Buying a house in Colombia

PVTTONY says on Mar 14, 2007, 21:30:

Buying a house in Colombia MTBE:

I am an american veteran and have been living in Colombia with my wife for over 2 years now. One of our businesses is real estate. I can help you find an apartment, a house or even a nice "finca" in Bogota, Medellin, Cali, Pereira, Tocaima, Chia, Cartagena and other parts of Colombia or, if you wish, we can aquire the property of most interest to you and pass the title on to you. So, you can pay for it using your current bank account. All you have to do is wire the money to our bank in Puerto Rico and the money will be withdrawn here minus bank fees (the banks pay about $1,800COP for every $1USD). As for titling purposes, you would have to go to Colombia with your wife so you can get the title under your wifes' name since she is Colombian (unless you have a cedula de extrangeria provided by DAS when you get a Colombian visa and that way you may both be on the title) it would be a lot easier if she was the only one on the title (she will need her non-expired "cedula de ciudadania"). My wife and I can also administrate your property (for a fee) for the time you will not be there. If you want or are interested, send me an email and i will discuss any other details you might need.

P.S. If your wife still has her "cedula" up to date, it should NOT be considered an investment.

aztec says on Mar 15, 2007, 04:41:

MTBE Please search this site and study the information acquired. You can purchase a house in Colombia but the process is littered with potholes.

After you have reviewed the comments here on this site come back for follow up. Many of us here have already made most of the mistakes and we will be glad to assist you avoid the same.

aztec says on Mar 15, 2007, 04:51:

MTBE Some pages from PBH with comments on the purchasing of property and the transfer of funds.

http://www.poorbuthappy.com/colombia/node/17558#comment-130903

http://www.poorbuthappy.com/colombia/node/7992

http://www.poorbuthappy.com/colombia/node/16453

MTBE says on Mar 15, 2007, 05:18:

Good information! Thanks!! I did try a search with a couple of words, but could not find exactly what I was looking for. I'll try your links.

Thank you for your time!

PVTTONY: My wife is in Colombia now. We have our eye on several properties already and will soon be making offers. She has some property already and is familiar with the paperwork required. Our question is about the transfer of money only. Thanks, but no thanks.

aztec says on Mar 15, 2007, 06:43:

Our question is about the transfer of money only. And that is where several of us got in trouble. Can be done but need to follow the rules carefully.

MTBE says on Mar 15, 2007, 15:02:

Good information found here: http://www.crossbordermortgages.com/guide/colombia.html

MTBE says on Mar 15, 2007, 15:18:

And here...Comment #4... http://board.totalcolombia.com/Real_Estate/Buying_Real_Estate_in_Santa_Marta_Colombia

MTBE says on Mar 15, 2007, 15:24:

and here... This has some good information if you can separate the agents BS like "it's a buyers market..."

http://www.medellininfo.com/realestate/realestatetips.html

fermech says on Mar 16, 2007, 08:47:

ATM It takes work and time but ATM is the way to go, no banks or rules involved

jh816 says on Mar 16, 2007, 18:48:

1800pesos/dollar!!!!! Your bank exchanges at 1800pesos to the dollar? That's an 18% discount from the spot rate. Something smells.

joe.

PVTTONY says on Mar 16, 2007, 19:53:

Oh boy!!! Ok everyone,

The transfer of money needs NOT be made to our account in PR. However, the exchange rates from one bank to another do change, I was only stating a minimum. And if you don't have a bank account in Colombia, this could kill you. Large transfers of money from an American bank account to a Colombian bank account will be carefully looked at by DAS and other Colombian authorities because of money laundering and drug payments are very usual things between Colombia and US without mentioning the investigation you will get if you are in the USA. Plus, I am not refusing to meet with you IN THE US or in Colombia and provide you with proof of residency, my US passport information or even any identification you might require. I am NOT saying that I am your ONLY way. YOU have to have a LEGAL COMPANY in the USA and in Colombia in order for things to go SMOOTHER with the transfer. You CAN do it with your own bank account, Im not saying I have the ONLY solution. And joe, it doesnt smell, it STINKS, but you have to figure how they make their money. THE SECRET: They make a lot of money when they exchange your money from USD to COP and when they loan you your own money back. Even wester union does that. If you are going to receive a transfer through western union make sure you tell the sender to send the money in USD and NOT COP's. You will see that you get more COP's that way. With the dollar going down as fast as it is, I just HOPE things get back on track with it! Hope nobody was offended as I was only looking to help. Good luck with your purshase MTBE.

