Property purchase in Barranquilla, or in Colombia in general

[fathertime]

I was curious and gathering information regarding experience or knowledge about an American owning property in Colombia. 


Are there property taxes? If so how much are they?
Are there any other unexpected fees?  Any helpful websites to view homes online?


This would be a nice home in strata 5 probably.  I would be thinking in terms of all cash. I am not thinking about doing this right now.  More of a long term idea...just to look into for now.


Thanks,
Fathertime! 

[whitey]

Hey FT:


You might want to reach out to Montrealer who had a condo in Barranquilla for several years until selling it around a year ago.  He's Canadian, but shouldn't make much difference.  The place he had was quite nice ... I'll be seeing it this Christmas as some Colombian friends of mine bought it from him!


This thread of his had some good info on his expenses: http://www.planet-love.com/index.php?topic=7245

[Calipro]

I was curious and gathering information regarding experience or knowledge about an American owning property in Colombia. 


Are there property taxes? If so how much are they?
Are there any other unexpected fees?  Any helpful websites to view homes online?


This would be a nice home in strata 5 probably.  I would be thinking in terms of all cash. I am not thinking about doing this right now.  More of a long term idea...just to look into for now.


Thanks,
Fathertime!

Property taxes were minimal a few hundred dollars a year as I remember....used to get three tax bill though...one for the apartment one for the parking space and one for my storage space in the basement.


Hardest part of buying property in Colombia is getting the money there and then having it legalized with forms 4 and 11 so you don't take a huge hit on what they call a reparation tax if you ever want to sell and  wire the money abroad.


If you are thinking of buying new I would look to buy from developers that have bank accounts in the states where you can pay them stateside rather than having to wire the money to Colombia. It will save you a huge headache.


BanColombia held a wire for $18,000 for about 3 months before eventually returning it to my bank account in the states.

[Elexpatriado]

Alianza will get as much money as you'll ever want or need there, for a small fee....

[Elexpatriado]

http://www.alianza.com.co/

[Elexpatriado]

Not much of aheadache wiring money there- but I wouldnt invest a Peso in Colombia again, but that's only me..
 
I know you don't want to think about it, but if the marriage ever goes tits up...forget about getting anything back on the house without a WHOLE lot of hassle you probaly wont think is worth it, even then after spending a bunch of money, time, effort on lawyers, bodtgurds, hotel bills, travel etc.  only a measly pittance of what you put in (Just consider the house a "Gift" for your wife....and not any tpe of investment).

[mudd]

BanColombia held a wire for $18,000 for about 3 months before eventually returning it to my bank account in the states.

they held mine for about 4 months also and made just about every excuse not to wire it, even though i did all the correct forms when i bought it.


if you dont do the corrrect forms, forget it.


i myself would never buy in colombia again, due to various reasons, market is too high now, bad construction, crime, govt,... you never know what they are gonna do ect. 

[fathertime]

thanks guys..good info all the way around...btw..this wouldn't be about investing for me so no worries if i don't make money or even if i lose some money...sounds like getting money there is a pain in the butt...that is good to know...if the time comes i'll have to figure a legal workaround, or something.


Fathertime! 

[bcc_1_2]

Not much of aheadache wiring money there- but I wouldnt invest a Peso in Colombia again, but that's only me..
 
I know you don't want to think about it, but if the marriage ever goes tits up...forget about getting anything back on the house without a WHOLE lot of hassle you probaly wont think is worth it, even then after spending a bunch of money, time, effort on lawyers, bodtgurds, hotel bills, travel etc.  only a measly pittance of what you put in (Just consider the house a "Gift" for your wife....and not any tpe of investment).

I get the retirement property thing but other than that I don't really see the point when you can rent by the week, month, etc. IF the time comes the last thing guys will probably want is to give the wife even more. Plus a honest look at the situation on the ground seems reasonable when buying property. If the economy takes a hit in South America... Colombia could regress and become unsafe to travel if stability falls off.

[JWR]

After living in Costa Rica as well as Colombia, and spending alot of time with expats, I think it's better to buy property here in the US, rent it out, then use that money to rent a place down south.  You can then move around down there, and stay flexible.  I've heard countless real estate disaster stories of buying in Latin America. 


Only way I would buy down there is if the property was a gift for my wife's parents or something like that.

