Buying Property in Colombia

[Arjay]

I've been searching around on the web for a furnished apt. In Poblado Medellin area. About 6 months for starters, then see how it goes from there. I have a few Q's to ask you gentlemen.

1. What is your opinion on the "high season"? I guess it makes sense for short-term if the hotels are booked solid during those months, but I think it is kind of a rip-off if you are renting longer-term.

2. I see several rental agency sites advertising the same exact apartment, for slightly different prices! What is up with this?

3. Should I just spend a week there visiting agencies, sometimes 2 agencies for the same apt?

4. Anyone had any luck looking on bulletin boards at the local supermarkets? I scored a great apt. In Costa Rica this way. Most ads I saw in the newspaper were rented out the day the ad came out in the newspaper. Spent too much time calling, driving all over San Jose.

5. Would it be a good idea to go into the lobby of a condo complex and see if there are any advertisements there?

6. Any other advice on how to negotiate is greatly appreciated.

Thanks for your help, I have never been to Medellin, but it looks like I will be spending 6 months to a year there, and would like some intel on how things operate there.

I own property here in Medellin. Talk to the porteros they usually now who is renting in the building and can contact owners. A little propina works.

[Arjay]

This thread has been quite for a longtime. I read through all the info that is here. Anyone did any recent real estate transactions recently, buying or selling? What is the general consenses on the market and future of investment in MDE and CO in general? Any thoughts on exchange value and best guess on the future of COP? Would like to hear from expats who are living in CO and have their ear to the ground. Thanks.

I just closed on a condo in Los Bolsos. In December. New construction. I am staying in it now until March. Exchange rate at purchase was 1810=$1. Today it is 1769. 44=$1. I'm glad I did it. Agents are showing other units to Colombian buyers at 16% more than I paid. I plan to rent fully furnished at a 14% ROI gross less taxes, admin, utilities and commissions. The market is good at least 6% annual appreciation. Buyers are mostly Colombians from other cities CTG, BOG etc. IMHO the dollar will only get worse along with other developed country currencies. How else do they finance all the debt they created?

[Vitrea]

This thread has been quite for a longtime. I read through all the info that is here. Anyone did any recent real estate transactions recently, buying or selling? What is the general consenses on the market and future of investment in MDE and CO in general? Any thoughts on exchange value and best guess on the future of COP? Would like to hear from expats who are living in CO and have their ear to the ground. Thanks.

[Joey Smith]

Has anyone kicked the tires on this new condo that is going up in Envigado. An American named Robert Shoemaker is building this place! Just curious if anyone has any info? Been looking for awhile now for a moderately priced apartment for the future.

[Orgasm Donor]

I've been searching around on the web for a furnished apt. In Poblado Medellin area. About 6 months for starters, then see how it goes from there. I have a few Q's to ask you gentlemen.

1. What is your opinion on the "high season"? I guess it makes sense for short-term if the hotels are booked solid during those months, but I think it is kind of a rip-off if you are renting longer-term.

2. I see several rental agency sites advertising the same exact apartment, for slightly different prices! What is up with this?

3. Should I just spend a week there visiting agencies, sometimes 2 agencies for the same apt?

4. Anyone had any luck looking on bulletin boards at the local supermarkets? I scored a great apt. In Costa Rica this way. Most ads I saw in the newspaper were rented out the day the ad came out in the newspaper. Spent too much time calling, driving all over San Jose.

5. Would it be a good idea to go into the lobby of a condo complex and see if there are any advertisements there?

6. Any other advice on how to negotiate is greatly appreciated.

Thanks for your help, I have never been to Medellin, but it looks like I will be spending 6 months to a year there, and would like some intel on how things operate there.

[Hasideas Tao]

I've been fantasizing about renting an nice condo down in Colombia for a month. However, I'm counting on word of mouth. Is an agency really the best way to go? If I get a multi bedroom, I'll rent out to ISG members!

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I for one have only nice things to say about FARM, PM me for more info, but were they fair, honest, answered my email, and were knowledgeable.

Then on the rental end john is a pleasure, and Rich is a friend. I would use again.

[Bbrocs]

Any advise from you guys on an honest and reputable realestate agent Medellin? I've searched sites and found a few. One is an American owner, (First American Realty Medellin). Would appreciate any feed back or good / bad experiences. Thanks in advance.

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I for one have only nice things to say about FARM, PM me for more info, but were they fair, honest, answered my email, and were knowledgeable.

Then on the rental end john is a pleasure, and Rich is a friend. I would use again.

[Bandit25]

Any advise from you guys on an honest and reputable realestate agent Medellin? I've searched sites and found a few. One is an American owner, (First American Realty Medellin). Would appreciate any feed back or good / bad experiences. Thanks in advance.

[Bango Cheito]

It might be better to buy do in a relatively new building and fix it up yourself.

It depends what you want to do with the investment. To live in. Estrato 3 is the best deal. To sell or rent. Not so much. You need to cater to people with money. Most extranjeros want to live in the best.

