How To Buy Real Estate In Medellin STEP-BY-STEP
Hey everyone! It’s Andrew from Medellin Buzz. Today, I’m walking you through the step-by-step process of buying real estate in Medellin. Make sure to stick around until the end for a crucial piece of advice that can save you both money and sanity.
Assessing Your Financial Situation in Colombia
First things first, let’s assess your financial situation. As a foreigner in Colombia, getting a property loan can be tricky without a local ID, credit history, or bank account. Before diving into property hunting, determine where your money is coming from—whether it’s from selling a property in the United States, using a home equity line of credit, or another source.
Setting Up Local Accounts
Moving on to step two, consider setting up a local bank account or a brokerage account with famous firms like Alianza and Acciones y Valores. This can be done remotely, well in advance of your property search. Having these accounts ready ensures you can transfer funds quickly when needed.
Step three involves the property search. Even if you’re not physically in Colombia, start researching properties online using keywords like “apartamentos.” Instead of randomly scrolling through listings, contact real estate companies via WhatsApp, expressing your criteria like square footage, preferred neighborhood, views, etc. This will lead to a more targeted selection of properties.
Hiring a Bilingual Personal Assistant
Don’t solely rely on one real estate agent; consider hiring a bilingual personal assistant. In Colombia, anyone can be a real estate agent, and while this offers flexibility, not all are equally professional. A personal assistant can assist in managing spreadsheets, conducting comparisons, organizing viewings, and even doing property videos at an affordable cost.
Engaging a Real Estate Attorney
Once you’ve identified a property, engage a real estate attorney. While some suggest starting with this step, it becomes crucial when making an offer. The attorney will conduct a title analysis, ensuring a clean title without any encumbrances. Once you’ve made a verbal offer and it’s accepted, move on to the promise to purchase agreement, a formal document outlining the deal and ensuring your security.
Fund Transfer and Closing Process
Afterward, initiate the money transfer to the seller. Since Colombia lacks an escrow system, having a local bank or brokerage account is essential for controlling the funds transfer. Avoid sending money directly from overseas accounts. Once the transfer is complete and all steps from the purchase agreement are adhered to, sign the deed your real estate attorney facilitated. The property title transfer may take a few weeks, but at this point, you officially own the property.
Key Tips and Considerations
Now, a crucial piece of advice. Maintain confidentiality about your budget throughout the negotiation process. Whether dealing with your real estate attorney, agent, or personal assistant, revealing your budget can affect the negotiations. Be strategic and make them work for your commission. Additionally, plan and exercise patience, especially considering Colombia’s lack of real estate agent licensing. While some deals may close quickly, be prepared for a potentially extended timeline.
Medellin: An Attractive Destination for Living and Investments
Colombia, particularly Medellin, offers a unique blend of lifestyle and investment opportunities. The favorable climate, welcoming people, and low cost of living make it an attractive destination.
Unlike in the past, the influx of families and entrepreneurs has transformed Medellin into a thriving economy with a booming real estate market. Airbnb rentals are rising, offering significant returns, and property appreciation has been over 6% in the last decade.
For those interested in the Medellin Master Class, please contact us… Up, up, up!