Buying Property in Colombia

[Texas Slim]

Tom33,

My apologies. I can't seem to get cost per square foot (psf) out of my head.

Here is another deal I found in San Lucas. It was a 5 year old, 2 story, penthouse unit with 3 bedrooms, 2.5 bath, 2 parking spaces. 2 nice sized balconies, a nice sized walk in closet in the master - great views, open floor plan, etc. The unit needed no repair work and really not much upgrading either. I believe the admin fees were about $350,000 per month.

150 m2 or 1614.6 sf

$288,000,000(at the time the exchange rate was 2050) div 150 = $1,920,000 m2

$140,488 USD div 1614.6 = $87 psf

I thought this was a pretty good deal based on the fact most everything else is saw in the area was closer to $115 psf (new or up to 1 year old).

* So, I assume any property that could be found in Poblado for 1 million per m2 would need extensive upgrading or rehab work?

* I have seen some nice property (house) in Belen Rosales for 1 million per m2.

[Medellin Rum]

One only has to look at a few neighboring countries including Costa Rica who have recently signed agreements with the US Government to share information with the IRS. Additionally, several countries have hired corporations in the good old USA to automate their tax collection process.

If your property taxes increase by 100%, 500%, or 3000% I guess You could handle and pay the increase but others might have difficulty.

Don’t fool yourself. If you purchase/sell property in Colombia you might not pay today but you will pay tomorrow in both taxes and capital gains.

If property taxes are raised, you pay them.

There are many exemptions from taxation of your worldwide income, and that generally doesn't apply until you have lived here for more than 5 years. AND Colombia seems to have trouble collecting from its own citizens who earn all their money in Colombia. Why do you suppose that the IVA(sales tax) is as high as it is? How is an extranjero supposed to understand Colombian income tax when DIAN does not?

[Aussie Greg]

I must back Tom33 up here, I lived here for 4 years and I have never seen any civil war going on, yes alot of Military/Police check points around.

Ive also driven a far bit of the country many times, had no problems but those fucken holes in the roads have caused me a few.

Aussie Greg.

This "fact" is your opinion only. In my opinion, there is no civil war.

[Tom 33]

FACT#5 anybody who says the population of Colombia is completely satisfied is DEAD WRONG. THERE IS A CIVIL WAR GOING ON! , in a country where civil strife and conflict have been going on its considered normal!

This "fact" is your opinion only. In my opinion, there is no civil war.

[Tom 33]

I have yet to hear from any US Citizen who has actually sold property in Colombia and took the money out of Colombia and back to the USA. One might want to take a look at Costa Rica's recent property tax increase (3000%) yes that's 3000% is some areas. Now what are you going to do if the Colombian Government raises your property tax 100%, 200% or more? Write your representative? I think not and you will be screwed! I still love to hear one of my gringo associates brag about the huge increase in equity on his apartment. When asked about capital gains or residency status that allows the Colombian government to collect taxes on his world income he is clueless, but has a big smile and no knowledge.

Colombia is a great place to live and I enjoy the people and the culture. The biggest issues come from other gringos who are selling snake oil and promissing the world if you buy something from them. Its a Country where you can lose a lot of money in a very short period!

If property taxes are raised, you pay them.

There are many exemptions from taxation of your worldwide income, and that generally doesn't apply until you have lived here for more than 5 years. AND Colombia seems to have trouble collecting from its own citizens who earn all their money in Colombia. Why do you suppose that the IVA(sales tax) is as high as it is? How is an extranjero supposed to understand Colombian income tax when DIAN does not?

[Tom 33]

By the way Casa Medellin, if you want to let me know where those investments at $200k per meter are in Poblado, please send me an email. I would be willing to pay you a fee for the right investment.

That was one million per square meter. You can find things for 200K per M2, but it won't be in Poblado, and you won't like the neighborhood.

[Casa Medellin]

I spend about 50% of my time in Medellin and 25% in Cartagena. I try to get to Argentina for a couple of months each winter when it is warm there but this year is not looking great. I also plan to take a few side trips to Asia when time permits.

The fact is I can live anywhere in the world I want. I chose to live in Medellin because it is fun for now. If the fun stops I will move on. I have lived in other countries that got all fucked up. When that happens you pay a guy named Jose to live in your house, put a "for sale" sign on it, and tell Jose to call you when it is sold. It is really very easy.

There is still a lot of negativity about Medellin but it always seems to come from the NMGs. This has its advantage because it scares away the hoards of NMGs. I have lived in other places that got overrun by NMGs and when that happens I usually move on. Pattaya, Angeles City, Sosua all suck for me because almost everyone there is a NMG and I will not return to any of them.

[Texas Slim]

I've been here in Medellin for almost two years and have looked at in excess of 60-70 properties all around town including Poblado, Envigado, Sabaneta, La Estrella, Itagui, Laurelles, Belen & El Centro (commercial). His advice is spot on.

* P.S.. I am not a patron or client of his establishment. I live in a rented apartment of 2 years in Poblado/Envigado. My background is 10 years of mortgage banking, residential & commercial real estate investments.

My mistake was not investing 2 years ago when the exchange rate was 2600 to 1. I have made the same mistake in the US a few times waiting.

