Nilesh Patel is a Writer, Technology Enthusiast, Social Media Lover & all around Digital Marketing Guy.
Medellin - The City of Eternal Spring
Medellin is slowly and steadily gaining its rightful place in the tourism world as it continues to attract more and more backpackers and adventurers each year. More and more foreign entrepreneurs, couples, and families have chosen this beautiful city of Colombia as their next holiday destination.
Furthermore, Medellin has become a city that will pop first on the list of retiring people. Medellin has emerged as a top retirement location because of its affordable cost of living, “eternal spring” climate, and it has top-notch healthcare systems.
The real estate of Colombia operates and deals differently than in any of the European or North American countries.
Why Choose Medellin As Your Next Destination For Real Estate Property?
Before starting the guide, let’s see why you should consider buying real estate property in Medellin:
- It can be an investment property that can produce monthly income for you.
- A place for you to live and avoid paying rent in the city.
- A perfect place to live temporarily and rent-out while not in the city.
- In order to get a visa for investing in real estate.
Don’t buy property for sale in Medellin Colombia just to get the visa as it is not affordable and worth it. It is recommended that only buy real estate in the city if you believe it is a good investment and meet your standard of living.
Choose to buy property in Medellin only if you deem it worthy.
Old Properties vs New Properties: Where You Should Go?
Medellin possesses a range of old buildings and apartments and some of them are well over 100 years old while some properties are built recently and just a few years old. Additionally, there are many buildings in the city that are under construction.
The age can be a deciding factor in pricing as the older the building less the rate per square meter as compared to new buildings and properties. Some older properties as work-of-art and you can even find some beautiful and mesmerizing Casas in Medellin.
But the drawback of old properties is that some of them may need extensive renovations and some of them won’t even have many amenities.
When it comes to newer properties; they are jam-packed with amenities and luxuries such as pools, gym, balconies, and modern designs. However, prices will be on the higher side as comfort is more as compared to the old ones.
The prices will also range from neighborhood to neighborhood. If you have a good budget and want to enjoy all the amenities and luxuries then you should go for new properties. If you are tight with your budget then you can adjust a little bit and opt for older properties and Casas.
What Is Promesa De Compraventa and What Is Included In It?
Now, you have decided what type of property you want and have made a verbal agreement on price and terms for the purchase of the property. It is time for your lawyer to get in the action and draw you a purchase agreement, dubbed as Promesa de Compraventa.
This is a binding contract where you state your intention to buy or sell the property at a given price and the seller states the intention to sell.
Contents present in Promesa de Compraventa:
What follows are several clauses present in the typical real estate purchase agreements in Colombia:
- Price and Possessions included: is parking, appliances, curtains, and storage is included? Also, the owner has the right to remove anything that is not a physical part of the apartment. Make sure what is included with the property.
- Anticipo: this is essentially a down payment to secure your property and it is usually set at 30 percent. Although, you can negotiate the percentage.
- Cláusula penal: this is a penalty clause if the buyer withdraws from the deal and eventually loses the down payment of 10 to 20 percent. If the seller withdraws then it is possible to sue him for a lien on the property for the penalty.
- Settling of mortgages: if it is not free of mortgages, loans, taxes, and administration fees then you can’t sell or transfer the property.
- Valor comercial y valor catastral: in almost all the Latin American countries, there is a huge difference between commercial values and declared values.
- Taxes, HOA fees, and rent amount: it depends on the purchase date, and taxes are paid yearly and prorated, while administration fees are paid monthly and prorated.
- Date of signing the notary: the Promesa de Compraventa will include a date, time, and location for the final deal to take place. It is where the Cheque de Gerencia issued by a bank or bank transfer will be exchanged and the title is signed over from the previous owner to the new owner.
Relocating and buying in Medellin, Colombia is not a thing to take lightly as you are moving to a new country where they might not understand your language. Choosing to invest in a foreign country can prove to be risky and rewarding at the same time. This guide will help you to get a good understanding of the real estate market of Medellin and acquire a property you can call your paradise.
© 2020 Nilesh Patel