Are you looking to expand your real estate portfolio this year?
Well, Latin America is fast becoming an exciting prospect for investors from across the globe, where different nations are presenting enticing opportunities in the real estate market.
In today’s post, we’ll look at 2 examples of this, one being Colombia, and the other Uruguay.
Colombia and Uruguay, 2 nations known the world over for their different industries, landscapes and history. However, their real estate is perhaps not so well-known, but this isn’t to say that it has to remain that way.
Both nations are increasingly popular for real estate investment from foreign citizens, and today we’ll hopefully get you up to speed on the process for acquiring property in both countries, perhaps even getting you interested in making the move to expand your portfolio to Latin America.
Colombia
The Colombian government has made it incredibly easy for foreigners to invest in real estate. Your rights are the same as those of a local Colombian. Basically, all that you need are the funds and your passport and you’ll be good to go.
You have two options when it comes to buying real estate in Colombia:
Invest as an individual. This option has the biggest pro of making you eligible for permanent residence. However, you will be missing out on privacy.
Invest as a legal entity. This is the best option for those who want to purchase multiple properties to rent out. It’s also great for those who don’t want residency but also don’t want their name on all kinds of official documents.
Uruguay
If you are looking to invest abroad, Uruguay has implemented many laws to make sure that it is up there as one of the best choices for foreigners, ensuring that you will not only safely be able to acquire new assets, but also granting you the same rights as a Uruguayan national in the purchasing of real estate.
If you are wondering, why Uruguay? Uruguay is fast becoming a country that foreigners see as an attractive prospect for investment, and it is in no way by luck. In the 21 st century, the nation has seen a rise in popularity due to the international recognition of the highly educated workforce and human resources available, as well as the quality of life experienced by nationals. The government has also implemented schemes that allow foreigners to obtain residency in less than a year.
Now, onto the purchasing of real estate, initially, the research phase is very important, as with any acquisition of property, however it is equally important to build an understanding
relationship with the seller.
A pre-purchase agreement must be written up by a Notary to establish trust between both parties, so a good relationship between you and the seller of the property is crucial to making the process as easy as possible.
A sales contract will be signed afterwards to make it all official and the money is transferred to the person selling the house directly, which is unusual as there are no middlemen as with many other countries. However, it is an attractive idea as
It alleviates the hassle of exchanging information via agents and can make the process much faster.
It is still customary to provide a deposit, and this can be between 10% and 20% of the agreed purchase price, and the Notary will research up to 30 years of history of the property before writing the deed, registering it and paying necessary taxes before money can be transferred from you to the seller.
So, which country is for me?
In Uruguay, the majority of this process is undertaken by others, with the main things the individual needs to do being research, relationship building, and instruction of the necessary Notary before finalising the deal and buying your new property.
It must be said that Uruguay stands out for its uniqueness when it comes to facilitating foreign investors in real estate, making it too good of an opportunity to miss!
It has to be said that with the vast opportunities on offer either for tourist, commercial or private property, the small nation is becoming increasingly exciting, especially this year 2023, where travel is becoming more accessible and trade flows are creeping back up to normal levels, meaning your returns on investment are looking very promising.
On the other hand, in Colombia, If you’re an investor, you need to be looking for high returns and decent liquidity in your investment. And when it comes to real estate investments, there is no better option in Colombia than the capital city of Bogota.
Simply put, the Colombian peso is at an all-time low; the currency of Colombia is weak. That makes it great for foreign investors to come in and start buying things up.
As such, it attracts both locals and foreigners alike. And they will all need a place to live if you care to rent out your Bogota property.
Maybe you are wondering if this country is safe? Fortunately you’ll be glad to know that the country has cleaned up its act recently from violence and corruption.
Overall, both nations appear as good options for real estate investment, and ultimately the decision comes down to location preference, making your decision a bit more difficult, but luckily for good reasons.
So, if you are interested in finding out more about the residency by investment programs we've covered today, and other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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