Investment Property in Valdivia

Investment Real Estate in Valdivia

Valdivia 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 Valdivia and LATAM .

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Searchable Map of Valdivia Investment Real Estate

Valdivia (Spanish pronunciation: [balˈdiβja]; Mapuche: Ainil) is a city and commune in southern Chile, administered by the Municipality of Valdivia. The city is named after its founder Pedro de Valdivia and is located at the confluence of the Calle-Calle, Valdivia, and Cau-Cau Rivers, approximately 15 km (9 mi) east of the coastal towns of Corral and Niebla. Since October 2007, Valdivia has been the capital of Los Ríos Region and is also the capital of Valdivia Province. The national census of 2017 recorded the commune of Valdivia as having 166,080^{[citation needed]} inhabitants (Valdivianos), of whom 150,048 were living in the city. The main economic activities of Valdivia include tourism, wood pulp manufacturing, forestry, metallurgy, and beer production. The city is also the home of the Austral University of Chile, founded in 1954 and the Centro de Estudios Científicos.

The city of Valdivia and the Chiloé Archipelago were once the two southernmost outliers of the Spanish Empire. From 1645 to 1740 the city depended directly on the Viceroyalty of Peru, which financed the building of the Valdivian fort system that turned Valdivia into one of the most fortified cities of the New World. In the mid-19th century, Valdivia was the port of entry for German immigrants who settled in the city and surrounding areas.

In 1960 Valdivia was severely damaged by the Great Chilean earthquake, the most powerful earthquake ever recorded at magnitude 9.5. Debris and destroyed buildings from the earthquake can still be found in the suburban areas^{[verification needed]}. In addition, land subsidence and sediments have resulted in complex navigation challenges on the local rivers and in some areas, ruins of buildings are visible from the water.

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The increasing financial and political stability of Valdivia 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 Valdivia

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

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

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

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

Flipping Investment Property in Valdivia

Flipping property in Valdivia

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

The Flipping Strategy in Valdivia

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

What is distressed Valdivia property:

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

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

Calculate profit that you make from Valdivia investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Valdivia

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

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