Investment Property in Tijuana

Investment Real Estate in Tijuana

Tijuana 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 Tijuana .

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Search Map of Tijuana Investment Real Estate

Juana de Dario Torres

Tijuana ( tee-(H)WAH-nə, Spanish: [tiˈxwana] (listen)) is a city in Baja California, Mexico. It is part of the San Diego–Tijuana transborder urban agglomeration and the larger Southern California megalopolis. As the 2nd-largest city in Mexico and center of the 6th-largest metro area in Mexico, Tijuana exerts a strong influence in education and politics, in transportation, culture, art, and manufacturing and as a migration hub. Currently one of the fastest-growing metropolitan areas in Mexico, Tijuana is rated as a “High Sufficiency” global city by the Globalization and World Cities Research Network. As of September 2019, the city of Tijuana had a population of 1,810,645, with its metropolitan area containing a population of 2,157,853 as of 2020, an estimated 2,002,000 within the urban area.

Tijuana is located on the Pacific coast of Baja California, and is the municipal seat and the cultural and commercial center of Tijuana Municipality (Mexican states are divided into municipalities, rather than counties as in the U.S.). Tijuana covers 70% of the territory of the municipality and contains 80% of its population. A dominant manufacturing center of the North American continent, the city maintains facilities of many multinational conglomerate companies. In the early 21st century, Tijuana became the medical-device manufacturing capital of North America. Tijuana is also a growing cultural center and has been recognized as an important new cultural mecca. The city is the most visited border city in the world; sharing a border of about 24 km (15 mi) with its sister city San Diego. More than fifty million people cross the border between these two cities every year. This metropolitan crossing makes the San Ysidro Port of Entry the fourth busiest land-border crossing in the world. It is estimated that the two border crossing stations between the cities proper of San Diego and Tijuana account for 300,000 daily border crossings alone.

Tijuana is the 45th largest city in the Americas and is the westernmost city in Mexico. According to the 2015 census, the Tijuana metropolitan area was the fifth-largest in Mexico, with a population of 1,840,710, but rankings vary, the city (locality) itself was 6th largest and the municipality (administrative) 3rd largest nationally. The international metropolitan region was estimated at about 5,158,459 in 2016, making it the third-largest metropolitan area in the former Californias region, 19th largest metropolitan area in the Americas, and the largest bi-national conurbation that is shared between US and Mexico. Tijuana is becoming more suburbanized like San Diego.

Tijuana traces its modern history to the arrival of Spanish explorers in the 16th century who were mapping the coast of the Californias. As the American occupation of the Mexican capital ended with the Treaty of Guadalupe Hidalgo, Tijuana’s new international position on the border gave rise to a new economic and political structure. The city was founded on July 11, 1889 as urban development began. Often known by its supposed initials, T.J., and nicknamed Gateway to Mexico, the city has historically served as a tourist center dating back to the 1880s.

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The financial stability of Tijuana 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 Tijuana

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

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

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

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

Flipping Investment Property in Tijuana

Flipping property in Tijuana

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

The Flipping Strategy in Tijuana

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

What is distressed Tijuana property:

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

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

Calculate profit that you make from Tijuana investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Tijuana

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

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