American Citizen Buying Property in Colombia?

tomtom33 says on Jun 21, 2005, 16:03:

I bought an apartment in Cartagena before I had any kind of Colombian VISA. All I had was a US passport.

Cali seemed a bit dangerous for me. Of the two cities, I would buy in Armenia. Public transport and taxis are cheap and available in both cities. Why would you need a car? If you don't spend much time there, renting(car and apt.) would be cheaper.

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angzulu says on Jun 21, 2005, 16:53:

Even though I am from Cali.. I recommend Armenia. My mom's family is from the coffee region, so I spent all my vacations at Grandma's house in Quimbaya (20 minutes from Armenia). Armenia has grown a lot and has become quite a busy little city. The weather is nicer, and crime is not as widespread as in Cali. Check this website another member (kat1) gave me recently www.metrocuadrado.com

In addition, you could find someone to keep an eye on the house while you are gone. If I get some info from my family I'll let you know. basically, you would be paying a company to pay a "watchman" to keep an eye on the house.An apartment is definitely a better choice..just talk to the owners of the building and the front desk..they might give you a better idea of how it works.
Another good reason to move to Armenia is that Tourism has grown a lot in the coffee region, so houses are appreciating a lot faster there than in my beloved Cali. And I agree with Tomtom33, you probably don't need the headache of a car.
Gosh, I wish I could go three times a year..lucky you!
AngZulu

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adrimm says on Jun 21, 2005, 18:23:

? Don't US citizens get treated the same as any other foreign nationals in Colombia? If they do, then Desi may be able to provide some pointers on owning property (and being foreign).

I also agree on the apartment thing, as long as the building has secured entrance (and they all do) then you won't have to bother with hiring someone to "watch" it for you. We know a Colombian who has no problem keeping her apartment this way for her trips.

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Dan says on Jun 22, 2005, 06:57:

Ken The info you posted doesn't sound all that bad. I was thinking the whole process would be a bit more complicated than that. That type of Visa though, I don't think I've heard of. I guess I can look a little more into getting a house/apt. someday. I also heard of others just needing a passport, but not really any type of Visa in order to sign for the papers.

God Bless America!

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Peter Miami says on Jun 22, 2005, 07:07:

Why Armenia or Cali I went to Colombia in August 2002 for the first time to visit an x-girlfriend, she had moved back to Colombia. We did not have the same feeling but her whole family loved me. Some of her family and friend started taking me out showing me places and introducing me to other people I like it so much that I just keep going back. I love the people, country, culture, food (excellent), values and of course the women. We have beautiful women in Miami but values and family has gone by the waste side.

The reason for Armenia on almost all my trips I go to Armenia I know more people in Armenia than anywhere else. Her cousin who is a good friend of mine owns a business there “King Burgur” (this is how it is spelled). I love that city the problem is that I would still have to fly into Cali and get to Armenia every time this is why I am not sure. Cali is great but I do not know a lot of people there, yet. I like Medellin also the problem is the distance to Armenia and that I do not know too many people there also. So this is why I am between Cali and Armenia.

Regards,

Peter Miami

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Peter Miami says on Jun 22, 2005, 07:12:

I do not have any Colombian visas on my passport. In order to open a bank account I need a Cedula? Can I get a Cedula?

Thanks,

Peter Miami

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Dan says on Jun 22, 2005, 07:21:

in that case... I think you will need a visa that allows you to stay in Colombia for activities other than tourism to get the Cedula.

God Bless America!

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Gomezman5 says on Jun 22, 2005, 07:29:

I have the best idea---I think Don't confuse your love with Colombia with investing your money. The first question you have to ask yourself is, "How much time am I really going to be visiting there?" If your are going to own a house in Colombia and nobody is going to be there to often, that is a potential disaster. The house can easily be ransacked. Your house does not stand a chance at staying untouched if you are there infrequently, unless you have a caretaker that is there....

Now that being said, if you really think it would be worth your while to buy "real estate" in Colombia, I would certainly not buy in Armenia. It's nice but so what. Is your Spanish fluent? Can you be tagged for being Gringo ? Armenia is not the safest part of Colombia. Also, you want to make it easy to get to. There are NO direct flights from Miami. You should stick with major cities like Cali, Medellin, Cartagena, or my faovorite--Bogota. Armenia??? Forget it. I may also add, that while Armenia may appear to be more tranquilo than Cali, that does not mean it is safer. As a general rule, you are always safer in the big cities than you are in the smaller ones.

