Buying Real Estate in Colombia advice needed

robi666 says on Jun 28, 2007, 14:02:

That's roughly steps list:
1) Find the deal. Check papers, etc.
2) Sign the pre-purchase agreement.
3) You'll probably need to wire money directly into the seller account, if you do not have your own account.
You need to file form 4 when transferring money. Usually the bank will ask for the pre-purchase agreement.
4) Sign the purchase contract. You do not need any VISA. Just your passport.
5) Register the contract at Catastro and have a fresh copy of the certificado de Tradicion y Libertad.
6) You need to file form 11 at Banco de la Republica after signing the purchase contract. If you live in Colombia for more than 6 months in a year (with any kind of VISA), after that period, you won't be able to register your investment as an international investment with form 11.

There is much to say about each step. A search on this forum would help you.

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

0 funny, 0 helpful.

tomtom33 says on Jun 28, 2007, 14:21:

I bought my place in Laguito through Juan Ventura in December of 2003. I got a nice 4 bedroom, 3 bath place right on the beach for less than US$40,000. Wish I would have bought 10.

I just wired the money to Juan's personal account, and he did the rest. In Jan. of this year I bought a place in Medellin. What a fucking headache without Juan. Juan knows all the right things. Just let him do it.

0 funny, 0 helpful.

Raul says on Jun 28, 2007, 19:23:

Hi:

I am a North American and have bought and sold several properties in Cartagena. I have an apartment available in Laguito and I can accept dollars or pesos. If you are interested, you can email me at raul at chatconmigo.com If you just want information, I will be glad to chat with you and give you my perspective.

0 funny, 0 helpful.

BAQ says on Jun 29, 2007, 10:22:

I

Semper Fidelis !

0 funny, 0 helpful.

BAQ says on Jun 29, 2007, 10:24:

If you decide to buy an apartment, understand you are STUCK WITH IT unless you are willing to sell at a loss in $$$. There are SO MANY new apartments being built that trying to unload a used one will be difficult unless you are willing to take a loss.

I

Semper Fidelis !

0 funny, 0 helpful.

robi666 says on Jun 30, 2007, 07:03:

Dog, I really do not think Real Estate price can go down... unless major political and/or security troubles, which is not a so "remote event" like it was few months ago. Let's see what happen...

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

0 funny, 0 helpful.

BAQ says on Jun 30, 2007, 15:49:

Uribe is iheaded for trouble, FARC announced it killed the 11 or so political hostages it had aftter a secret rescue attempt and lots of people are mad as hell about it, members in U.S. congress announced they have concerns about Colombia and are not wanting to sigh the free trade agreement with Colombia now due to issues involving human rights ect and the USA recently gave Colombia 5 million less for PLAN COLOMBIA than Uribe wanted. Add to this mix the problem with the high peso forcing export companies here to close, the Govt having to subsedise loans to exporters for their losses, the inflation rate and the central bank raising interest rates five times in the past two months and I would submit we are HOPEFULLY beginning to see the wheels come off the wagon regarding the over inflated peso.

I live here on the coast and the surge in new apartment building reminds me of the CONDO BOOM of the mid 80´s in the good old USA, when that bubble broke, you couldnt give a condo away. Same thing here I suspect. Now is a BAD BAD BAD time to buy anything unless you have a colombian business and your income is direct colombian pesos. If you are converting dollars to pesos I would wait if it is an option for you and you dont need an apartment tomorrow. I am holding off on buying a new car until the peso falls to a minimum of 2300 to 1.

Just keep this in mind, WHEN the peso falls, and it will, that apartment you paid 75-80K american for at a rate of 1930 to 1 will only bring you about 60K if you sell and convert your pesos back to dollars at a rate of 2500 to 1, assuming you sell in a few years and you can sell for the same price you paid for it.

Just a thought.

Semper Fidelis !

0 funny, 0 helpful.

