La Paz has become an increasingly popular place to purchase a property as a foreign owner. What is there not to like? The weather is fantastic for at least nine months of the year, the food is great, the people are warm, welcoming and friendly while the landscape is gorgeous. Desert meets the sea of Cortez creating a stunning back drop. Oh, and among the many excellent beaches there is Balandra - voted one of the best beaches in the world. 

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So, what is the problem? Well, with increased popularity has come increased demand for properties, and in any market where demand outweighs supply there is an inevitable price hike.

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A condominium which cost $125,000 US dollars in 2018 is now going for $250,000.

 

For some retired citizens of the US and Canada who have identified La Paz as their ideal destination to spend their golden years, they are becoming priced out. 

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La Paz is a haven. It has charm and tranquillity. It’s different to resort towns like Cabo San Lucas, Puerto Vallarta and Cancun. And that is part of its attraction.  

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So, after spending some time exploring La Paz to make sure it’s the right fit, the first step on the road to purchasing a property is to contact a realtor and see what is available. Welcome to the MLS - An aggregated listing service. 

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Link to the La Paz Flex MLS here:

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All of the properties on the MLS have been verified by established real estate companies. They have been listed by licensed realtors, and it is the go-to place to gauge the market. 

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But here-in lies the problem. If such homes are primarily targeted by foreign investors, certain standards are set and finished products in desired areas become high in demand.  

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Five years ago, supply outweighed demand, now it is the opposite.  

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The beachfront boardwalk in La Paz, locally known as the Malecón, is the city’s prize jewel. And this makes neighborhoods such as Esterito a desirable area to live. 

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But a quick glance at the Esterito area on the MLS currently shows slim pickings. Between the streets 5 de Mayo and Francisco King Rondero, and going back eight blocks from the Malecón, there are only three properties listed for sale - the cheapest a two-bedroom home for $369,000 US dollars. 

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If your budget only stretches to $250,000 usd, the MLS suggests that a two-bedroom 80m2 space in a condominium building with common areas is currently your best bet. Don’t get me wrong, condos can provide convenience and beauty, as well as fantastic views and top quality finishes. They tick a lot of boxes.

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But there is another option, and one which I believe represents greater investment potential. 

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For those desiring a home with their own space, within walking distance of the Malecón, then remodels, or building from scratch, could be the answer for you. 

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There is a market out there for purchasing a property close to the beachfront and remodeling it to your own taste. I’ve done it, and I’ve also helped rental clients do it. 

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You can walk the streets of your desired neighborhood and find properties for sale direct by the owner.

 

Yes, from the outside, the home may look old and tired. But concrete, steel and labour are of similar value/cost whether you are in economic areas of the city or a block from the Malecón. The true value is in the land and location. 

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There are owners willing to part ways with their 250m2 plus property within blocks of the Malecón for less than $150,000 usd. Invest another $100,000 in a remodel or new build, and I’m certain you will see better value for your money.

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There is of course understandable concern when it comes to construction in a foreign country. But this is where we can help.

 

Here at La Paz Home Rentals, we specialize in vacation rentals, property management and projects - the latter ranging from small installations to full housing construction. 

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If this is an option you would like to consider, feel free to reach out for more information. 

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