Buying Property in Colombia

**Sailor2006** · 09-26-08 18:40

You haven't even come close to answearing my simple question, and you seem to be a professional. You say I am rambling, My CO said the exact same thing when I was trying to talk him out of trying to kick out all the midshipmen who had a CGPA of less then 2. 5, he especially didn't like it when I asked him what the average CGPA at the Academy, Your rambling too much Mr. Goulas (2003 CGPA at school was 2. 7 with average course load of 170 Semester hours in 4 years). Anywaz back to my point. Since your only answear to my question confuses me becuase it doesn't seem to be true

Prices are gradually increaseing here because buyers, not Americans, are willing to pay them for whatever reason.

Well this isn't true, "se vende" signs are up for years or more, years to make a sale, how many years would it take to currently sell all the vacant apartments in Medellin, not too mention the new construction? Obviously buyers arnt coming down in bunches fighting over each other to buy at these prices, and if they do buy its in the hopes to sell to somebody outside the market who doesn't know anything. Ie Gringos, and sex tourists.

Everybody wants a good value period, but whats good value when prices are inflated, sellers are gouging sitting and waiting for a sucker, and most buyers think with their thier second head and come from outside the market, with only a limited understanding of the country/economy of the place. Makes for a prefect enviorment for "unethical behavior".

Everything has a cuase an effect, the increase of gringo tourists will bring crime, the increase of outside investors will bring speculation and increase prices to a point where a bubble is created, then brusts. How is that healthy for Colombia, steady upward sloop of value is good, natrual and healthy it matches inflation but price spikes, and artifical booms are created by greed, and in the end only cuase problems for individual buyers and the whole economy.

Most of your post sounds like a sales pitch then a conversation and you can't win those. Good luck

Originally Posted by Mr Lotto

Too much rambling to comment on. Simple fact. Prices ration markets. Prices are gradually increaseing here because buyers, not Americans, are willing to pay them for whatever reason. New construction is in the $1200-$1500 per sq meter range while existing is in the $550. $1000 for El Poblado. Colombians buy new and while the Americans and foreigners are mostly buying existing. Yes there has been, and is a lot, of new construction which does not seem to be bringing prices down, but it could. However even if that occurs, it will have less of an impact on the already discounted existing market.

Most American buyers just want to get a good value in this market and much of their decison is a life style decision not an investment decision. This is not a great investors market because there is no leverage. On the other hand it is a good investors market if you look at ROI's and cap rates where rentals are concerned. But bottom line is you do not have rampant speculation in markets where you have to pay all cash or at a minimum 30% down.

Medellin is still cheap compared to the world markets. And especially cheap when this year prices just dropped 35% for Americans when the peso went from 1626 to 2188 in four months. Now that is something important and dwarfs all of your concerns about se vende signs and sellers sitting on their prices. So some Colombian investors have no mortgage and want to sit on their properties and raise their prices. So what. We don't have to buy their unit.

This is a different market from the US. Find a good place at a good price and enjoy it. If we don't get a jump in prices like what happended in Panama and Costa Rica, and the world never learns what a great place this is, you still got a nice place for a nice price and are living better than you did in the US. And you are not worrying about an adjustable ARM and rising mortgage payments, increasing insurance payments, hurricanes, tornadoes, rampant tax increases, condo commandos, foreclosures, etc.

Worst case is good and best case which you don't seem to like, having to worry about taking a big capital gain.

**Aussie Greg** · 09-26-08 17:40

Just my view Senor Lotto,

I agree with you about prices rising with property and yes, its not Americians, its the fast rising middle class Colombians and for example.

The Mansion property has trebbled and El Castillo has doubled.

Down on Ave Poblado, new construction is closer to 3,000,000 per meter and just two blocks away old construction is 2,200,000 (top floor penthouse)

You must remember, Colombia is no normal market because of so much dirty money and carnt be judged by any other normal country or market.

Tourism is going through the roof here in Colombia, even with the Mansion being robbed!

All in all, life is good here in Colombia and I here it from all the Mansion guests, they would live here if they could.

Aussie Greg.

