If you are about to buy or sell real estate in Medellin Colombia, it is advisable that the first thing to do is surfing the internet looking for some classifieds sites ( Ex: propiedad-raz.com, elinmueble.com.co, inmuebleguia.com or casas.net.co). These are in LA Spanish, but you can get online translation.
If you are located in Medellin, you can pick up the free magazines listing all the new constructions on offer, that contains second hand properties classifieds too, or consult the on line versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for Medellin and Antioquia areas, These are available at real estate fairs, bank branches and hypermarkets like Exito.
Other way is to physically attend a real estate agency. There are no laws restricting foreigners from owning real estate in Colombia and it is possible to get revenue up to 1% per month for renting properties, mainly in VIS homes (properties valued up to $79.6 million pesos in 2013 or 40.000 USD).
Prices in Medellin Colombia can go from as little as $42 million pesos (21,000 USD on 2013) for a subsidized unit to over $380 million pesos ( 190,000 USD ) for a luxury home in the best zone, with $165 million pesos for one in a medium or upper medium class neighborhood (82.500 USD). If you buy a new VIS property, the unit will be unfinished, which means concrete walls and floors, and not even the most basic fixtures. For over VIS the unit will be finished normally, and may be garage included in the price. Parking spots are typically included in properties over $100 million pesos, and additional ones can cost 14 million pesos ($7000) or more. Finally, your closing costs can be around two and a half million ($1500 USD). In addition, there are some monthly community fees, which will probably run 65.000-300.000 pesos per month (32,5 USD to 150 USD a 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 for Medellin, such as El Colombiano (elcolombiano.com), El Mundo (elmundo.com), and qhubo, among others. On line Classifieds websites like propiedad-raiz.com are very good sources.
As we mentioned earlier, foreigners have the same rights as Colombians in purchasing properties, but financing could be a little trouble. It is not possible to finance a property located in Colombia through a bank in the homeland unless you are a Colombian citizen, and no Colombian bank will lend any money unless buyers have a credit history in Colombia or have an active Colombian bank account which shows off incomes on behalf of you. Note that opening a Colombian bank account requires to have a "passport" and "cedula de extranjeria" for foreigners that live in Colombia or "cedula" as it is the national identity card. If you do arrange local financing, with banks like Davivienda, Bancolombia, BBVA, Caja Social, Banco de Bogota o Colpatria, know that interest rates are 9,1% annual in Colombia (2013). Most foreigners do 100% cash transactions, and they resort to wiring funds directly to the real estate agency and / or seller from their bank abroad. Needless to say, be sure everything is airtight before handing anybody vast sums of money! You can get financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has 18 year experience in banking in Bogota and Medellin Colombia, lately as an important bank branch manager. 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 to make is that before any investment in real estate in Medellin Antioquia, come and search for advising and find professional advise that you can get for an affordable cost. We recommend you to have someone who represents you in the Colombian city you will make your investment, as Medellin as one of the best places for this purpose.
Medellin is emerging as an appealing overseas Real Estate investment heaven, with its pleasant climate, scenery; cultural attractions, friendly people and economic growth prospects that look very bright, since all three major rating agencies have raised Colombia's Credit Rating to Investment-Grade and Billionaire investor Sam Zell has selected Colombia for real-estate investments as the "next best" in Latin American market. House prices in Colombia rise strongly in last few years and expected to continue rising due to the economic growth prospects (4% annual expected for 2013).
How much does it cost to own real estate in Medellin Colombia? Here you have the most important expenses: 1). Government taxes (Predial Tax): Are based on real estate value appraisal. Compared to other countries like U.S.A, are significant lower in Colombia. For example, real estate valued at $260,000,000 pesos will cost approximately 140,000 pesos per month in taxes ($75 USD/month). These are paid tri-monthly. 2). Utility bills: Are based on the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). 3). Administration: Only for properties into an apartment block or gated community. These may incur an administration fee that covers maintenance and security costs. So, the total costs for owning real estate in Colombia, valued at $260,000,000 colombian pesos (145.000 USD), are approximately $600,000 pesos/month in 2013 ($290 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 located in Medellin, you can pick up the free magazines listing all the new constructions on offer, that contains second hand properties classifieds too, or consult the on line versions ( Ex: propiedades, informeinmobiliario, inmuebleguia, guiainmobiliario) for Medellin and Antioquia areas, These are available at real estate fairs, bank branches and hypermarkets like Exito.
