If you are interested in buying or selling a home in Medellin Colombia, your very first step is to surf the internet looking for some classifieds portals ( Ex: propiedad-raz.com, inmobiliario.com.co, elinmueble.com.co, inmuebleguia.com, propiedades.net.co, casas.net.co, inmobiliaria.net.co, apartamentos.net.co, propiedades.net.co or concasa.com.co), These are in Spanish language, but it is possible to use some web translation services.
If you are in Medellin, do not forget to pick up the free magazines listing all the new constructions on offer, that contains used properties classified ads too, or consult the online versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for the Medellin area, These are available at bank branches and supermarkets.
Other way is going to property agencies. There are no laws preventing or restricting foreigners from buying real estate in Colombia and it is common to get revenue up to 1.1% per month for renting properties, mainly in VIS homes (properties valued up to $79.5 million pesos in 2013 or 39.500 USD). VIS homes have colombian government subsidies to lower income families. Medellin real estate has been getting a recent boom as the city that has won the prize as most innovating city in the world. Middle class buildings and Luxury buildings are being built at accelerated paces. The Colombian economy is pretty good, and currently Medellin is expanding even more rapidly than Bogota D.C., the capital city, with new construction at an all-time high. Some of the best neighborhoods to live in or investing, are the El Poblado, Envigado, El Retiro, Loma de Los Bernal, Laureles and Llanogrande for luxury homes. On the other hand neighborhoods like Buenos Aires, Robledo, Calazans, Los Colores and Caldas for low prized high rental revenue in middle class areas. However there are plenty of attractive opportunities in downtown as well as in the metropolitan area (Bello, Itagui; La Estrella and San Antonio de Prado), because city is expanding into the periphery and it takes only 40 minutes to get Medellin downtown from this counties by car. Property prices in Medellin (the second city in Colombia) continue to increase, and currently real estate properties in Antioquia are significant cheaper than in Bogota and Cundinamarca.
Prices in Medellin Colombia are from $44 million pesos (22,000 USD on 2013) for a subsidized unit to over $390 colombian million pesos ( 195,000 USD ) for a luxury home in one of the best zones, with $170 million pesos for one in a medium or upper medium class neighborhood (85.000 USD). If you buy a new VIS property, the unit will be offered unfinished, which means concrete walls and floors and no closets. For over VIS the unit will be finished normally, and may be garage included in the price, others can be offered with communal parking spots. The last ones can be a little difficult to get financial loans on them because don't have its own garage, unless they are located near to a main avenue or with access and transport facilities. Parking spots are typically included in properties over $110 colombian million pesos, and additional ones can cost 15 million pesos ($7500 USD) or more. Finally, your closing costs can be around three million pesos ($1500 USD). In addition, there are some monthly community fees, which will probably run 62.000-320.000 pesos per month (31 USD to 160 USD/ month).
For investing, Propiedad-Raiz.com thinks that cheaper real estate will have the best revenue if it is for rental purposes and taking into account the easy and fast way to sell these properties if it were necessary. Many of the cheaper properties are offered with three bedrooms in just 42-55 m2. It is possible to get $5.000.000/month ($2.500 USD/month) from the rent of 10 apartments that costs in total $650.000.000 ($325.000 USD), but one luxury apartment of $650.000.000 could be rented only for $2.600.000/month (less than 1.300 USD). Besides, with 10 low cost apartments there is a risk non concentrated and monthly fees and utility bills will be much lower in case the property is not rented for a while. It is not probably to have more than 3 homes from 10 non rented per month at the same time, so investors will have incomes every month, against the luxury way for just one home with higher risk.
If you are mainly interested in the secondary market, the best sources are the major Colombian newspaper classifieds, such as El Colombiano (elcolombiano.com), El Espectador (espectador.com.co) and El Tiempo (eltiempo.com). On line Classifieds portals like propiedad-raiz.com are very good sources as well, taking into account that most of real estate buyers look for the internet property listings before make any decision.
Foreigners have the same rights as Colombians in purchasing properties, but financing could be a little trouble for them. You must know that Colombian interest rates are 8.9% annual in Colombia (2013). Most foreigners do 100% cash transactions for this reason. Investors can obtain financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has got 18 year experience in 5 of the most important banks in Colombia, lately as an important bank branch manager in Medellin. All credentials are available for your safe.
