Buying property in Colombia

Lucia Rojas says on Aug 1, 2005, 21:25:

while you are there It will probably very easy to get theinfo about buying while you're there. Enjoy the trip!!!

0 funny, 0 helpful.

spy1984 says on Aug 1, 2005, 21:50:

Beaches I agree but thier are no beaches in Med. Most property that will go up will be close tothe coast I think. Cart may be a better bet. Not sure on the laws owning property there. Maybe better off buying here and traveling there.

0 funny, 0 helpful.

Hunter says on Aug 1, 2005, 21:55:

I agree but not in Colombia as a whole.

You really need to be close to a beach, Cartagena and Santa Marta come to mind.

Hunter

0 funny, 0 helpful.

Andy-NY says on Aug 2, 2005, 04:59:

Thanks Lucia, I'll keep you posted............. Andrew-NY

Andrew-NY

0 funny, 0 helpful.

expatriate says on Aug 2, 2005, 05:17:

In my opinion Colombia is way overpriced right now.

For example, a 3 bedroom house on 1/4 acre in Arlington, Texas, where the average income is 40K goes for 100K. This one rents for $1100 - not bad.

A similar property that I have seen, just South of Cali, where the average income is 7K, also goes for 100K. This one should rent for $300-$500 - a poor investment.

If you are interested in international real estate investments, I suggest the coast of Uruguay, not too far from Argentina, and Argentina itself, which is known to be valued at about half of what it should be.

A beachfront apartment in Uruguay within driving distance of Buenos Aires is relatively cheap, and commands very high rent, making it a good investment.

If you insist on investing in Colombian real estate, I think the only place to consider is the Caribbean coast, especially Santa Marta. The weather there is bearable, unlike Cartagena which is just too humid.

0 funny, 0 helpful.

viewpoint says on Aug 2, 2005, 05:45:

Expatriate Uruguay is an interesting country (very european) but it's a country of four seasons. I assume that you are talking about the beach area of Punta del Este which is very nice (in season) but not such a nice place (out of season) in the winter. It is like a deserted ghost town in the winter. I remember visting Punta del Este at a time in the winter that was erie as there were NO customers in the hotels, NO customers in the resturants and nobody on the roads. When I say NO people I mean exactly that as the only people in the resturants and hotels were the employees. Lots of rain during winter months !!! I know that during the high part of the season the place is full of people and beautiful. If I had to choose a place in the south of SA I would pick Santiago, Chile as second choice to Medellin, Colombia. You have four seasons there but lots of options, amendies and infastructure in southern Chile. Santiago at 5.8 million people is a great city.

Yes Colombia is overpriced right now but not in Colombian peso terms but rather the Colombian peso is overpriced against other currencies making any real estate purchase (using foreign currency) subject to currency risk (just my opinion but not shared by all others). Your observation on Colombian rents (return on investment) is correct for both residential and commerical properties.

0 funny, 0 helpful.

ColombiaBoard says on Aug 2, 2005, 07:16:

Where to invest I think that the best option is to visit the cities you´re interested in first and have a look at the areas with higher valuation possibilities.

For example, in Medellin El Poblado got too expensive and they passed a new tax that stopped high rise construction in that area so now all the developers are starting to build high rise condominiums in Laureles and Conquistadores and the prices are starting to go up, now you can find some new projects in Laureles with prices like those in El Poblado and older condos with higher prices.

It happens everywhere, you have to know the area.

Cartagena: same story, the newest developments have prices like Miami.

0 funny, 0 helpful.

Andy-NY says on Aug 2, 2005, 07:42:

Interesting, but........ Expatriate,
If a house in Arlington goes for $100k, then I'm unaware of the real estate market in TX or other parts of the U.S. I didn't know that $100k homes still exist in the U.S., besides trailor parks.

I live in NY and you can't buy anything here for under $250k and that will likely be in a bad area. A nice house in a good area is $600k-$800k+. A 2 bedroom apartment in Manhattan goes for $1 million+. My sister recently purchased a house in South Florida for $575k and the prior owner purchased it for $195k in 1998. My whole point is that most of the U.S. is becoming unaffordable for many people that want to buy homes. Many people will start looking into Central and South America for affordable homes in a warmer climate.


Andrew-NY

Andrew-NY

0 funny, 0 helpful.

