Four Days On In Medellin
Aug. 15, 2010, Medellin, Colombia: Medellin, Colombia, is a safe, peaceful, beautiful city that boasts a temperate climate year-round and screaming real estate bargains.
AND: Exotic And Cheap--What's Not To Love?...7 Things To Know Before Making Your Move To Belize...The World's Top 10 Overseas Retirement Havens...How To Get A Second Passport (And Why You'd Want One In The First Place)...
PLUS Lief Simon On: Five Things To Know Before You Rent Overseas...
Congratulations, Susanna Perkins! You're the winner of last week's Facebook Fun Challenge!
You've won US$50 worth of Live and Invest Overseas Dollars, good toward any purchase with us at any time. These Live and Invest Overseas Dollars never expire!
And we're going to give away more of them this week. Next Facebook Fun Challenge starts this Wednesday. Watch this space for details how to play and how to win!
Dear Overseas Opportunity Letter Reader,
"This is your first trip to Colombia, and you've chosen to focus on Medellin? That'll save you a lot of time. This is the place to be in this country right now..."
So remarked one of the real estate agents we met with last week. Lief and I are still getting our bearings here in this city...and we haven't seen any other cities in Colombia (yet)...but, so far, I'm inclined to think the guy knew whereof he spoke. Medellin is impressing me much more than I expected.
After four days in town, here are my initial observations:
The Euro-undertones are strong, from the way the women dress to the way people greet you in passing on the street. Wandering around Medellin is more reminiscent of walking around Paris than Panama City (my two most ready points of comparison).
In other words, as Lief remarked as we exited the international airport upon arrival, "Welcome to South America." The differences between this continent and the one just to the north of us right now are striking.
Medellin is a miniature version of Buenos Aires, Argentina (which is one of my favorite cities in the world), from its annual International Tango Festival to its Botero Museum.
Medellin is more manageable than B.A., and cleaner. Otherwise, the neighborhoods, the parks, the downtown shopping areas, the antique shops, the arts and literary history...these things all remind me of that very European city way down at the bottom of this continent.
Here are other observations after having spent four days in Medellin:
But isn't Medellin an unsafe place for a couple of Americans like us to be walking around unchaperoned?
Au contraire. We've not felt unsafe anywhere we've wandered. Our impression is that this, in fact, is a very safe place to be. The drug wars that waged here ended some 20 years ago, and, today, as far as we can tell, Medellin is at peace.
The looks we're drawing aren't confrontational. They're curious. The good folks of Medellin are staring at us, yes. But, once we look back at them and smile, they smile broadly in return.
And they've been going out of their way to offer their assistance. If we pause, in the Metro, on a street corner, in a shop, because we're uncertain which direction to go next, invariably someone approaches to offer to help us find our way.
What cost Medellin? Details on my initial impressions regarding cost of living in this delightful city that, thanks to its elevated situation, boasts a temperate climate year-round, tomorrow.
Meantime, it's worth noting that the cost of real estate here can be a screaming bargain.
Again, more tomorrow.
Kathleen Peddicord
P.S. What else this week?
When making a move to another country, we recommend that you rent before you buy. This gives you the opportunity to try the place on for size and to confirm or reconsider where you want to live.
Kathleen and I have done this for each of our international moves, and, in each case, we've been very glad we did. In Ireland, for example, renting first saved us from making the big mistake of settling in Waterford City. It took only a few months living there to realize that where we really wanted to be was out in the country.
We've been renting here in Panama, as well, since our move from Paris two years ago. In fact, we've just moved into our third rental in that time. This experience is reminding us that, just as buyer should beware in a new market, so should renter.
Not all properties are created equal, and neither are all property owners or property management companies.
Here are five caveats, therefore, to keep in mind when renting long-term in a foreign country:
Overseas Rental Caveat #1:
Think twice before renting new construction or just-completed renovation.
You don't want to be the first person living in a place. It makes you a guinea pig, forced to work out the kinks.
This was our very frustrating experience in the house we just moved from in Casco Viejo. The owner hadn't done a punch list after the extensive renovation he'd undertaken. We were left, therefore, to discover a long list of things that didn't work and that hadn't been properly addressed (including a very leaky roof, no hot water in the guest bathroom, and bedroom doors that couldn't be closed because they bumped into the ceiling fans).
We discovered too late that the owner didn't seem to care whether anything worked or not, leaving us to deal with his incompetent and unresponsive property manager. Thus our most recent relocation.
Overseas Rental Caveat #2:
Investigate the reputation of the management company responsible for the property.
Ask around. If the feedback is all negative, consider finding another place to rent.
