Many individuals are familiar with Medellin for the wrong reasons. However, in the 1990s, the city rebuilt itself and began to grow in all aspects. Medellin has gradually become one of the most beautiful places for many people worldwide, whether for living, culture, art, or anything else. The unique environment, temperature, booming ex-pat community, beautiful locations, and affordable living costs continue to entice investors to purchase property in Medellin.
If you are looking for Houses For Sale In Medellin Colombia, there are a few things you should be aware of because they will help you make the correct purchase at the appropriate moment.
Advantages of Investing in Medellin
This brief guide will explain all you need to know about investing in Medellin, including a factual study of the benefits and a step-by-step tour through the process of legally, safely, and smoothly purchasing real estate. Some of its benefits are listed below.
Economic Growth
Since 2002, Medellin has experienced the biggest increase. From Latin America's fifth-largest economy in 1990 to Latin America's third-largest economy in 2018, the country amassed a gross domestic product (GDP) of $330.2 billion in 2018.
When looking ten years ahead, the economic growth of Medellin is predicted to be consistent due to multiple strong factors. Rising oil exports, stable consumer demand, a burgeoning middle class, the creation of an interstate highway system, and increased export are some of these factors, among others.
Thriving Real Estate Market
Colombia's strong real estate industry reflects the country's overall economic prosperity. Holman, who moved to Colombia's vibrant second city of Medellin in 2006, sees massive house prices growth both within and throughout the country.
The city has had an unbroken growth in real estate values over the previous 15 years, with annual increases averaging 7-8%. Even though housing values in the United States dropped during the recession, Medelln sustained an average 3.4% growth, according to Holman.
Holman expects the economic investment pattern that goes beyond Medellin and across the country to continue firmly. He predicts that property buyers might earn 7-8% an average solely from the appreciation. Investors renting out properties can expect better net earnings of 4-7%, resulting in non-leveraged annual returns of +13% depending on location, property, and care.
Skyrocketing Tourism Rates
Since 2006, tourism in Colombia has increased by more than 300%, from one million foreign tourists in 2006 to more than three million in 2017. Over two million visitors entered the country in the first seven months of 2018.
Looking forward, Colombia can expect major tourism growth in the next few years, with Medellin, Cartagena, Bogotá, and Cali leading the way. More direct flights from Spain, Mexico, and several new U.S. states in 2022 are projected to boost tourism much further.
Professional visitors to Medellin are more interested in high-quality, short-term rentals with both second-home luxuries and modern conveniences than travelers and backpackers.
Diversification
Another reason to invest in Medellin real estate, according to both Holman and Beales, is economical and geographic diversification. As the globe continues to become more globalized and interconnected, it is increasingly advisable for investors to diversify globally. Global diversification through Colombian investment can help to manage both economic and regional risk.
The only mystery is the strength of the Colombian peso against the US dollar, according to Holman. However, while currency rates cannot be predicted, the current strength of the USD keeps Colombian real estate a global bargain. If the dollar ever falls in value, investment in Colombia might result in financial gains of 30-50% only from the currency adjustment.
High-quality Lifestyle
Once known for its risky and unpredictable image, Colombia has undergone an incredible transformation, shedding its reputation for violence and replacing it with a culture-rich city with unique scenery and major social and economic success.
According to Holman, the dollar's present strength against the peso allows USD investors who want to reside or vacation in Colombia to enjoy cosmopolitan luxuries at a fraction of the expense of many European and Western countries. Indeed, many older people trying to make ends meet in the United States would likely live comfortably in Medellin.
Visa Eligibility
Guess another advantage of investing in Colombian real estate? Permanent Residency and Citizenship! Investors who purchase suitable property in Medellin can receive a resident visa and put themselves on the route to obtaining a second passport.
An investment of 650 times the Colombian minimum monthly salary qualifies you for a residence visa that is valid for up to five years and can be renewed. Investors may be eligible to seek Colombian citizenship after five years of residency, and even less expensive investor visa options are available today for as little as USD 25,000!
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