Saltador says on Aug 2, 2005, 08:06:

Real Estate expatriate made some really good points. Cartagena seems to be overpriced right now, but who knows, it could always go higher.
Property in Colombia is becoming more desirable to people looking for second/vacation homes, but it has a long way to go to be the next Costa Rica. It will be years before the stigma and fears of kidnappings and the FARC are forgotten, and the heat and humidity of Cartagena are negatives for sure. Costa Rica is considered safe with many people speaking at least some english, and is also an ecological wonderland. Medellin has the climate, but no beaches, and is still synonamous in the USA with danger and drugs.
Brazil seems to be the place to grab property cheap, but the corruption you'll encounter if you don't know someone is a big negative, although many americans are making money hand over fist there right now buying farmland. A few are being killed in the process too though, and it's too much like the wild west to make it worthwhile.

0 funny, 0 helpful.

utopiacowboy says on Aug 2, 2005, 08:35:

Andy, maybe you should get out of NY every so often. yes, you can buy houses in Texas for $100,000. In fact you can buy them for much less in many areas. Yankees tend to think the whole country is like their little part in the north when in fact most of the country is far different from the two coasts. It's really way past time for the breakup of the USA.

Disclaimer: any comment I make is inane and is not to be taken seriously, and is so patently ridiculous that no one should take it seriously, even as an insult.

0 funny, 0 helpful.

Mr. Hollywood says on Aug 2, 2005, 09:11:

Two threads Looks like we've got two different threads going about this subject.

One thing I'll point out is that there's PLENTY of overpricing in the high-end of the Colombian market right now. Where I live in Bogota it's not at all unusual to see apartments selling for $400,000 to $500,000 US. And those same apartments will have $300-$500 in monthly condo fees. To me that's just insane that people are paying half a million for a condo in Bogota.

Sure you can buy places for a lot less in Bogota, but don't kid yourself that Colombia is "cheap".

The other thing to consider when making speculative investments of, say, rural and/or beach lands in dicey parts of Colombia is that that title histories in those areas are a mess and are likely to be contested for years.

0 funny, 0 helpful.

Rubiazo says on Aug 2, 2005, 09:35:

From what I've seen There are some places that could carry very well in Estrato 3 or 4 in Bogota. Haven't looked anywhere else in Colombia, aside from Cartagena. Cartagena places do seem bad as investments though. As a rule, buying right on the beach anywhere is never a good idea. I have an uncle who made millions off of real estate in the Detroit area. He always turned a healthy profit on anything he bought, including all the $1 specials back in the 70s when the city was burning. The one time he LOST money was when he bought his wife a house on Lake Huron across the border in Sarnia.

Someone who actually bought property in Bahia, Brazil, posted a HUGE post about it on the brazzil.com boards, talking about all the problems of buying there. Part of the problem is that nobody wants to declare the actual value of the property for tax reasons.

GIB if I lived in LA, San Diego, or Miami, I'd seriously be looking at selling right now. Ditto with parts of Westchester Nassau and Bergen (NJ) counties here. Any time homes are being offered at a price where you wouldnt be able to cover your expenses by renting the place out, it's a disaster waiting to happen.

I don't know anything about the Texas market but if it has that kind of carriage, maybe I should look at getting something there.

I remember when looking at buying land in the Dominican Republic, I decided against it for the same reasons, lack of clear title, and in many instances, people bribe officials to change the survey data and actually start encroaching on your property!! But to be fair, there are similar scams all over NYC too.

I did very well buying here in the Bronx, because I bought a 2 family house. However, I have to deal with the aggravation of being a landlord in return, which is a lot harder than it sounds.
BUT if I ever do buy property anywhere in South America, I would probably do the same thing (buy a 2-4 family dwelling). Those always carry better. One would have to look at it as a commitment to spending a certain amount of time there keeping on top of things though.

0 funny, 0 helpful.

Rubiazo says on Aug 2, 2005, 09:49:

RE: costa rica Costa Rica is no longer a safe place by any stretch. Crime in the past 15 years ago has gone from virtually nil to all over the place. I wish I had a company that made steel gates and security systems there right about now. Must be all those Canadians moving down!!