Originally Posted by Mr Lotto

Too much rambling to comment on. Simple fact. Prices ration markets. Prices are gradually increaseing here because buyers, not Americans, are willing to pay them for whatever reason. New construction is in the $1200-$1500 per sq meter range while existing is in the $550. $1000 for El Poblado. Colombians buy new and while the Americans and foreigners are mostly buying existing. Yes there has been, and is a lot, of new construction which does not seem to be bringing prices down, but it could. However even if that occurs, it will have less of an impact on the already discounted existing market.

Most American buyers just want to get a good value in this market and much of their decison is a life style decision not an investment decision. This is not a great investors market because there is no leverage. On the other hand it is a good investors market if you look at ROI's and cap rates where rentals are concerned. But bottom line is you do not have rampant speculation in markets where you have to pay all cash or at a minimum 30% down.

Medellin is still cheap compared to the world markets. And especially cheap when this year prices just dropped 35% for Americans when the peso went from 1626 to 2188 in four months. Now that is something important and dwarfs all of your concerns about se vende signs and sellers sitting on their prices. So some Colombian investors have no mortgage and want to sit on their properties and raise their prices. So what. We don't have to buy their unit.

This is a different market from the US. Find a good place at a good price and enjoy it. If we don't get a jump in prices like what happended in Panama and Costa Rica, and the world never learns what a great place this is, you still got a nice place for a nice price and are living better than you did in the US. And you are not worrying about an adjustable ARM and rising mortgage payments, increasing insurance payments, hurricanes, tornadoes, rampant tax increases, condo commandos, foreclosures, etc.

Worst case is good and best case which you don't seem to like, having to worry about taking a big capital gain.

**Mr Lotto** · 09-26-08 07:21

Too much rambling to comment on. Simple fact. Prices ration markets. Prices are gradually increaseing here because buyers, not Americans, are willing to pay them for whatever reason. New construction is in the $1200-$1500 per sq meter range while existing is in the $550. $1000 for El Poblado. Colombians buy new and while the Americans and foreigners are mostly buying existing. Yes there has been, and is a lot, of new construction which does not seem to be bringing prices down, but it could. However even if that occurs, it will have less of an impact on the already discounted existing market.

Most American buyers just want to get a good value in this market and much of their decison is a life style decision not an investment decision. This is not a great investors market because there is no leverage. On the other hand it is a good investors market if you look at ROI's and cap rates where rentals are concerned. But bottom line is you do not have rampant speculation in markets where you have to pay all cash or at a minimum 30% down.

Medellin is still cheap compared to the world markets. And especially cheap when this year prices just dropped 35% for Americans when the peso went from 1626 to 2188 in four months. Now that is something important and dwarfs all of your concerns about se vende signs and sellers sitting on their prices. So some Colombian investors have no mortgage and want to sit on their properties and raise their prices. So what. We don't have to buy their unit.

This is a different market from the US. Find a good place at a good price and enjoy it. If we don't get a jump in prices like what happended in Panama and Costa Rica, and the world never learns what a great place this is, you still got a nice place for a nice price and are living better than you did in the US. And you are not worrying about an adjustable ARM and rising mortgage payments, increasing insurance payments, hurricanes, tornadoes, rampant tax increases, condo commandos, foreclosures, etc.

Worst case is good and best case which you don't seem to like, having to worry about taking a big capital gain.

**Sailor2006** · 09-25-08 22:18

"Well the supply is substantial yet the market keeps moving up. I have puzzled over that. " Soooo you don't have an answear?

Economics seems very simple to me "supply and demand" If supply is high and ample then demand is low, which means there are not many buyers to fill vacancys. Am I wrong on this? I am young only 28 and only an observer in matters of real estate, but when supply is ample, and demand low prices should fall inorder to entice a sale no? Again am I wrong? With new construction projects all over town, "se vende" signs every where along with sales desks at every new construction site in addition to units still avilable to me there is ample supply. As for prices, which we both agree on, continue to rise despite having to wait 1 or more years to make a sale.

