Let’s talk real numbers
There is a version of Cabo real estate that gets sold really well.
Ocean views. Strong rental returns. A place in the sun that pays for itself.
And a lot of that is true.
But if you are making a serious investment decision, you need to understand the full picture. Not just the purchase price, but what it actually costs to own here year after year.
Let’s walk through it the right way.
Property Taxes (and why they are not your problem)
This is always the first question.
Property taxes in Mexico are low. Very low compared to the U.S. or Canada.
On a $1M USD property, you might be paying somewhere between $500 to $1,500 per year depending on the municipality and assessed value.
This is not where your budget gets stretched.
HOA Fees (this is where it starts)
If you are buying in a gated or amenitized community, which most people are, you will have HOA dues.
These can range from:
- $200/month in entry-level communities
- $500 to $1,000/month in mid-tier developments
- $1,500+ per month in luxury communities like Palmilla or Pedregal
And here is the part people miss.
You are not just paying for security and landscaping. You are paying for infrastructure, staff, reserves, and long-term upkeep in a coastal environment. Salt air is not friendly to buildings.
The nicer the community, the higher the ongoing cost to maintain it properly.
Utilities (higher than expected)
Electricity in Cabo is expensive, especially if you are running AC regularly.
A few real numbers:
- Condo with moderate use: $150 to $300/month
- Larger home with full-time use: $400 to $1,000+/month
Water, gas, internet, and trash are relatively minor, but they add up.
If you are not careful with AC usage, your electric bill will surprise you.
Property Management (if you are not here full time)
If you plan to rent your property or you simply do not live here year-round, you will need someone managing it.
Typical costs:
- Property management: 10% to 20% of rental income
- Cleaning, maintenance, restocking: variable but consistent
- Concierge services if you go higher-end
If you are thinking “vacation home that pays for itself,” this is a big piece of the equation.
Maintenance and Repairs (coastal reality)
Owning near the ocean is different.
Humidity, salt, and sun wear everything down faster.
- AC units need regular servicing
- Exterior paint and finishes degrade quicker
- Appliances have shorter lifespans
A good rule of thumb is to budget 1% to 2% of property value annually for maintenance.
Some years will be quiet. Others will not.
Closing Costs (on the way in and out)
On the buy side, expect around 4% to 6% of the purchase price in closing costs. This includes:
- Notary fees
- Transfer tax
- Trust setup (fideicomiso) if applicable
On the sell side, commissions are typically 6%.
These are not “hidden,” but they are often underestimated.
The Real Takeaway
Cabo is still one of the strongest lifestyle and investment markets in North America.
But the buyers who do best here are the ones who go in with clarity.
Not just excitement.
When you understand the full cost of ownership, you make better decisions:
- You choose the right community
- You structure your rental strategy correctly
- You avoid surprises that turn into frustration
And most importantly, you enjoy the property the way it was meant to be enjoyed.
If you are looking at Cabo and want a real breakdown based on your price point and goals, reach out.
I will walk you through the numbers the same way I would for myself.
No fluff. Just clarity.