Other way is to physically attend a real estate agency. There are no laws restricting foreigners from owning real estate in Colombia and it is possible to get revenue up to 1% per month for renting properties, mainly in VIS homes (properties valued up to $79.6 million pesos in 2013 or 40.000 USD).
Prices in Medellin Colombia can go from as little as $42 million pesos (21,000 USD on 2013) for a subsidized unit to over $380 million pesos ( 190,000 USD ) for a luxury home in the best zone, with $165 million pesos for one in a medium or upper medium class neighborhood (82.500 USD). If you buy a new VIS property, the unit will be unfinished, which means concrete walls and floors, and not even the most basic fixtures. For over VIS the unit will be finished normally, and may be garage included in the price. Parking spots are typically included in properties over $100 million pesos, and additional ones can cost 14 million pesos ($7000) or more. Finally, your closing costs can be around two and a half million ($1500 USD). In addition, there are some monthly community fees, which will probably run 65.000-300.000 pesos per month (32,5 USD to 150 USD a 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 for Medellin, such as El Colombiano (elcolombiano.com), El Mundo (elmundo.com), and qhubo, among others. On line Classifieds websites like propiedad-raiz.com are very good sources.
As we mentioned earlier, foreigners have the same rights as Colombians in purchasing properties, but financing could be a little trouble. It is not possible to finance a property located in Colombia through a bank in the homeland unless you are a Colombian citizen, and no Colombian bank will lend any money unless buyers have a credit history in Colombia or have an active Colombian bank account which shows off incomes on behalf of you. Note that opening a Colombian bank account requires to have a "passport" and "cedula de extranjeria" for foreigners that live in Colombia or "cedula" as it is the national identity card. If you do arrange local financing, with banks like Davivienda, Bancolombia, BBVA, Caja Social, Banco de Bogota o Colpatria, know that interest rates are 9,1% annual in Colombia (2013). Most foreigners do 100% cash transactions, and they resort to wiring funds directly to the real estate agency and / or seller from their bank abroad. Needless to say, be sure everything is airtight before handing anybody vast sums of money! You can get financial advising from Propiedad-Raiz.com on real estate investment and Andres Marquez Gamboa who has 18 year experience in banking in Bogota and Medellin Colombia, lately as an important bank branch manager. 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 to make is that before any investment in real estate in Medellin Antioquia, come and search for advising and find professional advise that you can get for an affordable cost. We recommend you to have someone who represents you in the Colombian city you will make your investment, as Medellin as one of the best places for this purpose.
Medellin is emerging as an appealing overseas Real Estate investment heaven, with its pleasant climate, scenery; cultural attractions, friendly people and economic growth prospects that look very bright, since all three major rating agencies have raised Colombia's Credit Rating to Investment-Grade and Billionaire investor Sam Zell has selected Colombia for real-estate investments as the "next best" in Latin American market. House prices in Colombia rise strongly in last few years and expected to continue rising due to the economic growth prospects (4% annual expected for 2013).
How much does it cost to own real estate in Medellin Colombia? Here you have the most important expenses: 1). Government taxes (Predial Tax): Are based on real estate value appraisal. Compared to other countries like U.S.A, are significant lower in Colombia. For example, real estate valued at $260,000,000 pesos will cost approximately 140,000 pesos per month in taxes ($75 USD/month). These are paid tri-monthly. 2). Utility bills: Are based on the 'strata' rating given to the property and can go from 1 (low end) to 6 (high end). 3). Administration: Only for properties into an apartment block or gated community. These may incur an administration fee that covers maintenance and security costs. So, the total costs for owning real estate in Colombia, valued at $260,000,000 colombian pesos (145.000 USD), are approximately $600,000 pesos/month in 2013 ($290 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.
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To really make a good real estate investment abroad you should consider having a look for apartments and houses for sell inMedellin Colombiaand for that, be sure to visit Propiedad-Raiz.com classifieds portal to find hundreds of listings related to properties available in the secondary market andColombian Real Estate today!
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