This also applies to building management in the case of a high-rise apartment building. In Panama, most new buildings come with loads of amenities (swimming pools, grill areas, children's playrooms, basketball courts, tennis courts, even putt-putt golf). However, if the building administration isn't maintaining the amenities, and you therefore can't use them, what's the point of paying for them (as you will, in your monthly building fees)?
Overseas Rental Caveat #3:
Understand what documents will you need to rent.
Depending on where you're moving, the answer could be none. On the other hand, in some markets (France, for example), you're going to have to prepare a complete dossier of paperwork (including, for example, recent bank statements, pay stubs, reference letters, even, sometimes, letters of guaranty) to submit for approval before you'll be able to sign a lease.
In Panama, you generally don't need anything to rent a place to live. Renting in this country is a straightforward process. You find a place, sign a lease, pay your deposit, and move in.
In Paris, on the other hand, again, you'll need a complete dossier--unless you rent on the black market. Renting long term on the black market can be more expensive, but it overcomes the dossier hurdle, which, depending on your situation, you may not be able to meet.
Overseas Rental Caveat #4:
Understand what deposit will you be required to make.
The general rule is that you'll have to pay the first month's rent plus a deposit equal to one month's rent. Sometimes, the deposit can be 1 ½ or two month's rent.
Whatever the deposit, don't expect to see it again. Friends in Paris joke that the best way to think about any security deposit you make in that market is to amortize it over the lifetime of your rental. In other words, consider it part of the rent. (I'm speaking about long-term rentals, not short-term tourist stays.)
In Panama, if your landlord is following the law, your deposit will be posted with MIVI (Panama's department of housing). MIVI holds the funds and then releases it at the end of the rental term. If something is to be deducted for damages, the landlord informs MIVI, and the renter (you) are given a chance to sign off on the amount to be deducted for repairs.
Unfortunately, not all landlords do this (many foreign landlords aren't even aware that they're supposed to do this). This means your deposit is at risk.
In the case of our first rental in this country, an apartment in a high-rise, the landlord returned our deposit within a couple of weeks of our moving out. He made no deductions, and we got our deposit back in full.
In the case of the house we moved out of July 1, the property manager refuses to return our deposit citing "damages." However, they refuse to tell us what these so-called damages are. In effect, they've stolen our deposit. As they didn't post our deposit with MIVI but kept it themselves, we're out of luck.
Overseas Rental Caveat #5:
Use an attorney.
You know to use an attorney when you buy property overseas, but you should also use one when signing a rental agreement in another country. Unless you are very familiar with tenants' rights and the particulars of rental contracts in the country where you're renting, it pays to have someone who is reviewing the documents before you sign. A good attorney will also inform you of any negotiable clauses--that is, any opportunities for you to adjust the terms of the agreement to your benefit.
Aug. 15, 2010, Medellin, Colombia: Medellin, Colombia, is a safe, peaceful, beautiful city that boasts a temperate climate year-round and screaming real estate bargains.
AND: Exotic And Cheap--What's Not To Love?...7 Things To Know Before Making Your Move To Belize...The World's Top 10 Overseas Retirement Havens...How To Get A Second Passport (And Why You'd Want One In The First Place)...
PLUS Lief Simon On: Five Things To Know Before You Rent Overseas...
Congratulations, Susanna Perkins! You're the winner of last week's Facebook Fun Challenge!
You've won US$50 worth of Live and Invest Overseas Dollars, good toward any purchase with us at any time. These Live and Invest Overseas Dollars never expire!
And we're going to give away more of them this week. Next Facebook Fun Challenge starts this Wednesday. Watch this space for details how to play and how to win!
Dear Overseas Opportunity Letter Reader,
"This is your first trip to Colombia, and you've chosen to focus on Medellin? That'll save you a lot of time. This is the place to be in this country right now..."
So remarked one of the real estate agents we met with last week. Lief and I are still getting our bearings here in this city...and we haven't seen any other cities in Colombia (yet)...but, so far, I'm inclined to think the guy knew whereof he spoke. Medellin is impressing me much more than I expected.
After four days in town, here are my initial observations:
The Euro-undertones are strong, from the way the women dress to the way people greet you in passing on the street. Wandering around Medellin is more reminiscent of walking around Paris than Panama City (my two most ready points of comparison).
In other words, as Lief remarked as we exited the international airport upon arrival, "Welcome to South America." The differences between this continent and the one just to the north of us right now are striking.
Medellin is a miniature version of Buenos Aires, Argentina (which is one of my favorite cities in the world), from its annual International Tango Festival to its Botero Museum.