Transferring or 'wiring' money to Colombia is very simple. You will need to provide your foreign bank with: a. Details of an 'Intermediary' bank that will facilitate the transaction between the bank in Colombia and your foreign bank. b. Details of the bank in Colombia where the money will be received. C. Details of an individual account at the bank in Colombia. Andres Marquez Gamboa from Propiedad-Raiz.com can guide you through the entire process so your transfer goes pretty fine.
The best suggestion for foreigners I can make is that before you invest in real estate in Colombia, come to live here in a rental property, get established, then after look for advising or find professional advise that you can get for an affordable cost, avoiding to manage these business directly with the owner in Colombia being you abroad. It is very important that at least you have someone who represents you in the Colombian city you consider to make your investment. We strongly recommend Medellin as one of the best places for this purpose.
Global and important investor Sam Zell selected Colombia for real-estate investments as the "next best" in L.A. market. Real Estate prices in Colombia are rising strongly in last few years and expected to keep on rising due to the economic growth prospects (3.8% annual expected for 2013).
The costs you would incur as an owner of real estate in Medellin Colombia are the following: 1). Government taxes (Predial Tax): Are based on your real estate value appraisal. Compared to countries like United States, are very low in Colombia. For example, real estate valued at $250,000,000 pesos will cost approximately 135,000 pesos per month in taxes. These are paid tri-monthly. 2). Administration: If real estate is into an apartment block or gated community, may incur an administration fee. This community fee covers maintenance and security costs and can go from 0.1 to 0.25 percent. 3). Utility bills: They vary according to the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). So, the total costs for owning real estate in Colombia, valued at $210,000,000 colombian pesos, are approximately $560,000 pesos/month in 2013 ($280 US dollars/month).
If you are Colombian and you live abroad, can buy properties in Colombia and arrange local financing. All process is made with international brokers that work together with many banks in Colombia. You can contact Andres Marquez Gamboa as well for advising and arrange local financing. Contact details can be found on propiedad-raiz.com as well as requirements in this case.
If you are in Medellin, do not forget to pick up the free magazines listing all the new constructions on offer, that contains used properties classified ads too, or consult the online versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for the Medellin area, These are available at bank branches and supermarkets.
Other way is going to property agencies. There are no laws preventing or restricting foreigners from buying real estate in Colombia and it is common to get revenue up to 1.1% per month for renting properties, mainly in VIS homes (properties valued up to $79.5 million pesos in 2013 or 39.500 USD). VIS homes have colombian government subsidies to lower income families. Medellin real estate has been getting a recent boom as the city that has won the prize as most innovating city in the world. Middle class buildings and Luxury buildings are being built at accelerated paces. The Colombian economy is pretty good, and currently Medellin is expanding even more rapidly than Bogota D.C., the capital city, with new construction at an all-time high. Some of the best neighborhoods to live in or investing, are the El Poblado, Envigado, El Retiro, Loma de Los Bernal, Laureles and Llanogrande for luxury homes. On the other hand neighborhoods like Buenos Aires, Robledo, Calazans, Los Colores and Caldas for low prized high rental revenue in middle class areas. However there are plenty of attractive opportunities in downtown as well as in the metropolitan area (Bello, Itagui; La Estrella and San Antonio de Prado), because city is expanding into the periphery and it takes only 40 minutes to get Medellin downtown from this counties by car. Property prices in Medellin (the second city in Colombia) continue to increase, and currently real estate properties in Antioquia are significant cheaper than in Bogota and Cundinamarca.
Prices in Medellin Colombia are from $44 million pesos (22,000 USD on 2013) for a subsidized unit to over $390 colombian million pesos ( 195,000 USD ) for a luxury home in one of the best zones, with $170 million pesos for one in a medium or upper medium class neighborhood (85.000 USD). If you buy a new VIS property, the unit will be offered unfinished, which means concrete walls and floors and no closets. For over VIS the unit will be finished normally, and may be garage included in the price, others can be offered with communal parking spots. The last ones can be a little difficult to get financial loans on them because don't have its own garage, unless they are located near to a main avenue or with access and transport facilities. Parking spots are typically included in properties over $110 colombian million pesos, and additional ones can cost 15 million pesos ($7500 USD) or more. Finally, your closing costs can be around three million pesos ($1500 USD). In addition, there are some monthly community fees, which will probably run 62.000-320.000 pesos per month (31 USD to 160 USD/ month).
