If you are interested in buying a new home or apartment in Medellin Colombia, your very first "must to do" step is to surf the internet looking for some classifieds portals ( Ex: propiedad-raz.com, elinmueble.com.co, inmobiliario.com.co, concasa.com.co, inmuebleguia.com), These are in Spanish, but you can use some web translation services.
If you are located in Medellin, you can pick up the free magazines listing all the new constructions on offer, that contains second hand properties classifieds too, or consult the on line versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for Medellin and Antioquia areas, These are available at real estate fairs, bank branches and hypermarkets like Exito.
Other way is going to real estate agencies. There are no laws preventing foreigners from owning real estate in Colombia and it is possible to get revenue up to 1% per month for renting properties, mainly in VIS homes (properties valued up to $79.6 million pesos in 2013 or 40.000 USD). VIS homes have government subsidies to lower income families. Medellin real estate is enjoying a recent boom as the city has won the prize as most innovating city in the world. Luxury buildings and middle class buildings are being built at accelerated paces. The city's economy is pretty good, and currently is expanding even more rapidly than Bogota the capital city, with new construction at an all-time high. Some of the best neighborhoods to live in or invest in property, are the El Poblado, Laureles, Envigado, El Retiro and Llanogrande for luxury homes or Buenos Aires, Robledo, Calazans, Los Colores and Caldas for low prized high rental revenue in middle class neighborhoods. However there are plenty of attractive opportunities in the city's downtown area as well as in the metropolitan area (Bello, Itagui; La Estrella and San Antonio de Prado). Although property prices continue to increase, Medellin Antioquia is still more affordable than many other Colombian cities such as Cartagena and Bogota and it would be a good option for an investor.
Prices in Medellin Colombia are from $44 million pesos (22,000 USD on 2013) for a subsidized unit to over $390 colombian million pesos ( 195,000 USD ) for a luxury home in one of the best zones, with $170 million pesos for one in a medium or upper medium class neighborhood (85.000 USD). If you buy a new VIS property, the unit will be offered unfinished, which means concrete walls and floors and no closets. For over VIS the unit will be finished normally, and may be garage included in the price, others can be offered with communal parking spots. The last ones can be a little difficult to get financial loans on them because don't have its own garage, unless they are located near to a main avenue or with access and transport facilities. Parking spots are typically included in properties over $110 colombian million pesos, and additional ones can cost 15 million pesos ($7500 USD) or more. Finally, your closing costs can be around three million pesos ($1500 USD). In addition, there are some monthly community fees, which will probably run 62.000-320.000 pesos per month (31 USD to 160 USD/ month).
For investing, Propiedad-Raiz.com thinks that cheaper real estate will have the best revenue if it is for rental purposes and taking into account the easy and fast way to sell these properties if it were necessary. Many of the cheaper properties are offered with three bedrooms in just 42-55 m2. It is possible to get $5.000.000/month ($2.500 USD/month) from the rent of 10 apartments that costs in total $650.000.000 ($325.000 USD), but one luxury apartment of $650.000.000 could be rented only for $2.600.000/month (less than 1.300 USD). Besides, with 10 low cost apartments there is a risk non concentrated and monthly fees and utility bills will be much lower in case the property is not rented for a while. It is not probably to have more than 3 homes from 10 non rented per month at the same time, so investors will have incomes every month, against the luxury way for just one home with higher risk.
If you are mainly interested in the secondary market, the best sources are the major Colombian newspaper classifieds, such as El Colombiano (elcolombiano.com), El Espectador (espectador.com.co) and El Tiempo (eltiempo.com). On line Classifieds portals like propiedad-raiz.com are very good sources as well, taking into account that most of real estate buyers look for the internet property listings before make any decision.
As mentioned earlier, foreigners enjoy the same rights as native Colombians in purchasing properties, but financing could be a problem. It is not possible to finance a property through a bank in the homeland, and no Colombian bank will lend any money unless buyers have a credit history in Colombia or have an active Colombian bank account which shows off incomes. Note that opening a Colombian bank account requires to have a "passport" and "cedula de extranjeria" that you can get in a few days for foreigners that live in Colombia or "cedula" as it is the national identity card. If you do arrange local financing, know that interest rates are 9% annual in Colombia (year 2013). Most foreigners do 100% cash transactions, and they resort to wiring funds directly to the real estate agency and / or seller from their bank abroad. Needless to say, be sure everything is airtight before handing anybody vast sums of money! You can have financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has 18 year experience in banking in Bogota and Medellin Colombia, lately as branch manager of and important bank.
