Medellin is the second-largest city in Colombia. Located in the Abura Valley, Medellin is surrounded by no other cities. Traditionally, the city is known as the ‘City of the Eternal Spring’. Now, let’s 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.
The city is also home to ancient monuments and historic architecture besides the excellent nightlife, which collectively makes Medellin real estate a lucrative prospect.
Compared to the cost of living and property rates in other major cosmopolitan cities globally, Medellin is relatively less expensive. The health care facility is excellent, and many people worldwide 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.
However, you need to keep some things in mind before you enter the Medellin real estate market.
Things to Avoid When Buying a Property in Medellin Real Estate Sector:
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 you may not learn Spanish (99.5% of Colombians speak Spanish). It means most of the real estate agents in Medellin don’t know English, which is a great challenge for you. So, the chances of mistakes increased when buying real estate in Medellin.
Here, we have gathered some of the common mistakes foreigners make when showing interest in the Colombian 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 interested in investing in the Medellin real estate market and purchase 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 also involve some risks.
Not Using Bilingual Real Estate Attorney
When buying a property in Medellin, it is imperative to take the help of an experienced bilingual real estate attorney who knows Spanish and English. The attorney must have an in-depth understanding of Colombian real estate law and be capable of checking necessary backgrounds.
The attorney will check the property’s history and check the status of municipal property tax. He/she will also verify that the taxes related to the increment of the property’s value is paid. In addition to this, the attorney will also help you ensure that you use funds registered with the Central Bank of Colombia for buying a property.
Working with Non-experienced Local Real Estate Agent
Several real estate agents have never worked with foreigners to buy or sell property deals in the Medellin real estate sector. 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 crucial 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 taxes, investment visas, 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 issues.
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 the inability to find a comparable property and the market prices.
So, it becomes vital for you to advise an expert on the actual value of the property you are going to buy or sell. Also, the experienced person knows the factors that affect the property’s current price and future resale value.
Not Having a Local Bank Account
Many foreigners 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 discuss all requirements and other details with the real estate agent. As a result, an agent may find it challenging 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 needs, and you can choose the one that you like the most.
The Medellin real estate sector is booming with the injection of foreign capital. People who want to move to this beautiful city should do their homework before buying a property. Follow this guide and avoid the mistakes mentioned above and find the best property in Medellin real estate.