Bargain Hunter wrote:After some reflection I decided my original criteria for choosing a place to buy a property in Chile was too strict. My new criteria is:
-The city must be live-able and not be a shit-hole.
-The city must have good-term capital growth (land price appreciation) potential
-The property/city must have strong rental market demand.
-The property/city must be relatively liquid (able to sell within less than 6 months at fair market value)
-The property must be a house or a block of empty land (no apartments)
-The budget including transaction costs is $110,000 USD
Given the revised, less strict criteria, where should I be looking at?
That's less restrictive..............good luck
Except that the other conditions, will make the "-The budget including transaction costs is $110,000 USD" (70 million pesos, mas o menos), hard to do; generally if it ticks the other boxes, the prices are already on the move.
Put that in perspective, I just watched an auction the other day of a house in Puerto Varas (example of town that meets all your other criteria, and we can even call the lake kind of warm sometimes), and not even very nice house, the minimum was 32 million and sold at 117 million pesos with about 20 active bidders in around 2-3 mins. That was an auction with dozens of other properties on the same day, located all over the country. It was definitely liquid.
So, 70 million might get you some land in a high-demand locations, but a house might be difficult. Often, even 70 million will not get your foot in the door (literally) to any thing sort of prime now. It is what the secondary properties are going for (e.g. a few km away, rather than beach-front). which is not always a bad thing, direct on the water is sometimes over-rated. That is where you find the bugs, the rats, the tourist. Better to save some money, and buy a view a little further away. Let someone else over pay for the annoying rats and even more annoying tourist near the water.