Transferring or 'wiring' money from any country to Colombia is very easy. You will need to provide your foreign bank with: a. Details of an 'Intermediary' bank that will facilitate the transaction between the bank in Colombia and your foreign bank. b. Details of the bank located in Colombia where the money will be received. c. Details of an individual account at the bank in Colombia. Propiedad-Raiz.com can guide you through the entire process so your transfer goes pretty fine.
The best suggestion for foreigners I can make is that before you invest in real estate in Colombia, come to live here in a rental property, get established, then after look for advising or find professional advise that you can get for an affordable cost, avoiding to manage these business directly with the owner in Colombia being you abroad. It is very important that at least you have someone who represents you in the Colombian city you consider to make your investment. We strongly recommend Medellin as one of the best places for this purpose.
Medellin is emerging as an appealing overseas Real Estate investment heaven, with its pleasant climate, scenery; cultural attractions, friendly people and economic growth prospects that look very bright, since all three major rating agencies have raised Colombia's Credit Rating to Investment-Grade and Billionaire investor Sam Zell has selected Colombia for real-estate investments as the "next best" in Latin American market. House prices in Colombia rise strongly in last few years and expected to continue rising due to the economic growth prospects (4% annual expected for 2013).
How much does it cost to own real estate in Medellin Colombia? Here you have the most important expenses: 1). Government taxes (Predial Tax): Are based on real estate value appraisal. Compared to other countries like U.S.A, are significant lower in Colombia. For example, real estate valued at $260,000,000 pesos will cost approximately 140,000 pesos per month in taxes ($75 USD/month). These are paid tri-monthly. 2). Utility bills: Are based on the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). 3). Administration: Only for properties into an apartment block or gated community. These may incur an administration fee that covers maintenance and security costs. So, the total costs for owning real estate in Colombia, valued at $260,000,000 colombian pesos (145.000 USD), are approximately $600,000 pesos/month in 2013 ($290 US dollars/month).
If you are Colombian and you live abroad, can buy properties in Colombia and arrange local financing. All process is made with international brokers that work together with many banks in Colombia. You can contact Andres Marquez Gamboa as well for advising and arrange local financing. Contact details can be found on propiedad-raiz.com as well as requirements in this case.
If you are located in Medellin, you can pick up the free magazines listing all the new constructions on offer, that contains second hand properties classifieds too, or consult the on line versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for Medellin and Antioquia areas, These are available at real estate fairs, bank branches and hypermarkets like Exito.
Other way is going to real estate agencies. There are no laws preventing foreigners from owning real estate in Colombia and it is possible to get revenue up to 1% per month for renting properties, mainly in VIS homes (properties valued up to $79.6 million pesos in 2013 or 40.000 USD). VIS homes have government subsidies to lower income families. Medellin real estate is enjoying a recent boom as the city has won the prize as most innovating city in the world. Luxury buildings and middle class buildings are being built at accelerated paces. The city's economy is pretty good, and currently is expanding even more rapidly than Bogota the capital city, with new construction at an all-time high. Some of the best neighborhoods to live in or invest in property, are the El Poblado, Laureles, Envigado, El Retiro and Llanogrande for luxury homes or Buenos Aires, Robledo, Calazans, Los Colores and Caldas for low prized high rental revenue in middle class neighborhoods. However there are plenty of attractive opportunities in the city's downtown area as well as in the metropolitan area (Bello, Itagui; La Estrella and San Antonio de Prado). Although property prices continue to increase, Medellin Antioquia is still more affordable than many other Colombian cities such as Cartagena and Bogota and it would be a good option for an investor.
Prices in Medellin Colombia are from $44 million pesos (22,000 USD on 2013) for a subsidized unit to over $390 colombian million pesos ( 195,000 USD ) for a luxury home in one of the best zones, with $170 million pesos for one in a medium or upper medium class neighborhood (85.000 USD). If you buy a new VIS property, the unit will be offered unfinished, which means concrete walls and floors and no closets. For over VIS the unit will be finished normally, and may be garage included in the price, others can be offered with communal parking spots. The last ones can be a little difficult to get financial loans on them because don't have its own garage, unless they are located near to a main avenue or with access and transport facilities. Parking spots are typically included in properties over $110 colombian million pesos, and additional ones can cost 15 million pesos ($7500 USD) or more. Finally, your closing costs can be around three million pesos ($1500 USD). In addition, there are some monthly community fees, which will probably run 62.000-320.000 pesos per month (31 USD to 160 USD/ month).
