JULY Ëœ SEPTEMBER 2018
SOUTHERN BAJA LIVING
a Lifestyle for everyone Fairway living, farm living, off the grid, and more.
Myths about buying property in Mexico 1
IN THIS ISSUE
SOUTHERN BAJA LIVING
A Lifestyle for Everyone
10 REAL ESTATE
Myths About Buying in Mexico
12 REAL ESTATE LISTINGS
Publisher Owen Perry Editor in Chief Michelle Monroy Art Michelle Monroy Writers / Contributors / Photographers Blake Harrington Francisco Estrada Julie Kershner Justine Schock Michelle Monroy PR and Marketing Manager Justine Schock - firstname.lastname@example.org Advertising Account Executive Billy Cowley - email@example.com Editor’s contact: firstname.lastname@example.org
Next advertising closing date: September 8, 2018 For advertising rates please contact: email@example.com (624) 105-9700 / (624) 142-4949 www.BajaHomeMagazine.com DESTINO GROUP SA de CV (011 52) (624) 142-4949/105-9700
Carretera Federal Libre Transpeninsular San José-San Lucas. Km. 4.3, Local 6, Col. El Tezal, Cabo San Lucas, Baja California Sur. ISSUE 10 JUNE 2018 Printed in the USA. All rights reserved. No part of this publication may be reproduced in any form without the written consent of the publisher. © 2018 Destino Group SA de CV Imported by: Comercializadora Californiana, S. de R.L de C.V. Circulation throughout Southern Baja. For more information on distribution visit: www.DestinoLosCabos.com
SOUTHERN BA JA LIVING
a lifestyle for everyone
A beach front hacienda-style estate built strategically for you to enjoy panoramic views from every angle. Convenient turnkey condominiums that allow you to focus on enjoying the beach, instead of spending time on home maintenance tasks. Eco-friendly cottages that provide peaceful farm-style living. Quaint and folkloric homes close to surf breaks that invite you to relax. Golf course living with panoramic views of the intimidating Sea of Cortez islands. WHICH ONE SOUNDS APPEALING TO YOU? From the Pacific Oceanâ€™s surf communities and the energetic city of Cabo San Lucas, to the islands of Loreto and the remote East Cape Area, the coast and inland destinations of Southern Baja offer a variety of lifestyles for everyone. LUXURY BEACH FRONT LIVING is available for those who seek the tranquility of the ocean along with luxury and space. Whether it is a home built on the cliffs of Pedregal with views of the Sea of Cortez and of the Pacific Ocean, hacienda-style estates in the prestigious community of Palmilla, or the modern and luxurious designs of the highly private community like Maravilla, Chileno Bay, and El Dorado, beach homes predominate the Southern Baja luxury market.
FOR SURFERS and those seeking a peaceful place to just sit back and relax there are communities on the Pacific Ocean side such as Cerritos, Todos Santos and Pescdero, where several surf breaks exist within a short distance form each other. On the East Cape side of Southern Baja you can find even more rustic communities such as Zacatitos, Cabo Pulmo, La Fortuna and Vinorama where itâ€™s all about the ocean and an of-the-grid relaxing lifestyle.
IN THE MIDDLE OF THE ACTION - Living in the Cabo San Lucas marina area offers the opportunity to have your own piece of paradise while finding yourself in the middle of the exciting entertainment centre of Los Cabos. Low maintenance and convenient turnkey condos such as The Paraiso Residences offer marina views for those who enjoy the energetic side of the Southern Baja.
FAIRWAY LIVING in Southern Baja has an entirely different meaning. Not only do you get to live on a golf course, but you can also have sweeping ocean views. Danzante Bay, located near the beautiful and quiet town of Loreto, allows you to enjoy the ultimate golf amenities while gazing out on the pristine Islands of Loreto. Going further south you have stunning golf communities such as Quivira, Rancho San Lucas and Diamante on the Pacific Ocean side, and on the Sea of Cortez are the communities of Chileno Bay, Cabo Real and Puerto Los Cabos, among several others.
FARM LIVING - Although Southern Baja has a desert climate, there are many areas where underground water exists, creating fertile soil that is ideal for farming. Communities have sprung in these areas such as the Pescadero, Miraflores and Santiago where you can grow your own food and live of the land. The Culinary Cottages at Flora Farms is a charming community where owners have perpetual rights to harvest fruits and vegetables.
