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Good Investment

Hello All,

Well I hope some of you can be of help and offer some friendly much needed advice (viewpoint?). My situation is like this, I am currently staying in Medellin and am looking at investment opertunities which would give me an income with which I could live here in Colombia. I am not restricted to Medellin but would also like to live in Bogota. My idea is basically buying property to rent out, more than likely to Colombians through an agency, this just to give me the best chance of having the property(ies)occupied for most of the time. I do have some cash with which to invest though am also wondering if there are any type of mortgages for foreigners. As I understand it there is a lot to go through to be able to buy property but would it be worth the investment?
So please any adive is seriously appreciated and even better would be an example or 2 of property costs-rental income.

Hope you can be of help.

Cheers,

Gavin
ps am from the UK if that has any relevance for investment.

By Gavin on Oct 25, 2006, 09:10 in Buy, Sell & Rent.

lawyer CO says on Oct 25, 2006, 12:48:

Legal Help Dear Gavin:

My name is Esteban Rada, i am a colombian lawyer who writes in PBH.

I saw your question and i think we can arrange a meeting so we can discuss some legal aid to the investment process you want.

Please contact me to my email

lawyerscolombia at yahoo.com

greetings

Esteban Rada
Abogado

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Lostgringo says on Oct 25, 2006, 15:56:

Investing There are many knowledgeable people on this site that shed some light on what you want to do. I would personally do alot of research before trying to invest in propertu in Colombia. Do a google search on PBH and see what you come up with.

Your Home Away from Home www.welovebogota.com and www.apartmentinbogota.com "Luxury apartments and rooms Cheap" Only 2 blocks from the American Embassy! 24/7 hour security.http://www.monsterrakebacks.comCome gamble and get money back!

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mecca says on Oct 25, 2006, 23:28:

buying in colombia certainly, viewpoint can help....he is a wealth of kowledge and helped me with my purchase in colombia......the time is very, very good right now on prices in colombia...the problem is that the peso is like 2300 something and the exchange is a bit poor......

I believe aztec on this site is well experienced as well.... i could help you but those guys are much more experienced....if you are unable to get help with them,......arthur brode can put you in touch with my atty.'s in cali.......good luck and be well...

m.

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Mr X says on Oct 26, 2006, 00:31:

Would it be worth the investment? The short answer is NO !

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jbone says on Oct 26, 2006, 06:55:

Mr X is mostly right. There are exceptions, but the basic problem here is your inability to leverage your investments using OPM...Other Peoples Money. Buying realty in Colombia is a cash investment, and unless your getting some experienced advice that relates to a particular property, it´s common to make mistakes.

Another consideration is political risk. Currently, the situation is absolutely GREAT, but, it could change in a heartbeat...or the lack thereof.

Paul Juan´s website has a long list of Buyers Tips that apply to all of Colombia, as well as Cartagena, where he works.

Check out: www.cartagenarealty.com

Which has a LINK to the Spanish version.

The long answer to your question is YES, you can make some money investing in real estate, but only if you know what your doing!

If you have a little money, Colombia is a wonderful place to live! Start with "living" FIRST, as you gain local knowledge and reliable contacts. Your investment results will be improved.

Good Luck,

Jim

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Gator says on Oct 26, 2006, 08:42:

Cuidado! Spend at lot, and I mean a LOT of time, thoroughly researching your plan. If you are depending on Colombian financing forget that aspect.
The most important things to remember in dealing in Colombian real estate is: Cash IS KING, find a knowledgeable attorney who is versed in real estate and tax aspects, and find a real estate agent/company you feel comfortable with. Fools walk in where angles fear to tread.

Jbone's post is certainly worth reading several times. I have been through this. Even though I am a permanent resident and my wife is Colombian I took a bath on several parcels. I did make out in buying our current apartment in north Bogotá and one in the Manga section of Cartagena but we bought before the run up.

Be very, very, careful.

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

"Credidi pretio parvo emere et magno vendere tibi in animo fuisse!" .

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bufalo says on Oct 26, 2006, 09:26:

I'vew been looking into foreclosures myself. Aside from waiting for my cash to come so I can buy one, I do have doubts about the market in the future. Here in Armenia, I see everything way overpriced and a lot more construction to come. BUT I am not an expert, and said the same thing about NYC.

"If you don't like it - lump it, take it down the road and dump it." - Archie Bunker played by Carroll O'Connor

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Mr X says on Oct 27, 2006, 09:51:

The long answer is................. also NO ! Keep your money in Sterling.

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Mr X says on Oct 27, 2006, 10:02:

The really long answer is................. Buy a property only if you are going to live in it. It makes no sense to change your sterling into a currency that, as sure as eggs are eggs, will depreciate against Sterling over the long term. Avoid the nightmare of property tax, administration fees, upkeep costs, non paying or worse tenants. Not to mention what you will lose by transfering the money from a UK bank into a Colombian bank,.... and that's even before you step foot in the property. Take a deep breath and then think of some other way of comlpicating your life. Live there first, and hopefully you'll figure it out for yourself.

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mecca says on Oct 27, 2006, 19:37:

seguro??? i have a 1000 meter apto (penthouse) in Poblado and it has gone up 200 percent in the last year......exactly who are you selling to??? if you have your buyers set up there is good money there.....i also own land in the south of med. for buildings....but telling people not to buy in poblado????......sorry...just had to chime in on that one.....

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