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This blog discusses Los Cabos real estate and other important news and happenings in Cabo.

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Is Cabo too Expensive?

It’s amazing how many people are retiring in Cabo from the States and Canada and with the decrease in real estate prices in Cabo there is a flurry of new buyers that were “sitting on the sidelines” the past few years as prices reached all time highs. Now a person can buy a 3 bedroom house for $250,000 USD and have views of the ocean and live in a place like Cabo where life is more tranquil and the cost of living is relatively cheaper than many people’s home towns.

With this being said, I wanted to show you an interesting study recently done in 2009 by the Mexican Bank (Banco de Mexico) and the National Institute of Statistics and Geography (INEGI). They studied 42 areas in Mexico to determine the most expensive and least expensive areas to live. They took into account services and goods like health care, education, clothing, domestic items, transportation, food, equipment, etc.

The base line was the capital city of Mexico City and it was given a value of 100 points. Those cities that were more expensive to live in were above 100 points and those lower were under 100 points. So guess what city was the most expensive city to live in?

Cancun? Acapulco? The answer was surprising to me but the most expensive city to live in Mexico is Monterrey. It was given a score of 103.9 while coming in second was our very own Cabo San Lucas. It was given a score of 103 followed by Cancun with a 101.1.

The cities the were the cheapest to live were Tlaxcala - 64.4%; Tepic - 69.2%; Durango - 69.3%; Pachuca - 69.6% , and Chetumal - 69.9%. My guess is that most of my clients and readers haven’t heard of those cities nor visited but do let me know if you have. 

So are you surprised in Cabo making towards the top of the list? I would think if you have been to Cabo that it is not all too surprising. Centered on tourism and catering to the higher end tourist Cabo has made not only a name for itself as being one the, if not the best high end destination in Mexico, but also not a cheap place to vacation. Taking all that into account there are definite ways to save on your stays here like renting vacation villas (compared to hotels) and eating out at places away from the touristy areas. One great place to save 35% on your food, activities, and services here in Cabo is to visit the following website www.loscabosguide.com/discount.htm.  You can prepay for gift certificates and save big money when are down here eating out and booking your activities. I just recently bought $200 of gift certificates at Lorenzillos Lobster House on the marina and saved $70. It’s these little tricks that will help your pocketbook and make you enjoy Cabo that much more.

Back to the real estate front, let me know if buying in Cabo in the near future is a real possibility and I would love to discuss with you ways you can save on buying real estate here too. Imagine saving on your food and entertainment and REAL ESTATE – now that is a hat trick if I ever saw one.

 

Posted: Friday, April 30, 2010 10:02 AM by Nick Fong

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