Investing $200K US in Bogota

andres123 says on Oct 28, 2008, 12:33:

Me and my friend are investing 130,000 USD in a restaurant :)

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pedro (☼Travelguide writer) says on Oct 28, 2008, 12:35:

andres123 says on Oct 28, 2008, 12:36:

LOL Don't you see the news Pedro

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pedro (☼Travelguide writer) says on Oct 28, 2008, 12:39:

bickerss says on Oct 28, 2008, 12:41:

Agree with Pedro - buy low and when there is doom and gloom.

Investment Strategy - buying when others are crying!! Offloading when others are gloating!!!

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MLBUSS says on Oct 28, 2008, 12:41:

andres123,

What kind of restaurant if I may ask? Is it local food?

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MLBUSS says on Oct 28, 2008, 12:44:

How d you buy stocks in Colombia? Is there online trading there too like the USA?

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roloenNJ says on Oct 28, 2008, 13:05:

I would buy a place, and start a small Bar/Lounge with a small dance floor. Cheaper than 200.000

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untreated says on Oct 28, 2008, 13:07:

I would recommend that you buy stock in BVC, the Colombian Stock Exchange. Shares are currently at 18 pesos, so you could buy a few million shares. Maybe buy some shares of Mineros de Antioquia, today's close 2100 pesos. Also I would buy a nice selection of Italian 18kt gold jewellry, gold chains and bracelets.

To buy stock in Colombia, you have to register at a broker. Minimum transaction fee is 150,000 pesos plus IVA, so that is 1% commission if you buy 15 million pesos of stocks.

I do think the bottom has been reached, IGBC index closed today at 6657, up 3%

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andres123 says on Oct 28, 2008, 13:11:

Italian food.. hooters needs some challenge ;)
anyway we are stuck right now trying to find a place with a perfect location..
it has to be in zona rosa for sure, in the very heart of it

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Mononoke28 says on Oct 28, 2008, 13:19:

Real Estate!

Diana

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Waterdawg says on Oct 28, 2008, 13:40:

Andres123 . May I ask why it has to be in the Zona Rosa ??

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La_Huella says on Oct 28, 2008, 14:42:

I agree. Forget the ZR. The rents don't justify the potential risks. There's money to be made but it's extremely volatile. You're better off somewhere else where you can get a clientele less fickle.

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Waterdawg says on Oct 28, 2008, 14:45:

No doubt there is money to be made in Bogota with the right idea and location ; But Italian in the ZR. not so much !

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andres123 says on Oct 28, 2008, 14:54:

lol I cant tell u the concept of the restaurant for obvious reasons but we'll probably do better than hooters.
We were gonna rent the corner in Plaza 39 (first floor) but it was too small... Now, Zona Rosa has enough people and people there will pay more than people in Chapinero.

We are studying the demographics at the momment :)

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TobyBoy says on Oct 28, 2008, 14:57:

If you want to do the restaurant route (Bogota has just about everythign but needs more of):

-An Irish Restaurant & Pub

-Sushi -any on any level

-Moroccan

-Gourmet Cheese Shop ..very hard to pull-off because of import difficulites BUT much needed.

...I have done a great deal of study about all of the abvoe (and more) for Bogota.

Bogota is already a world-class culinerary destination, and on the upswing to boot. BUT earning margins with restaurants are not always that high.

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Noelito40 says on Oct 28, 2008, 15:03:

Don't forget investment advice 101, diversify!!!!

Yes, I think there is good value in some Colombian shares, for me it's in food related stocks but I'm also bullish about Ecopetrol at 1800-1850. I have my shares account with www.correval.com (Don't forget there is 16% IVA on share buys, as well as the commission which is 0.5 to 1%.

Property may be good but too broad a questtion to answer here. Just do your homework and read the reams of advice offered on the property market on PBH

Also balance out your portfolio with a a no risk term deposit CDT. (Again I'd recommend Correval, they seem to offer better rates than the banks)

Noelito

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TobyBoy says on Oct 28, 2008, 15:12:

- I agree with much of above. I thnk that most of the Colombian stock market is terribly undervalued and Ecopetrol has its best days still ahead.

Also, tourism-related infrastrucure companies. Colombia can and hsoudl blow Costa Rica out of the waters with regards to cultural, eco-tourism and so much more...

Just go to the Maloka, Monserrate (in Bogota), Nuqui or the Coffee region alone, and you will be much inspired.

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pedro (☼Travelguide writer) says on Oct 28, 2008, 15:39:

Good advice from Noelito. Say minimum 10% of your Colombia capital in a CDT in pesos.

Colombian stock brokers: http://www.elzipa.info/directorio_de_comisionistas_bvc.php

One idea I am thinking about recently. Cake and dessert shop.

Colombians will get together and celebrate occasions (birthdays, holidays) as a family and they will spend 25k on a cake, no problem. Estratos 5 and 6 for sure, but even 3 and 4 will spend that.

There is already an established local presence in each city (Deli in Medellin, DeliPostres in Cartagena for example). I don't think there is any national name.

The cake business par excellence in my gringolandia home city has one central kitchen (in some industrial area I guess), and then a series of hole in the wall outlets across the city where they sell to the public. These outlets are franchised, but in Colombia you wouldn't bother with the franchising. Keep it wholly owned, and issue shares in the parent company if necessary to expand.

You would need to letterbox drop in the affluent areas to begin. If you bring excellent recipes you should have a good chance of being seen as a better quality product than the incumbents. Your outlets need not necessarily be in the malls, but you would need to offer domicilios and/or ample parking / drive up for the higher estratos.

que nota!

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Monita Linda says on Oct 28, 2008, 15:51:

You can give it to me.

Poor but Preppy ______Colombia: the only risk is wanting to lay.

