All Forum Posts by: Sharon Bonadie

Hi Sharon, I too have purchased a condo not far from you, in San Jose del Cabo. It’s an older, larger unit in the hotel zone. We paid cash from a stock account we chose to liquidate as my heart couldn’t take all the ups and downs!

We use it mainly as a STR but all winter we've had a wonderful Canadian snowbird family and this mid term market is really lucrative in Mexico-not much maintenance and awesome cash flow!
it hasn’t been a year yet but we are really enjoying the time we have spent there and the monthly $$. We were also told by the on-site real estate and management company the the value is up almost $100,000. Win win for our first STR!

Well I would much rather have a short term rental than a cell. I am not in the prison game. :)

We really need more info on what you want to do. Is the STR in Cabo? Have you been using it as a STR? Did you just buy it?

Hi Sharon,

By reading between the lines, it sounds like you might have bought a condo in Cabo in pre-construction and the condo has or is been delivered and you're probably sitting on a nice paper profit. You're then wondering whether you should keep the property as a ST rental or take your profit and reinvest in the US.

From an investment point of view, the question is which option should make you the most money. As @Michael Baum  hinted, it depends on so many factors like what property we're taking about and what you'd buy in the US and where. We're never gonna be able to answer until we know what you'd buy in the US plus we have no idea about your overall financial situation.

I can make the following general comments though:

1. The Cabo market is on a tear, when it comes to both real estate values and rentals. You can therefore expect strong rental income and further capital gains, the magnitude of them depending on what you bought.

2. Both prices and interest rates are at historic highs in the US. Traditionally, Mexico had the lower price advantage and the US had the low interest rate advantage. Given how high prices have gone in the US, Mexico still has its price advantage but interest rates are no longer low in the US.

3. Finally, I assume that you're American and it's likely that all your assets are in the US. If that's the case, having part of your assets in another country is a smart move from a point of view of diversification. Never put all your eggs in one basket as they say, as many of those who got bankrupted in 2008 have learned the hard way. I've been traveling to Southern Europe and Mexico and met a lot of wealthy Americans there. They understand that and they're investing massively in those areas for diversification purposes and because they see the potential upside. Cabo is one of their favorite destination to put their money. Following the smart money has never been a bad thing. So, if you decide to keep your condo, you'll be in good company.

Hope this helps!