had initially expected or scale back their planned lifestyle. But another option exists, and it’s being considered more and more often: Retire to México. And why not? Blessed with near-perfect weather and a lower cost of living, Los Cabos offers these boomers the chance to retire to the good life they wanted on their now smaller budget and within a brief air trip from home.
There is very little in the way of statistics on this growing trend; serious scholars are just beginning to study it. Omar Lizárraga Morales, a doctoral candidate of social sciences at the Universidad Autónoma de Sinaloa, is preparing a dissertation for his PhD in sociology specifically on the lifestyle habits of Americans living in the Los Cabos area; the baby boomer generation is of particular interest to him. His fieldwork is almost certainly the most current data available, completed in the summer of 2009. Although his research has yet to be published, Lizárraga Morales shared some of his key findings in an interview. “Climate is the overriding reason most Americans choose Los Cabos,” he explains, “but also very important are the lifestyle, the friendliness of the local people, and cost of living.”
Baby boomers are quickly discovering the benefits of retiring to Los Cabos: endless beaches (the Bay of Cabo
San Lucas is pictured here) and sunshine, myriad restaurants and nightlife options; a large health care network,
and a noticeably lower cost of living.
And who can find fault with that? Can you imagine living in a place where you rarely have to think about the weather? Why bother when you know tomorrow is going to be just as perfect as today and yesterday? Whether you prefer to spend your afternoons chasing a little white ball or a great big fish, or even just lounging on the beach or by the pool, the weather will cooperate almost 365 days a year. In Los Cabos your days can be as full or as relaxed as you desire, with most retirees here enjoying an enviable lifestyle at a fraction of the cost of similar circumstances in the United States or Canada. Domestic help is readily available and extremely affordable: You may never make another bed or mow your own lawn again. With excellent communication and banking services, health care, and well-developed infrastructure, Los Cabos has everything today’s retirees demand. Although Medicare does not reimburse for routine medical costs in México (yet), health care here is so affordable that most retirees use Los Cabos doctors and return to the United States or Canada only for large and expensive procedures. Many feel the level of care in Los Cabos is not only as good but usually better than that in their home country. Only a few hours by air from most destinations in North America, these expatriates find it easy and affordable to attend family events “back home” or invite less-fortunate friends to come and visit.
The warmth and friendliness of the people in Los Cabos cannot be overstated. Retirees quickly find themselves surrounded by friends and involved in as many community events as their schedules allow. Volunteer opportunities are numerous and a great way to meet fellow expats. Social clubs are also a wonderful venue for getting acquainted, and most communities have some social opportunities as well. Although there is no official cost of living index for Los Cabos, those of us lucky enough to live here are quick to agree that your dollar goes further in Baja than it would north of the border. Some of the biggest savings come from the minimal annual property tax (almost negligible), and lower automotive and insurance costs. Homeowners and health insurance are much more affordable this side of the border, too.
Retirees by and large have different needs than vacation home buyers; the most notable of these is storage. The closets and cupboards in homes designed for vacation use are typically inadequate for retirees, even those who plan to be in Cabo only for the winter season. These retirees typically want a bit more space, including an extra bedroom or two, and easy access to shopping and business services. Luckily, there is no shortage of suitable retirement homes in Los Cabos.
The three major residential areas that make up Los Cabos are the city of San José del Cabo to the east, Cabo San Lucas to the west, and the area in between the two towns, which is referred to as the Tourist Corridor. Retirees will find suitable housing throughout Los Cabos, and there are new homes to suit every budget.
The exclusive Pedregal de Cabo San Lucas residential community boasts dazzling views of the Pacific Ocean
The beachfront Tortuga Bay development in San José del Cabo offers luxury condominiums.
The sprawling Villas del Mar property; Villas del Mar overlooks the Sea of Cortés
In San José real estate agents are excited about Tortuga Bay, a beachfront development offering luxury condominiums. Although Los Cabos is surrounded by water, beachfront living opportunities are few and far between: The property is simply too valuable to use for residential purposes. Tortuga Bay is a rare exception. These condos offer every amenity imaginable, including on-site rental and property management, concierge and maid service, pools, spas, fire pits, and lush tropical landscaping. Interior finishes are all top-of-the-line with owner upgrades available in some cases. Upper-story units provide panoramic vistas of the Sea of Cortés. Available floor plans at press time included two-, three-, four-, and five-bedroom homes. As befits such a high-end residence, prices in Tortuga Bay start at about $850,000 U.S. for a two-bedroom unit.
Designed for full-time retirement living, the Villas del Oro in the prestigious gated community of Palmilla offers three-bedroom town houses in a low-density development. Developer-owned units include membership at the Palmilla Tennis Club, with prices starting at about $650,000 U.S. The developer is also in the preliminary stages of designing La Toscana at Palmilla, which will feature detached three-bedroom homes starting at about $600,000 U.S.
On the “up” side of the highway, the views are great and the prices vastly more affordable. Just outside San José you’ll find the new community of Antigua, where three-bedroom homes start at about $250,000 U.S. These “Santa Fe Modern” digs offer many high-end finishes, including large built-in storage units in the bedrooms.
