1. Can foreigners legally own property in Mexico?

Yes, absolutely. Foreigners can own property in Mexico, even in restricted zones like Baja’s coastline. Ownership is typically facilitated through a Fideicomiso (a bank-held trust) or a Mexican corporation. This legal structure gives you full rights to the property while complying with Mexican law.

2. What are the ongoing costs of owning a vacation home?

Beyond the purchase price, you’ll need to budget for:

• Property taxes (which are lower than in the U.S.).
• HOA fees if your property is part of a gated community like KAHAL.
• Utilities and maintenance.
• Rental management fees, if you’re planning to generate income.

Knowing these costs upfront ensures you’re prepared for the financial commitment.

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‍3. Is the property in a growing market?

‍Location is everything, especially for vacation homes. Baja California is experiencing a surge in demand, driven by its eco-luxury appeal and growing popularity among wellness-focused travelers. Investing in an area with rising demand can increase both rental income and long-term property value.

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‍4. How will I manage the property when I’m not there?

‍Managing a vacation home remotely can be a hassle—unless you have a turnkey solution. At KAHAL, owners benefit from comprehensive rental management, including guest bookings, maintenance, and pricing optimization.Before buying, ask yourself if the property offers a system like this or if you’ll need to hire a third party.

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‍5. What’s the ROI potential of the property?

‍Understand the financial side:

• What are comparable properties earning in rental income?
• What’s the occupancy rate for the area?
• How does the property’s unique features (e.g., ocean views, amenities) impact earning potential?

Baja vacation homes are seeing average ROIs of 7-10% annually, particularly in high-demand areas like Loreto.

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‍6. Are there restrictions on renting the property?

‍Some communities may have rental restrictions or requirements, such as minimum stays or HOA approvals. Make sure you understand these before purchasing to avoid surprises.

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‍7. What’s the process for buying property in Mexico?

‍The process differs from the U.S. and involves additional steps, such as:

• Securing a Fideicomiso for coastal properties.
• Hiring a local notary (a key player in real estate transactions).
• Verifying the property title is clean and free of liens.

Working with a knowledgeable real estate agent and legal counsel is essential to navigate these steps.

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‍8. What amenities are included?

‍Amenities play a huge role in both your experience and rental potential. Properties like KAHAL stand out by offering:

• Turnkey smart homes.
• Wellness features like an IR sauna and lap pool.
• Baja-inspired landscaping and native art.

These perks attract high-end renters and enhance your enjoyment of the property.

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‍9. Is the property environmentally sustainable?

‍Sustainability is more than a trend—it’s a demand from today’s renters and buyers. Eco-luxury properties in Baja, like KAHAL, incorporate features such as:

• Energy-efficient systems.
• On-site water treatment.
• Green building certifications.

Not only does this appeal to eco-conscious renters, but it can also reduce operating costs.

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‍10. What’s your exit strategy?

‍Even if you plan to keep the property for years, it’s smart to think about resale value. Ask yourself:

• Is the area appreciating?
• Will future buyers value the property’s features?
• How easy will it be to sell if your plans change?

In Baja, demand for luxury homes is growing, ensuring a strong resale market if you decide to cash out.

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‍Your Next Step

‍Buying a vacation property in Mexico doesn’t have to be complicated. With the right questions—and the right answers—you can make an informed decision that sets you up for success.

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At KAHAL, we’ve thought of everything to make owning a second home effortless, from turnkey rental management to eco-luxury designs that drive ROI. Ready to start your journey? Let’s talk.