Now with my observations of ample supply and continued price increase I am going to asssume a few things, one assumption is that Medellin has asking prices for property that are overinflated, many sellers will not negotiate on price and rather wait years for a potential buyer to meet their price. I personally don't think thats a healthy economic attitude, and you said something wich will lead off to my next point.

"in El Poblado between $550-$900 per square meter, well below any other cosmopolitan city in the world. A year ago El Poblado passed a moritoruim on new building permits so any construction now is grandfathered in. Plus there is not much land left. So my question to you is "waht happens to prices when the inventory is depleted and the Americans and Europeans start buying"?

Wow, lets begin on this one. You want to compare prices in Medellin to that in other cosmopolitan cities which is fair, yes its cheaper, but trying to justify price inflation and price gouging by saying well its not at the price level of london or san fransico is crazy. You pay what the local market will bare right? Politics, and economics are local no? Gallon of gas cheaper in some states then others right? Housing in texas cheper the most other states. There are many reasons for this, 1. Supply and demand, 2. Location and costs of transportation, 3. Local economy what people earn and can afford to spend.

So if supply in Medellin is ample, and demand low, why do prices continue to increase? Becuase the attiude of sellers is "I will wait for a buyer to meet my expectation of what I think the value of my property is" this creates price inflation and price bubbles, everybody wants top dollar for their place, this is true. What keeps prices in check is "what the actual market is" what do people around you buy and sell in Medellin.

LOL. I think what you said in the end is really funny, basically if you think prices are high now wait till theres no more construction then prices will really sky rocket? Thats the point you tried to make, saying wait till supply is tight then prices will climb. Well supply is loose prices still climb, defiying the logic of supply and demand, speculation thats all this is simple speculation and high hopes of profit.

Now I am going to continue with some assumtions, about wealth and construction inorder to reason why prices are so overvalued and why so much construction and limited sales, lots of new pretty buildings around yes? These buildings used to be personal homes right, if you rember the location of the old "lutron" closer down the hill it used to be a pretty house right? And next door was a personal home as well right? Well today they are building a new apartment building, offices ect. How much do you think that family sold the land and house for? Regardless of weather the first construction projects were funded by drug traffickers (which I think this is the case) the sale price was probly in the 800 million in COP PLUS. I will ask another question how many apartment buildings in poblado use to be personal family homes? Hundreds right? Hundreds of homes and lots being purchased any where from 200 million to a billion in COP by construction companies to build apartment complex's. Whats a colombian family from Medellin to do with all that money? Purchase property, investment apartments for rental maybe or resale? Hey look at all this construction must be a boom!

"Most of the purchases that we see in Stratus 5-6 areas are from Colombian, Venezuelan, Brazilian and other latin and central american buyers"

Heres some more observations to rattle around, how many apartments in poblado were purchased for investment? The building next door is about 70% occupid the rest of the units empty for sale or rental or both!

"Another old wive's tale that we need to dispel is that the seller sees the gringo buyer coming and starts likcing his chops. "

Does anybody here really think you are going to get a fair market value price from a colombian seller who purchased a unit for the sole purpose of investment? But when compared to the value in other cities you got a fair deal! So its not soo bad.

Your not the first person to call me emotional, or to challenge my assertions and I respect your position and thoughts but I will ask you where your intrests are? Do you sell apartments for a living? And if so, how can anybody trust facts and figures with the sole purpose to make sales. In todays world honesty is the only thing in short supply especially in the third world.

Colombia has a tough culture, its harsh and there are many many people out there whom want to take you down. Becurefull out there. I may dissagree with you, and I may be wrong again all this is my opinion and it isn't worth much.

Good luck

**Mr Lotto** · 09-25-08 16:12

I would not walk around centrol at night, with out speaking spanish and knowing where you are going, chances are nothing will happen to you, as their is some police on patrol but why take a chance like that? Again do not go walking around centrol at night by yourself.