0 funny, 0 helpful.

ws244 says on Aug 2, 2005, 09:56:

property Way overpriced, they are overbuilding, and they do not have 30 year loans at 6% but 12 year loans at 12%. Prices will come down as only so many Colombians can afford these new places, and Colombia is not exactly a hotspot for retirees. Rent now and get your feet wet, and buy later. Cartagena is a dump and the infrastructure is next to non existent except in the old walled city.

0 funny, 0 helpful.

tomtom33 says on Aug 2, 2005, 12:48:

As usual the best time was in the past. But there are deals yet to be had in CTG.

Guess I must love dumps. The infrastructure is quite good in Boca Grande, Castillo Grande and Laguito-much better than the old city. It seems pretty good on Manga Island and in Crespo as well. I would call it next to non-existent in the small area of tin-roof shacks near the airport runway.

The new buildings do not come close to Miami prices, but they are pricey compared to existing buildings. The newer buildings have larger apartments and better amenities. Their emergency generators will power the entire building rather than just the elevators and emergency lights. They are targeting the high-end market.

My little place in Laguito has gone up in value close to 75% in less than 2 years. Wish I would have bought 10. Then again I feel more comfortable with a broadly diversified US stock portfolio. I won't get rich, but I should be able to eat for the rest of my days.

0 funny, 0 helpful.

gorgonabob says on Aug 2, 2005, 15:48:

one option id say the best place to buy property/land at the moment in colombia is the pacific coast... south of nuqui or around el valle/bahia solano. land round there going very cheap.... met a guy the other day who bought what looks like an island at low tide.. amazing place... there will be a decent road there in a few years connecting quibido and its likely one day that youll be able to get to the coast in a few hours from medellin,,, its only 150 km or so as the crow flies.... the colombians are very interested in setting up another deep water port around nuqui... the chinese would probably pay for it the way they have been splashing money around lately to guarantee future suplies of oil for there red hot economy......... you can get land south of bahia solano for less than 10million an acre right on the beach....

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 09:22:

I am Colombian, but I live in the UK , and I own two properties in Colombia, one in Cartagena and one in Villavicencio, and I have not intention to sell neither of them . so far the value of both properties are gone quite high.

Chao X-)

0 funny, 0 helpful.

utopiacowboy says on Aug 3, 2005, 13:09:

I don't know anybody who's ever sold property in Colombia. My sister-in-law has had her apartment for sale in Itaqui for years. My mother-in-law has had her house for sale in Monteria for years too. Nobody seems to have any money to buy anything and interest rates are sky high.

Disclaimer: any comment I make is inane and is not to be taken seriously, and is so patently ridiculous that no one should take it seriously, even as an insult.

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 13:17:

Well UC Itagui and monteria are not the best places to invest I wouldn't buy there either, when I bought my apartment in Cartagena I choose the place that I knew it would be a good investment, the same in Villavicencio. You have to check and study the area for the development of the years too comes. I nearly sold my apartment in Cartagena, Somebody was offering me a good amount of money, but at the same time another person told me not to sale it just yet. And I have a lot of offers for the Apartment. The same with the property in Villavicencio, I bought it at the right time. Is a long story about this property but I did a very good deal or shall I said an excellent Deal there. Before I had the Apartment in cartagena I used to own a House in "manga" Cartagena too, I invest in the house did a few repairs, rented and then sold it later for a very good price, with the money I bough the apartment and invest in the property in Villavo.
My next Investment is going to be Ciudad Salitre, I looking for an apartment there.


Chao X-)

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 13:31:

Pasty Gringo I get the number from offers, I made a profit with the house in cartagena and bought the farm in Villavo and the apartment in cartagena. now the apartment in Cartagena I am renting this through an agency, and they keep constatly telling me that so and so wants to know if I am selling the apartment and they offering me so and so, the agency gives me ideas how much the apartment cost now, so with the one in Villavo.

Chao X-)

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 13:36:

put it this way I bought the 2 bedroom apartment for 90 million COP 3 years ago, and somebody was offering me 135.000 cop last years. I nearly went for it, but the agency told me to wait for at least another year before selling it.
It's rented now for 1,500 a moth. 10% goes to the agency

0 funny, 0 helpful.

bhill says on Aug 3, 2005, 13:59:

Cartagena condos
In some of the online listings I've seen the same condos listed for sale for over a year (cartagenarealty.com). Are these people simply asking WAY too much? This alone gives me pause about investing in real estate there. If I had to guess, I'd say the plunging dollar hasn't helped. Still thinking about buying one, but just because I'd like to use it.

