The Good Life for Real Life - Summer 2009 - Los Cabos Magazine

The Good Life for Real Life

By Carol S. Billups
Los Cabos Magazine - Issue #20 - Summer 2009 - Cabo San Lucas, Los Cabos, Mexico

If you read any of the English-language newspapers or magazines, you will quickly get the idea that only billionaires can afford homes in Los Cabos. Most ads and articles tend to focus primarily on our world-class luxury resort living communities.

The glossy photos of homes most people will never see in real life are great for increasing readership. Tune into the Spanish-language media, though, and you’ll be bombarded by ads for inexpensive starter homes on tiny lots that are targeted at young families.

Most of these are too small for traditional American or Canadian tastes and not suitable as quiet vacation or retirement homes. The average home buyer could quickly become frustrated. Indeed, I’m often asked, “Is there nothing here in Los Cabos for real people?”

Actually, there are a number of fabulous options for just about any budget, including those of “real people.” In fact, at press time there were 333 single-family homes and 514 condominiums on the Multiple Listing Service website, and that does not include the majority of developer-owned properties.

At times, it does seem that our market runs to extremes. The media is so excited about the exotic high-end properties that it’s managed in many cases to neglect housing for the larger population: the mid-range properties. Although each market is different in Los Cabos, we define the middle range as homes valued from $500,000 U.S. to $1 million U.S. These properties boast larger lots than starter homes, generally in gated and guarded communities. The houses are generally more spacious than the less expensive listings or may be in a community offering amenities such as clubhouses, professional home management, concierge service, community pools, or in a few cases access to golf. In other words, they offer many of the features of the überposh resorts but in a more affordable package. These homes are typically of the caliber considered “top-end” in most parts of the United States and Canada and offer an outstanding value for resort properties.

San José del Cabo, the city closer to the international airport where most visitors to Los Cabos arrive, has long been considered the more residential of the two Cabos. A colonial-style town, it is the quiet haven of the region and home to some of the better restaurants in the area. Although San José boasts its own hotel zone, there are numerous residential areas. The pleasant beaches, estuary, and new marina offer myriad recreational opportunities, and its many shopping venues and thriving art district make it an ideal location for a vacation or full-time home.

One of the newest properties in San José del Cabo is the Las Villas project, which has just broken ground in the 550-acre Club Campestre community. This 17-acre development is tucked between the 14th and 16th fairways of the Jack Nicklaus–designed golf course and will include condominiums and townhomes as well as three-and four-bedroom single-family residences in pedestrian-friendly clusters. Ranging in price from $500,000 U.S. to $1.2 million U.S. these homes will eventually include high-end features such as marble finishes and Viking appliances. In an effort to make ownership hassle free, the development offers furniture packages, property management, and concierge services. Owners will enjoy use of the golf course’s clubhouse, as well as the beach club, a number of community swimming pools and a parklike atmosphere.

Not far away is the legendary gated community of Palmilla, which is home to the One&Only resort, the famed Jack Nicklaus Palmilla golf course, and many extremely upscale developments. It is also where you’ll find the Villas de Oro townhomes, with two- and three-bedroom condominiums featuring high-end finishes and craftsmanlike details.

A tennis club and fitness center are available, as well as membership in the Palmilla golf course. The Villas de Oro homes range from $500,000 U.S. to $900,000 U.S., significantly lower than the prices elsewhere in Palmilla.

These condominiums were designed with full-time residents in mind, and there is a more residential feel to the community.

Also in San José, you’ll find Alegranza, a nearly completed condominium complex within walking distance from both the beach and downtown. Not only does this project boast spectacular views and a convenient location, but also its units were designed to be carefree second homes. Alegranza provides concierge service, property management, and a rental program for when the owners are not using their unit. High-end and high-tech building materials, finishes, and elevators make these a very attractive option for mid-range buyers. Prices start at $600,000 U.S. For those who prefer a little yard space, the first-floor units include a small terrace garden.

Separating the two Cabos is a stretch of highway known as the Tourist Corridor, and it is home to some of Los Cabos’ most famed resorts, beaches, and golf courses. With just a few notable exceptions, real estate on the ocean side of the highway is very pricey. There you will mostly find five-star resorts and überposh luxury homes. Hidden above the highway, however, is a surprising number of more affordable housing developments. Although farther from the beach, these homes often offer better views than can be found on the more exclusive—and expensive—side of the highway.

Midway between San José and Cabo San Lucas, in an area known as El Tule, you’ll find the brand-new Alborada development. With 25 homes planned, this is a low-density boutique community offering three-bedroom residences, each with about 3,000 square feet of interior space and a large roof garden. The features of these homes include marble floors, double-height ceilings, gourmet kitchens, Jacuzzis, and water mirrors. Alborada’s high-style modern architecture and glass walls set it apart from many of Los Cabos’ other developments. Also novel is the developer’s decision to forgo presales until the first 10 units are essentially completed. The first sales are expected in late spring or summer.

