Investment Property in Tegucigalpa

Investment Real Estate in Tegucigalpa

Tegucigalpa 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 Tegucigalpa .

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Search Map of Tegucigalpa Investment Real Estate

Tegucigalpa (, US: /təˌ-/, Spanish: [teɣusiˈɣalpa]), formally Tegucigalpa, Municipality of the Central District (Spanish: Tegucigalpa, Municipio del Distrito Central or Tegucigalpa, M.D.C.), and colloquially referred to as Tegus or Teguz, is the capital and largest city of Honduras along with its twin sister, Comayagüela [es].

Claimed on 29 September 1578 by the Spaniards, Tegucigalpa became the country’s capital on October 30, 1880, under President Marco Aurelio Soto, when he moved the capital from Comayagua. The Constitution of Honduras, enacted in 1982, names the sister cities of Tegucigalpa and Comayagüela as a Central District to serve as the permanent national capital, under articles 8 and 295.

After the dissolution of the Federal Republic of Central America in 1841, Honduras became an individual sovereign nation with Comayagua as its capital. The capital was moved to Tegucigalpa in 1880. On January 30, 1937, Article 179 of the 1936 Honduran Constitution was changed under Decree 53 to establish Tegucigalpa and Comayagüela as a Central District.

Tegucigalpa is located in the southern-central highland region known as the department of Francisco Morazán of which it is also the departmental capital. It is situated in a valley, surrounded by mountains. Tegucigalpa and Comayagüela, being sister cities, are physically separated by the Choluteca River. The Central District is the largest of the 28 municipalities in the Francisco Morazán department.

Tegucigalpa is Honduras’ largest and most populous city as well as the nation’s political and administrative center. Tegucigalpa is host to 25 foreign embassies and 16 consulates. It is the home base of several state-owned entities such as ENEE and Hondutel, the national energy and telecommunications companies, respectively. The city is also home to the country’s most important public university, the National Autonomous University of Honduras, as well as the national soccer team. The capital’s international airport, Toncontín, is known for its extremely short runway and the unusual maneuvers pilots must undertake upon landing or taking off to avoid the nearby mountains.

The Central District Mayor’s Office (Alcaldia Municipal del Distrito Central) is the city’s governing body, headed by a mayor and 10 aldermen forming the Municipal Corporation (Corporación Municipal). Being the department’s seat as well, the governor’s office of Francisco Morazán is also located in the capital. In 2008, the city operated on an approved budget of 1.555 billion lempiras (US$82,189,029). In 2009, the city government reported a revenue of 1.955 billion lempiras (US$103,512,220), more than any other capital city in Central America except Panama City.

Tegucigalpa’s infrastructure has not kept up with its population growth. Deficient urban planning, densely condensed urbanization, and poverty are ongoing problems. Heavily congested roadways where road infrastructure is unable to efficiently handle over 400,000 vehicles create havoc on a daily basis. Both national and local governments have taken steps to improve and expand infrastructure as well as to reduce poverty in the city.

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The financial stability of Tegucigalpa 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 Tegucigalpa

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

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

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

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

Flipping Investment Property in Tegucigalpa

Flipping property in Tegucigalpa

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

The Flipping Strategy in Tegucigalpa

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

What is distressed Tegucigalpa property:

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

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

Calculate profit that you make from Tegucigalpa investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Tegucigalpa

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

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