-Brian

0 funny, 0 helpful.

Dan says on Aug 3, 2005, 14:08:

Kat sounds like the agency just want's to make sure they get their cut. Unless the new owners would use the same agency.

God Bless America!

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 14:12:

No because, they take a commision anyway if I tell them to sell the appartment on my belhaf, they have been great. and not just the agency told that, I read the newspaper too and another resources. I am planing to hold on to the appartment for another year anyway and then I think I want to sell it and buy somewhere else.Chao X-)

0 funny, 0 helpful.

utopiacowboy says on Aug 3, 2005, 14:13:

I can understand why the Itaqui apartment has not sold - no mystery there. However my mother-in-law's house is in a Strata 5 area and it's pretty nice. My wife tells me that she could easily sell her apartment in Medellin but who knows? I don't really want to sell her apartment there anyway - I may have to live in it one day.

Disclaimer: any comment I make is inane and is not to be taken seriously, and is so patently ridiculous that no one should take it seriously, even as an insult.

0 funny, 0 helpful.

jacobtafler says on Aug 3, 2005, 14:20:

THE PRICE OF THE APT IS NOTHING TO DO WITH THE BEACH HELLO I DONT AGEARY THAT IT IS SOME THING TO DO WITH THE BEACH FOR EXMPLE I LIVE IN BRASIL FOR 20 YEARS IN SAO PAULO IT IS NOT BEACH AND THE APT ARE 30 TO 50 PEROCNT HIGER THAN IN RIO FOR THE SOME QUALITY SALVADOR BHAIA IS 80 KM OF BEACH AND THE APT ARE VERY CHEAP AND IN SAUTH OF BRASIL MANY CITIES WITH OUT BEACH ARE MORE EXPENSIVE I JUST COME FROM MEDELIN LASDT WEEK IT IS THE MOST MODEARN CITY IN COLOMBIA IT IS SAVE AND IF YOU CHEACK GOOD YOU CAN STILL FIND A STUDO APT HOTEL IN POVLADO OR LEURELES IN GOOD PRICES AND IN MY OPPINEN MEDELIN IN FEWYEARS WILL BE THE BEST CITY IN SAUTH AMERICA

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 14:21:

Monteria needs a lot to develop UC, is not a tourist destination and there is nothing important to see there,I like iMonteria I used to go there to see my grandmother,but unless if is somebody from Monteria itself and want to live there,I don't see a person from somewhere buying for renting if you know what I mean, I can see the Appartment in Medellin going quicker.

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 14:23:

jacob Is not just the beach you right, because you can get a very cheap appartment or house in Marbella Cartagena, and it's very close to the Beach, the same in some areas in Crespo

Chao X-)

0 funny, 0 helpful.

utopiacowboy says on Aug 3, 2005, 14:30:

Yes, the only people who are going to buy my mother-in-law's house are locals. You never see any tourists or gringos there although people say there are some. I like Monteria better than Medellin - it's a lot safer and it's a bustling place. The traffic is incredible and it's a lot noisier than Medellin. It's a rocking little city. And those Costenas are some hot chicks.

Disclaimer: any comment I make is inane and is not to be taken seriously, and is so patently ridiculous that no one should take it seriously, even as an insult.

0 funny, 0 helpful.

tomtom33 says on Aug 3, 2005, 14:36:

Pasty I get my numbers from actual purchases of other apartments in Laguito. I have spoken with the people who purchased the apartments. They told me what they paid.

Within the last month, I know of three people who bought apartments. And I know of four others who are looking to buy.

