5 Facts About REAL ESTATE in Medellin
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- čas přidán 30. 07. 2024
- In this video, I go over the 5 major facts that support buying real estate in Medellin is a good idea.
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Highlights
🏡 Favorable Price-to-Rent Ratio: The price-to-rent ratio in Medellin is low (16), making it economically sensible to buy property, especially for long-term visitors or residents.
📈 Long-Term Appreciation: Home prices in Medellin have increased by 37.9% in the last 5 years, driven by factors like population growth and GDP growth, offering a sound investment opportunity.
📊 City's Growth Potential: Medellin's population is projected to steadily increase, with a rising GDP per capita and expected inflation, indicating a positive outlook for the real estate market.
💰 Short-Term Rental Income: Short-term rentals in Medellin can yield significant income, with averages of $800 per month and an overall city occupancy rate of 68%, presenting lucrative opportunities.
🌴 Medellin Lifestyle: The city boasts a low cost of living, pleasant weather, and a welcoming atmosphere, making it an ideal location for remote work and a balanced lifestyle.
🔒 Improvements in Safety: Despite challenges in 2023, the new mayor is implementing measures to enhance safety, including increased surveillance, police force expansion, and a new prison, fostering a safer environment and potential tourism growth.
#medellin #colombia #realestate #medellincolombia #medellinrealestate
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I will hit the thumbs up because your a good dude. I enjoy your videos
I appreciate that 💪
Colombian 10 year government bonds are yielding 9.6% which is higher than your return and also way more liquid
That's appreciation, my yeild on rental income is about 20%. Appreciation is nice, but it's COP, so not really excited about it.
Love your content. While I'm partial to the Cali area, many of the same things seem to apply.
Thank you 🙏
Ill be moving to Cali in a few weeks, glad to see the new mayor is cleaning it up a bit.
@@thenifty5019 I love Cali and the surrounding areas. There are some pretty sketchy places there, but if you speak the language and don't go places alone, you'll probably be fine.
@@islandtime1402 Yeah, regardless whether Im in the LA, Dallas, NYC, Colombia, Spain, France, etc I just personally don't go to sketchy places in general unless I have to or for volunteer purposes lol
Great videos Andrew, God bless you
Great info 👍🏼, appreciate your content.
you have very good informative content- thank you so much.
Great information Andrew, thank you!!
My pleasure!
Back in 2007 my buddy bought a little 3 bedroom apartment in envigado across from la Frontera for 60.000 Dollars. He sold it 5 years later for 120.000 Dollars.
All my other rich travel buddies were scared to buy , bc they thought the housing market would crash like what happened in Miami.
I mentioned Medellin to my real estate friend in Houston , back 10 years ago and she said , Right now Medellin was one of hottest real estate markets in the world.
I been have been coming here for 20 years to visit friends , and now I have saved enough money to buy a place. I prefer Pablado, or better yet in Las Palmas bc of the view.
Im here right now on vacation.
Let me tell you something.
As soon as I walked through the airport , workers told me welcome with a big smile, and its been that way at this hotel and most every place else. Its rare to see cashiers smile or make eye contact in the United Snakes of America.
So. Now you know why I keep coming back here 3 times a year.
That’s awesome
But what is being done to alleviate the extreme poverty? I think no amount of prisons or police will make a difference until Colombia builds a middle class.
There’s quite a lot being done. Just google it. Regardless it’s still not enough. Unfortunately, we won’t see Colombia out of poverty in our lifetimes.
i think we as americans tend to exaggerate the state of poverty. we are used to huge houses with only one generation of family inside and huge cars for a mom and her two kids. most of the people are middle class according to normal world standards. food to eat, roof over the head, transportation and healthcare. also they are working to expand the credit system so people can buy their own place.
Love your channel. Always very informative. I just have to question the investment side of this.
You stated you made about a 35% return on your apartment you used as an example in the video over the last 5 years. Though that's a decent return, I would say for me it's just not enough.
Correct me if I'm wrong, but that equates to about a 7% return annually over those 5 years. In comparison the S&P averages about 10% historically. Plus if you want to subtract yearly inflation, plus all the extra work/time you have to do to manage the apartment, or if you're like me and not in Colombia and most likely have to spend 10 - 20% agency fees, all of this drops the return significantly.
I just don't see it being worth it, but the argument for real estate investment is that it is stable and one can basically rest assured regardless of any financial disaster you're going to get your rent check monthly. Of course there is the risk with any financial crisis, your occupancy rate could drop significantly as tourists can no longer afford to travel. And what about the risk of a sudden change to the laws allowing for Air BnB's?
In closing you've done very well for yourself for someone who was deported. Congratulations.
Yeah the return has varied. You also have to factor in the $1500 per month of net profit I’ve made at an 85% occupancy since 2019. Regardless as I tell anyone that wants to buy here the biggest investment really is in lifestyle. My money does well on the S&P, crypto, businesses and other investments. I know I’m going to be here for the rest of my life so I don’t mind holding my money in a few properties.
With the latest and ongoing crime against tourists in medellin I don’t think many foreigners are interested in purchasing property down there…there are so many other central/South American cities that are much safer and just as cheap as Medellin for real estate
Yeah, that's why I say in the video that if we had a record number of tourists coming to Medellin in the last 2 years, imagine how many more will come once it gets safer. By then, it might be too late for many.
I hope,, that annual increase of property value,,, does not end up,, like what happened in USA.. a BALLOON market that exploded . Also,,when you sell a property in Colombia.. you have to take in consideration.. the EXCHANGE rate between the US $ and the Colombian Peso. If when you decide to sell your property in pesos,,, if the US $ is higher than when you bought the property,,, you will loose some money
If you’re referring to the US market crash in 2007, something like that won’t happen here. As I explained in the video, more than 90% of properties are owned outright with no mortgage in Colombia. So there’s no hyperinflation. It’s just supply and demand at the moment. If anything, rents on airbnb will adjust over time, again because of supply and demand. As for selling a property, I always tell people that once it’s in pesos, keep it in pesos. You can roll over your money into a Colombian CD at 10-15%. This video is for those that know they’re going to be in Colombia for 10-16 years.
Hello, I have a question. If you receive a VA Pension and want to live in Medellin and are interested in buying a home rather than renting one.
Will the colombian banks consider my military Pension as income to give me a home loan to purchase that property? Thank you.
Yes, they can, but you have to build up your credit here. They have a point system for credit similar to the FICO score in the US.
@@MedellinBuzzThank you for the response. Any Advice on the better banks to work with for these type of things?
I don't agree with you as a foreigner i feel its better to rent 1st because you get a mint apartment for 500$ a month 2nd the visa is only for one year for someone who buys a property so your never 100% sure your visa will be renewed 3rd it's impossible to trust lawyers down here you being scammed is highly likely especially when they have 5 owners listed to a property and if only four show up to the closing the 5th can come out of the woodworks and take thag property from you at any time. A foreigner never has full legal protection in Colombia like in the USA. When you rent any problems come up you can simply leave at anytime
There’s so much wrong here I don’t even know where to start, lol. Regardless, the video is for those that know they’re going to be frequenting or living in Medellin for 10+ years. FYI property owner visa is valid 1-3 years then you can apply for residency. I appreciate your comment and your opinion nonetheless. 😊
@@MedellinBuzz
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i see other youtubers complaining about rent doubling. there is risk either way, depends on what side of the bet you want to take.