Investment Property in Oaxaca

Investment Real Estate in Oaxaca

Oaxaca 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 Oaxaca .

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Search Map of Oaxaca Investment Real Estate

Coordinates:

16°54′N 96°25′W / 16.900°N 96.417°W / 16.900; -96.417

Oaxaca ( wə-HA-kə, also wah-HAH-kah, Spanish: [waˈxaka] (listen), from Classical Nahuatl: Huāxyacac [waːʃˈjakak] (listen)), officially the Free and Sovereign State of Oaxaca (Spanish: Estado Libre y Soberano de Oaxaca), is one of the 32 states that compose the Federative Entities of Mexico. It is divided into 570 municipalities, of which 418 (almost three quarters) are governed by the system of usos y costumbres (customs and traditions) with recognized local forms of self-governance. Its capital city is Oaxaca de Juárez.

Oaxaca is in southwestern Mexico. It is bordered by the states of Guerrero to the west, Puebla to the northwest, Veracruz to the north, and Chiapas to the east. To the south, Oaxaca has a significant coastline on the Pacific Ocean.

The state is best known for its indigenous peoples and cultures. The most numerous and best known are the Zapotecs and the Mixtecs, but there are sixteen that are officially recognized. These cultures have survived better than most others in México due to the state’s rugged and isolating terrain. Most live in the Central Valleys region, which is also an economically important area for tourism, with people attracted for its archeological sites such as Monte Albán, and Mitla, and its various native cultures and crafts. Another important tourist area is the coast, which has the major resort of Huatulco and sandy beaches of Puerto Escondido, Puerto Ángel, Zipolite, Bahia de Tembo, and Mazunte. Oaxaca is also one of the most biologically diverse states in Mexico, ranking in the top three, along with Chiapas and Veracruz, for numbers of reptiles, amphibians, mammals and plants.

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The financial stability of Oaxaca 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 Oaxaca

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

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

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

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

Flipping Investment Property in Oaxaca

Flipping property in Oaxaca

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

The Flipping Strategy in Oaxaca

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

What is distressed Oaxaca property:

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

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

Calculate profit that you make from Oaxaca investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Oaxaca

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

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