Medellin is more manageable than B.A., and cleaner. Otherwise, the neighborhoods, the parks, the downtown shopping areas, the antique shops, the arts and literary history...these things all remind me of that very European city way down at the bottom of this continent.
Here are other observations after having spent four days in Medellin:
- This city boasts the world's friendliest and most helpful taxi drivers. We've yet to encounter even one who was rude or unpleasant...
- Medellin is also home to the world's cleanest public toilets (note that you typically pay to use them, from 100 to 600 pesos, about 5 to 30 U.S. cents)...
- This is a green city, with trees, plants, and small gardens everywhere...
- It's also an architecturally consistent and pleasing city. Most every building is constructed of red brick and topped with red clay roof tiles. The overall effect is delightful, especially when viewed from some height. From the windows of the penthouse apartments we've visited, for example, the city appears a sea of red clay tiles and red brick buildings interspersed regularly by swatches of foliage and flowers...
- This city is remarkably clean. In the central neighborhoods, you see no litter anywhere. The Metro (a point of pride for the population of Medellin and a great way to get around parts of the city) is spotless and like new. I've looked for but been unable to find even a cigarette butt or piece of gum on the ground in any at any of the stops we've visited...
- Lief and I are an anomaly, especially outside the central El Poblado neighborhood, where most of the interest from foreign investors has so far been focused. Yesterday, we wandered into more local neighborhoods and drew stares at every turn...
But isn't Medellin an unsafe place for a couple of Americans like us to be walking around unchaperoned?
Au contraire. We've not felt unsafe anywhere we've wandered. Our impression is that this, in fact, is a very safe place to be. The drug wars that waged here ended some 20 years ago, and, today, as far as we can tell, Medellin is at peace.
The looks we're drawing aren't confrontational. They're curious. The good folks of Medellin are staring at us, yes. But, once we look back at them and smile, they smile broadly in return.
And they've been going out of their way to offer their assistance. If we pause, in the Metro, on a street corner, in a shop, because we're uncertain which direction to go next, invariably someone approaches to offer to help us find our way.
What cost Medellin? Details on my initial impressions regarding cost of living in this delightful city that, thanks to its elevated situation, boasts a temperate climate year-round, tomorrow.
Meantime, it's worth noting that the cost of real estate here can be a screaming bargain.
Again, more tomorrow.
Kathleen Peddicord
P.S. What else this week?
- "Travelers sometimes tell us they have a love-hate relationship with India," writes Intrepid Correspondent Vicki Terhorst from the subcontinent. "They hate the crowds, traffic, noise, beggars, tourist prices, garbage, and touts. They love the food, scenery, friendly smiles, exotic and varied culture, ancient ruins, and bargain prices.
"Paul and I seem to spend more and more time in India We try to look for ways to maximize what we love while minimizing what we don't. For each visit, we focus on just one little area of India, and we stay for only a short time. That prevents the burnout that comes with a do-and-see-everything trip in this country..."
- Belize is one of my favorite places on earth and one of the world's top offshore havens right now.
That's not to say that Belize is perfect. Living here, like anywhere, you'll encounter challenges and frustrations. For example...
Belizeans speak English...but do they understand it?
As we point out regularly, English is the primary language in Belize, but that doesn't mean that you and Belizeans communicate in the same way. Yes, they speak English. But you'll learn to keep your communications with them simple and specific.
Belizeans answer the question they think you have asked, for example, and nothing more. They think and respond literally. At times, as a result, you may think they are misleading you. But they're not. They're giving you the response they believe you're looking for.
At the recent Live & Invest in Belize Conference in Belize City, Belize expat Amma Carey gave a great example of misunderstandings that can occur when speaking with a Belizean.
"Say this microphone I'm holding doesn't seem to be working," Amma began, "so I turn to our Belizean friend in the corner, the IT specialist for the conference, and I ask him if the microphone is working.
"He responds to say, 'Yes, the microphone is working,' and then he leaves the room.
"I continue trying to use the microphone, still with no luck. It's not working.
"When our IT friend returns, I say, 'This microphone still is not working. There must be a problem?'
"At that point, he might reply to explain that, right, the microphone is working, but it needs new batteries..."
- I have a Top 10 list. On it are my picks for the best places in the world right now to think about spending your time and your money. This list has been created based on more than 25 years experience traveling the globe and covering this live, retire, invest overseas beat...and it has been compiled with the help of dozens of correspondents and friends who keep in touch with me in real time from all corners of this earth.
I can't be everywhere at once or know, firsthand, the situation on the ground in every country in the world at any given time. But I can stay well-informed, with the help of smart, savvy people I trust to provide me not only with information (information alone is a glut on the market...often not worth the virtual paper it's printed on), but, much more important, with perspective and judgment born of real-world experience.
