Housing market situation

Buying, Selling, Building, Tax issues, anything regarding real estate or properties in Chile.
Forum rules
NO DISCUSSION OF SPECIFIC REAL ESTATE AGENTS BY NAME, LINK, OR RECOMMENDATION ANYWHERE ON THE CHILE FORUM.
User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Wed Jun 28, 2017 10:40 pm

nwdiver wrote:It's second properties that will become availble as people tend to dump them and protect their core asset, their home, I have watched allot of stuff going on with nearly no money down.........the mental thought is "nothing in" walk away this appears to be happening more and more on second homes....

It pretty much defines the ups and downs of the vacation property market in places like pucon. Lots of middle class speculating on places that are way over their budget / over reaching. Great on a sunny finacial day, but...
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

StrawberryHeartsForever
Rank: Chile Forum Citizen
Posts: 125
Joined: Sat Jan 28, 2012 7:05 pm

Re: Housing market situation

Post by StrawberryHeartsForever » Wed Jun 28, 2017 10:45 pm

So this is for a family home. Not an investment. