Chile Forum

Hello all,

First post but regular trawler. I have looked at the posts on this forum and in the current process of due dilligence but there is a wealth of knowledge on this board and I would like an opinion on some matters that i could compare to my own research.

Backstory:
I have been in a long term relationship with my partner in Australia and would like to eventually spend a few years living/investing in Chile. I am really interested in the investment side as I can see potential opportunity. I'm the kind of person that like to research eveyrhting they can even if they don't execute the plan, so no matter the situation, I am prepared.

One of the biggest things I am finding in my research is loans and mortgages for people without a chilean passport. could someone give any guidance on who I could go see about borrowing money? I do have cash but would like to borrow a portion so I can expand and diversify my investments.


1. What is the situation with Pucon, how does it function all year round, ie. low season, mid season and high season. What is there to do in each situation, what dates are the seasons and how busy does the town get at that time. Also can you please detail the main activities to do in Pucon.

2.a) is there a list of real estate agents or selling agents? basically a place that you can review properties and consider the options.
2.b) what is the approx selling prices of properties? Are most properties are 300,000 us in town and 150,000 out of town or higher/lower value? So I can get a fair idea of what to aim for in regards to outlay required.

3. What are the major banks in the area and what are there names, is there any major international or foreign banks around? what is the local airport to the region and does it take flights from Santiago?


Thank you for your patience in advance.

As foreigner without residency you will not even be able open a bank account, let alone get a mortage.

Pucon is sort of a tijauna for the low to middle class of santiago, and tourist trap for foreigners.

Look at villa rica , puerto varas for more year around living.

Read the wiki for property hunting links. agent referals are prohibited on the forum.

Thank you very much, I'll trawl the wiki now.

admin wrote:As foreigner without residency you will not even be able open a bank account, let alone get a mortage.

However, you may be able to get a dollar-Mutual Funds account with just a RUT, and no residency. Many newly arrived and even some not so newly arrived have done that. If you are clever you get an understanding account exec assigned to you, and perhaps the exec will even arrange for an electronic funds transfer which is held in limbo until you present yourself at the bank and fill out some declarations and bla bla. One of the advantages of the dollar-Mutual Funds account is that you can warehouse those dollars without conversion to pesos, and wait until the rate of exchange is favourable to do your exchanges and then only what you need. Some banks get excited if the electronic funds transfer is over US$10,000 while others recognise that people buying real estate need more, and the declarations can be just a formality. It varies by bank and even by account exec and phase of the moon, so shop around and practice good incantations. But admin is right about not being able to get a mortgage here since you are a nobody for the first two years or so, and not much more than a nobody after that.

Experience: I bought my first three properties in Chile years ago and never had a "bank account," but I did have a mutual funds account.

Excllent information, the banking side was mainly what I was confused about, but using a mutual fund sounds like the best idea.

patagoniax wrote:

admin wrote:As foreigner without residency you will not even be able open a bank account, let alone get a mortage.

However, you may be able to get a dollar-Mutual Funds account with just a RUT, and no residency. Many newly arrived and even some not so newly arrived have done that. If you are clever you get an understanding account exec assigned to you, and perhaps the exec will even arrange for an electronic funds transfer which is held in limbo until you present yourself at the bank and fill out some declarations and bla bla. One of the advantages of the dollar-Mutual Funds account is that you can warehouse those dollars without conversion to pesos, and wait until the rate of exchange is favourable to do your exchanges and then only what you need. Some banks get excited if the electronic funds transfer is over US$10,000 while others recognise that people buying real estate need more, and the declarations can be just a formality. It varies by bank and even by account exec and phase of the moon, so shop around and practice good incantations. But admin is right about not being able to get a mortgage here since you are a nobody for the first two years or so, and not much more than a nobody after that.

Experience: I bought my first three properties in Chile years ago and never had a "bank account," but I did have a mutual funds account.

How did you transfer your money to chile to pay for your properties? Through that mutual funds account? If so, are there any amount limits on it?

My recommendation,

Come to chile first then talk the talk..............

properties in pucon start at $40,000.. and go up from there........

In summer it has lake, in winter it has mountain........... i would say its a all year round budget resort town......., would you make money on an investment there? no

Chile is not a place for investment properties so much land, houses do not increase in price, there is always something else, or somewhere else... maybe in 50 years it might start increasing, but i dont see that!

zer0nz wrote:

Chile is not a place for investment properties so much land, houses do not increase in price,

Maybe not in other places. But property values in many parts of this area (Ultima Esperanza) have increased by 100 percent or more in the past ten years.

patagoniax wrote:

zer0nz wrote:

Chile is not a place for investment properties so much land, houses do not increase in price,

Maybe not in other places. But property values in many parts of this area (Ultima Esperanza) have increased by 100 percent or more in the past ten years.

100% of nothing doesnt count

Thing is if a chilean wants a holiday home, there is always going to be one available in the next "it" place for the same price it was 10 years ago!

.



Article regarding first part of 2012:

Un 38,3% aumentó el valor de las viviendas en el gran Santiago

Respecto del valor de las ventas de viviendas durante el primer trimestre del año, éste aumentó 38,3% en doce meses. Por su parte el valor total de ventas de casas se incrementó en 56%, anotándose las mayores ventas en los segmentos que están sobre las 1.000 UF y en todos los tramos de superficie.

I have been looking at properties in BioBio and Valpo regions and frankly it seems to me that prices are quite high in Chile. Considering that in the US right now one can purchase a property, per acre, that is considerably less than in Chile. A prime acre of farm land in Iowa for instance is going for around 10k on the high end and in Chile, even in less than prime areas, the asking price is higher?!

I really do like Chile in most respects, but it is hard to justify buying a piece of property for more money in a "2nd world" country than the US for example. Even with all of the political and economic headwinds in the developed world.

In terms of investment, the developed world would seem to offer considerably more upside potential relative to Chile, especially in light of the fact that you can likely purchase something at fire sale prices and with mortgage rates at all time record lows.

What are some opinions on real estate valuations in Chile right now?

weston881 wrote:I have been looking at properties in BioBio and Valpo regions and frankly it seems to me that prices are quite high in Chile. Considering that in the US right now one can purchase a property, per acre, that is considerably less than in Chile. A prime acre of farm land in Iowa for instance is going for around 10k on the high end and in Chile, even in less than prime areas, the asking price is higher?!

I really do like Chile in most respects, but it is hard to justify buying a piece of property for more money in a "2nd world" country than the US for example. Even with all of the political and economic headwinds in the developed world.

In terms of investment, the developed world would seem to offer considerably more upside potential relative to Chile, especially in light of the fact that you can likely purchase something at fire sale prices and with mortgage rates at all time record lows.

You've been doing your homework. That is refreshing to see.