By the way Casa Medellin, if you want to let me know where those investments at $200k per meter are in Poblado, please send me an email. I would be willing to pay you a fee for the right investment. I just missed out on a 750 meter fincacasa in Loma de Escobero (Envigado) for $450 million ($27 a square foot). I don't know what the hell I would do with all that space, but it does not matter now.

[Aussie Greg]

I guess every body looks for different things in life, as I have said, I´m happy here in Medellin but I also get away to to other places.

I carnt think or know of a better place with the quality of life for the price and the beauty/numbers of the women.

Investment in Colombia, every body said three years ago I was mad, I guess they still do !! some time I do to.

AG.

Very well put senor. My sentiments exactly.

I believe the guys that live in Medellin are very fortunate. What a great city!

I'm too much of a vagabundo to stick in one place though :)
But I sure love to visit!!

Feliz Navidad!!

[Ricker]

but i would lease a place on yearly basis if i decided to spend lots of time in medellin. this way i would have the flexibility of packing and leaving right away without any stress. if the shit hits the fan, i do not have to worry about selling. let's say nothing negative happens, i can still move on to another location around the world.

as much as i love medellin ( god knows i have had my share of fun there and will continue in the future), i hate to break it to you........there are also many other places around the globe that offer amazing women as well as incredible scenery. trust me, i have also done my fair share of travel as many other members of this forum.

by the way, lets not kid ourselves, even though some people here might consider colombia or medellin a great investment oppurtunity ( which it might be to a certain extent ), there are many other better and safer investments around the world.

i love medellin and its weather, women, and my paisa, calenos, and rolos friends. i can relate very well and feel extremely comfortable there. hopefully someday colombia will have the stability that will make many more investors take a peek and a gamble. but i doubt it, just too much corruption.

bottm line, its fine to make an investment in medellin, but don't even come close to putting all of your eggs in one basket.

greg, i am also happy in many other cities around the world just as you are happy in medellin. but i don't stick to just one particular dessert all the time, i enjoy a variation of them. continued success for you in medellin sir.

very well put senor. my sentiments exactly.

i believe the guys that live in medellin are very fortunate. what a great city!

i'm too much of a vagabundo to stick in one place though :)
but i sure love to visit!!

feliz navidad!!

[Sandman0011]

The big questions I have is this: is EVERYONE in? I'm not talking about individuals who are buying a house or an apartment. I'm talking about developers and major speculators who are pouring in billions of dollars.

Medellin is experiencing a building boom. As of October, 2007, there were 145 high-rises under construction in Medellín, including 29 being approved, and 25 being proposed. That is more than NY, Philadelphia and Los Angeles combined.

Rumors are running around that Wal-mart plans to open a Super Wal Mart here. Pan America just opened it's first Medellin Location. The new Centro Comercial Premium Plaza just opened, two blocks away from San Diego, Oviedo is expanding across the street with a 5 story addition.

A French casino group is expanding it's investment in Exito/Pomona.

Yeah, I'd say the big boys are "in".

[Mangera]

i´m happy in medellin !!

aussie greg.

but i would lease a place on yearly basis if i decided to spend lots of time in medellin. this way i would have the flexibility of packing and leaving right away without any stress. if the shit hits the fan, i do not have to worry about selling. let's say nothing negative happens, i can still move on to another location around the world.

as much as i love medellin ( god knows i have had my share of fun there and will continue in the future), i hate to break it to you........there are also many other places around the globe that offer amazing women as well as incredible scenery. trust me, i have also done my fair share of travel as many other members of this forum.

by the way, lets not kid ourselves, even though some people here might consider colombia or medellin a great investment oppurtunity ( which it might be to a certain extent ), there are many other better and safer investments around the world.

i love medellin and its weather, women, and my paisa, calenos, and rolos friends. i can relate very well and feel extremely comfortable there. hopefully someday colombia will have the stability that will make many more investors take a peek and a gamble. but i doubt it, just too much corruption.

bottm line, its fine to make an investment in medellin, but don't even come close to putting all of your eggs in one basket.

greg, i am also happy in many other cities around the world just as you are happy in medellin. but i don't stick to just one particular dessert all the time, i enjoy a variation of them. continued success for you in medellin sir.

[Aussie Greg]

I´m happy in Medellin !!

Aussie Greg.

Unfortunately, this is the common problem with all of Central and South America. If not, there would be tons more of investors. Excellent point Mr. Fla Fun!

[Mangera]

There is a logical reason for the undervalued real estate prices in Colombia. Capital fears political and social risk.

If anyone is thinking of investing real estate in Colombia, please give some thought to the long term future political stability. South Florida is full Colombians who will not return back to Colombia. They know, one election could change everything backwards. If that happens, good luck trying to sell your real estate.

Unfortunately, this is the common problem with all of Central and South America. If not, there would be tons more of investors. Excellent point Mr. Fla Fun!

[Tom 33]

The larger question lies with Colombia. Can she continue to stabilize? If the answer is yes, there is a lot of room for growth and price appreciation even in Cartagena.

There are too many variables to know the future of Colombia: FARC, paracos, narco-trafficing, lousy infrastructure, lousier laws, a total lack of respect for those lousier laws, and Tio Hugo. Add to that a populace that seems to accept waiting in bank lines for hours and near-total inefficiency in all things. The Colombian mind fuck is alive and well.