Cartagena has some, if not all, of the most expensive real estate in Colombia and perhaps South America. Cartagena vacation rentals and luxury homes can exceed USD 450,000 for an apartment (not such a big one either). These costly homes are going up each day and I think the market is already saturated. Surely nobody in their right mind would consider this kind of real estate as an investment! Just how much higher can prices grow to make such an investment worth while? We mustn't forget about the monthly building administration costs either, which can go up to and over USD 200 a month. By the way that is over $2000 a year! That surely eats into your investment.

Would you buy a stock if it cost you $2000 a year just for the pleasure of owning it? Of course you wouldn't, then why would you want to buy into a holiday home with such high up-keep costs?

As I have said, and I believe I have made the point quite clear, Cartagena is VERY expensive. However, if you are looking for investments in real estate interesting properties can be found ... if you look hard enough.

I want to tell you about a personal experience that happened with us last month (July 2009). We managed to find a small 3 bedroom apartment in a middle-low class lot that had a price of 40,000,000 pesos (20,000 USD). After negotiations we managed to get the price down to 37,000,000 pesos (18,500 USD) and placed a "For Rent" sign in the window. No ad in the local paper, just the sign in the kitchen window. We were getting on average of 5 calls a day from people wanting to rent the apartment. Even after removing the sign we were getting a couple of calls a day! We were able to rent the apartment for 450,000 pesos a month (225 USD) with no trouble whatsoever. That is more than 1% return on investment.

We are now negotiating a second apartment in the same complex and a re currently talking to an architect who is interested in renting it for 1,000,000 a month USD 500). Needless to say we are very interested. There are many gems like this available that won't eat into your saving and can give you a very healthy return. If you want to live in a luxury apartment then buy one, but don't buy one here as an investment. Cartagena vacation homes can be found to fit your budget, just son't stop looking.
11/1/2010 06:38:59 pm

The greater the man, the more restrained his anger.

Reply
11/2/2010 07:44:59 pm

I admit, I have not been on this webpage in a long time... however it was another joy to see It is such an important topic and ignored by so many, even professionals.

Reply
4/13/2012 01:49:54 pm

Human nature is the most poor: we all dream to have a wonderful rose garden, and not to appreciate our window open today in the rose.

Reply
5/9/2012 03:41:12 pm

Your blog too good, I will soon come back again, to keep at it

Reply
5/10/2012 10:59:21 am

The warm knitting wool cap, artificial PI cao's "ears" configuration, very good-looking lovely, on both sides of the "ears" can buckle up, can put down to, the men and women regardless of the oh, who can bring.

Reply
5/15/2012 04:07:19 pm

In fact I think with short hair hat good convenient cold in winter in cap, summer wear cap, the gentleman cap, or thief son cap are ok"

Reply
5/23/2012 11:22:36 am

Blue gems little pillbox hat with the colour of cool and refreshing feeling, as if can space of the heat. Mei red hat brown the ornament of small cane, let mei red become stable some.

Reply
7/24/2012 06:55:09 pm

China hat is the national characteristics, in ancient times, people wear liao cap, they judged the yuan much wear helmets type and the top hat, the uighurs ornamental hats, tu felt hat, the fox of Mongolian cap, etc. In daily life, the hat and warm, decoration dress up of protection function.

Reply



Leave a Reply.

    Author

    Nicholas Webb is one of the partners of Balin Ltda a Colombian company dealing in "direct" real estate investments. Balin currently owns real estate (properties and land) in Bogotá and Cartagena. We love it here and wouldn't change, but foreigners do need to tread lightly before throwing money around buying land or property. We hope to offer a little help.

    Archives

    August 2009
    July 2009
    June 2009

    Categories

    All
    Bogota
    Cartagena
    Cartagena Real Estate
    Holiday Homes
    Manzanillo
    Property
    Rental Property
    Vacation Homes