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Medellin is the second-largest city in Colombia. Located in the Aburra Valley, Medellin is surrounded by none other cities. Traditionally, the city is known as the ‘City of the Eternal Spring’. Now, if we talk about the Medellin real estate market, it is found that condominiums and homes are cheaper than in Costa Rica, the Caribbean, and various parts of South America.
As compared to the cost of living and property rates in other major cosmopolitan cities in the world, Medellin is quite less expensive. The health care facility is excellent and many people from around the world choose this city for plastic surgery and dental jobs. Due to the affordable healthcare services in Medellin, the city has now become a preferred retirement home for many people.
Real Estate Facts in Medellin
Real estate prices in Medellin are rising steadily at a range of 12%-15% for the last 5-6 years. When it comes to the Medellin Real Estate market, it is very active and gives great investment opportunities to locals and foreigners. The main advantage of living in this city is its location. The stability in the economy, growing expats in the city, and a great investment of foreigners in Medellin has made this place a good zone for investing and living both.
El Poblado, Laureles y Belen, Envigado, and Downtown are very demanding for living. With a population of more than 3,710,000, clean water, awesome weather, 32 universities, expanding tourism, etc. Medellin has the least expensive cost per sq. meter for real estate than any other cosmopolitan city around the world.
You can buy an apartment in the city center at an average cost of Col$ 2,500,000 – Col$ 5,500,000 (per square meter). The apartment outside the center can cost you ranging from Col$ 3,500,000 – Col$ 5,500,000 (per square meter).
Things to Avoid When Buying a Property in Medellin
If you are a foreigner and want to buy a property in Medellin, then working with real estate agents can be a little challenging for you. Due to some common mistakes, while looking through the Medellin real estate market, you as a foreigner make the process more stressful.
Being interested in buying a property in Medellin, you must know that the Colombian real estate market works differently than the USA and other countries’ real estate markets. Being a foreigner, obviously may not know Spanish (99.5% of Colombians speak Spanish). It means most of the real estate agents in Medellin don’t know English, which is really a great challenging thing for you. So, the chances of mistakes increased when buying real estate in Medellin.
Here, we have gathered some of the common mistakes that foreigners make when showing interest in the Colombia real estate market.
Buying Property Too Quickly
As per the survey, it has been found that some foreigners, who are interested in living in Medellin or other Colombian cities, buy property too fast. Many foreigners are found to show interest in investing in the Medellin real estate market and buy property within 1-2 months after arriving in the city.
But it is always recommended to take your time in the investment and give a trial of living in the city. Also, you must spend more time researching the market and must compare what is available and what would be good for you. Many foreigners fail to do so. Always keep in mind that investment in a foreign country can be an exciting experience for you, but it may involve some risks as well.
Not Using Bilingual Real Estate Attorney
When buying a property in Medellin, it is very important to take the help of an experienced bilingual real estate attorney who knows both Spanish and English. The attorney must have an in-depth understanding of Colombian real estate law and must be capable of checking other backgrounds as well.
The attorney will check the history of the property and will also check the status of municipal property tax. He/she will also verify that if the taxes related to the increment of the property’s value is paid. In addition to this, the attorney will also help you to ensure that for buying a property you use funds registered with the Central Bank of Colombia.
Working With Non-Experienced Local Real Estate Agent
There are a number of real estate agents who have never worked with foreigners for any kind of buying or selling property deal in Medellin. Also, many local real estate agents do not speak English.
So, it is recommended to work with a real estate agent who speaks both Spanish and English. He/she must also have experience working with foreigners. Many foreigners make this common mistake and usually end up with a stressful experience investing in Medellin real estate.
Not Registering Funds With Central Bank with Colombia
If you are planning to buy a property in Medellin, it is very important to make your funds registered with the Central Bank of Colombia. Many foreigners ignore this step and end up with one or another kind of trouble. Form 4 is used for this process. Being an investor, you must follow the process of registering your funds with the said bank. Otherwise, you will end up with problems related to taxes, investment visa, and deportation of money in the future.
Due to this reason, you must also hire an experienced real estate attorney who knows all required processes and you will not run into any issue.
Not Giving Importance To True Value of a Property
Do you know that Colombia does not have MLS (Multiple Listing Service)? It means, buying or selling a property without MLS can be a challenging process, because of inability to find a comparable property as well as the market prices.
So, it becomes important for you to take the advice of an expert on the true value of the property you are going to buy or sell. Also, the experienced person knows the factors that affect the current price and future resale value of the property.
Not Having a Local Bank Account
There are many foreigners who start looking for the desired property and finalize the one without having a local bank account. When negotiating the price, many deals fall through because you don’t have the required account.
For this, you must look for a bank that handles foreign investment professionally and must have English speaking staff for your convenience.
Not Explaining Buying Needs in Detail to Real Estate Agent
No matter what your requirements are or what budget you have, many foreigners do not give importance to discuss all requirements and other details with the real estate agent. As a result of this, an agent may find it difficult to get to you with the right property you are looking for. Insufficient requirements will waste more time looking for your property.
You must provide all requirements to the agent so that he/she can find the properties that fit your requirements and you can choose the one that you like the most.
Showing interest in the Medellin real estate market is a great choice for foreigners and buying a property in Medellin can be your best decision ever in terms of investment, especially when you are planning to relocate to Medellin.
If you are buying a property in Medellin, it is very important to understand the steps and whole process of the real estate market so that you can make your investment experience exciting, rewarding and stress-free.
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