Buying property in Chile

Buying, Selling, Building, Tax issues, anything regarding real estate or properties in Chile.
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Re: Buying property in Chile

Post by admin » Mon Jun 05, 2017 4:27 pm

nwdiver wrote:
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.
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Re: Buying property in Chile

Post by David_Bro » Mon Jun 05, 2017 9:33 pm

Wow----this is really amazing---what else is there to say?-----I think before all the restrictions bargain hunter is talking about-----you would have to have 2 or 3 years on your own looking for it----Really, as i have thought about it, its not that you are looking to buy property in Chile for you but rather that you fit in with what Chile has to offer because of several dozen reasons and those options far out weigh what the logical property options would be in any other case------better to go to Italy where the government now has about 200 or so old school properties they are giving away if you can put in some kind of money making concern over two years with the build up etc-----you have to submit a plan of course and it has to be approved----and they have several hundred locations to be announced coming in December too----cannot find the link but will add when i find it---

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Re: Buying property in Chile

Post by Bargain Hunter » Tue Jun 06, 2017 1:28 am

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Re: Buying property in Chile

Post by Gloria » Tue Jun 06, 2017 1:23 pm

Bargain Hunter wrote:Admin in terms of the location within a city/town I am not looking at "prime" rather I am looking at "second tier", e.g. a tiny semi-detached house 4 kilometers away from the beach in Vina Del Mar. If I end up buying an empty block of land I would just sit on it until I have money down the track to build something. Also if I decided to buy land would also be "second tier".

I agree with you that the budget level I am proposing ($110,000 USD) cannot get you the "prime location" and I am okay with that. Given this is the case, what do you suggest looking at?

I am thinking of getting a tiny house or a small block of land 4 or 5 kilometers from the waterfront in Vina Del Mar (apart form the water being cold, everything else about the city seems up to par).
Great house for sale.jpg
A tiny house or a small block of land 4 or 5 kilometers from the waterfront in Vina Del Mar.
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Re: Buying property in Chile

Post by Enzo » Tue Jun 06, 2017 1:51 pm

I have only spent two days in Chile, but from all that I've researched it seems that mid-northern Chile is a lot like southern California and southern Chile is a lot like northern California/Oregon in terms of TOPOGRAPHY and CLIMATE on the coast. Ocean temperatures seem to be about the same as well. I grew up on the Great Lakes, so warm water was never the reason that we went to the beach. There are a million other reasons to go to the beach and if you are used to swimming in cold water, I would think the beaches would be tolerable and worth buying property in a close proximity. I guess I am only chiming in because it seems like people are saying the beaches in Chile are SH·T juste because the water is cold. Jump in the water, jump out, jump in the water, jump out... that's typical beach going for me.

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Re: Buying property in Chile

Post by HybridAmbassador » Tue Jun 06, 2017 4:21 pm

Enzo wrote:I have only spent two days in Chile, but from all that I've researched it seems that mid-northern Chile is a lot like southern California and southern Chile is a lot like northern California/Oregon in terms of TOPOGRAPHY and CLIMATE on the coast. Ocean temperatures seem to be about the same as well. I grew up on the Great Lakes, so warm water was never the reason that we went to the beach. There are a million other reasons to go to the beach and if you are used to swimming in cold water, I would think the beaches would be tolerable and worth buying property in a close proximity. I guess I am only chiming in because it seems like people are saying the beaches in Chile are SH·T juste because the water is cold. Jump in the water, jump out, jump in the water, jump out... that's typical beach going for me.
Enzo, jump in and jump out, these motion gives the sharks a too little time to pray on you !
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Re: Buying property in Chile

Post by David_Bro » Tue Jun 06, 2017 4:58 pm

Bargain_Hunter-------Seriously, unless you have money to burn and/or you are over it-----and you are looking to have your property transition into income at some point----there are so many opportunities in Chile but its HARD work-----take some time in country to find it-----you could double if not triple or fourple your money in just a few years rather than just buying where you THINK the market is going----if you do it right, you could buy something up in the cordillera and make 5 times in the same amount of time----just consider it


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Re: Buying property in Chile

Post by Bargain Hunter » Tue Jun 06, 2017 9:29 pm

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Re: Buying property in Chile

Post by Julito » Wed Jun 07, 2017 12:47 am

Get a grip David Bro, pull the other leg...

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Re: Buying property in Chile

Post by MJSaywell » Wed Jun 07, 2017 9:50 am

David_Bro wrote:Bargain_Hunter-------Seriously, unless you have money to burn and/or you are over it-----and you are looking to have your property transition into income at some point----there are so many opportunities in Chile but its HARD work-----take some time in country to find it-----you could double if not triple or fourple your money in just a few years rather than just buying where you THINK the market is going----if you do it right, you could buy something up in the cordillera and make 5 times in the same amount of time----just consider it


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Wrong time in the cycle to be thinking you can achieve 5 times gain. You may get lucky though I guess, with someone desperate to sell, someone that needs cash now. But as a rule I don't think those returns are possible over a shortish time frame. Sure maybe in 20 or 30 years you maybe able to realise a return like that but atm unlikely

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Re: Buying property in Chile

Post by admin » Wed Jun 07, 2017 10:04 am

Most foreigners without any experience in the real estate market, have a very high-probability of not being able to read those cultural / economic tea-leaves.

For example, buying 4 km from the beach in Vina, has a good chance of putting you smack in the middle of ghetto.
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Re: Buying property in Chile

Post by MJSaywell » Wed Jun 07, 2017 10:17 am

On a general theme, all those people that got sucked in to the idea that good times will continue when Piñera was in power are now starting to realise that this administration has completely screwed them over, 3 years of a slowdown is starting to really squeeze a lot of people now and there are more forced sales coming to market. The economy showed pathetic weakness in the first quarter, the only positive sign is that things are looking better going forward, partly because people realise this lot will be gone soon, but also other factors. A lot of People who had been clinging on and now having to face reality that the climb out is still a way off, a lot further than they may have thought a year ago, so yeah I suppose if you are feeling like a vulture you could find a deal.

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