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opinions need for property investment in Bogota

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ste
  1/17/2018 06:58 EST

Hi, I'm planning to invest in an apartment in Bogota or now before moving there in person. Have been checking with some real estate agents. However, the prices which have been quoted seems high and most of the agents are not licensed. Does all the licensed real estate agent/ broker there should have a license or legal ID no. to be provided? 

Also, how much roughly per sqm for a studio/ 1 bedroom unit for sale in city downtown areas? 
How much will be the monthly rent for this size as well in case if it's too expensive, then might think to rent for a unit at the beginning when I will be there.

As heard that there are high income tax there for non resident foreign buyer like 33%, is that true? 
In the investment side, after using the yearly rent income divide the property cost and deducting the 33% yearly income tax and the property tax, how much in % should be the Net yield? Like 6% or so? Any suggestion in Bogota? What are the monthly and yearly expenses which the property owner needs to pay for?

Also if there's any honest, reputable real estate company/ agent who can be introduced? Also, for the real estate attorney, any good one to recommend too in the city? 

Thanks much!!

LaPiranha
  1/17/2018 10:38 EST

Hi. Firstly, if you have not arrived here yet, or even if you have arrived, you will not know all the areas yet, so how can you say that prices seem high? In Bogota, or in any Latin American city/country, you will find the rich and poor live side by side, and even in the wealthier areas like Chico, Rosales etc, you will find a very wide variation on prices. So without knowing the area and the context in which the individual property is situated, no-one can answer the question of whether its expensive or cheap.

As regards rental income, you can usually expect to earn 0.5% of your capital invested each month, which is about 6% annually. But this is gross income. You will then need to allow for annual property tax, and if its in a conjunto, there will be monthly administration fees to cover security, cleaning, garbage collection, maintenance of communal areas, etc. as well as your normal utilities and services. Again, no-one can tell you what tax you'll be paying, whether its 33% or nothing, or somewhere in between, as none of us know your own personal financial situation, asset values, income, and worldwide wealth or properties too.

All these running costs will vary too, as there is a system of "estratas" whereby all the taxes and charges are scaled according to the level of the estrata. The poorer areas from estrata 1, and the wealthiest areas in estrata 6. Usually the mid point is estrata 3, and any property below this level will have their bills subsidised by the higher estratas, and of course, estrata 6 will pay the highest level, to provide the subsidies to poorer families. I would suggest that its always good to consider properties in estrata 4, as these are generally situated in good areas, upper middle class, safer, cleaner, greener, and don't pay very much in loaded subsidies.. Areas such as Mazuren and Cedritos are in such estrata, and pollution is far less than what you'll get in the more central and downtown areas.

I'm not going to talk about agencies and lawyers, as I think many of them are the scum of the earth, useless, dishonest, and they don't work for your interests, but only for their own, and they charge you inflated fees whilst you get little or no loyalty or protection.

Hope this helps.

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cccmedia
  1/17/2018 15:11 EST

Boy is this guy on the wrong track.

First, you don't buy or build on property in your first year in a South American country -- let alone try to buy BEFORE you get here.

Second, you probably don't want to live in El Centro, the most polluted part of the city, if that's what you mean by "downtown."

Third, a newly-arriving Gringo attempting to buy and manage rental property without being fluent in the language and knowing the score .. is setting up scenarios for disaster.

How easy do you think it is to re-sell property in South America once you decide you want to move on?

cccmedia in Depto. de Nariño

SkyMan
  1/23/2018 11:49 EST

ccc...great point ! This guy needs to "land here" first & rent month to month...and "if" he likes it here...lease for a year...to allow proper time for searching out the right area for him,

Anyone who buys property in Latin America or anywhere,,,"sight unseen".....has forgotten the most important phrase in real estate, which is "caveat emptor"(buyer beware),

Even after living in a foreign country for a while...do your Due Diligence big time, prior to signing on the dotted line, to purchase. Buena Suerte ! Tranquilo.

joemindwarp
  1/23/2018 14:11 EST

I would recommend travelling through Colombia to decide where you want to buy and get a real estate lawyer to advise on residency requirements, never be an absentee real estate buyer let alone in Colombia! Medellin would be my ideal real estate investment site, airbnb rentals are very profitable at this time but you never know.

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