In my last Alert, I told you about the transformational event that’s happening in luxurious Cabo—specifically the $4 billion investment in luxury new resorts.
A big chunk of that $4 billion is earmarked for 20 luxury resorts, which are currently at various stages of construction.
But there’s a huge gap in the market here…one that ties into all this luxury development…that nobody seems to have spotted. Except for one guy who has it all figured out.
We can tap into this transformational boom and profit. Not by spending north of $500,000 on a resort condo. But, by buying in to Cabo’s best-in-class residential community with pricing as low as $143,900.
You see, while everyone is focused on the six-star resorts—the amenities they’ll create, the upmarket guests they’ll bring to town—they’re missing the big picture.
And it’s this: Cabo has a huge housing shortage. One that all these new resorts will only exacerbate.
Each of these six-star resorts will need hundreds of staff, from housekeeping to chefs, receptionists to managers. Multiply that by 20 resorts. Then add in all the secondary professionals that will be needed—golf pros, yoga teachers, IT guys. Furthermore, Cabo is also becoming a hub for entertainment, commercial, and professional services. Entrepreneurs and mobile professionals are relocating here.
One thing all these people will need is a place to live.
And they’ll enter a market that’s already over-stretched. Cabo’s population is growing. It’s predicted to almost triple by 2040, to 370,000 people.
If you’re looking to rent in Cabo right now, your options are limited. Homes in the right neighborhoods are being rented even before the bathrooms are tiled. A friend comes here a few days a week to do business. He wanted to rent a comfortable condo. He looked for a couple of months before giving up—and buying a condo.
Cabo is sleepwalking its way to a chronic housing and rentals shortage. And the only developer in town who has been preparing for this is Proto Peña.
Proto’s ahead of the game. Proto doesn’t talk much. He’s more of a thinker. He’s studied Cabo’s growing population and housing crisis, crunched the numbers and come up with a solution. It’s called Cabo del Mar.
If I were to live in Cabo, I’d want to live in a real community. One like Cabo del Mar.
Cabo del Mar sits on a huge piece of land in a strategic position. It’s close to the corridor road that connects the towns of San Jose del Cabo and Cabo San Lucas. It’s a breeze to get to either town and to the new resorts under construction along the corridor. It’s also close to big supermarkets, shopping, golf courses, entertainment, and stunning beaches. In fact, it’s a short, easy drive to work, play, and the airport.
The community started with a school. The school was up and running before the first homes were built. It’s private, fee-paying, and very exclusive. It’s the kind of school the well-heeled want to get their kids into. It’s been an enormous success and now has ambitious expansion plans.
The school appeals to one demographic who will own or rent in Cabo del Mar: younger, affluent families. Some of the other amenities on offer will appeal to a wider cross-section, such as the tennis courts (which hosted an ATP tournament in 2016), and the planned swimming pools, clubhouse, open-air commercial center, and a movie theater. There’s a country club next door with golf and all kinds of sports facilities.
The first homes in Cabo del Mar are already delivered. And they’re owned, and rented, by professionals, mostly with young families. They’re the same background as the folks who will relocate to Cabo to manage the new resorts or teach resort guests how to improve their golf. Cabo del Mar is the only community that ticks the boxes for this demographic.
But it appeals to a broader demographic, too. Retirees will happily live here. Snowbirds will trade the freezing winters back home for a place in Cabo del Mar. Vacationers will stay, too, looking for a “real” experience rather than the artificial bubble of a big resort.
Cabo del Mar is the kind of place where you can work out in the morning…or chat to your neighbor over a coffee. It’s the best of both worlds—close to town but away from the hustle and bustle.
I think of it as a kind of playground for grownups. (It also has everything for families, the young, and old.)
And it’s the perfect solution to Cabo’s housing shortage.
One more piece of the puzzle: There’s a barrier to entry for any other developer trying to replicate this community. The land to build another community like this in the area just doesn’t exist. There’s not likely to be another community with such a strategic location and all the amenities—at least not at this price point. I can’t stress that enough. It’s a key part to our profit potential.
Our opportunity, La Joya, is a tastefully planned, pool-fronting condominium community, set in verdant landscaped gardens. It’s right in the heart of the Cabo del Mar community.
Local launch is now slated for June 10th. I can’t say for sure what the local pricing will be. But, one thing is for certain: It will be significantly higher than our members-only price from $143,900.
Shortly after delivery I figure these condos will be worth $216,000…maybe more. And, could rent for up to $2,500 per month to the short-term relocating executive market.
These condos will be perfect to rent by the month to the executive relocation market. Given the current rental shortage, I figure they could command $2,500 per month short-term to this market, for periods of one to three months. As part of our deal, RETA members can avail of developer finance. On delivery your monthly finance figure is $925.
I strongly urge you visit as part of our members-only scouting trips on June 8 – 11 and June 22 – 25.
Register your interest here. Jorge and his team will help with all the arrangements. You’ll get to put boots on the ground right on the cusp of Cabo’s great transformation in the company of fellow members. You’ll have fun while shooting the breeze about Cabo and the other great opportunities on our beat.
Wishing you good real estate investing,
Ronan McMahon
P.S. As with any deal you read about in these alerts you should use your own independent attorney. In Cabo, I use Javier Troncoso (jtv@btlaw.com.mx).