AFFORDABLE CABO By Justine Schock, REmexico Real Estate Agent, Justine@CaboRealEstate.com
Casa Kathy. For more information on this listing visit www.caborealestate.com
is booming with new luxury development with price tags that mirror many major cities in the U.S. I always chuckle when I work in our Cabo San Lucas office and watch people looking at listings in our window, many of which are multi-million-dollar beachfront homes or villas in very exclusive neighborhoods. Sometimes a person will stop, think for a moment, get very excited and rush in the front door exclaiming “These prices are in pesos right?” Sorry to burst your bubble...that 4 BR/4BA beachfront estate on the East Cape is in fact $2.5 million USD. Just because you’re in Mexico doesn’t mean the real estate is cheap. In fact, you will find some of the most expensive homes in the whole country here in Cabo. But fear not, if you have dreams of living in paradise or owning an investment property, it CAN be accomplished for as little as $100,000 USD. In this article I will touch on a few homes and neighborhoods that won’t break the bank. First let’s start in Cabo San Lucas where there are listed condos in communities like Almalfi, Bahia del Tezal, Luna del Tezal and others for $100,000-$200,000 USD. If you’re willing to spend a bit more, you can purchase a nice starter home on the corridor like Casa 17 Las Palmas, currently listed for $230,000 USD. Casa 17 is located about 10 minutes outside of downtown Cabo. With 3 BR/3 BA,
and plenty of outdoor living space, this home would be perfect for a couple or small family. In San Jose del Cabo, you can find affordable homes in developments like Club La Costa, La Jolla, Laguna Vista, Peninsula condos, and Loma Linda just to name a few. We currently have a 1 BR/1BA furnished Club La Costa Phase 1 condo with golf course views listed for only $114,000 USD! Just up the road in Laguna Vista is Casa Kathy, a 2 BR/2 BA ground floor condo with spectacular views of the Sea of Cortez all the way to Punta Gorda. This unit has been partially remodeled and comes fully furnished, listed for only $234,000 USD. Fractional ownership is another option if you enjoy resort style amenities without a luxury price tag. Fractional ownership is not the same as timeshare. With fractional ownership, you own a piece of deeded real estate that you share with other owners (typically 2-8 weeks per year). If the value of the property goes up, so does your equity in that property. Villa La Estancia and Esperanza are two excellent fractional options. At Villa La Estancia, you can find a 2BR/3BA, 2,100 sq. ft. ocean front 1/8th share villa(which gives the owner 6 weeks of usage every year) starting around $140,000 USD. While at Esperanza, a 1/24th
ownership 3 BR/3 BA fully equipped villa with ocean views starts around $105,000 USD. A few other important notes: 1. Mexico has a 2% acquisition tax in addition to other closing costs of roughly 4-5%. Itâ€™s always a good idea to set aside at least 6-7% of the purchase price to go towards closing. 2. Los Cabos is primarily a cash only market however some seller and developer financing options are available. Just keep in mind that down payments and interest rates are higher than you are probably used to, with shorter terms to pay off your loan. So there you have it. Your dream of owning real estate in Los Cabos IS POSSIBLE with a little patience and a good real estate agent guiding you through the process! i
Club La Costa Phase 1. For more information on this listing visit www.caborealestate.com
Casa 17 Las Palmas. For more information on this listing visit www.caborealestate.com
Quivira Los Cabos by Justine Schock, REmexico Real Estate Agent, Justine@CaboRealEstate.com
B VI L LA 1 - s o l d b y w w w. C a b o R e alEstate .c om
magine waking up to the sound of crashing waves and looking out your window to sweeping ocean and golf course views. This dream can be a reality at Quivira Los Cabos! Quivira is an 1,850-acre master-planned community on the Pacific Ocean side of the Baja peninsula, about 10 minutes north of downtown Cabo San Lucas. Quivira is known for its Jack Nicklaus designed golf course and three-mile stretch of untouched beaches. One of the great things about Quivira is that they have four distinct neighborhoods at different price points, which makes living the Cabo dream achievable for everyone. They even offer attractive financing programs and pricing incentives, which can be hard to find in Mexico. Quivira is currently selling homes in Mavila, Copala, Coronado and Montecristo. Mavila is the newest addition to the Quivira family, and the most budget friendly with preconstruction homes starting at $190,000usd. The new “pueblito” style home concept will offer owners condos that look more like townhomes than traditional condominiums. “The central “village” is comprised of two- and three-story buildings which have single level one-, two-, or three-bedroom condos. The more privileged top floor condos have an included roof-top terrace. The buildings are distributed around three community pools and are connected via winding footpaths that lace through fountain-studded courtyards. Along the fairway are threebedroom two-story single-family homes, and the next phase will introduce a handful of towers with two- and three-bedroom condos,” explains Ryan Winegar, Sales Manager at Quivira. Next up is Copala; a mix of two- and three-bedroom condominiums and four- and fivebedroom single-family residences. Owners interested in the residence portion of Copala can choose between seven different floor plans, ranging from 1,800 to 2,400 square feet. “The entire community sits up high in the center of Quivira looking down over the Pacific Ocean” describes Winegar. Owners have access to the 38,000-square foot Copala Clubhouse, which includes a stunning pool, massage rooms, movie theater, deli, gym, meeting rooms and more. The views from Copala are absolutely breathtaking! Coronado is my probably my favorite of Quivira’s offerings, an exclusive community designed for 64 single level villas. Each three-, four- or five-bedroom villa features expansive terraces with unobstructed ocean views. Owners can choose from a wide variety of finishes to customize their home and truly make it their own. I love the old-world hacienda style of Coronado, and the contrast between wood beamed ceilings, high end appliances, granite, marble and stone. Each home comes with its own custom designed family crest at the entryway. Its special touches like these that make Coronado a one of a kind place to live! Last, but certainly not least, are The Private Residences at Montecristo, featuring 18 luxury Tuscan-style homes. Winegar explains, “Montecristo is a small private section of hillside homes with its own entrance and security but with access to hotel amenities. The threebedroom two-level homes are fully furnished, turn-key and enjoy both service from and access to the amenities of the Montecristo Clubhouse and the Pueblo Bonito Sunset Beach Resort & Hotel.” Homes in Montecristo include an infinity pool, jacuzzi, large terraces, and spacious design. Both Coronado and Montecristo start in the upper million-dollar range. All owners at Quivira have access to the Quivira Golf Club and many other first-class amenities including restaurants, gyms, award winning spas, and optional golf club and private yacht club memberships. And the new toll road from the San Jose International Airport makes getting there easier than before. No matter what neighborhood you choose, you can’t go wrong with a home in Quivira Los Cabos!
by Julie Kershner
BUYING PROPERTY IN LOS CABOS can seem like a daunting task, however by dispelling some myths the process is not unlike buying property in the United States, with obvious differences in terminology. Our market in Los Cabos continues to improve in terms of strength and security. Our real estate association has worked tirelessly in developing strict standards of practice and adopting the Code of Ethics from the National Association of Real Estate. We have a comprehensive Multiple Listing Service, with accurate information.
Foreigners Can’t Own Property in Mexico
NOT TRUE. In most of Mexico, foreigners can own land outright with a fee simple title, which is the same as in the United States. Only in the restricted zone—50 kilometers (31.05 miles) from the ocean and 100 kilometers (62.1 miles) from the borders—is it true that foreigners can’t hold fee simple title. The entire Baja Peninsula is considered a “Restricted Zone.” When a foreigner buys property in the “Restricted Zone,” title to the real property is transferred to a Mexican bank, which holds it in trust for the foreign buyer as the beneficiary. Foreign buyers, however, have all the rights of ownership. What they own under a bank trust (known as a Fideicomiso) is the right of ownership rather than the real estate itself. It is good to
be aware of this legal distinction, although in practice it makes virtually no difference. The beneficiaries of a bank trust may buy, sell, lease, use, bequeath, improve, transfer, and encumber the property.
A Bank Trust (Fideicomiso) is a Lease Agreement
NOT TRUE. Under a bank trust (Fideicomiso) the beneficiary (buyer) has all the rights of ownership: the right to buy, sell, lease, use, bequeath, improve, transfer, and encumber. A lease grants only the right to use.