Wow, real estate. I don't throw figures around but again use simple observation, logic and the rules of " supply and demand" to support my claims. All you need to do is look around at all the new construction and see ample supply, if you look closer you see many "se vende" signs these signs stay up for YEARS at a time, however some how, prices continue to rise, how is that so? Asking prices for the apartment across the way has increased from 330 Milliones, to 415 Milliones, in less then a year, the unit remains unsold, again I ask why? Doesn't seem to follow the logic of supply and demand, but more the laws of speculation to me. But again this is my observation and doesn't mean anything

I realize this is Colombia, there is much influx of drug money being invested and hidden in construction and real estate. History shows that these venues are the easy way to hide money. Again Colombia is improving and many banks aboard are investing in construction, malls, stores, apartments and housing. I belive this is what will create the collapse, there arnt that many sales (observation), and when projects built with credit need sales they will lower their prices, and POP goes the bubble! Its easy for projects backed with solid money to hold off and keep prices high, shit the purpose of the projects is to hide money not sell apartments.

As for gringo buyers, I add all outside money as "gringo money". I think I'll try and make my point about gringos buying real estate in Medellin this way. Since everybody on here I assume has negotiated with hookers, and if your on this thread probly have done so with colombians. As you know some of these lovely gals will quote extremly high prices, even in establishments with prices already set, they will try to rip you off more then double or triple the asking prices. If you don't meet their price they litterally walk away. Becuase ripping you off is the standard; you are a gringo, and you must pay more period. The stakes when talking to a hooker are only a matter of few dollars maybe even hundreds of dollars and this tough little lady lives in culture taught to respect and fear men, colombian men that is. Now I ask a question do you expect fair treatment from a colombian male, or seller in this culture where hundreds of thousands of dollars are at stake? You can answear that.

As for the number of gringos buying apartments, you probly right on, its low. But as low as it is don't you think its every sellers dream to encounter a american buyer? A costa rican family once told me "that I can currently sell my home for 100K Dollars, or I can wait 2 years for a gringo to pay me double or triple my price" wouldn't you wanna wait? Especially after the point you made with facts and figures; most colombian homes are owned out right or with little borrowed money, no reason to rush a sale here. We can keep that for sale sign up for 1-2 years we can afford to wait.

As for the job market, and growing middle class, increase in wages I agree with you, its simple pay more people spend more, it improves the economy. You can e-mail some of the colombians about that, wages don't go up here, not to match inflation or even come close to it, things are more expensive then ever, poblado is nice, but poblado is not Colombia, GDP is not the only measure of economic growth wish it was. I see more credit options coming into play, for autos and housing and visa is advertising like crazy, why pay more wages when we can loan them more money.

The circle of wealth that gringo see in poblado comes from two things, drugs and real estate, land owners, and now speculators these guys have sold their moms house in poblado to a construction company for 500K USD, they take that money and reinvest it back into rental property and apartments then go out and buy a new car.

All this is my opinon and isn't really worth anything, its just my observation and thoughts. But then again I am not trying to sell anything on here[/QUOTE]You again make some interesting points many based upon emotion and inuendo but some with fact and obvious street experience.

First I agree, never go to El Centro at night by yourself. When I go there it is in a group of 2-4 large dressed down gringos who know where to park and know who to watch out for you and your car.common sense obviously important here. But I would not go to Liberty City, the Bronx, East LA, etc. With any amount of gringos at night.

As far as real estate goes I will try to give you some facts to temper your emotions. You talk about supply and se vende signs. Well the supply is substantial yet the market keeps moving up. I have puzzled over that. You mentioned drug money involvement. Well are they the sellers or buyers? Most of the purchases that we see in Stratus 5-6 areas are from Colombian, Venezuelan, Brazilian and other latin and central american buyers. So the supply is being absorbed and interestingly the buyers are paying a 30% premium to purchase new construction. Part of this is due to the fact they can buy over time. However there is a big difference between the Colombian buyers and the American buyers. The Colombians want new. It is a status thing. The Americans want value, view and location. They do not vind existing real estate which is often better built and larger. Colombians don't appreciate views because the poorest people in Santo Domingo and Buenas Aires here have million dollar views. Because of this we are able to find excellent values in El Poblado between $550-$900 per square meter, well below any other cosmopolitan city in the world. A year ago El Poblado passed a moritoruim on new building permits so any construction now is grandfathered in. Plus there is not much land left. So my question to you is "waht happens to prices when the inventory is depleted and the Americans and Europeans start buying"?

