Best Ways to Invest in Colombian Real Estate

With the all-time high exchange rate in South America, real estate is one of the most attractive investments. Moreover, you don’t need to have hundred thousands of dollars on your pocket to invest in the real estate. You don’t even need to be in Colombia to take advantage of this rear opportunity. There are dozens of investment alternatives that make it easy for even small investors in any part of the world to enter into the market and make income from rental properties at the comfort of their own homes. If you are looking for ways to invest in Colombian real estate, here are some ways to achieve that easily:

Hire Real Estate Company to Manage Your Properties

cartagena colombia propertiesThis method involves buying a residential real estate using the traditional method then hiring a property management company to help you manage the property. The main advantage in this form of investment is that you will have 100% control of the property and you can make any decision alone including liquidity decisions. However, you may need to visit and see the property before buying.

Packaged Real Estate Project (PREPS) Option

Real Estate companies buy an entire building and furnish it to a higher standard and list it for a short-term rental program. In this option, the investor a certain percentage in the project, and can vote on the decision concerning the property but does not have full control over the property. In PREPS, the investor is passive and does not necessarily have to see the project before investing.

With PREPS, you can invest as little as $25,000. This options also allow more diversification and is also eligible to visa. Such an apartment can be rented on a short-term basis for even less than a month. Dividends typically go beyond 8% if you adopt this option.

Turnkey Investment Properties (TIPS)

medellin city at nightIn this real estate investment option, the real estate company identifies undervalued properties with high rental yield potential and partner with an individual investor to acquire the building. With this option, you have full control over the ownership of the property including the liquidity decisions. In this option, the real estate, the investor is passive as the real estate management company identifies the property and acquires it on behalf of the investor.

The real estate investment company also undertakes other decisions of the investor such as furnishing and decorating the house, paying all the legal costs any other requirements. This means that you don’t have to travel to the site or even Colombia to use this option. In most case, investors who opt for this option invest without having to see the property before investing — the investment prices in this category range from as low as $85,000 to as high $120,000. This option allows diversification and is visa eligible. However, you have to purchase SAS at your cost. Rental can be long or short term, and returns are in the range of 5-8%.