In that context, here are my Top 10 picks right now...
- Years ago, when I was just starting out covering this beat, I encountered a headline that has stuck with me:
"Why Would You Want A Second Passport?"
At the time, I wondered myself. Why would anyone need or want a second passport?
Today, I understand...
When making a move to another country, we recommend that you rent before you buy. This gives you the opportunity to try the place on for size and to confirm or reconsider where you want to live.
Kathleen and I have done this for each of our international moves, and, in each case, we've been very glad we did. In Ireland, for example, renting first saved us from making the big mistake of settling in Waterford City. It took only a few months living there to realize that where we really wanted to be was out in the country.
We've been renting here in Panama, as well, since our move from Paris two years ago. In fact, we've just moved into our third rental in that time. This experience is reminding us that, just as buyer should beware in a new market, so should renter.
Not all properties are created equal, and neither are all property owners or property management companies.
Here are five caveats, therefore, to keep in mind when renting long-term in a foreign country:
Overseas Rental Caveat #1:
Think twice before renting new construction or just-completed renovation.
You don't want to be the first person living in a place. It makes you a guinea pig, forced to work out the kinks.
This was our very frustrating experience in the house we just moved from in Casco Viejo. The owner hadn't done a punch list after the extensive renovation he'd undertaken. We were left, therefore, to discover a long list of things that didn't work and that hadn't been properly addressed (including a very leaky roof, no hot water in the guest bathroom, and bedroom doors that couldn't be closed because they bumped into the ceiling fans).
We discovered too late that the owner didn't seem to care whether anything worked or not, leaving us to deal with his incompetent and unresponsive property manager. Thus our most recent relocation.
Overseas Rental Caveat #2:
Investigate the reputation of the management company responsible for the property.
Ask around. If the feedback is all negative, consider finding another place to rent.
This also applies to building management in the case of a high-rise apartment building. In Panama, most new buildings come with loads of amenities (swimming pools, grill areas, children's playrooms, basketball courts, tennis courts, even putt-putt golf). However, if the building administration isn't maintaining the amenities, and you therefore can't use them, what's the point of paying for them (as you will, in your monthly building fees)?
Overseas Rental Caveat #3:
Understand what documents will you need to rent.
Depending on where you're moving, the answer could be none. On the other hand, in some markets (France, for example), you're going to have to prepare a complete dossier of paperwork (including, for example, recent bank statements, pay stubs, reference letters, even, sometimes, letters of guaranty) to submit for approval before you'll be able to sign a lease.
In Panama, you generally don't need anything to rent a place to live. Renting in this country is a straightforward process. You find a place, sign a lease, pay your deposit, and move in.
In Paris, on the other hand, again, you'll need a complete dossier--unless you rent on the black market. Renting long term on the black market can be more expensive, but it overcomes the dossier hurdle, which, depending on your situation, you may not be able to meet.
Overseas Rental Caveat #4:
Understand what deposit will you be required to make.
The general rule is that you'll have to pay the first month's rent plus a deposit equal to one month's rent. Sometimes, the deposit can be 1 ½ or two month's rent.
Whatever the deposit, don't expect to see it again. Friends in Paris joke that the best way to think about any security deposit you make in that market is to amortize it over the lifetime of your rental. In other words, consider it part of the rent. (I'm speaking about long-term rentals, not short-term tourist stays.)
In Panama, if your landlord is following the law, your deposit will be posted with MIVI (Panama's department of housing). MIVI holds the funds and then releases it at the end of the rental term. If something is to be deducted for damages, the landlord informs MIVI, and the renter (you) are given a chance to sign off on the amount to be deducted for repairs.
Unfortunately, not all landlords do this (many foreign landlords aren't even aware that they're supposed to do this). This means your deposit is at risk.
In the case of our first rental in this country, an apartment in a high-rise, the landlord returned our deposit within a couple of weeks of our moving out. He made no deductions, and we got our deposit back in full.
In the case of the house we moved out of July 1, the property manager refuses to return our deposit citing "damages." However, they refuse to tell us what these so-called damages are. In effect, they've stolen our deposit. As they didn't post our deposit with MIVI but kept it themselves, we're out of luck.
Overseas Rental Caveat #5:
Use an attorney.
You know to use an attorney when you buy property overseas, but you should also use one when signing a rental agreement in another country. Unless you are very familiar with tenants' rights and the particulars of rental contracts in the country where you're renting, it pays to have someone who is reviewing the documents before you sign. A good attorney will also inform you of any negotiable clauses--that is, any opportunities for you to adjust the terms of the agreement to your benefit.
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Kathleen Peddicord
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter.
Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