Another old wive's tale that we need to dispel is that the seller sees the gringo buyer coming and starts likcing his chops. Well it is just the opposite my friend. We just lost a deal last week because the seller would rather sell to a local even though we had funds in hand. They get nervouse dealing with foreigners and bank wires, etc. Prices are what they are. It is either priced right or it isn't. You can always make an offer. You bought your place and now have a nice profit. Are you the only gringo smart enough to negotiate a good deal. Hopefully a good realtor can assist in that process. It is value, view, location, amentities, admin. Fees, taxes, etc. Not rocket science.

We seem to sort of be in agreement about the economy and the need to improve the conditions for the average person. I believe if Colombian and Medellin can attract responsible quality foreign investment and corporations everybody will benefit and the influence of the drug money will gradually diminsh over time. A vibrant economy and higher wages could transform this country into something truly special. They have a big head start by being an energy exporter. The paisa culture is something truly unique. We should be proud and honored to be a part of this. Some are helping the street girls take care of their familys, educations and boyfriends while others are trying to create meaninful companies that create jobs and add to the local economy.

Lets all work together, have a good time, respect the culture and the people, give something back and start dealing in facts.

EDITOR'S NOTE: I would suggest that the author or another Forum Member consider posting a link to this report in the Reports of Distinction thread. Please Click Here for more information.

**Sailor2006** · 09-25-08 03:30

Ok, lets get this party started. I use observation as a key to understanding the world around me.

My first observation and this is global, that with the increase in tourism comes crime, period. Anybody want to challenge that? I think this is common sense.

Crime, Murder and theft. Majority of colombians live in poor barrios some of these barrios come under the control of local gangs whom wander around on sundays collecting protection money, some of these gangs have even placed curfews on barrios, and killed homo sexuals at will. This is fact pick up a newspaper. However you are correct; murders in Medellin have come down greatly, more police presence, no Narco-wars ect. But not all crimes in Colombia get reported especially in the barrios, the police don't show up to take a report, and barrios normally take care of problems on their own, IE protection money.

I would not walk around centrol at night, with out speaking spanish and knowing where you are going, chances are nothing will happen to you, as their is some police on patrol but why take a chance like that? Again do not go walking around centrol at night by yourself.

Wow, real estate. I don't throw figures around but again use simple observation, logic and the rules of " supply and demand" to support my claims. All you need to do is look around at all the new construction and see ample supply, if you look closer you see many "se vende" signs these signs stay up for YEARS at a time, however some how, prices continue to rise, how is that so? Asking prices for the apartment across the way has increased from 330 Milliones, to 415 Milliones, in less then a year, the unit remains unsold, again I ask why? Doesn't seem to follow the logic of supply and demand, but more the laws of speculation to me. But again this is my observation and doesn't mean anything

I realize this is Colombia, there is much influx of drug money being invested and hidden in construction and real estate. History shows that these venues are the easy way to hide money. Again Colombia is improving and many banks aboard are investing in construction, malls, stores, apartments and housing. I belive this is what will create the collapse, there arnt that many sales (observation), and when projects built with credit need sales they will lower their prices, and POP goes the bubble! Its easy for projects backed with solid money to hold off and keep prices high, shit the purpose of the projects is to hide money not sell apartments.

As for gringo buyers, I add all outside money as "gringo money". I think I'll try and make my point about gringos buying real estate in Medellin this way. Since everybody on here I assume has negotiated with hookers, and if your on this thread probly have done so with colombians. As you know some of these lovely gals will quote extremly high prices, even in establishments with prices already set, they will try to rip you off more then double or triple the asking prices. If you don't meet their price they litterally walk away. Becuase ripping you off is the standard; you are a gringo, and you must pay more period. The stakes when talking to a hooker are only a matter of few dollars maybe even hundreds of dollars and this tough little lady lives in culture taught to respect and fear men, colombian men that is. Now I ask a question do you expect fair treatment from a colombian male, or seller in this culture where hundreds of thousands of dollars are at stake? You can answear that.