Building has been brisk on the Cabo San Lucas end of the Corridor, where you’ll find the new gated communities of Las Misiones, Terraza Los Fuentes, Los Ciruelos, and Ventanas Residential. All of these are very suitable for U.S. and Canadian retiree living. At Las Misiones, 85 homes surround a central clubhouse and community pool. The homes here have a more classic Mexican flavor, with shutters and stone and iron accents in four floor plans. The three-bedroom homes start at about $350,000 U.S., some with amazing views of the bay and Sea of Cortés. In addition to the clubhouse, the development features a fitness center and concierge service. Terraza Las Fuentes is a very private boutique enclave of three- and four-bedroom executive homes, with upscale finishes including Viking appliances and disappearing pocket walls, that start at about $600,000 U.S. Master suites have soaking tubs, and some homes feature fountains or rooftop terraces to enjoy the evening sunset view.
Literally across the street is the entrance to Los Ciruelos, another new community offering spacious homes, each with an average area of more than 4,000 square feet. These three- and four-bedroom homes feature wood-beamed ceilings, airy patios, private pools, maid’s quarters and/or home office. Ample storage, large well-equipped kitchens, and a bonus TV room make these houses very suitable for retirement living year-round. Many of these homes boast a superior view of Land’s End and the Sea of Cortés. Prices in Los Ciruelos start at about $500,000 U.S. Nearby you’ll find Ventanas Residential, an outstanding community just nearing build-out. Boasting one of the largest clubhouse areas in Los Cabos, this community consists of two-, three-, and four-bedroom homes in several floor plans, including one hard-to-find single-story model. While developer inventory is almost gone, a lively resale market exists with homes starting in the mid-$300,000 U.S. range.
Also on the Tourist Corridor, only minutes from downtown Cabo, you’ll find the gated, guarded community of Rancho Paraiso. There the developer is offering El Cielito, a complex of 22 two- and three-bedroom town homes with luxury finishes and an abunance of space. Finishes include Egyptian marble floors, Bosch appliances, and mahogany cabinetry. Located at the highest point in the development, the views from El Cielito are exceptional. Prices here range from about $650,000 U.S. to $1,050,000 U.S.
Within Cabo San Lucas proper, there are fewer gated communities, the oldest of which is the exclusive enclave of Pedregal de Cabo San Lucas. While most homes here are custom-built, the developer has created El Rincon de Pedregal, a cluster of 26 maintenance-free homes surrounding a spa and wellness center. Four floor plans are available; at press time the model home and wellness center had been completed. The homes feature contemporary Mexican architecture in four three- and four-bedroom plans. Prices start at approximately $2 million U.S. Pedregal also has a vibrant resale market in a large range of prices; some condominiums are also available as resales.
The northern portion of Cabo San Lucas has developed into a new “downtown” commercial and social area. Anchored by the Delegation (a sort of city hall with large recreational facilities attached), hospital, shopping, and banking facilities make this the new economic center of Los Cabos. A number of very affordable housing developments have sprung up in the surrounding area, many of which could be suitable for U.S. and Canadian retirees. Although high density, these homes are a good option for those seeking a three-bedroom home in the $150,000 U.S. or less price range.
For the more adventurous retiree, homes in the East Cape (east of San José del Cabo) and Pacific Side (west of Cabo San Lucas) are an option. Bear in mind that these areas are often off the grid: Solar power and well water are your utilities. Satellite Internet connections are your only ties to the “civilized” world. Peaceful and secluded, these areas are perfect for independent-minded individuals who want to truly get away from it all.
In all parts of Los Cabos, there are resale homes that are often excellent values. Many retirees have found fixing up an older home that needs a little TLC to be a rewarding project both from the personal gratification and economic standpoints. Your AMPI-member real estate agent can guide you to the best buys among resale homes in all areas of Los Cabos.
Home ownership in México, and more specifically Los Cabos, is safe and secure. Holding your retirement home in a Mexican trust, or fideicomiso, gives you all the rights and benefits of a Mexican citizen as pertain to the property. Your realtor can help you not only find the right home but also secure the title in a proper, safe manner. Once you’ve settled in, you’ll probably agree with Lizárraga Morales’s key finding: The overwhelming majority of Americans who have retired to Cabo are very happy that they did.
Carol S. Billupsis Broker/Owner of REALTY EXECUTIVES Los Cabos, a full-service brokerage in Cabo San Lucas. A former journalist, she is frequently asked to cover the Los Cabos real estate market for Los Cabos Magazine and radio CaboMil. Her blog about living in Los Cabos is at www.caborealtor.wordpress.com. Carol urges readers to work with AMPI-member real estate agents, who are bound by a national code of ethics, to be sure their investment is safe and the trust and deed properly recorded.
REAL ESTATE IN CABO SAN LUCAS, SAN JOSE DEL CABO, LOS CABOS, MEXICO
Last Revision - 26 May 2011 - jat Grown-Up Playrounds - A Booming Market in Los Cabos - Real Estate Article,
Cabo San Lucas, Los Cabos, Baja California Sur, Mexico
