Chile Forum

Hello,
My name is Ben and I'm currently planning a trip in March to the Pucon area to look for a small plot of land outside of town, preferably on the Rio Liacura. Does anyone know of a good contact for that area? I really don't have much experience with Real Estate, so I'm at a loss for where to start my quest. Any help?

couple question.

Are you sure Pucon is where you want to buy? I mean have you been there in the summer and winter? Have you been other places down south?

The reason I bring it up is about 90% of the foreigners that we have ever had look in the area around Pucon for real estate, ultimately decide to go somewhere else once they get to know community and the market.

For a first venture in to Chilean real estate, that is likely not the place you want to get in to. That real estate market is simply some of the most shark infested waters in Chile.

Comrade Ben,

If you wish to look in other places and don't mind cold, windswept, glacier-carved southern Patagonia, we could probably fix you up with something. Maybe a small parcel with a view of the Ice Cap? A colourful peat bog perhaps? Every lot near the water comes with a free penguin. For inland properties, a sheep.

If you like the overall "theme" of Pucon, without most of the problems, Puerto Varas / Ensenada is a much better place, and / or anywhere around lake llanquihue area. For rivers, Say Rio Bueno South is a good area to look. Even villarrica on the other side of the lake from Pucon is a better place, but it also has its issues with over parceling going on.

Pucon prices have been fairly stagnet for many years because of the subdivision of the subdivisions going on, along with the general reputation it has a acquired as a rather low class summer resort for teenagers from Santiago. Don't expect much in terms of property appreciation going forward. The real estate agents also are not to be trusted in the area. Most are from Santiago. Very common to see a property with say 6 real estate signs on it, and almost none of the agents even know the owner. They find a buyer, then find the owner, and poach the whole deal out from the one in six that does know the owner.

If you insist on buying there anyway, you want to catch the market at the yearly swing to the bottom in Spring. That is when owners from Santiago that bought on speculation or for summer vacation are hurting the most, and most inclined to dump property on the market, while at the same time the least number of buyers are running around window shopping ( window shoppers that are not serious, can drive a price up badly in the summer months). They tend to come down to a bit more reality in the off season.

General rule, as a gringo, you get the deals where Chileans don't want to buy. Which in general, foreign markets and the domestic market tend to be fairly mutely exclusive.

Also look hard at the land. I was offered river side land in that area that was in a 10-15 year floodplain. The 30ha was being opened up to 2-3ha river side lots. No mention that is was a floodplain was forth coming when asked in writing. I understand river hydrology and one look told me it was a bad choice, I had an Hydrological Engineer who is a very good friend confirm my suspicions, the owner who has lived above the property for 30 years still denies it has ever flooded, but the new growth of trees and soil samples tell a different story, buyer beware. If there is not an old building on the property, take a very close look at it. Some of the subdivisioning noted above by the Admin are nothing but cash grabs. Oh all the river side lots I looked at sold.