aztec says on Mar 17, 2007, 06:33:

We followed the rules and still there is more! TWO YEARS LATER "Large transfers of money from an American bank account to a Colombian bank account will be carefully looked at by DAS and other Colombian authorities because of money laundering and drug payments are very usual things between Colombia and US without mentioning the investigation you will get if you are in the USA"

"by DAS and other Colombian authorities" This is the latest comedy in our series of "contacts" with the Colombian bureaucracy concerning a large transfer of funds two years ago.

Seems there are indeed more than one agency examining your transfer. The ridiculous and harassing part of this situation is that the agencies don't talk to each other nor will they share information even in the highly unlikely event they can find the information supplied earlier.

In the past two weeks, we have been asked to fax from the States copies of required documents we filed while in Bogotá. I remind you that was two years ago and we are fortunate to have retained copies of these officially signed and notarized Colombian forms.

To really irritate us they gave us 15 days to have a response in their office or face an edict of some kind. Their notice was sent to a relative in Bogotá so we are already a week behind schedule.

Frankly, if my wife didn't frequently need to return to Bogotá I would tell them to go to hell. Harassment from one government bureaucracy(US) is enough with out having to be threatened by a second government bureaucracy(Colombian).

You will be happy to learn that so long as you report these transactions to the US government on your tax return and one other very short half page form there will be no need for more follow up. The US government will not harass you about these transfers.

TonyMattei says on Mar 18, 2007, 16:57:

word of advice to purchase in colombia if you (an american) are married to colombian woman and looking to purchase property in colombia and need to get money to colombia....my suggestion is this send your wife who is in colombia to open abank account in colombia either bank popular, bancolombia, or even citi bank (some others are there too) wich are here in the USA. then your wife uses her cedula to open an account.... now go to bank popular or bancolombia and or citi bank...make a deposit in that account of your wife her in the usa. then fly your a$$ down there purchase the propety. i know if i wanted to open a bank account in above mentioned banks i need a cedula and they are on american soil. i already did my due dilgence. any further questions email at anthonymattei at saggiodream.com. i am looking to buy just no tsure when or part of colombia. i must open my business first.. i suggest a postive cash flow business (internet cafe and/or cofee shop) for every day so you can pay bills its much easier have a business to help for your nescites.

aztec says on Mar 19, 2007, 08:49:

TonyMattei, I am a little slow. "then fly your a$$ down there purchase the propety". What do you mean?

What are you attempting to do? Sounds as if you are opening an account in the same bank in the States and in Colombia. Still will be treated as two distinct banking units. For example a deposit in one is not the same as a deposit in the other one.

My wife is Colombian citizen and had no problem opening up an account at Citibank in Bogotá. We wire funds from our US bank to the Bogotá bank. All the wired funds go through NY via Citibank NY.

jmbone says on Mar 19, 2007, 12:46:

MTBE...a typical defininion of "Buyer´s Market" would be: A SITUATION, WHICH FAVORS THE BUYER DUE TO MORE PROPERTIES BEING ON THE MARKET THAN THE NUMBER OF INTERESTED OR ABLE BUYERS. MOTIVATED SELLERS TEND THEN TO REDUCE THEIR PRICES.

Sure, the prices for most well located Colombian properties, especially in the major cities, have been on the rise over the past four years or more, but there are realty closings taking place every day in which the closing price is less than market value because of an over supply of properties. One can find many examples of over supply with properties priced at and below market value being on the market for a year or more. And, many properties being sold are the result of counter offers of 15-25% less than original market value asking prices. All of the above examples are indicative of the current: "Buyer´s Market".

What may be confusing, regarding the term: "Buyer´s Market", is the activity in sales of NEW APARTMENT PROJECTS. When potential Buyer´s see prices continue to increase, especially during the pre-construction and construction periods, the idea that it´s a Buyer´s Market, does indeed look like, as MTBE suggests: "agents BS."

But, as you know, professional realty agents do not set prices, the developers and property owners do!