For investing, Propiedad-Raiz.com thinks that cheaper real estate will have the best revenue if it is for rental purposes and taking into account the easy and fast way to sell these properties if it were necessary. Many of the cheaper properties are offered with three bedrooms in just 42-55 m2. It is possible to get $5.000.000/month ($2.500 USD/month) from the rent of 10 apartments that costs in total $650.000.000 ($325.000 USD), but one luxury apartment of $650.000.000 could be rented only for $2.600.000/month (less than 1.300 USD). Besides, with 10 low cost apartments there is a risk non concentrated and monthly fees and utility bills will be much lower in case the property is not rented for a while. It is not probably to have more than 3 homes from 10 non rented per month at the same time, so investors will have incomes every month, against the luxury way for just one home with higher risk.
If you are mainly interested in the secondary market, the best sources are the major Colombian newspaper classifieds, such as El Colombiano (elcolombiano.com), El Espectador (espectador.com.co) and El Tiempo (eltiempo.com). On line Classifieds portals like propiedad-raiz.com are very good sources as well, taking into account that most of real estate buyers look for the internet property listings before make any decision.
As mentioned earlier, foreigners enjoy the same rights as native Colombians in purchasing properties, but financing could be a problem. It is not possible to finance a property through a bank in the homeland, and no Colombian bank will lend any money unless buyers have a credit history in Colombia or have an active Colombian bank account which shows off incomes. Note that opening a Colombian bank account requires to have a "passport" and "cedula de extranjeria" that you can get in a few days for foreigners that live in Colombia or "cedula" as it is the national identity card. If you do arrange local financing, know that interest rates are 9% annual in Colombia (year 2013). Most foreigners do 100% cash transactions, and they resort to wiring funds directly to the real estate agency and / or seller from their bank abroad. Needless to say, be sure everything is airtight before handing anybody vast sums of money! You can have financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has 18 year experience in banking in Bogota and Medellin Colombia, lately as branch manager of and important bank.
Transferring or 'wiring' money from any country to Colombia is very easy. You will need to provide your foreign bank with: a. Details of an 'Intermediary' bank that will facilitate the transaction between the bank in Colombia and your foreign bank. b. Details of the bank located in Colombia where the money will be received. c. Details of an individual account at the bank in Colombia. Propiedad-Raiz.com can guide you through the entire process so your transfer goes pretty fine.
The best suggestion for foreigners I can make is that before you invest in real estate in Colombia, come to live here in a rental property, get established, then after look for advising or find professional advise that you can get for an affordable cost, avoiding to manage these business directly with the owner in Colombia being you abroad. It is very important that at least you have someone who represents you in the Colombian city you consider to make your investment. We strongly recommend Medellin as one of the best places for this purpose.
Medellin is emerging as an appealing overseas Real Estate investment heaven, with its pleasant climate, scenery; cultural attractions, friendly people and economic growth prospects that look very bright, since all three major rating agencies have raised Colombia's Credit Rating to Investment-Grade and Billionaire investor Sam Zell has selected Colombia for real-estate investments as the "next best" in Latin American market. House prices in Colombia rise strongly in last few years and expected to continue rising due to the economic growth prospects (4% annual expected for 2013).
How much does it cost to own real estate in Medellin Colombia? Here you have the most important expenses: 1). Government taxes (Predial Tax): Are based on real estate value appraisal. Compared to other countries like U.S.A, are significant lower in Colombia. For example, real estate valued at $260,000,000 pesos will cost approximately 140,000 pesos per month in taxes ($75 USD/month). These are paid tri-monthly. 2). Utility bills: Are based on the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). 3). Administration: Only for properties into an apartment block or gated community. These may incur an administration fee that covers maintenance and security costs. So, the total costs for owning real estate in Colombia, valued at $260,000,000 colombian pesos (145.000 USD), are approximately $600,000 pesos/month in 2013 ($290 US dollars/month).
If you are Colombian and you live abroad, can buy properties in Colombia and arrange local financing. All process is made with international brokers that work together with many banks in Colombia. You can contact Andres Marquez Gamboa as well for advising and arrange local financing. Contact details can be found on propiedad-raiz.com as well as requirements in this case.
About the Author:
Looking to find the best deal on Real Estate Medelln Colombia, then visit www.propiedad-raiz.com to find the best advice on how to buy real estate in Colombia and get access to hundreds of property listings and opportunities in Medellin. Visit this Classifieds Real Estate Portal and watch from basic to luxury homes for sale in Antioquia.
No comments:
Post a Comment