The Mexican Government can take away Foreigner’s Property at any time NOT TRUE. The bank trust is established by the government and gives foreigners the same rights of ownership as Mexican citizens. The only difference is that they never receive the actual fee simple title. It is held in trust for them by a bank, for a term of 50 years, renewable in increments of 50 years. Several years ago, the U.S. media featured a group of Americans in Baja California Norte who complained that they were being “evicted” from their property. They had “purchased” homes in an upscale development in 1986. What had happened was that a certain group of landowners got their boundary lines redrawn, then “sold” the land thus acquired to an unscrupulous American developer, who built the homes and offered them for sale to other Americans. These buyers went ahead with their purchases even though many had been warned that the developer’s title to the land was in dispute and that litigation was pending. The courts eventually decided in favor of the Mexican landowners, and the Americans were dispossessed. In the U.S. it was reported that “the Mexican government” had taken away their land. In fact, it was simply the law being enforced. i
With the advent of the North American Free Trade Agreement (NAFTA), the Mexican government recognized that it was crucial to make foreign investment in Mexico safer and easier for non-Mexican citizens. Because the Mexican Constitution prohibits foreigners from purchasing or owning real estate within 60 miles of the U.S. international border, or within 30 miles of the Mexican coast, an innovative and secure method of holding title was created. This method allows foreign ownership through a Mexican property trust called a Fideicomiso. This is a trust agreement, much like an estate trust in the U.S., which gives the Purchaser all of the rights of ownership. In order to obtain the rights of ownership, the Department of Foreign Affairs in Mexico City issues a permit to the Mexican bank of the Purchaser’s choice, allowing the bank to act as Purchaser of the property. Essentially, the bank acts as the “Trustee” for the trust and the Purchaser is the “Beneficiary” of the trust. The trust is not an asset of the bank; the banks simply act as the Trustee to hold the trust. Much like living wills or estate trusts in the U.S., the Mexican bank, or Trustee, takes instruction only from the Beneficiary of the trust (the Purchaser). The Beneficiary has the right to use, occupy, lease and possess the property, including the right to build on it or otherwise improve it. The Beneficiary may also sell the property by instructing the Trustee to transfer the rights to another qualified Purchaser, or bequeath the property to an Inheritor. The initial term of the trust is 50 years, however the trust can be renewed for additional periods of 50 years indefinitely, providing for long-term control of the asset.
Are you interested in learning more about the Los Cabos Real Estate market? Join REmexico Real Estate with no obligation, as they tour interested parties in a few select homes at different price points. This is a great opportunity to learn more about how to invest in Mexico and the different communities and their amenities.
Are you curious about what homes are selling for in the area? REmexico's experienced real estate tour guides are licensed Realtors and will explain different pricing, market trends, and provide you with the recent data that will help educate you on the goings on in our market.
How is title held for foreigners in Mexico? Your tour guide will have insightful brochures and pamphlets that help explain the Fideicomiso and how it works.
The Purchaser holds the same rights as a property owner in the U.S. or Canada, including the right to enjoy, sell, rent, improve the property, etc. This is not to be confused with a land lease. The property purchased is placed in a trust with the Purchaser named as the Beneficiary of the trust — the Purchaser is not a lessee. If the property purchased is already held in a trust, the Purchaser has the option of assuming that trust, or having the property vested in a new trust. i
Free of charge. No commitment. Tuesdays 10am - 1pm RSVP’s are required with a minimum of 48 hours notice: info@CaboRealEstate.com 619.60 0.5559 from USA 624.122.1469 from Mexico
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CASA WILDEROTTER - EAST CAPE $2,495,000 US • 5 Bed • 5 Bath • 4196 Sq Ft • MLS# 17-878
Welcome to your fully self-sustained, Private beachfront estate with paved road access to your driveway. Meticulously maintained, this luxury property is turn-key condition with all the conveniences of ”in-town” living, but with all the privacy of the East Cape. Casa Wilderotter was built to withstand 150 MPH winds with Concrete walls w/ StyroFoam/Wiring Insulation, keeping the house cool. A MUST SEE TO APPRECIATE, Your true Baja Retreat awaits you, just a easy 20 minute drive from San Jose del Cabo!
BEACHFRONT LOT BETWEEN SAN LUCAS/TODOS SANTOS $600,000 US
Halfway between San Lucas and Todos Santos is this beautiful beachfront lot with direct access form the highway, with residential and tourism land use license. Perfect rectangle of 11,593 square meters or 2.86 acres. One side on the highway and one side on the beach. Own a piece of Paradise.
Find paradise an address.
For Sale By Owner: Rafael Gomez Cell and WhatsApp (81) 45931860 email@example.com
Blake Harrington (624) 191-3462 firstname.lastname@example.org www.CaboRealEstate.com
RE LISTINGS COPALA AT QUIVIRA 5205 - PACIFIC $379,000 US • 2 Bed • 2 Bath • MLS# 17-1408
FINANCING AVAILABLE! Copala offers world class amenities on the Pacific Ocean only minutes from downtown Cabo. The property includes a Jack Nicklaus Signature golf course, clubhouse, 24-hour concierge, deli, cinema, gym, beachclub, and multiple restaurants throughout the community. This brand new 2BD/2BA condo will be delivered Spring 2018. Many upgrades including Colonial Gold granite, screened doors and windows, soft close drawers, exposed ceiling beams and more!