As for the number of gringos buying apartments, you probly right on, its low. But as low as it is don't you think its every sellers dream to encounter a american buyer? A costa rican family once told me "that I can currently sell my home for 100K Dollars, or I can wait 2 years for a gringo to pay me double or triple my price" wouldn't you wanna wait? Especially after the point you made with facts and figures; most colombian homes are owned out right or with little borrowed money, no reason to rush a sale here. We can keep that for sale sign up for 1-2 years we can afford to wait.

As for the job market, and growing middle class, increase in wages I agree with you, its simple pay more people spend more, it improves the economy. You can e-mail some of the colombians about that, wages don't go up here, not to match inflation or even come close to it, things are more expensive then ever, poblado is nice, but poblado is not Colombia, GDP is not the only measure of economic growth wish it was. I see more credit options coming into play, for autos and housing and visa is advertising like crazy, why pay more wages when we can loan them more money.

The circle of wealth that gringo see in poblado comes from two things, drugs and real estate, land owners, and now speculators these guys have sold their moms house in poblado to a construction company for 500K USD, they take that money and reinvest it back into rental property and apartments then go out and buy a new car.

All this is my opinon and isn't really worth anything, its just my observation and thoughts. But then again I am not trying to sell anything on here

Originally Posted by Mr Lotto

You bring up a lot of interesting points but I believe some of them need clarification. As far as crime goes the murder and crime rates have dropped here significantly over the past seven years and in fact the murder rate for Medellin is now lower than a number of US cities including Wash DC, Baltimore, St Louis, Atlanta, Detroit, New Orleans, to name a few. I feel safer walking at night in El Centro than I do any of those cities and others. Will the crime rate go up as tourism increases here, nobody knows but we do know that Colombia and Medellin have been working hard to improve security here and reduce crime. Are they going to throw all that away as tourism increases?

You seem to be concerned about rising real estate prices here and the rich Americans are the blame now and more so in the future. Well the nice steady price appreciation that is occurring here (unllike the speculative debacle that recently occurred in the US because of poor lending practices and greed on the part of the banks) is occurring without US buying, which represents well under 1% of sales in Medellin. Conversely here you pay cash or put at least 30% down with a 17% interest rate 15 yr amortization mortgage if you are a Colombian. No speculative frenzy here. But more importatanly is the $ per sq meter for property here. Medellin is one of the lowest priced cosmopolitan cities in the world bsed upon that metric. And the other higher priced cities pale in comparison to what Medellin has to offer.

Finally your concern about continuing higher real estate prices. Yes they probably will go up as more US and European buyers and corporate interests enter the market. But this international particpation will also be doing something else. Creating higher paying jobs (and new jobs) so more of the poor people can move up to the middle class. Creating a growing middle class is the key to shedding a third world status. The educational infrastructure is here and the people are motivated. So they deserve the chance and international investing here will be a major key.

The downside to this scenario is that you sold your aptartment too cheaply and left several million pesos on the table and the rest of us have to pay more for meals, drinks and pussy. It still beats the US.

**Bango Cheito** · 06-21-08 04:35

I think there will be a correction, but a relatively small one.

**Client 9** · 06-20-08 11:11

Originally Posted by AddictedToWomen

I'm not so sure. If Uribe can crack the guerrilla problem Colombia could become a really nice place, and a good place for thousands of Americans to retire to. Hence my interest in comparative pricing with other SA/LA countries. Should we be investing in Colombia now? It could be a bubble. Or it could be a reaction to growth.

I'd love to see some hard evidence.

All bubbles begin with a "reaction to growth" initially. The inevitable bust begins when the growth slows. There is growth in Colombia, but that growth will slow eventually.

Uribe won't be president forever.

What has followed almost every economic boom in Latin American history?

It's your money.

