New Real Estate Forum

Gentlemen -

This new Forum is about Real Estate in Colombia.

Anything and everything related to real estate in Colombia can be posted within this new Forum; topics related but not limited to developing, renting, selling, buying, rental/sales agents, land development, trends, comps, etc. Any real estate pertaining to all other areas in Latin America and Brazil can be posted in our general real estate Forum: Real Estate: Investing in Latin America

We hope you enjoy this new Forum.

-Two Gringos

[Zorro]

Glad to see this new forum added. I've spent weeks and months in Colombia. Often too long to stay in a hotel. And one thing that has always presented a problem was finding a furnished apartment for a reasonable price that could be rented by the week or single month. There don't seem to be that many out there in some areas, and it takes a long time to research the subject. So anything that helps communication along those lines would be great.

I've also bought property. One thing I've noticed is that a lot of the things I see marketed to gringos via the internet seem to have inflated prices as compared to properties you'll see if you're down there shopping.

It pays to be informed. Otherwise you'll find yourself paying the "gringo tax" without realizing it. So, glad to see this forum.

Z

[rivardco]

I have spend 6 months out of the last 16 in the Dominican Republic. During my last trip which lasted over 30 days, I was amazed at how the whole place finally unfolded to me. It takes time - and more of it than most people have, or imagine they need to be treated different than a Gringo.

I see the prices in Colombia being a little more reasonable than my home in Tampa Florida. (I am aware of the recent negative valuations of the US dollar).

But looking at the long run, is one area a better value than another?

[JMitch1959]

Anyone buy property in Colombia without being a Colombian citizen etc. Even if I buy it in my wife, who is a citizen, transferring the money to Colombia seems to present a lot of problems.

My wife is always after me to buy a house in Cali. It looks like a pain in the ass to me.

Any insight appreciated.

Originally Posted by JMitch1959

My wife is always after me to buy a house in Cali. It looks like a pain in the ass to me. Any insight appreciated.

Buying your own place makes sense because both of you want to feel comfortable while spending time in Colombia. However, keep in mind should your marriage go south, your wife will get the property. I met a few gringos who got divorced and each guy lost his Colombian dream home to the wife after divorce.

[GrizGator]

Ray, did the guys you refer to lose the house in the divorce settlement? Or did it have something to do with Colombian law? The first part wouldn't bother me (as there's always a settlement involving joint property), but I'd be mad as hell is there was some Colombian law that said that the property automatically went to the Colombiana.

Griz

[Jim]

In the Philippines there are several problems with buying property.

First, no foreigner can own land so the property must be in the wife’s name. You can own a house while your wife owns the land but she’s have your ass in a sling if you got divorced. In CR and Colombia foreigners can own land. The difficulty is that in foreign courts, foreigners seldom win against nationals no matter what.

Seond they don’t have anything like 0 down 30 year mortgages. In the Phils, you need to pay cash or at minimum take five years to pay. In CR, they have 20% down, 15 year mortgages but that’s the best you can do. I don’t suppose it’s any more favorable in Colombia.

The major advantage of real estate as an investment in the US is the following. You buy a 200,000 home for 5% down (10,000). In two years it’s worth 220,000 and you sell. You earned 100% interest for two year using the bank’s money. This doesn’t happen in a foreign country.

If you buy real estate in Colombia, or elsewhere, you are not investing. YOU ARE SPECULATING. This is only a good idea if you have lots of money and this is money you can afford to lose IMO.

Originally Posted by Jim

In CR and Colombia foreigners can own land. The difficulty is that in foreign courts, foreigners seldom win against nationals no matter what.

What Jim said. (and Brazil is worse)

The major advantage of real estate as an investment in the US is the following. You buy a 200,000 home for 5% down (10,000). In two years it’s worth 220,000 and you sell. You earned 100% interest for two year using the bank’s money. This doesn’t happen in a foreign country.

What Jim said. (and Brazil is worse)

If you buy real estate in Colombia, or elsewhere, you are not investing. YOU ARE SPECULATING. This is only a good idea if you have lots of money and this is money you can afford to lose.

What jim said. (and Brazil is worse)

[Miraflores Apt]

Originally Posted by Jim

The major advantage of real estate as an investment in the US is the following. You buy a 200,000 home for 5% down (10,000). In two years it’s worth 220,000 and you sell. You earned 100% interest for two year using the bank’s money. This doesn’t happen in a foreign country.

I would not advocate a Newbie buying property in a country he did not live in, but this statement is wrong in so many ways.

First, RE in the USA is going down and the smart money sold years ago!
Second this is not investing, it is "flipping" which is SPECULATION!

I bought a property in Lima 3 years ago with $40,000.00 down. It has consistently generated gross returns of 80% per year (before appreciation) on my investment. It generates 30% returns on the original purchase price and 15% on its now inflated value.

If I were to sell today (why would I?) my $40,000 INVESTMENT would have returned 500% in three years. Keep in mind that RE here is priced in USD.
and I have lost 17% due to weak dollar/strong Nueva Sole.

This is just an example that I would be most likely unable to duplicate in the current market.

I invest in RE based on projected future cash flows and not appreciation.
Will RE prices in Lima continue to appreciate with an economy that consistently grows at 8-9% and is still priced below Buenas Aires (you can bet on it)! But then that would be speculation!

There are ways in which any foreigner can buy property here

1) If you are looking to invest you should apply for an investors visa. The cost of it in minimum vs the benefits. With it the DAS will provide you with documents like CE cedula de extrageria like a ID that allows you to do transaction like a any other colombian. Open Bank accounts, buy, sell etc.

2) There is a law here which states that any colombian citizen who marries a foreigner out side of colombian terretory is assumed to be separates in belongings. (houses companies monet etc.) If will work against you if you buy a property under her name and then file for divore because she will keep the house, But if you marry a colombian and have an investor visa you can purchase a house under both names and in case things should go south like some say,then she won't be able to keep it.

3) If you got married outside the colombian teritory then make sure you register your marriage in the colombian consulate. This will save you problems in the future.

Hope this helps

Angie