Justine Schock Local Cell: (624) 168-9268 WhatsApp: (253) 229-8918 email@example.com FB & IG: @loscabosliving www.CaboRealEstate.com
CLUB LA COSTA, PHASE 1, V 8 - SAN JOSE DEL CABO $114,000 US • 1 Bed • 1 Bath • MLS# 18-1330
SUPER PRICE, MOTIVATED SELLER! Perfect, quiet location in well maintained complex, low HOA, ground floor unit offering large walk out patio, morning sun facing east, view to Vidanta golf course. This one-bedroom unit comes fully furnished, full size washer/dryer, newly installed mini split AC, large flat screen TV, steps to main pool with swim up bar, palapa area for entertaining, or use of smaller more private pool close to your building. Easy walk to Del Pescador plaza to fine shops, dining and night life. Beach access and transportation nearby. Taxes are in pesos. Low HOA in dollars.
Deborah Reubens Local Cell: 624.137.3980 US: 209.779.5404 Deborah@CaboRealEstate.com www.CaboRealEstate.com
CASA SHAMANS - SAN JOSÉ DEL CABO $519,999 • 4 Bed • 5 Bath • MLS #18-433
Do you want to live near town but have a country feel? This house is for you! This extraordinary home sits on a rare fusion of 2 lots on Gringo Hill. A 5 minute walk to the famous Costa Azul surfbreak and to Zippers restaurant. Once you enter the gate, you will feel the tranquility this place has to offer. The main house has 3 bedrooms plus an outdoor rooftop area on the 3rd floor where you can enjoy a peaceful siesta watching the Sea of Cortez while falling asleep. It also has a spacious kitchen, living room and separate step down dining room with a grand staircase going to the second floor. The second building has a full studio atop the 2 car garage. This studio could be rental income or used as a maids quarters.
Ardelle Graven Local Cell: (624) 157-4677 Ardelle@caborealestate.com www.CaboRealEstate.com
CASA 17, LAS PALMAS - CABO SAN LUCAS $250,000 • 3 Bed • 3 Bath • MLS #18-635
This is a two story house located near the end of a cul de sac. First floor has living room, dining room, kitchen and third bedroom with a full bathroom. Upper floor has master plus guest each with bathroom and a nice terrace to sit out on and watch the sun rise or set. Large deck on first floor when one could have a nice BBQ and entertain.
Ardelle Graven Local Cell: (624) 157-4677 Ardelle_graven@msn.com www.CaboRealEstate.com
RE LISTINGS LA RESIDENCIA A2 - SAN JOSE DEL CABO $999,000 • 3 Bed • 3.5 Bath • MLS #18-1355
La Residencia at Costa Azul, a small enclave of only thirteen luxury residences, features panoramic sea views from Palmilla to Punta Gorda, and beautifully designed living spaces just above the sand. With nearly 3,000 sq. ft of air conditioned space, this residence is offered furnished, ready for move-in. Beautiful open cook’s kitchen with top-end finishes. Wide open indoor spaces and outdoor living terraces on the sea side make this unit a beach-lover’s paradise with full resort amenities, including a private fitness center, activities room and seaside pool above the waves. Only minutes from SJD airport to feet in the sand on one of Los Cabos’ prime beaches, Costa Azul. 2006 Hummer 38K miles also available.
Julie Kershner MEX 624.118.1616 US Cell 520.204.5450 Julie@caborealestate.com www.CaboRealEstate.com
VILLA DANZANTE - LORETO
3,859 A/C Sq Ft • 2,103 Patio Sq Ft • 3 Bed • 3.5 Bath
Own your quest for beauty. This single story home embodies modern villa luxury. Seamlessly blending indoor and outdoor living space, this home is designed to compliment and inspire both inside and out. Inquire for pricing. All renderings, drawings, plans, dimensions, specifications and features are conceptual and subject to change without notice due to the dynamic nature of the development. The Developer reserves the right to modify or withdraw any of these at its sole discretion.
firstname.lastname@example.org www.danzantebay.com US Toll Free 844.622.0799 Mx Office +52.613.134.1040
Myths about buying property in Mexico Affordable Cabo