0 funny, 0 helpful.

jacobtafler says on Aug 3, 2005, 14:56:

KAT I BUY 13 YEARS AGO A STUDIO NEAR THE BEACH IN RIO FOR 12000 DOLARS 2 YEARS AFTER I SOLD FOR 21000 MORE THAN 80 PEROCNT AND TODAY IT COST NEARLY 40000 DOLARES YOU CAN NOT COMPER MEDELIN TO CARTAJENA FOR EXMPLE MANEY HOTELS IN MEDELINE ARE 70 PEROCNT FUUL ALL THE YEAR AND BELIVE ME YOU CAN BUY EVEN NO ADAY A STUDIO FOR 30000 DOLARS ABOUT IN APART HOTEL AND IF YOU RENT IT YOU MAKE 15 TO 20 PEROCNT A YEAR AND I BELIVE THAT MEDELIN WILL STAY SAVER THAN NOW YOUR APT WILL BE 50 MORE IN FEW YEAR AND IN CARTAJENA FOR EXMPLE 6 MONTHS IS DAD IT IS A TOURIST CITY MEDELIN IS THE PLACE I BELIVE SO SORRY FOR MY BAD ENGLISH

0 funny, 0 helpful.

kat1 (Moderator) says on Aug 3, 2005, 14:59:

Now I know that many people is going to start investing in Medellin because is becoming safer and prices are going to go high. But i have the feeling that another city that is going to get bigger is Villavicencio, I feel sorry for it because I love the way it is now, but I've seen the amount of construccion that is going on there,because of the new road to Bogota is becoming the next holiday place for the people of the Capital, I've seen lots people buying there to rent,where my mum lives you can see sometimes 6 or 7 house empty just holidays places. properties there, still are affordable but give it two years and they are going to be very expensive, They already are building 3 big shopping centers, unicentro is one of then, and they are going to built the biggest ecological park in southamerica. a lot is going on in Villavo now, I think is a good time to buy there. it's just 2 hour away from Bogota, nice clima,and safe

I hope I am wrong I don't want Villavicencio to change :-(

.

0 funny, 0 helpful.

Hunter says on Aug 4, 2005, 05:06:

pastygringo The selling/buying price is dictated by the market, as anywhere in the world, if you live in a area you generally know the approx value of your property and some of the ones in your local area.

There are newspapers, magazines, the web, etc with selling prices, maybe it will come as a surprise but Colombia has estate agents as well, which sell property.

As to buying you can view 20-50 (or more) apts to get a feel of the market as well, when you initially move to a area, after being in the area a while you don't need to view quite so many. In Colombia I would use a trusted go between, he finds the property I want, I look at it without him, I will know it is in the price range from my own research beforehand, the go between tells the seller that he has a buyer and wants half the commision, which is normally 3% in Colombia from the seller, so he gets 1.5% from them, any price the go between gets off from the original price (or the price I think the property is worth), I give him 3% commision.

I have also sold property in Colombia.

Hunter

0 funny, 0 helpful.

Hunter says on Aug 4, 2005, 05:24:

Other variables A couple that come to mind are:

If its a buyers market, you should get it cheaper.

If you are paying cash, you should get it cheaper.

Common sense dictates that the admistrator has a interest in uping the price of other units she has or has not sold.

As to official prices for a indvidual property, I never seen one in any Country, but I have only looked at prices in market economies.

Hunter

0 funny, 0 helpful.

kevin67 says on Aug 4, 2005, 19:44:

COLOMBIAN REAL ESTATE APPRECIATE YOUR INFO MATE.. IN YOUR INFO IF YOU HAVE A 10--15 YEAR VIEW WHERE AND WHAT TYPE OF REAL ESTATE IN COLOMBIA WOULD YOU INVEST IN?

0 funny, 0 helpful.

Hunter says on Aug 5, 2005, 03:03:

kevin67 I suppose it depends on where you think the future is going.

I would go for where you think it is likely that the tourists (foreigners tourists mainly) would go, so Ctg and Santa Marta, would be the two best options, then you should look at what properties foreigners like and what you think the make up of the foreigners will be, families, singles, retired couples etc.

I would go for condos, preferably 1 & 2 bedrooms in secure apt buildings.

There will be many other areas that tourists will potentially move to as well, which are far cheapear than buying in the above areas.

Hunter

0 funny, 0 helpful.

Dan says on Aug 5, 2005, 04:52:

I've been to Villavicencio once. I thought it was a pretty city. Not too big and still plenty to do. I keep looking around to certain areas that I would like to buy property, mostly in Bogota, so that I can live there and also for investments. Something to rent out so that I could get a little bit of a local income. Just waiting to get started. I think I could probably sell my house now and MAYBE have enough for a small place in Colombia. Still in the planning phase right now.

God Bless America!

0 funny, 0 helpful.