We had the opportunity to interview Juan Camilo Villegas on our recent trip to Medellín, Colombia.
Juan is an experienced real estate agent and shared some valuable information about buying real estate in Colombia, the unique process, and the essential steps for foreigners looking to invest in the country.
In this blog post, we summarize the main points of our conversation with Juan to help you successfully navigate the Colombian real estate market.
Understanding the Colombian Real Estate Process
The Colombian real estate market operates differently from other countries. There is no MLS and no real estate agent licensing, which means anyone can work as a real estate agent. That makes it even more important that you work with an experienced professional like Juan.
Negotiations can be lengthy, and the transaction process can take anywhere from one to three months.
Watch Our Interview w/ Juan About Buying Property in Colombia
Tips for Foreigners Buying Property in Colombia
Here are a few important tips that Juan shared about buying a home in Colombia:
- Rent before buying: Juan recommends that foreigners rent properties in various neighborhoods to get a feel for the area before committing to a purchase.
- Open a brokerage account: This is the first step for entering the Colombian financial system and will help keep track of your transactions.
- Work with a local lawyer: A lawyer will help you legally bring your money into the country, register your property, and perform due diligence on the property.
- Secure a permanent residency visa: If you plan to stay in Colombia for an extended period, you will need to apply for a permanent residency permit.
Homeowners Insurance and Earthquake Safety
Colombia offers homeowners insurance, but it is not yet a widespread practice. Juan recommends purchasing insurance for protection against theft and damages.
Medellin is not prone to earthquakes, but landslides can occur in some areas.
Construction and Building Codes
Colombian construction must adhere to strict building codes that ensure safety and earthquake resistance. Codes are updated regularly, and new constructions must meet higher safety standards.
Homeowners Association (HOA) Dues
In Colombia, HOA dues are called “administration fees.” They cover expenses related to security, common areas, and property management.
On average, the cost is 90 cents per square meter or 12 cents per square foot.
Buying real estate in Colombia can be a complex process, but working with an experienced agent like Juan Camilo Villegas can help ensure a smooth transaction.
By understanding the local market and customs, foreigners can successfully invest in Colombian real estate and enjoy the beautiful country for years to come.
Check out this article next: Medellín Colombia Real Estate Tour: 4 Amazing Properties.
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