Robert Jorge says on Jun 30, 2007, 22:45:

Good points BAQ. I have two, three actually, important reasons for not buying right now. Number one is because of what you described. I won't consider buying until it's a minimum 2300 cop to1 usd. Unless I have an unforeseen financial windfall or something like that. The other two reasons are personal, and not pertinent to the topic. (Visa issues and local housing market conditions in my area.) Anyway, unless you have money to burn, literally, I wouldn't buy in Colombia for a while. I think things will go back to a 2300 to $1 fairly shortly. Probably within the year. Just based on a lot of what I have read on this site, as well as stupid intuition. Just gambling safely as possible..

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

0 funny, 0 helpful.

BAQ says on Jul 1, 2007, 11:23:

Ohhhh how I wish for the good old days when one dollar would bring you 2800 cop. When I purchased my house back in 2004 the rate was 2625 to 1 and I was mad at myself for not buying when the rate was 2800 to 1. So all in all I guess I came out ok.

But what REALLY puts a knot in my shorts is that Uribe said publically back in early 2004 that he thought 2750 pesos was a FAIR AND REASONABLE exchange rate for ONE U.S: DOLLAR.

So if that is the case why the hell is his Govt not doing more to stop the rise of the Peso.

Go figure. hahaha

Semper Fidelis !

0 funny, 0 helpful.

Saltador says on Jul 2, 2007, 11:05:

BAQ and Robert Jorge,
Good points. I thought the same thing a year ago, and prices didn't go down, they went up.
Granted the pesos rise is problematic and that may have dampened the demand by gringos, but it seems to have been offset by demand from others. If you look at the new projects, the apartments are selling.
The news of the FARC killings is a non-event in the US. The last ten mentions of Colombia I have heard in the media have all been that Colombia is now safe. That is the "story", because it's interesting right? Wow Colombia used to be one of the "most dangerous places in the world" and now it's safe.Just as the danger was exaggerated before, the safety is now exaggerated. Conde Nast Traveler had a GLOWING report on Cartagena, the pictures of the old city could not have been nicer. They also had a picture of a beach in the Rosarios, if you didn't know the logistics you would think that was a picture of the beach in Boca.
I have also seen a rise in the price of rents being charged, An apartment I rented 2-3 years ago for 45 a night now goes for 75. Why is this, as more apartments (supply) are now available, there should have been a corresponding drop in demand right?
I don't know what will happen to the prices, you guys may very well be right. No one knows if the peso will rise or fall, if you knew for sure you need to take that knowledge to the currency market and make a killing.
Of course, my interest and knowledge is limited to Cartagena and specifically Laguito, so I'm kind of in a vacuum as to anything else going on in Colombia. I also want to be able to rent my apartment when I'm not there, so that enters into my equation as well.
Also, keep in mind that the prices have doubled-tripled off a very low base. When you compare the prices to other Caribbean beach towns, they are still cheap.
Wish I had a crystal ball, that's for sure :-)

0 funny, 0 helpful.

Saltador says on Jul 2, 2007, 13:18:

How do I get this to the front page again? Just a test, sorry...

0 funny, 0 helpful.

BAQ says on Jul 2, 2007, 13:35:

SALTADOR, I am by no means an expert on coombian real estate so all I can do is offer an opinion, I just dont see the peso staying so high against to dollar. One of the reasons for the higher costs of the apartments is construction costs. The price of cement, brick blocks, wook, electrical lines ect have gone up. Cement and brick due to supply and demand, plus there is now only one cement company in colombia, they purchased their compeditor and of course the price of copper is throug the roof so this accounts for the increase in electrical lines. You also need to factor in the higher cost of labor right now.

Basically, what you have seen in the USA during a construction boom is what you are seeing here now, higher prices bue to raw material and laor cost increases and yes, for the moment, a demand for the product, but as I mentioned before, I honestly believe when the buble breaks, you will see prices fall.

ONE LAST ITEM OF INTEREST, in todays paper, was a big article about the cruise ships beginning to DIVERT from Cartagenia for other ports where the cost of items is cheaper for the passangers. ALSO in todays paper was an article about the national police bringing in 1500 additional officers from the interior due to a dramatic spike in murders and serious crime on the coast.

Semper Fidelis !

0 funny, 0 helpful.