Lastly....and I think this is the BEST advice. Stick with hotels for your visits. Hotels in Colombia are dirt cheap. The Intercontinental, one of the best chains in the world can be had for $80 a night. And that is the best of the best in Cali. Not to mention the fact it is nice to go away for a few days, and have a clean room, with clean linens and a clean bathroom waiting for you. Why would you want to return to a home that smells musty and his dusty???

If you are thinking of investing, again, leave your sentiments in colombia, but your money in the US. There has been no better place in the world to invest in real estate for the last 10 years than right here in your own back yard. Prices are high, but interest rates are still low. Get friendly with your local banker and have him find you some forclosures that are withing a few miles of your home. They are going to do far better for you investiment wise than anything you will buy in Colombia. Bet on it.

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ColombianoX says on Jun 22, 2005, 07:47:

"Armenia is not the safest part of Colombia."

I must take issue with you right there, Gomez!! Armenia has always been one of the safest cities in Colombia. Have you ever been there? I caution you to learn more about a city such as Armenia before dismissing it so quickly as "not the safest part of Colombia."


ColombianoX

'Defensor de la Colombianidad y de Armenia'

ColombianoX 'Defensor de la Colombianidad'

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Hunter says on Jun 22, 2005, 07:47:

Buying property.. Two Options

You get one of a dozen differant types of visa, business visa, investment visa, student visa etc, BUT not a tourist visa. When you have the visa you can apply for a ID card at DAS. With the ID card and your passport you can purchase a property.

The second option which a lot of people do in Ctg, is that you get somebody with a ID card to sign all the paperwork, the property is put in your name.

As to not being there, that should not be a problem in a secure apt building, you can pay a agent to pay any bills when you are not there, their commision is negligable.

As to G5 comments that you can make more money in the US than anywhere in Colombia, I buy property for my company, the best I have ever done on capital gains was 400% over 9 years (in London), I have never made 300% gain on a property in a year in any Country except in Colombia, where I have done that on 3 properties.

But it sounds like to me you are not trying to make money off it, so it shouldn't matter.

Hunter

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Peter Miami says on Jun 22, 2005, 08:15:

Well my short term goal is to have a place and stop throwing money away in hotel and rental cars three, four and five times a year. I own property in Miami and it is very expensive. I could buy an apartment in Armenia from about $15,000 USD two or three bedrooms and new I have seen them (this is so cheap). My long term goal is to sell it for profit or maybe rented I have to see what happens.

Peter Miami

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Peter Miami says on Jun 22, 2005, 12:55:

Currently in Miami, but I am researching on investing in Colombia. I would probably invest in apartments so that I have a bigger market niche. I would be more comfortable in starting in Cali and Armenia because I know people there and if I have to get something done I could trust them.

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Gomezman5 says on Jun 22, 2005, 15:04:

Oh Cx To you....every part of Colombia is perfectly safe....Let's face it, Mr. Defensor de la Colombianidad. Yes or no?

Fine, assuming you are correct and it is not as unsafe as I said it is, it is certainly more unsafe than the big cities are. You are much closer to an area where kidnappings can occur easily than if you are in the big cities. It's hard(er) to kidnap people in larger cities.

I also give other reasons...which you conveniently ignored, as to why he would be better off simply paying for hotels when traveling to Colombia. Above, I set out some very compelling reasons why staying at hotels is your best bet. Remember, Peter is NOT Colombian, he is American. While Armenia may be a safer city than many others, to imply that it is safe for a single American man is the essense of rediculousness. Also buying property in the US and not attending to is not a good idea unless it is in some kind of a secure complex..like a condo or something of that nature. Buying a home, in Colombia and only being there part time is just rediculous. It is sure to get looted, unless someone is living there or it's secure.

You also ignored the fact that it will take much longer to get to from Miami in that there are no direct flights. Why should he by property in a place where he will have to change plains all the time.

I may also add than Armenia is more prone to Earthquakes than most parts of Colombia. You cannot argue that point...check the history. And according to the experts, it is due to have more sizmic activity. Again....forget Armenia.

Go to Colombia, stay at their many fine hotels, get treated like a king in a clean room and shower....and invest your money right there in South Florida. If you would have bought any real estate in South Florida 5 years ago, you would have gotten a return that you could only dream about getting in colombia

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viewpoint says on Jun 22, 2005, 16:06:

I think G5 is right. As a foreign person it is better and easier to blend into a larger city such as Medellin, Bogota, Cali or even Cart than a much smaller city like Armenia. In Armenia you would really stand out from the crowd. Last time I was in Armenia the FARC had been there the day before just outside of town with a rodblock and burned a bus plus robbed the people in the cars they stopped. Not thanks, I take my chances in Medellin.

