Best Areas for Property Investment in La Paz
The city of La Paz is currently renewing the Zona Central. This, in turn, will increase property values in and around these popular areas. Another popular spot is the Malecon or more notably known as the boardwalk. This prime stretch of land follows along the city’s waterway. Both of these neighborhoods are experiencing tremendous growth.
The demand for hotels, privately managed homes, and Airbnb rentals is increasing rather quickly. I am seeing the average investor searching these areas instead of the typical residential neighborhoods. The reasons why? The first answer would be that the ROI (Return on investment) is so much greater. The second is that people want to be close to restaurants and shopping and the activities and sightseeing opportunities.
Where to Retire in la Paz
If you are looking to retire or have a seasonal home in La Paz, I feel that the best areas to consider are in the hills just above the city. From here, it is only a 10 to 20-minute drive to downtown. One of the neighborhoods I would suggest is the El Centenario. This particular area is only fifteen minutes northwest of the city. This charming neighborhood sits atop the hills and provides beautiful ocean and desert views. Once the sun slowly sinks below the blue horizon, you will be able to see the glistening aura of the city lights.
Other zones lie within what I call the Golden Zone of La Paz. These exclusive communities include El Pedregal, Lomas de Palmira, and Costa Baja. They all have easy access to various water and land activities! If you are looking to build your perfect dream home, the hills in and around these communities have plenty of available lots. You will enjoy the great panoramic views and open space and still be within 15 minutes from downtown La Paz. All these areas have become extremely popular with retirees from both America and Canada.
Closing Costs in La Paz
Let’s address the ‘Closing Cost’ and briefly outline what it includes. The cost to close on a property in Mexico can range anywhere from 4.5 to 6.5 percent of the selling price. Although property investment in La Paz, is somewhat similar to the US and Canada, you need to be aware of a few differences. Besides the notary fee, there is a 2 percent tax-transfer charge. Collecting this fee upfront helps keep your annual tax bill to a minimum. Along with a few other registration fees and certificates, this portion of your closing cost accounts for approximately 4 percent.
When a property goes under contract, and the buyer is not a Mexican, I explain to my clients that they must set up a ‘Fideicomiso’ or more commonly known as a trust fund. The new owner still has full control of the property and can do almost anything they wish. The trustee assigned to the account is responsible for administering all the proper procedures required under Mexican law. You will add the expenses of setting up a Fideicomiso and maintaining it to the closing cost.