**AddictedToWomen** · 06-12-08 11:59

Originally Posted by Client 9

There is a real estate bubble in some parts of Colombia. People that refuse to acknowledge the bubble are the same sort of people that were in a state of denial regarding the U.S. real estate bubble in 2005, the U.S. stock market bubble in 2000, the dual Japanese bubbles in 1990 and every other financial bubble in world history.

The Colombian economy has had a good run for a variety of reasons, but currently it is much closer to the end than the beginning.

I'm not so sure. If Uribe can crack the guerrilla problem Colombia could become a really nice place, and a good place for thousands of Americans to retire to. Hence my interest in comparative pricing with other SA/LA countries. Should we be investing in Colombia now? It could be a bubble. Or it could be a reaction to growth.

I'd love to see some hard evidence.

**Client 9** · 06-11-08 23:24

There is a real estate bubble in some parts of Colombia. People that refuse to acknowledge the bubble are the same sort of people that were in a state of denial regarding the U.S. real estate bubble in 2005, the U.S. stock market bubble in 2000, the dual Japanese bubbles in 1990 and every other financial bubble in world history.

The Colombian economy has had a good run for a variety of reasons, but currently it is much closer to the end than the beginning.

**AddictedToWomen** · 06-11-08 15:02

More thoughts on property prices in Bogota...

Has anyone heard it suggested that there's a price bubble? I searched Google but couldn't find anything, but the number of "invest in Colombia" property fairs would be consistent with that.

Would that suggest that, apart from the value of dollar, now is a bad time to buy? Anyone know how Bogota prices compare with those in other LA/SA capitals?

**Bango Cheito** · 06-07-08 12:59

Totally wrong. I've had taxis not be able to take me to destination and they did NOT charge me. And the price of used cars has been PLUMMETING in Colombia over the past 2 years. Used car prices in South America are typically high because used cars are better taken care of than used cars in North America and associated costs like repairs and insurance are cheaper but at the same time the cars themselves have been less available, so all of that conspires to keep the price up, but now with new cars flooding the market in major cities prices have gone down rapidly.

Stupid girls holding out for a high price happens everywhere in the world. I've seen the same phenomenon many times at underground parties in NYC too!

Fact is in Colombia people are MORE likely to lower their prices than in the USA IN GENERAL. They just may not lower their prices for YOU if they think you've got it like that.

**AddictedToWomen** · 06-07-08 11:56

Originally Posted by El Vagabundo

They paid 12 million for it new in 1997 and want 12 million 10 years later (A new one now cost 30).

I don't know about the property market, but the car market I do, and this is just not true: there's serious depreciation on (private) cars (less on taxis due to inflation in the value of the operators license).

Check out El Tiempo classifieds for evidence.

**Vip Hotel** · 06-06-08 11:04

For Medellin Property listings, sales and rentals check http://www.rentapartmentsmedellin.com

**El Vagabundo** · 06-05-08 05:44

Originally Posted by AddictedToWomen

Agreed. There's nothing in Bogotá (at least any part of Bogotá you'd want to live it) for much less than that. The market's been hot for some years now.

For instance check out:

http://contenido.metrocuadrado.com/c...ectores/6.html

and

http://contenido.metrocuadrado.com/c...2-2009582.html

The news is that transaction volumes are now falling, though this hasn't fed through into prices. If that's just a matter of time or if the Colombian market is somehow different I don't know.

Theories welcome.

The Colombian market and mentality is different from the US market. Colombians in general do not lower prices. They just hold at the price they want until the market, inflation or the exchange rate catches up. The pain of loosing a single peso is so deep for them; they will cut off their nose despite their face.

You can apply this to most small business here and then it all makes sense. A restaurant serves you a bad meal and they say I sorry, but never comps you. The taxi gets lost and you have to take another taxi, but he wants to get paid. A 10 year old car cost 3 to 5 times as much as a car in the US. They paid 12 million for it new in 1997 and want 12 million 10 years later (A new one now cost 30).

This is also one of the reasons the price of pussy is so high in the usual places. One girl, one time gets 300 thousand and then next time she is offered 150 thousand. She thinks "I do not want to lose 150 thousand". Again, this is only one of the reasons, but a large part.

I hope this helps