On the Tourist Corridor, just outside of Cabo San Lucas, you’ll find the stunning new townhomes of El Cielito. Designed by renowned architect Prospero Alejandro Tapia and perched high on a hilltop overlooking the bay, these two-story units offer more than 2,600 square feet of interior space, private terraces, and incredible views of Land’s End and the city’s lights at night. Only 22 homes are available, and the prices start at $800,000 U.S. El Cielito is located within the gated community of Rancho Paraiso, just 10 minutes from the heart of Cabo’s downtown district.

Just down the hill from El Cielito and Rancho Paraiso are the Ciruelos and Puerto del Mar developments. Puerto del Mar is a boutique community with 20 three-bedroom homes, which start at $545,000 U.S. and come with granite counters, marble floors, and appliances. The developer is also offering customization packages so that each home will be unique to its owners. Ciruelos has homes of more than 4,000 square feet and a private pool that start in the low $600,000s; some of the homes boast superior views of the Arch and bay.

Cabo San Lucas, the more infamous of the two Cabos, is home to the iconic rock arch, shopping, water sports, a raucous nightlife, and the nonstop party known as Cabo. Within Cabo San Lucas, you’ll also find Capella Pedregal, the first gated community in the area. Pedregal rises above the city and spans the mountain from the marina to the Pacific Ocean. Here the developer has 10 new homes in the Valley of the Blue Moon section.

The units are available with two different floor plans, and there is an option for a private pool. The homes were designed to give the occupants privacy in their outdoor living spaces. These units start at $800,000 U.S., before options are added. If you cannot be in Cabo often, you may want to consider a fractional home: You own the unit jointly with others and use it for a set number of weeks per year, sharing the expenses of maintaining your own vacation home. Capella Pedregal offers shares of multimillion-dollar homes starting at $460,000 U.S. These fractional homes come with all the bells and whistles, including the use of a fleet of yachts, membership in a marina-side yacht club, signing privileges at the exclusive Capella boutique hotel, and even a butler for each residence.

Of course, new developments aren’t the only option for mid-range buyers. From the East Cape to the Pacific side, there are many homes for sale in all price ranges. A “gently used” home from an individual seller can present a great value (many resale properties are sold turnkey, a significant convenience and often cost saver), but these properties are often given short shrift by the media because their availability at press time does not guarantee their availability at publication. Merely as examples, consider these three properties offered for sale at press time. High on a hill overlooking the ocean in San José del Cabo is a two-year-old custom home that comes with a pool, fountain entry, three bedrooms plus maid’s quarters, as well as high-end finishes and appliances. The lush landscaping is nearly mature (a plus for resale homes), and the community is gated and guarded. The sellers are asking $759,000 U.S., but some negotiating is expected on resales.

A second home is located in the community of Cabo Bello, which is only a few minutes from downtown Cabo and has long been a favorite among locals. Because of its safe swimming cove and close-to-town location, many full-time residents choose this older community over the newer housing tracts. Completed in 2007, and now back on the market with an asking price of $650,000 U.S., is a beautifully furnished three-bedroom Cabo Bello home with a view of the ocean and a private pool.

Believe it or not, you can find mid-range resale homes in high-end communities, too. In Pedregal, the average asking price for a resale home is $2.75 million U.S. Yet even here there are opportunities in the middle price range. Often these are older or smaller units, but they still represent excellent value simply by virtue of their location. At press time, a just-renovated three-bedroom home with a gourmet kitchen featuring granite countertops, as well as a garage, pool, and in-ground Jacuzzi was being listed for $795,000 U.S., and that price included an adjacent vacant lot with views of the marina. That’s a real value in this prestigious community.

Although resale homes are often the best buy in the middle price range, they tend to be hard to find and the transactions more complicated. To be sure you’re getting the greatest value, work with a realtor who is a member of the Asociación Mexicana de Profesionales Inmobiliarios (the national association of realtors, or AMPI) and the Multiple Listing Service. Both organizations have information-sharing programs that allow your agent to help choose the home that best serves your needs regardless of which company has listed it for sale. As is the case with real estate in any country, you must follow proper procedures to ensure your investment is safe. For the Los Cabos area, that means putting the property in trust (Fideicomiso) with a Mexican bank in addition to using U.S.-based, third-party escrow and obtaining title insurance.

These are only a handful of the many possibilities here in Los Cabos for mid-range buyers. From condominiums to finished homes, new or resale, or even view lots to build your own dream retirement or vacation home, there are options for real people under the million-dollar figure. The press may not get as excited about them as they do the überposh offerings, but that’s OK. After all, there is only one person who needs to be excited about your new home—you.

Carol Billups is broker/owner of Realty Executives Los Cabos. She is active in the Los Cabos real estate market and frequently writes about it. She was recently awarded the Circle of Excellence award by Realty Executives International for best business practices.

Cabo San Lucas, Baja California Sur, Mexico - Last Revision - June 1, 2009 - MKS