jordvn
10/19/2019 18:47 EST
I am looking for some insights on moving money from a US bank to a Colombian bank in Cartagena to purchase real estate. I read on her about negotiating the rate. Does anyone have any recent experience on this matter and/or any advice to help with the process (eg best bank to move money, how to get the best rate, etc.). Also if you have any personal experience with buying property I would be happy to read. Thanks to all.
Thank you in advance!
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peterv123
10/19/2019 22:11 EST
I don't think I'd worry too much about the small stuff. I doubt negotiating will gain you much. What will gain you much is the current exchange rate from dollars to pesos. It's hardly ever been better.
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Mikepcon
10/19/2019 23:49 EST
Hi We recently bought an apartment in Medellin so have a bit of experience. We found acciones y valores gave us a far better transfer rate than the banks. The rate was only about 1%. I think the banks charge nearer to 3% but I believe it is negotiable with big amounts. Acciones y valores were not very helpful with the paperwork though and kept insisting on me using a rather expensive lawyer so we actually ended up doing the paperwork ourselves - saved a few thousand dollars. I have been told that another broker (sorry I forget the name) is really good and very helpful with all the paperwork. I will post the name when I remember it. Feel free to pm me if you have any questions
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SkyMan
10/20/2019 11:26 EST
Let's all just enjoy the current exchange rate.....as long as it lasts...it is sweet ! Buena Suerte !
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jordvn
10/20/2019 12:02 EST
I have never heard of acciones y valores. What is it?
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jordvn
10/20/2019 12:14 EST
I was just informed about the banco de republica and form 4. Has anyone used the central bank?
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Blenheim
10/20/2019 13:39 EST
A resident real estate investment visa now i think is around 160,000 USD. ??? Not sure of the rules these days--(the rules are more confusing as everything else in Colombia)
I do know years ago it was 200,000 USD----This enabled one to immediately obtain permanent residency and Cedula--
One then went through the Banco de Republica, upon which then received a form f4--this form certified where the money came from--
if one did not go through the Banco de Republica and obtained an f4--just moved money to Colombia for example--then later if one sold out and tried to move the investment money back out of Colombia, upon sale of the property-one would then owe tax on the investment to Colombia. With the F4 this precluded this--i believe it is still the case today with the new visas--
Most people do not have this amount of money to invest in real estate in Colombia so maybe a mute point--Those who do might further inquire on the subject.
Another confusing issue is an American married to a Colombian living in Colombia with Colombia assets--though a community property country, it is much more complicated than community property division with family members than in the states. here it also has to do with a Colombians mother and father family etc
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Mikepcon
10/20/2019 15:07 EST
Form 4 is pretty easy to complete tbh, but my lawyer wanted about $800 to do it for me. Its pretty simple and has to be filled out no matter which bank or broker you use. Acciones y valores is a broker. They generally deal with investments, but also do money transfers
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Mikepcon
10/20/2019 15:07 EST
Form 4 is pretty easy to complete tbh, but my lawyer wanted about $800 to do it for me. Its pretty simple and has to be filled out no matter which bank or broker you use. Acciones y valores is a broker. They generally deal with investments, but also do money transfers
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peterv123
10/20/2019 15:52 EST
I used and would recommend Alianza Valores. I felt the fees were reasonable and they were trustworthy. I would highly recommend using an english speaking lawyer. Cost me about $600. He took care of filling out the proper forms and making sure all the tramites were correct. Can't remember if it was 4 or 5. Once you wire the money to them into your account you have 7 days to convert the dollars to pesos, at the rate existing the day you do it.
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peterv123
10/20/2019 15:59 EST
Like anything here. Get your ducks in a row before you make your purchase. Nothing here happens overnight. Could take you a few weeks or a month to set up things before you pull the trigger.
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Mikepcon
10/20/2019 16:39 EST
That is the other company - Alianza Valores. Didn't use them but I have only heard good things.
Form 4 if you are not considered a tax resident. Form 5 if you are (if you spent more than half of a rolling year here)
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jordvn
10/20/2019 20:46 EST
This seems like it is going to be a major pain in the ass. The apartments I am looking at are less than $160k, so I guess the Investment Visa might be out; however, I've heard you can pull some strings to get one without meeting all of the criteria.
I guess I'll just take it one step/form at a time and not rush. I buy, fix, and sell houses in the US about 1-2 month on average sometimes 3-4 with just me and my Mexican amigos doing all of the work, buying materials, pulling permits, etc. No real estate agents, no inspectors, no banks, just title search/insurance and cash. I will def have to put my impatience in check on this clusterfck, which is why I want to start with a small investment. I know now is the time to pull the trigger if I am going to ever do it so Buena fcking Suerte para mi
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SkyMan
10/21/2019 12:27 EST
Few real estate transactions in Colombia close quickly...so be ready for delays, etc. Buena Suerte !
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jordvn
10/21/2019 18:35 EST
USD to 3500 COP support. Let's go!
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mikedanbury
10/24/2019 10:23 EST
I'm surprised you say real estate transactions take a long time. When I bought my apartment it was like 2 to 3 weeks. My wife's uncle recently bought a finca and it took like 2 weeks. Granted both transactions were in cash but I assume most if not all gringos are paying cash. Also I just sent $10,000 over and the bank offered me 3,320 pesos/dollar. They said I should negotiate and we did. I ended up getting 3405 pesos/dollar so I would definitely look in to negotiating.
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