[benjio]

I was aggresively looking into buying property along the coast of Colombia up until around March of this year. I'm someone who does tons of research and tries to speak to people with experience before jumping into something that requires such a huge commitment. The advice I was getting from vets was good, but there was always an overwhelming sense of, "If I knew then what I know now, I would have never purchased a square meter." Seems like you're looking into doing something for your wife's family (just assuming...that's awesome if so) so your situation may not apply, but from what I've learned I wouldn't spend a dime on property there if it's something for you later on down the line. Look at guys like Jamie, who has lived there for years, runs a business out of his residence and still refuses to invest money in owning real estate in Barranquilla. He, more than anyone, was very adamant about me renting as supposed to buying. JWR has the right idea. My time in Latin America has taught me to stay flexible and don't plant any trees you can't uproot in an instant if you need to. I even have a clause in the leasing contract of my apartment in Rio that allows me to leave at any time and the only thing I'm responsible for is two weeks notice and repairs for any damages my deposit doesn't cover. I will probably live in Latin America for the rest of my life but I will most likely never own property here.

[Elexpatriado]

Getting the money there throuhAlianza is dead simple-- I took over $100K there and it took 2 days and 2 trips to thieroffice. But they charge around 1-2% cant remember..dont know how much the banks charge, but if they hold it up for 4 months, thats 2% lost opportunity money right there, so I would higly recommend Alianza..the 2% you pay is only peanuts compared to rest of the hassles..make sure you get the Formalario 4 ,11 etc. all done properly-so you have to talk to an accountant (thats the hard part cuz a bad (or one that goes strictly by the book)will string you a line). But if you have a good Alianza rep. like I did, she'll steer you right. Since it is not an investment, and you never intend to taekthe money out of Colombia, getting the Formalarios done right is not essential, but still highly recommende, cuz if you do sell later, the Government will try to withold 30% of the money you are tring to extract, because of anti-Laundering laws.

[Elexpatriado]

Excellent advice...
 

After living in Costa Rica as well as Colombia, and spending alot of time with expats, I think it's better to buy property here in the US, rent it out, then use that money to rent a place down south.  You can then move around down there, and stay flexible.  I've heard countless real estate disaster stories of buying in Latin America. 


Only way I would buy down there is if the property was a gift for my wife's parents or something like that.

[Elexpatriado]

Right on..if it floats, flies or Fochs..rent it...unless you have so much money you dont mind throwing it away...
 

I was aggresively looking into buying property along the coast of Colombia up until around March of this year. I'm someone who does tons of research and tries to speak to people with experience before jumping into something that requires such a huge commitment. The advice I was getting from vets was good, but there was always an overwhelming sense of, "If I knew then what I know now, I would have never purchased a square meter." Seems like you're looking into doing something for your wife's family (just assuming...that's awesome if so) so your situation may not apply, but from what I've learned I wouldn't spend a dime on property there if it's something for you later on down the line. Look at guys like Jamie, who has lived there for years, runs a business out of his residence and still refuses to invest money in owning real estate in Barranquilla. He, more than anyone, was very adamant about me renting as supposed to buying. JWR has the right idea. My time in Latin America has taught me to stay flexible and don't plant any trees you can't uproot in an instant if you need to. I even have a clause in the leasing contract of my apartment in Rio that allows me to leave at any time and the only thing I'm responsible for is two weeks notice and repairs for any damages my deposit doesn't cover. I will probably live in Latin America for the rest of my life but I will most likely never own property here.

[mudd]

wiring $$$ into colombia was easy, getting it out, well that was another experience... dont reccomend it. you are at their mercy.


your better off renting something, and owning things that can easily be shipped out of country, car, furnature ect.


or if you do buy, just make sure its money you can afford to lose or drop in value 50% and not sweat it.

[raycjs]

Fathertime,
 
I plan to buy a home in Colombia within the next two years or less, it would be located close to my girls family.. i plan to buy in the 3 or 4 strata as i do not want to burden my girl with strata 5 expenses later on in life...Make sure you know what the cost will be for a starta 5 before you buy in a strata 5.. Once i get in to this and have a lot of true facts i will let you know.. I also plan to use the help of our buddy in Canada on how he handled all of this. i know he moved money in to Colombia to make a lot of his purchases.
 
Talk to you soon
Ray

[Elexpatriado]

Lots of rich guys here with money to burn...

