Colombia is no longer hidden now. It is a country that is now being known for its dynamic destinations, delicious cuisines, and highly inspiring history. The country is greatly loved by travelers and backpackers, but now it has also been grabbing the attention of real estate investors from different corners of the world.
The thriving economy, increasing growth in tourism as well as significant real estate growth have contributed a lot to the supreme global investment opportunities at different locations in the country.
Whether you have planned to make an investment in the Colombia real estate market or are curious to know everything about investing in this vibrant country, this guide will help you greatly.
Why foreign investors choose Colombia?
It is a very common question when someone is planning or thinking of investing in the Colombia real estate market due to one or another reason. Many people have answered greatly from an investment perspective and gave these few reasons.
Economic growth
Since 2002, Colombia has been gaining historic economic growth. If you compare the last few years of the country, you will see continual growth in the country?s economy as a result of oil exports, stable consumer consumption, and expansion of the middle class, an expansion of exports, and many others.
Thriving real estate market
Whether we talk about Medellin real estate or other major cities of Colombia, the thriving real estate market of the country reflects greatly on the broader economic growth. Over the last many years, Medellin has enjoyed incredible growth in terms of housing prices. Every year, an average of 7-8% rise is expected in the neighborhoods of the city.
Not just Medellin, other cities have also seen tremendous growth in the real estate market. Depending on the location, the investors who rent out their properties can assume to enjoy the annual returns of more than 13%. As compared to travelers and backpackers, visitors to Colombia for business purposes show more interest in quality, short-term rentals with all modern facilities.
Diversification
Currency, as well as geography variations, are another reason that attracts investors to invest in Colombia real estate. On one side, where the world is continuing to experience dramatic growth in globalization and interconnectivity, it is really great to think of investing internationally. The wildcard for real estate market growth in Colombia is the strength of the Colombian peso vs. the US dollar.
High-quality lifestyle
Colombia has made an inspiring transformation and has now become a country with culture-packed cities, varied landscapes, and marvelous economic and social growth. The current strength of peso vs. dollar attracts foreign investors to choose Colombia to live in or to travel with the aim to enjoy the high-quality comforts at a highly affordable cost. Many senior citizens find Colombia a quite comfortable place to live than in the US.
Visa eligibility
Many foreign investors choose to invest in Medellin real estate or other places in Colombia so that they can obtain a residency visa and can become an individual with two passports. Also, if you make an investment of 650 times the minimum monthly salary in Colombia, you will be eligible for a resident visa. Later, this visa can be extended for up to 5 years. After getting a residency, an investor may become eligible for applying for Colombian citizenship.
How to invest in Colombian real estate?
Are you interested in investing in the Colombian real estate market? If yes, then it is important to be aware of a few things before buying a property in Colombia. To know about the process, please go through these steps.
1.??Travel to Colombia
Whether you want to buy a property in Colombia today or you are planning to make an investment, it is important to visit different parts of the country and find the one that matches your expectations.
2.? Choose a city
Choose a city that has impressed you the most and which you think offers the best investment opportunity. The cities like Medellin, Cali, Bogota, and Cartagena offer some promising opportunities.
After exploring the benefits and drawbacks of the city, you will be able to make a decision about where you want to live. Among all, Medellin real estate is most preferred by the investors due to its number of popular neighborhoods offering a lively place to live with all modern facilities and amenities.
4.???Hire a bilingual real estate agent and attorney
It is very important to find a reliable and bilingual real estate agent and attorney who are experienced with the local real estate market and also has in-depth knowledge of the Colombian real estate regulations. They will help you to make the entire process easier and hassle-free.
5.??Make an offer
With the help of an agent and attorney, you will be able to make an offer on the desired property. The agreement will be made consisting of the price as well as the terms of the purchase agreement. Other facilities can also be negotiated in addition to the closing costs.
6.???Title due diligence
After the acceptance of the initial offer, it is important to work with an attorney to make sure that the title of the property is clean. It is required to avoid any kind of legal issue later. The attorney will help you to collect and review the documents for due diligence.
7. Sign a Promesa de Compraventa
Once you finalize to proceed with the purchase, the attorney will draft a sell-purchase agreement. It will include the final sales price and other important terms. At the time of signing this agreement, you may be required to give a down payment. Typically, the down payment is around 10% of the sales price.
8.?Transfer money
After this, you have to transfer money from your foreign bank account to a Colombian brokerage account. You must know that registering the funds should be done correctly.
9.??Sign the Escritura p?blica
After this, the government may take around one month or even longer to transfer the ownership. After one month, you have to sign the new deed to officially become a new owner of the property.
10. Obtain a visa
If you want to remain in Colombia, you can apply for a residence visa.
Final Words
Whether you are thinking of making an investment in Medellin real estate or in other cities in Colombia, it is recommended to get in touch with the real estate expert to get detailed information about the entire procedure. He/she will help you to become the owner of your dream home in Colombia.
