Housing market situation

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PXYC
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Re: Housing market situation

Post by PXYC » Mon Jan 20, 2020 1:38 pm

admin wrote:
Mon Jan 20, 2020 9:30 am
just over on the economics thread, where I posted prices as the auction was going on.

none of the property has been going for anything like market recently, especially in any area there are protests. what is "market" now?

it will be next year before we get any sense of that in places around Santiago and the central region.

not like I was ever very interested in owning something in the central region, but now I really have no interest in it. I am just waiting for the southern chile vacation home / speculators from Santiago to choke and start dumping their properties down south. probably start seeing some of that by next winter.

If I buy anything right now, it is going to be down in the Patagonia. far far from all the stupidity up north.
Yes i've red all those posts, but most of them are not related to Santiago and none related to "good" areas such as the good neighbourhoods of Providencia or Las Condes. Really I was llooking for something like an excel or pdf table with address and final sales price. I will just try my luck and contact them directly.

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Re: Housing market situation

Post by Britkid » Mon Jan 20, 2020 3:11 pm

snobrd4life wrote:
Mon Jan 20, 2020 11:53 am

Will update once all is said and done.
Thanks for this. Indeed would really interesting is to know whether you manage to close it at the original price. That would be a useful data point for people. Thanks.

paladin
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Re: Housing market situation

Post by paladin » Mon Jan 20, 2020 8:47 pm

Out of interest, I find that in the areas that interest me, ie El Golf, and Nueva Las Condes, the recent problems have had no effect either on prices or rents. Tomorrow, I close on an apartment I visited last Wednesday, made an offer which was accepted on Thursday, and we would have signed the promesa on Friday, except the seller only returned to Chile yesterday. I already have a tenant lined up to move in immediately the cert de inscripcion comes out. It’s like other parts of the world, where slumps may affect certain areas but not others.

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snobrd4life
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Re: Housing market situation

Post by snobrd4life » Mon Jan 20, 2020 9:13 pm

paladin wrote:
Mon Jan 20, 2020 8:47 pm
Out of interest, I find that in the areas that interest me, ie El Golf, and Nueva Las Condes, the recent problems have had no effect either on prices or rents. Tomorrow, I close on an apartment I visited last Wednesday, made an offer which was accepted on Thursday, and we would have signed the promesa on Friday, except the seller only returned to Chile yesterday. I already have a tenant lined up to move in immediately the cert de inscripcion comes out. It’s like other parts of the world, where slumps may affect certain areas but not others.
Glad you’ve got a tenant set up so quickly.

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41southchile
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Re: Housing market situation

Post by 41southchile » Mon Jan 20, 2020 11:58 pm

I dont think we have ever had this much interest for parcelas in January. Often strangely enough, January is very quiet for us, that has been the case for last three , this is our 4th January since we started.
In Feb it gets busier, we normally get the holiday makers having a look, but interest so far this year for us is very very strong.
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Re: Housing market situation

Post by admin » Tue Jan 21, 2020 8:29 am

41southchile wrote:
Mon Jan 20, 2020 11:58 pm
I dont think we have ever had this much interest for parcelas in January. Often strangely enough, January is very quiet for us, that has been the case for last three , this is our 4th January since we started.
In Feb it gets busier, we normally get the holiday makers having a look, but interest so far this year for us is very very strong.
yea, there is definitely a whole "plan B" (or Z) thing going on with the Santiago people this year down south.

I think part of what is going on is simply the lakes region. People might say vacation for years in chillan or pucon, but they could not as a practical matter live there if they had to leave Santiago or the central region. well, they could, it just both those regions have their own issues going on.

The lake (llanquie) is pretty special, in the context of Chile. mix of infrastructure, schools, the theater del lago, air port, restaurants, etc. You can not get that up in pucon and the like. They are not places someone from Santiago can actually live year around comfortably with a family. now perhaps some gringos could make it work, but not the los condes crowd. The urban Santiago types.

almost all the other major areas further north have their own social issues going on too.

even if this all settles down over the next year or two, those people are probably thinking at least retiring in the lakes region. they are coming sooner or later; and probably sooner.
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snobrd4life
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Re: Housing market situation

Post by snobrd4life » Thu Feb 13, 2020 3:14 pm

Just wondering, what is the typical spread that a Chilean bank will convert CLP to USD for large amounts (>$10k USD). Usually ~20 CLP/USD? Or does this vary significantly if the fx rate in pesos is in the 500's vs the current 700's? Anybody with recent experience? Is the spread similar converting in the other direction?
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Re: Housing market situation

Post by admin » Thu Feb 13, 2020 3:20 pm

typically 5-10 pesos, relative to the central bank rate, mas o menos.

We do frequent dollar trades, and our executive typically makes a quick call to the trading desk to get us a few more pesos per dollar for us; but, not sure most banks would be willing to do that over just a one time transaction.
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snobrd4life
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Re: Housing market situation

Post by snobrd4life » Thu Feb 13, 2020 3:39 pm

Thanks! When you refer to the trade you do, are they for personal banking or business banking on behalf of your clients? We're closing a deal with your team in about a month, hopefully.
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Re: Housing market situation

Post by admin » Thu Feb 13, 2020 10:16 pm

Little bit of everything. We just do sufficient volume of exchanges pushing client's money around, that our bank executive is willing to cut us better rates to keep us around.
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Re: Housing market situation

Post by Duganist » Mon Feb 17, 2020 3:16 pm

I had a combo business CLP/USD pair of accounts set up with Banco BICE years ago, they did me a 1-2 CLP spread on Forex. More people should be using them. It's insane to pay 1%.

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Re: Housing market situation

Post by Duganist » Mon Feb 17, 2020 3:22 pm

Also it's possible to get money converted into foreign currency by transferring CLP over to Buda or CryptoMKT and posting a limit buy, sometimes the market is panicky and there is actually a ~0.3% or 0.5% discount to global prices, then hedge that BTC with a derivative on Deribit or Emx (Panama/Dutch and US-based respectively) and move it, sell it for currency where you wanted to move money, cover the hedge. Total fees will be about 0.6% on Buda and 0.1% or 0.15% on the derivatives exchanges. Usually the premium on Buda is ~1-2% so I prefer to be a net-seller for BTC on those venues, but opportunity strikes from time to time. Admittedly the fees on the local Chilean BTC exchanges are pretty high (as one does in Chilean financial services) so generally BICE's forex desk will be the cheapest liquidity in the country.

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