For investing, Propiedad-Raiz.com thinks that cheaper real estate will have the best revenue if it is for rental purposes and taking into account the easy and fast way to sell these properties if it were necessary. Many of the cheaper properties are offered with three bedrooms in just 42-55 m2. It is possible to get $5.000.000/month ($2.500 USD/month) from the rent of 10 apartments that costs in total $650.000.000 ($325.000 USD), but one luxury apartment of $650.000.000 could be rented only for $2.600.000/month (less than 1.300 USD). Besides, with 10 low cost apartments there is a risk non concentrated and monthly fees and utility bills will be much lower in case the property is not rented for a while. It is not probably to have more than 3 homes from 10 non rented per month at the same time, so investors will have incomes every month, against the luxury way for just one home with higher risk.
If you are mainly interested in the secondary market, the best sources are the major Colombian newspaper classifieds, such as El Colombiano (elcolombiano.com), El Espectador (espectador.com.co) and El Tiempo (eltiempo.com). On line Classifieds portals like propiedad-raiz.com are very good sources as well, taking into account that most of real estate buyers look for the internet property listings before make any decision.
Foreigners have the same rights as Colombians in purchasing properties, but financing could be a little trouble for them. You must know that Colombian interest rates are 8.9% annual in Colombia (2013). Most foreigners do 100% cash transactions for this reason. Investors can obtain financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has got 18 year experience in 5 of the most important banks in Colombia, lately as an important bank branch manager in Medellin. All credentials are available for your safe.
Transferring or 'wiring' money to Colombia is very simple. You will need to provide your foreign bank with: a. Details of an 'Intermediary' bank that will facilitate the transaction between the bank in Colombia and your foreign bank. b. Details of the bank in Colombia where the money will be received. C. Details of an individual account at the bank in Colombia. Andres Marquez Gamboa from Propiedad-Raiz.com can guide you through the entire process so your transfer goes pretty fine.
The best suggestion for foreigners I can make is that before you invest in real estate in Colombia, come to live here in a rental property, get established, then after look for advising or find professional advise that you can get for an affordable cost, avoiding to manage these business directly with the owner in Colombia being you abroad. It is very important that at least you have someone who represents you in the Colombian city you consider to make your investment. We strongly recommend Medellin as one of the best places for this purpose.
Global and important investor Sam Zell selected Colombia for real-estate investments as the "next best" in L.A. market. Real Estate prices in Colombia are rising strongly in last few years and expected to keep on rising due to the economic growth prospects (3.8% annual expected for 2013).
The costs you would incur as an owner of real estate in Medellin Colombia are the following: 1). Government taxes (Predial Tax): Are based on your real estate value appraisal. Compared to countries like United States, are very low in Colombia. For example, real estate valued at $250,000,000 pesos will cost approximately 135,000 pesos per month in taxes. These are paid tri-monthly. 2). Administration: If real estate is into an apartment block or gated community, may incur an administration fee. This community fee covers maintenance and security costs and can go from 0.1 to 0.25 percent. 3). Utility bills: They vary according to the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). So, the total costs for owning real estate in Colombia, valued at $210,000,000 colombian pesos, are approximately $560,000 pesos/month in 2013 ($280 US dollars/month).
If you are Colombian and you live abroad, can buy properties in Colombia and arrange local financing. All process is made with international brokers that work together with many banks in Colombia. You can contact Andres Marquez Gamboa as well for advising and arrange local financing. Contact details can be found on propiedad-raiz.com as well as requirements in this case.
About the Author:
Want to find a Real Estate Agent in Colombia or properties for sell like houses in medellin, then visit Andres Marquez Gamboa's site on how to choose the best properties for sell in Medellin among hundreds of listings you will find on this popular Colombian Real Estate Classifieds Portal.
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