Housing market situation

Buying, Selling, Building, Tax issues, anything regarding real estate or properties in Chile.
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at46
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Re: Housing market situation

Post by at46 » Sat Oct 06, 2018 6:44 pm

fraggle092 wrote:
Sat Oct 06, 2018 4:58 pm
at46 wrote:
Sat Oct 06, 2018 1:54 pm
Higher property values mean higher property taxes - and everybody's happy, right?
at46 wrote:
Sat Oct 06, 2018 1:54 pm
While higher taxes on rental income mean higher rents, and that's only going to play well among socialists, and who wants that?
Whatever.

Anyway, the trend here has been to try to increase revenue over the years in order to pay to pay for all those electoral promises, plus an ever-increasing number of state and local government employees.

They are already harvesting all the low-hanging fruit, especially when the promised compulsory boleta electronica is introduced, so they are certain to be looking at e-commerce and the informal property rental market sooner or later.
I guess by informal rental market you mean airbnb etc. Well, that game has played itself out, imho. With the huge increase in airbnb properties everywhere over the last few years, the rentabilidad has dropped precipitously. I'm pretty sure airbnb will itself start reporting or maybe even collecting IVA for the government soon for furnished rentals, kinda like what Amazon is doing in online shopping. But that will only drive out the small fry. Otherwise, we're back to basics: location, location, location.

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Re: Housing market situation

Post by admin » Sat Oct 06, 2018 7:23 pm

a lot of buildings band airdnb due to the noise and problems it brought to the neighbors with things like 3, 5, or 7 day minimal rentals.
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Re: Housing market situation

Post by admin » Sat Oct 06, 2018 7:41 pm

i think a lot of what we are seeing the apartment market in santiago right now is distortions introduced by bachelet's tax reforms related to real estate. it will take a while, as in likly years, to work itself through the market.
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paladin
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Re: Housing market situation

Post by paladin » Sun Oct 07, 2018 4:50 am

I believe that the more you pay for the property, the harder it is to rent it out for a reasonable return, and also it can sit empty for some time waiting for a tenant.
I would agree that for an investment, it is far better to go for lower value property that is easier to rent and gives around 5% return. This is not difficult. For example in a high demand area like Manuel Montt, a 1 bed apartment with bodega and parking, is around $100 mm? Monthly rental income $450 k, $5.4mm pa . Take off contribuciones and you’ve got yourself 5% return , and no doubt an increase in tne property value, equal at least to inflation.

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Re: Housing market situation

Post by admin » Sun Oct 07, 2018 9:26 am

paladin wrote:
Sun Oct 07, 2018 4:50 am
I believe that the more you pay for the property, the harder it is to rent it out for a reasonable return, and also it can sit empty for some time waiting for a tenant.
I would agree that for an investment, it is far better to go for lower value property that is easier to rent and gives around 5% return. This is not difficult. For example in a high demand area like Manuel Montt, a 1 bed apartment with bodega and parking, is around $100 mm? Monthly rental income $450 k, $5.4mm pa . Take off contribuciones and you’ve got yourself 5% return , and no doubt an increase in the property value, equal at least to inflation.
yea, and if you say go up to los condes you are looking at 200 million to 300 million for a similar sized apartment that only rents for say 600 or 700,000 a month. two or three times the price, but you are not even getting double the rent.

those numbers have a way of swinging. the construction association seems to hold back supply as needed to support prices, while the banks are offering low interest rates and have also dialed back the size of downpayments.
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at46
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Re: Housing market situation

Post by at46 » Thu Oct 18, 2018 7:00 pm

at46 wrote:
Wed Oct 03, 2018 12:17 pm
admin wrote:
Wed Oct 03, 2018 7:50 am
at46 wrote:
Tue Oct 02, 2018 7:39 pm
The number of dollar millionaires in Chile rose from 5K in 2007 to 57K in 2017, according to Credit Swisse. Unfortunately, there's no breakdown of house rich versus cash rich among them. But they're all in Santiago. And if you're sitting on a good chunk of equity, you can mortgage it to buy more. So it becomes a self-feeding circle, exacerbated by the shortage of prestigious land in Santiago and low interest rates.
https://www.24horas.cl/economia/cuantos ... le-2562451
and that 57k is just the ones that show-up in the official stats. there are way more than that, especialy when talking about real estate.
Yep, I can totally see that. In Canada they estimated the grey economy not covered by the official stats at 17% some years ago. And Canada is a pretty strictly regulated country. Here I'd say 30% of the local economy could easily be under the official radars, plus another 5-10% shuffle-fudged by the powers that be.
The number of dollar millionaires in Chile has increased by 10,000 over the last 12 months, reaching 67,000, according to Credit Swisse. That's 27.4 new millionaires per day, including Saturdays and Sundays. If each new millionaire buys one apartment in an apartment building, that's one building sold in 4.38 days, or 83 buildings in one year :)
https://www.df.cl/noticias/tendencias/l ... b5eb29960d

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