Investment Property in La Paz

Investment Real Estate in La Paz

La Paz 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 La Paz and LATAM .

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Searchable Map of La Paz Investment Real Estate

La Paz (), officially known as Nuestra Señora de La Paz (Spanish pronunciation: [ˈnwestɾa seˈɲoɾa ðe la ˈpas]; English: “Our Lady of Peace”), also named Chuqi Yapu (Chuquiago) in Aymara, is the seat of government of the Plurinational State of Bolivia. With an estimated 816,044 residents as of 2020, La Paz is the third-most populous city in Bolivia. Its metropolitan area, which is formed by La Paz, El Alto, Achocalla, Viacha, and Mecapaca makes up the second most populous urban area in Bolivia, with a population of 2.0 million, after Santa Cruz de la Sierra with a population of 2.3 million. It is also the capital of the La Paz Department.

The city, in west-central Bolivia 68 km (42 mi) southeast of Lake Titicaca, is set in a canyon created by the Choqueyapu River. It is in a bowl-like depression, part of the Amazon basin, surrounded by the high mountains of the Altiplano. Overlooking the city is the towering, triple-peaked Illimani. Its peaks are always snow-covered and can be seen from many parts of the city. At an elevation of roughly 3,650 m (11,975 ft) above sea level, La Paz is the highest capital city in the world. Due to its altitude, La Paz has an unusual subtropical highland climate, with rainy summers and dry winters.

La Paz was founded on October 20, 1548, by the Spanish conquistador Captain Alonso de Mendoza at the site of the Inca settlement of Laja as a connecting point between the commercial routes that led from Potosí and Oruro to Lima; the full name of the city was originally Nuestra Señora de La Paz (meaning Our Lady of Peace) in commemoration of the restoration of peace following the insurrection of Gonzalo Pizarro and fellow conquistadors against the first viceroy of Peru. The city was later moved to its present location in the valley of Chuquiago Marka. La Paz was under Spanish colonial rule as part of the Viceroyalty of the Río de la Plata, before Bolivia gained independence. Since its founding, the city was the site of numerous revolts. In 1781, the indigenous leader and independence activist Túpac Katari laid siege to the city for a total of six months, but was finally defeated. On July 16, 1809, the Bolivian patriot Pedro Domingo Murillo ignited a revolution for independence, marking the beginning of the Spanish American Wars of Independence, which gained the freedom of South American states in 1821.

As the seat of the government of Bolivia, La Paz is the site of the Palacio Quemado, the presidential palace. It is also the seat of the Bolivian legislature, the Plurinational Legislative Assembly, and numerous government departments and agencies. The constitutional capital of Bolivia, Sucre, retains the judicial power. The city hosts all the foreign embassies as well as international missions in the country. La Paz is an important political, administrative, economic, and sports center of Bolivia; it generates 24% of the nation’s Gross Domestic Product and serves as the headquarters for numerous Bolivian companies and industries.

La Paz is also an important cultural center of Latin America, as it hosts several landmarks belonging to the colonial times, such as the San Francisco Church, the Metropolitan Cathedral, the Plaza Murillo and Jaén Street. The city is renowned for its unique markets, particularly the Witches’ Market, and for its vibrant nightlife. Its unusual topography offers unique views of the city and the surrounding mountains of the Cordillera Real from numerous natural viewing points. La Paz is also home to the largest urban cable car network in the world. In May 2015, it was officially recognized as one of the New 7 Wonders Cities together with Beirut, Doha, Durban, Havana, Kuala Lumpur and Vigan. La Paz is listed on the Global Cities Index 2015, and is considered a global city type “Gamma” by Globalization and World Cities Research Network (GaWC).

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The increasing financial and political stability of La Paz 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 La Paz

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

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

Set goals based on how much rental yield will be required and the local rental yield rates in La Paz and be prepared to change your initial outlook.
Thoroughly research the La Paz location with a special emphasis on fringe areas outside the main La Paz metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of La Paz.
Ensure that your target investment property in La Paz 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 La Paz properties yourself is an easy option, but are these savings justifiable when you run into La Paz red tape? Physis Realty La Paz office in downtown La Paz provides you with peace-of-mind and leaves you time to plan your next move in the growing La Paz buy-to-rent sector.

With our expert guidance, investing in La Pazprovides the secure knowledge that your money is working harder than it would in a local La Paz 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 La Paz, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the La Paz property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in La Paz

Flipping property in La Paz

Flipping property is when we advise clients to buy a La Paz 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 La Paz market has a time to react to the renovation.

The Flipping Strategy in La Paz

Investment property flipping in La Paz 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 La Paz real estate investments are sometimes referred to by professionals as ‘distressed’ La Paz real estate.

What is distressed La Paz property:

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

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

Calculate profit that you make from La Paz investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in La Paz

For luxury property investors hoping to add a superb property in La Paz 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 La Paz, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in La Paz should be entrusted to only the highest-quality agency.

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