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Profit From the Great Convergence
Strolling along the palm-lined golden beach, the crystal clear water shimmers as waves break against the soft sand…
On the horizon, yachts and sports-fishing boats drift idly back to port. While up ahead, beautiful bronzed bodies frolic in the balmy, subtropical sun, as surfers arrive to catch the famed northern swells.
I love it here. Catching rays and watching waves…
This is pure California…
Indeed, this place carried the same name long before the Golden State ever existed.
Today, however, it’s called Baja California Sur. And it’s here at the tip of the Cape of San Lucas, where majestic cliffs plunge dramatically into the Pacific Ocean that you’ll find the true Californian Dream.
It’s a place where people come for a better lifestyle, a new beginning, and where enterprising folk can make their fortune…
I’ve been coming here to Cabo since 2014, and each time I visit it has gone more and more upmarket. Appealing more to the Californian taste makers who come here. Along the boulevards you’ll find vegan eateries and classic Californian shopping plazas with health food cafés, organic markets, and sushi restaurants.
The trendy new El Merkado gourmet food market reminds me of L.A.’s Grand Central Market. There are breweries creating seasonal flavors based on local produce, and farm-to-table restaurants are popping up everywhere.
Then there are the homes. Inside uber-rich gated communities you’ll find villas with $10-million-dollar price tags and billion-dollar views. Luxury hotels that offer suites with private pools and even private yachts for their guests…
And it’s not just the private-jet-set coming. The “ordinary” rich are moving here too. The Silicon Valley tech folk…the remote workers and entrepreneurs…the second-home owners and retirees…
It’s all being propelled by what I call it “The Great Convergence.” A coming together of all the big trends that we at Real Estate Trend Alert have been following and profiting from for some time now.
Today, these trends are converging like never before and acting in concert, feeding into each other.
They have played a part in our deals from Uruguay to Spain’s Costa del Sol, from Portugal’s Algarve to Mexico’s Riviera Maya…to Panama, Costa Rica, Nicaragua, and beyond…
These big trends are playing out in places all over the world, but The Great Convergence is most obvious in the internationalized places where I focus for our group. And Los Cabos is a most obvious example.
In fact, I’m working on an incredible deal right now which I believe could see us lock in gains of $155,160 just three years after delivery and offers us enormous rental income potential too.
What are the big trends?
Remote work: The world is more interconnected than ever before. The old way of working is going away. No more offices. No more commute. Remote work was gaining ground before Covid, accelerated during the pandemic, and is not going away. A recent survey by McKinsey & Company found that, post pandemic, 23% of American job holders can now work from home part-time, while a further 35% have the option to work from home full-time.
That’s the equivalent of over 55.5 million Americans who are no longer tied to an office whatsoever!
Industry players thought that the office space leasing market would level out as we emerged from the pandemic. But vacancy rates actually rose in the last year.
Today, a tech worker can just easily do his job from Los Cabos as San Francisco…a whole hedge fund can relocate from London to Malaga. All because we are now living in a digital world. And that can translate to real world profits if you know how…
International living: Corporations have had an increasingly global footprint for decades because of lower costs, taxes, and the like. Now individuals are following suit. I myself have set up my life I can split my year between my condo on the Silver Coast, Portugal, with its warm and sunny spring and fall. I like to be at my condo here in Cabo for the holidays and winter sun…Ireland in the summer…then travel.
I own real estate in six countries, have passports for two, and hold residence in another three…all of which has allowed me to maximize my income…and minimize my tax obligations.
That freedom, financial and personal, is my definition of success. And here in Cabo, thousands of folks are following suit. They’re redefining their lives…their concept of home…and where and how they do business…
Cabo is by no means a low cost market by Mexico standards, but when compared to neighboring Californian cities like San Francisco and L.A. it offers great value, along with an enviable lifestyle. Thanks to its close proximity to the U.S. and it’s incredible connectivity, it’s become a popular alternative for folks looking for a convenient home away from home, and it’s real estate market reflects that.
Scarcity: In super-desirable internationalized places like Cabo, we’ve seeing scarcity like never before. Real estate stock is dwindling and demand is soaring. While rising costs and administrative backlogs are preventing supply from catching up. For most investors, that means there’s a real lack of opportunity. But for connected investors like us, who know how to find off-market deals, it means our opportunity is stronger than ever.
Taken together, these converging trends act as a wave nobody can stop, but that we can ride as international real estate investors.
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