If you are reading this, it probably means that you are looking to buy property in Colombia. Maybe you’ve visited the country once or twice, maybe you’re considering retirement there, or maybe you are simply curious as to why Colombia keeps making top positions on “the world´s best” rankings. Whatever it may be that interests you, here are 5 extremely good reasons why you should buy property in Colombia.
5 Reasons To Buy Property in Colombia
1) Colombia has had one of the most stable housing markets in Latin America for the last 10 years. According to the Colombian Central Bank, this is mainly the result of demand from within the country, given that foreigners are still only 1% of all buyers. Colombia’s market is truly emerging with a lot of momentum, all thanks to an increasingly younger, more educated and fast-growing middle class that needs housing and that can either afford or borrow it, making it a excellent reason to buy property in Colombia.
2) Colombian banks are extremely careful when lending. The legal minimum for down payments is 30%, and 10-15 year mortgage terms are the norm. There is a high likelihood that HELOCs are non-existent in Colombia, which means that Colombians generally don´t think of their houses as cash-providing machines. As the housing market continues to mature, mortgage authorizations should be bumped up to more than 25 years while the minimum down payments drop. This is an incredible opportunity for long-term price gains.
3) Mortgage interest rates can be high. At the tune of 11 or 13%, a buyer normally has a very limited budget for property buying, which keeps prices very stable and reasonable. Rates have decreased along with the cost at which Colombian banks borrow money, and this tendency is to be expected as Colombia continues to progress further. Lower rates should drive rising prices even further on the long term.
4) Double-digit rental yields are expected if there is good property management. If you can include income property in your portfolio, placing said property in Colombia should give you pretty good results.
5) All technical talk aside, Colombia is a great country to visit and move to. Problem is, most people, even seasoned travelers, haven’t really figured it out yet. Colombia has it all: Big modern cities and small colonial villages and towns, coasts on both the Pacific Ocean and the Caribbean, history, food, fantastic weather, lots of culture and great people. What else could you ask for?
What are you waiting for?
If you’re looking to invest in property or buy property in Colombia, feel free to contact us today.