TLDR? Buying an apartment in Medellin is easy and can be a great way to get a migrant visa.
Investing in real estate is always a winning idea, whether you’re looking to live there or just use it as a rental property.
But when you think about buying a house or apartment in another country many things might be a bit confusing. The laws, contracts, and purchasing process can all vary greatly. Many times, they’re different from those in your home country.
One great place to invest in rental property is in Medellin. This up-and-coming city is full of business opportunities and is home to tons of movers and shakers.
If you’re interested in buying an apartment in Medellin, keep reading for a quick how-to.
Steps for Buying an Apartment in Medellin
Buying property in Medellin is exciting. However, it can also be confusing.
Here are a couple of quick steps that you’ll need to take in order to buy property in Medellin.
1. Decide Why and for What You Want to Buy an Apartment in This City.
Before jumping into buying an apartment in Medellin, you need to think about why you want to buy in the area. You also need to think about what you’re looking for.
There are tons of different types of properties in the city, ranging from houses and apartments to hotels and farms!
Consider what your purpose in buying property is. That way, you’ll have a good idea of which type of place you should be investing in.
2. Look at the Location
This point applies not just to Medellin, but to buying property anywhere in the world. You need to find a location that is central, safe, and has good amenities.
In Medellin, there are dozens of neighborhoods, each of which varies quite a bit. Plus, each neighborhood has different types of apartments available.
Pay attention to things such as walkability, crime rate, and proximity to malls and personal services. Ultimately, this will determine the value of the home.
3. Think About How You’ll Finance the Property
It’s not just the property itself you need to think about. You also need to be aware of how you’ll pay for the apartment.
Some properties will allow you to purchase using a foreign bank account. Other agents will require you to have a Colombian bank account.
Alianza Valores is a leading banking resource in the investment market. This company is very familiar with foreign investments to buy real estate in Medellin. If you’re unsure of how to purchase property, this might be a good place to start.
4. Negotiate the Price
After you’ve found a place and have figured out the finances, it’s time to start the negotiation process.
Make your lawyer and agent part of your negotiation. Plan a sales contract that works for you and get in-depth advice on what you need to close the deal.
Our pro tip is to work with a lawyer or advisor who’s familiar with the foreign investment space. They can help make sure you get a good deal and that the process is handled correctly.
5. Sign a Purchase Agreement
After verbal negotiations, everything has to be written out. This helps finalize the legality of the process.
In Colombia, until the agreements are signed, they don’t exist, even if they have been said a thousand times. This is completely opposite to US law, in which verbal agreements can serve as legally binding contracts.
As such, when you go to legalize your sale agreement or promise of sale, there are some things to keep in mind. Here are a few key items to be aware of.
What’s Included in the Price
Some property is delivered as an unfinished project. Others are delivered as fully furnished apartments. Make sure to be aware of what your final agreement includes.
You can negotiate an initial downpayment with the seller. Sometimes they ask for 10%, 20%, or even 30% of the total investment as a downpayment. You can often make your downpayment in installments instead of paying it all at once.
A criminal clause indicates that the buyer and the seller follow to the letter what they agreed to in the promise of sale. Make sure that you read this carefully before signing anything.
Declared Commercial Value
Before you buy, demand the full value of the deed to avoid paperwork or legal hassles further down the line. Consult with your real estate agent and your lawyer.
Mortgages and Bank Loans
Make sure that you’re aware of any outstanding mortgages or loans on the property. You may need to negotiate this with the seller or with the bank itself.
Taxes and Rent
The payment of taxes must be transferred to the new owner at the date of the contract. Likewise, if the property being purchased is generating rental income, this must also be transferred to the new owner. Make sure to verify that this happens correctly.
6. Deed registration and other final procedures
After signing, update the “Certificate of Tradition and Freedom”, which you can get online. This certificate shows that you are the original owner of the property.
This is the last piece of the puzzle when purchasing property in Medellin. If you’re struggling, you can always loop in a lawyer to assist with this step.
Common Documentation Requested for Foreign Investors
Before you’ll be able to purchase property, you’ll need to have a few documents on hand. A few of the common pieces of documentation requested for foreigners includes:
- A copy of your passport or identity document
- A photo ID
- Copy of a document evidencing the name and address of the property you’ll be purchasing
- Documentation that supports economic activity and sufficient funds for the purchase
- Documentation showing your ability to travel to Colombia at the time of the deed to carry out the signature.
Sellers can request other paperwork, too. Make sure that you have everything on hand before you buy to avoid any problems during the process.
Buy Your Property in Medellin
Although it can be confusing at first glance, navigating the world of property investments in Medellin really isn’t all that bad.
With the right preparation and documentation, you can purchase a new home or rental property in the City of Eternal Spring.
Do you own property in Medellin? Let us know what you think in the comments and how the process went for you!