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davidslc46 says on Oct 29, 2008, 06:29:

You should go at it slowly. Be awfully damn sure you love Colombia. Why not work towards the $100,000 investment visa first. Maybe an apartment to live in, and a couple other big ticket items you are gonna need to live here anyhow. Maybe come in on a 6 month-1 year student visa. Come to Colombia and spend sometime getting to know things. Then pick your location, your business and then invest. Better get an attorney involved to legalize the money and negotite or evaluate contracts. Unless you are Colombian, or really know the system, it is a complex maze just bringing in money to buy a car.

Hell you can get a CD for $50,000 ( I think ) and qualify for a rentista visa.

In another six months, who knows maybe that $200,000 will be worth 600 million pesos.

Personally I think a New York Style liqour store would be a big hit.

David

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tomtom33 (☼Travelguide writer) says on Oct 29, 2008, 06:34:

La_Huella says on Oct 29, 2008, 07:52:

There are a couple Irish bars here already. One is in the Zona T, one in the Zona G.

Also there is Hatsuhana, and supposedly a new place opened to compete with it. They say it is less expensive and better. There was even a thread about it on here.

I've also seen a few decent gourmet cheese shops here, obviously nothing like Zabar's yet, but keep in mind, most people from the interior in Colombia find foreign cheeses way too salty, so it could be very easy to overestimate demand. Expats obviously would love it :P

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bickerss says on Oct 29, 2008, 07:57:

La huella - what's the one in Zona G? Is that the one that the engish guy opened up or is it another one? Thanks.

Investment Strategy - buying when others are crying!! Offloading when others are gloating!!!

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azunoman says on Oct 29, 2008, 08:01:

Buy a 32 apt building...Import US retirees that need assistance.

It's all the rage now in Mexico.

A retiree on their SS can live in a very nice assistance living apt or bungaloo on their SS checks.

32x$600 = $19,200 a month..etc...etc..

there are plenty of well educated nurses not to mention inexpensive maids...the baby boomers who didn't save or lost everything....are flocking to Mexico and Panama...next Ecuador/Colombia..etc..

Playing the ugly American on request or as required. Ready, Fire, Aim

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La_Huella says on Oct 29, 2008, 08:01:

Actually I just went through my records. It closed already, they are putting a Palos de Moguer there now. :P

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Mongo says on Oct 29, 2008, 08:04:

Wow, azunoman that's an excellent idea! You should have kept that one to yourself, someone's going to use it....hehehe...

"Here in Colombia, it's about adding life to your years, not years to your life." Brian Andrews

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azunoman says on Oct 29, 2008, 08:16:

Mongo...someone should certainly take it and run...after our move to Bogota...we will look at this more closely..after we learn the processes for business...

Playing the ugly American on request or as required. Ready, Fire, Aim

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pavo says on Oct 29, 2008, 11:01:

I always thought a Salad Creations type fast food restaurant would go over well in ZR or other high white collar traffic area. http://www.saladcreations.net/custom.asp?id=128221&page=1

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Mononoke28 says on Oct 29, 2008, 11:11:

Azunoman, what a great idea. There are a ton of people who are retired or getting ready to retire who didn't save enough for retirement and have to live on SS. We all know that is not enough but in Colombia that monthly check from SS is a God send.

Diana

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cdy says on Oct 29, 2008, 14:21:

The retired gringos flocking to Panama better bring a little more money. They tend to move to PC, Boquette or Playa Blanca area, The prices have gotten out of control, especially in PC, it is cheaper to buy a condo now in Miami than in PC.

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jonas says on Oct 29, 2008, 14:52:

32 apartments for 200k US $ ???
If you want them to pay $600 you are looking at about $ 1.900.000 US to purchase the building.
I can only imagine what a pain in the arse 32 retired gringo couples with no Spanish would be.
I can already hear them asking you what the weather will be like tomorrow and what clothing they should wear for the next day. I would always recommend bulletproof vests for them. How would they ever be able to pay you rent if they give papaya every time they hit an ATM? No thankssss

Mi alma se la dejo al diablo

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azunoman says on Oct 29, 2008, 16:55:

jonas...yea..good reasons to give the idea away..for many what a headache...but a good business for those with inter personal skills

Playing the ugly American on request or as required. Ready, Fire, Aim

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johnny2008 says on Oct 29, 2008, 19:58:

If i had $200k I would set up la universidad nacional de la bolsita and would run free postgrad courses for supermarket workers ·"MSc how not to tie the feckin carrier bag handles together so the blessed customer can carry his feckin groceries home"

Admittedly there is no return on my investment but that's the sort of philanthropic do-gooder that I am

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Colombiano_81 says on Oct 29, 2008, 20:10:

there was another irish pub in Av suba with 106 near the telecom pyramid but it closed down a couple of months ago..it is now called "Cuba mia"...although it still has the shamrock on the roof.

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La_Huella says on Oct 30, 2008, 00:55:

Yes, I saw that one. I'm going right there on Saturday. My friend is tying the knot, poor sucker :P

I personally think cured meats would be a good business. Most of what they sell is imported and insanely expensive. I only know of one company doing it here locally, and they are selling for half the price of the imported stuff, I'm sure it's quite a healthy margin. Then again, who knows, labor laws, the DIAN, health inspectors, etc.

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azunoman says on Oct 30, 2008, 08:28:

We got the idea from the International Living magazine that a good business for an expat was an internet business..here is ours...not open yet..maybe 3-4 weeks....our current selection is only from one mgf. more to come....we will be selling durable medical equipment...after our move there we hope to create more internet businesses with the help of the abundant number of educated folks there...

www.casadeld.com

Playing the ugly American on request or as required. Ready, Fire, Aim

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