I thought of that too. But it's easy to get burned on that one too. I went through that in NYC. We bought a 2 family there, had it professionally inspected and everything, but nobody knows what's behind those walls without tearing them down.

Estrato 3 won't appreciate like the other Estratos do but it's also less vulnerable to corrections, and yeah, it's better for living. I also like to have parties at my place and sometimes the cries of pure pleasure bother those in the upper Estratos more. :P

I think properties in provicinal cities like Ibague are a better deal than in Bogota because people there just don't have any money, so home prices are lower compared to rents, and the ROI is much better.

A friend recently bought a 1 floor but rather big house with a big yard for like 100 million a year or so ago. He THOUGHT he got a good deal because that house in good condition woulda been worth 200, but in the end there is so much wrong with it that its gonna cost 150 or so to fix it all up. Houses in good condition that somebody actually wants to sell are rare here, just like anywhere else.

I thought of buying just a lot and building on it, but getting a good location is very difficult. And even then, sometimes there are cost overruns :P

[Caliguy 2010]

It might be better to buy do in a relatively new building and fix it up yourself.

It depends what you want to do with the investment. To live in. Estrato 3 is the best deal. To sell or rent. Not so much. You need to cater to people with money. Most extranjeros want to live in the best.

I myself have been looking around for something to invest in and get some monthly income coming in. I have a GF in Ibague that helps bring transactions to me, or helps look for transactions. I saw a Single fam home, single story, with room to build 2 apartments on the 2nd floor. Asking price was 25k probably another 20k to build 2 more units. Total investment 45k USD. Total return per month about 750 USD / per month. Make your money back in 5 years approx. Another idea is to rent a building with a pool in these cities outside BOG and convert to hotel, I heard the initial investment is about 8k but return is about 2k / month after approx 6 months.

[Hioctane]

I bought in Bogota. Sold at a slight profit, if I buy again I will NOT buy new construction. New construction here or anywhere else in the world I've seen is usually shit, they try to rush things too much these days. We had major leakage / mold / humidity problems.

Real estate in Colombia is a much better deal once you get out of Estratos 4-6. I think Estrato 3 is the best estrato.

It might be better to buy do in a relatively new building and fix it up yourself.

It depends what you want to do with the investment. To live in. Estrato 3 is the best deal. To sell or rent. Not so much. You need to cater to people with money. Most extranjeros want to live in the best.

[Bango Cheito]

i would like to hear from guys who have bought apartments or condos or houses, and see if most are happy with having purchased, or if most come to feel it wasn't a good choice. also, re medellín, there are lots of places of course, envigado, sabaneta, patio bonito, laureles, and even in the barrios perhaps, aurora or bello (why not?). what seems strange to me is to pay 1st world prices, $70 to $120 a square foot, for an apartment in a 2nd world country. it should be cheaper. and also, as for me, i just need a place to lay my head down, a 1 bedroom or 2 at most. it is interesting to note that the authorities in medellín have cracked down on short-term apt rentals, making it problematic if not impossible. so the idea is not so much to buy as some sort of cash flow investment, but rather to buy to live or at least visit. would a few guys who have taken the plunge mind chiming in?

i bought in bogota. sold at a slight profit, if i buy again i will not buy new construction. new construction here or anywhere else in the world i've seen is usually shit, they try to rush things too much these days. we had major leakage / mold / humidity problems.

real estate in colombia is a much better deal once you get out of estratos 4-6. i think estrato 3 is the best estrato.

[Member #4244]

I have entertained buying property there several times and also leasing it. I have noticed that anything you see advertised is that is told to you by someone in person who can see you are a foreigner is going to much higher than what Colombians pay. I've paid rents and shopped for places with locals, there are deals to be had. Find someone trustworthy there (astonishingly difficult) and let them set up the transaction and bring you the paperwork. Get everything set in stone before you pay. Of course everything varies widely based on strata. You want something nice in El Poblado, you're going to pay damn near USA prices. You want a strata 2 three-bedroom apartment, you're going to pay only four figures.

[Chesscat]

I would like to hear from guys who have bought apartments or condos or houses, and see if most are happy with having purchased, or if most come to feel it wasn't a good choice. Also, re Medellín, there are lots of places of course, Envigado, Sabaneta, Patio Bonito, Laureles, and even in the barrios perhaps, Aurora or Bello (why not?). What seems strange to me is to pay 1st world prices, $70 to $120 a square foot, for an apartment in a 2nd world country. It should be cheaper. And also, as for me, I just need a place to lay my head down, a 1 bedroom or 2 at most. It is interesting to note that the authorities in Medellín have cracked down on short-term apt rentals, making it problematic if not impossible. So the idea is not so much to buy as some sort of cash flow investment, but rather to buy to live or at least visit. Would a few guys who have taken the plunge mind chiming in?

[VipMedellin]

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