Investment Property in Xico

Investment Real Estate in Xico

Xico property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Xico .

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Search Map of Xico Investment Real Estate

Xico is a city in the State of Mexico, Mexico. It serves as the municipal seat of Valle de Chalco municipality, with which it is, for all practical purposes, coterminous. The municipality lies adjacent to the east side of the Federal District (Distrito Federal) and is part of the Mexico City metropolitan area. The city and municipality lie on the old lakebed of Lake Chalco, which was drained like much of the Basin of Mexico. The city name comes from the nearby Xico hill (Cerro de Xico) and the name of the municipality comes from the old lake plus a reference to the “Programa Nacional de Solidaridad” (National Program of Solidarity) which was initiated here. The municipality’s glyph and shield make reference to both names. It is a distinct entity from the city and municipality of Chalco, which is nearby. “Chalco” in both names refers to the Chalca tribe that were one of the original inhabitants of the area.

Early pre-Hispanic history refers to the area around the Cerro de Xico and the Island of Xico as most of the modern city was underwater until relatively recently. The area was mostly fishing villages from 900 BC to 100 AD. However, from 550 to 650, the area was dominated by the Teotihuacan culture. From 650 to 750, an Otomi settlement gained prominence. The Acxotecas arrived around 1328, the same time that chinampa farming began here. Xico was conquered by the Aztec Tezozomoc in 1381, after which groups of Mexicas settle here extending the chinampa farming system in the 14th and 15th centuries. The area was ceded to Hernán Cortés by the Spanish king in 1529. The modern area began in the 19th century when Porfirio Díaz ordered the draining of Lake Chalco which devastated the economies of the former coastline communities. The Mexican Revolution tried to compensate these communities by the creation of ejidos, the two largest here being Estación Xico with 507 hectares and San Miguel Xico with 250 hectares. These ejidos, as well as the present-day city and municipality, rest almost entirely on former lakebed.

For the most part, the area laid barren until the late 1970s, when there was a sudden influx of families coming from the central and southern parts of Mexico in search of land. Despite its proximity, there was no infrastructure for basic services including schooling for children. Many people bought ejido land causing legal problems. The federal government had to step in to install basic services and regularize the property rights of more than 77,000 parcels of ejido land that was sold. However, the area did not become a separate municipality until 1994. In the census of 2005 the population of Xico was 331,321 people.

The only notable sites in the area are The Cerro del Marqués which contains architecture and archeological remains but these are not open to the public. However, there is the Museo Comunitario (Community Museum) which displays local archeological finds located in the Casa de Cultura “Chalchiuhtlicue”. There is also the Ex – Hacienda de Xico which was constructed at the same time the lake was drained.

As municipal seat, Xico has governing jurisdiction over the following communities: Las Bombas, Comalchica, Santa Cruz, El Triángulo, El Invernadero, Colonia Ampliación (San Miguel Tláhuac), and Ejido Tulyehualco (Tabla Número Nueve) as well as 13 unnamed communities. It has a total population of 332,279.

The municipality borders the municipalities of Ixtapaluca, Chicoloapan, Los Reyes Acaquilpan, al oriente con Chalco de Díaz Covarrubias and borders to the south with the Distrito Federal. It covers a total surface area of 46.36 km² (17.9 sq mi).

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The financial stability of Xico has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Xico

Renting out your Xico buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Xico are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Xico and be prepared to change your initial outlook.
Thoroughly research the Xico location with a special emphasis on fringe areas outside the main Xico metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Xico.
Ensure that your target investment property in Xico appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Xico properties yourself is an easy option, but are these savings justifiable when you run into Xico red tape? Physis Realty Xico office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Xico buy-to-rent sector.

With our expert guidance, investing in Xico provides the secure knowledge that your money is working harder than it would in a local Xico bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Xico, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Xico property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Xico

Flipping property in Xico

Flipping property is when we advise clients to buy a Xico property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Xico market has a time to react to the renovation.

The Flipping Strategy in Xico

Investment property flipping in Xico is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Xico real estate investments are sometimes referred to by professionals as ‘distressed’ Xico real estate.

What is distressed Xico property:

Xico property in need of renovation
Xico real estate with a change of purpose and use
Oversold Xico property
Bank repossessions in Xico

Put simply, long term investors in Xico purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Xico investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Xico property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Xico use a minimum profit value of 22% when looking at potential Xico projects. The reason for this is because there are lots that can go wrong in Xico property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Xico

For luxury property investors hoping to add a superb property in Xico to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Xico, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Xico should be entrusted to only the highest-quality agency.

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