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Cost Per Square Meter Of Real Estate In Medellin, Colombia

“Kathleen, congratulations and thank you for all you’re doing to help us in the States to make the transition easier.

“I am reading your book ‘How To Buy Real Estate Overseas.’

“What I can’t figure out is, where is there a tax-friendly always-sunny tropical paradise? I don’t want a rainy season.

“Can you guide me?”

–Richard J., United States

Any truly “tropical” location is going to have a rainy season…so you’re going to have to give up on at least one of your criteria.

Tax-friendly but without a real rainy season is Uruguay.

***

“Kathleen, surely, this must be a mistake. 1 square meter equals 10.764 square feet, so the US$1,000 for 10.764 square feet that you referenced recently is outrageous.”

–Elizabeth L., United States

I wrote that you can buy a condo in the best neighborhoods of downtown Medellin for US$1,000 per square meter. That works out to US$92.90 per square foot.

A quick search online shows that average sales price for a condo in Denver (the first U.S. mountain city that came to mind) is US$215 a square foot. That’s the average sales price, meaning not the price for buying in the best neighborhood in the city. So the low end in the best neighborhood in Medellin is 43% of the average price of a condo in Denver.

Just to take an example.

***

“Kathleen, can a foreigner acquiring some kind of residence in Colombia eventually get a mortgage to buy an apartment in Medellin? If so, at what kind of interest rate at this time?”

–Nick A., United States

No, a foreigner cannot get a mortgage in Colombia at this time. (Some in the country are working to change this, but, right now, it’s not an option.)

However, the agent we’ve worked with for the purchase of our own apartment in Medellin has a large number of properties among his listings owned by people willing to carry a mortgage themselves. Typical terms for this kind of seller financing would be two to five years, with 30% to 40% down and an interest rate of, say, 8%.

This is a reasonable option for this part of the world. Remember, it’s not only Colombia where it’s not possible for a foreigner to borrow locally for the purchase of real estate. It’s most of Latin America.

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