You really better know the laws in Colombia as once you reach CP$80.000.000 of assets in Colombia you must register with DIAN and you are taxed for (net) assets exceeding that value.

Hunter knows the laws and procedures better than me and would be a good source of information. The only reason that any foreign person should want to have a Colombian visa is because it's necessary to have in order to obtain a cedula and reside in Colombia more than 180 days a year. I had three one year visas but no more as it is more trouble than it's worth. The best way to take ownship of a property whether in Colombia or Panama is through a corporation (just my opinion). In Panama most all of the local people take ownership thought a single purpose corporation and when they are ready to sell the property they just transfer the shares and save a transfer tax of $250 US per $1000 US.

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ColombianoX says on Jun 22, 2005, 16:18:

Mi querido Gomezman,

Most of Colombia's western half is prone to earthquakes. Now, unless you also moonlight as a geologist, tell me where you came up with the silly claim that only Armenia is "more prone to earthquakes" than anywhere else?

And no, Gomez, I don't believe every part of Colombia is safe. Cali is going through a rough time, many parts of Medellin still aren't safe, and south Bogota is Colombia's Hells Kitchen. Hhmm, and what do all these places have in common? Why they are all big cities, how about that! Armenia has always been safer than the 'Big Three'. And then there's FARC territory like Putomayo and El Caguan, to call them "unsafe" would be an understatement. In conclusion, contrary to what you believe, I can take off my "rose-tinted glasses" and see things as they truly are.

Saludes,

CX

ColombianoX 'Defensor de la Colombianidad'

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viewpoint says on Jun 22, 2005, 16:28:

Earthquakes If there is ever a serious earthquake in Medellin there will be major damage done to the residential and commercial structures built on the hillsides (east and west) of the valley floor. the hillsides are very unstable and a good earthquake would not only do serious damage to the buildings but cause the earth to slide accross the sloped bedrock under it.

Recently on a jobsite in Medellin I was inspecting the excavation for piling being constructed for a large highrise and it sure as hell opened my eyes. The engineers (I know several) in Medellin are very good but building on those hillsides really tests the limits of design possibilities. Imagine a 20 story high rise built on 30 piling averaging 30 meters long anchored into bedrock on a 15-20% slope with ground water pouring down the hill over the submerged bedrock. The project engineer encouraged me to go down the shaft 90 feet underground to inspect the anchoring of the piling to the bedrock before they place the reinforcing steel and poured the concrete piling and I passed on that with a smile.

I have (almost) never seen more diffcult building conditions.

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xp says on Aug 17, 2005, 18:21:

Real Estate in Cali If you are still interested in buying a property in Cali I can provide you with information about houses and
apartments for sale or rent in Cali, well located and
with good prices. If you want to know about a reliable
property management company in Cali that can guarantee
rents, you can contact me at acinmobilia at yahoo.com.
People are very friendly in Cali and they can manage your property at low cost so that you don't have to worry about anything.

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etn2 says on Jan 4, 2006, 12:06:

Can Americans Own Property in Colombia I'm an American and undergoing construction of a multi family dwelling in Colombia. I have been trying to get information on taxes of property and have been unable to get a logical anwer from anyone including the IRS in the U.S.

Thanks you for your reply.

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etn2 says on Jan 4, 2006, 12:13:

Property in Armenia Colombia Undergoing construction of multi-family dwelling in Armenia, Colombia. Total of four apartments; one penthouse; one business establishment. I understand the trust issue and that is why I stated the consturction in Armenia. Contact etn2 at aol.com for information.

Thanks you for your reply.

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UPNSCARY says on Jan 4, 2006, 12:28:

If you put property in someone else's name when it is time to sell, good luck, then if you do not fill out the proper paper for investing money in Colombia, your going to get hit with a hufty tax on the sale price of your property! Instead getting hit with just the profit you will be taxed on the entire amount of the sale!

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landcruiser77 says on Jan 4, 2006, 12:35:

if you got the money ,welcome to colombia i heard my american wife she have more possibilities to buy than me,with the help of the colombian banks.
i heard american and foreign people have open doors with the colombians banks.

£æ

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aztec says on Jan 5, 2006, 02:43:

etn2, please... ...do your homework on purchasing property in Colombia. It can be done in a "safe" manner but you need to follow the rules as set forth in Colombian law. While many of these rules and regulations sound arbitrary and mysterious to us they do have logical underpinnings. Like in the States we may think many of the laws are ridiculous and punitive.

My advice, outside of hiring a good attorney, is to search this site. Many of us here have made enough mistakes to qualify for a college education in Colombian finance.

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