[Elexpatriado]

One thing I will say with 100% conviction, if the idea to buy the house came out of YOUR head, without any hinting by her, or her family, is your idea and came out of the bottom of your heart- and you are prepared to lose all your money..OK do it. But if it was any way suggested by her or her family, or friinds, and espescially if there is any type of pressure at all to do, it , DON"T FOOKIN DO IT. As a matter of fact es una gigante Bandera Roja (RED FLAG), if the latter was the case...

[buencamino]

I bought a property in Colombia some years back and I have no regrets. I had an avaluo done and paid right what it came to. I love it and will only want to sell when they have to move me into a nursing home...if then. I just pay the predial every year and monthly administration (because it's in a parcelacion) and so far so good.

[fathertime]

thanks expat for the website...


right on Ray, I will be curious to see/hear how it goes for you...


buencamino..that is good to hear...


Fathertime! 

[stnmasn]

The ex and i  bought an apartment 5 years ago in Cali in estrada 5.  I love it,, she  loves it.....it is in her name she will get it in the end and that is fine. She and our son will always have a very nice and safe place to go to when she/they goes to colombia.   I have no regrets about purchasing the apt. at all.   


We also did not find it very tedious to move money to colombia for the down payment.  We also never intended to take the investment out of colombia. It was always intended to stay in colombia.  The apt has appreciated some since it was purchased.


 


estrada 5 is expensive. yes there are property taxes. yes servicios are very expensive, there are other monthly fees. 
but it  is a nice, safe, quiet, area and worth the estrada 5 expenses.[size=78%] [/size]

[Calipro]

The ex and i  bought an apartment 5 years ago in Cali in estrada 5.  I love it,, she  loves it.....it is in her name she will get it in the end and that is fine. She and our son will always have a very nice and safe place to go to when she/they goes to colombia.   I have no regrets about purchasing the apt. at all.   


We also did not find it very tedious to move money to colombia for the down payment.  We also never intended to take the investment out of colombia. It was always intended to stay in colombia.  The apt has appreciated some since it was purchased.


 


estrada 5 is expensive. yes there are property taxes. yes servicios are very expensive, there are other monthly fees. 
but it  is a nice, safe, quiet, area and worth the estrada 5 expenses.

How much did you send and what bank did you use......It has been close to ten years since I sent a large amount of money to Colombia...maybe things are getting better.

[Elexpatriado]

I used Alianza. I sent 120 K USD.
 
I admit...if you have a child wih someone and have been living with them for several yeares..it's a different case...If they visit Colombia a Lot (I mean a lot)-or if you live there.. makes sense to get a house for around 100K rather than having kids stay in a hote or maybe renting...not for me, but others maybe.. it is an individuals decision..but it should be consider as a "Gift" and no way as any type of investment..
 
But there should be no pressure on you buying a house in a foreign country because your wife wants it...and you are a gringo..afterall, the kid is having a way, way better upbringing and future with you then if she had married or been knocked up by a barrio boy. And if you are spending significvasnt time apart ( a long distant relationship), this is a much biggernegative on the relation than any house... A "Hogar" is not built on material things, such as cars, houses,cosmetic operations and the like..

[whitey]

This probably isn't what Fathertime had in mind, but I'll throw it out there in case it is of any value to any other readers ...


My wife had her father build another room and bathroom for us on the second floor of their house, which I immediately christened "el cuarto del gringo".  The second floor is shared only with her younger sister who has her own bedroom, so it's nice and private, but we can still hang out with the family downstairs and eat all her mother's cooking.


It's perfect for us.  I've spent a couple 6 week visits there when Nazly was still in Colombia, but now we just go back for a couple weeks around Christmas.  Total cost was less than $4.000.000 ($US 2,000).

[mambocowboy]

This probably isn't what Fathertime had in mind, but I'll throw it out there in case it is of any value to any other readers ...


My wife had her father build another room and bathroom for us on the second floor of their house, which I immediately christened "el cuarto del gringo".  The second floor is shared only with her younger sister who has her own bedroom, so it's nice and private, but we can still hang out with the family downstairs and eat all her mother's cooking.


It's perfect for us.  I've spent a couple 6 week visits there when Nazly was still in Colombia, but now we just go back for a couple weeks around Christmas.  Total cost was less than $4.000.000 ($US 2,000).

my father in law is doing the same for us. I think it's the best way to go....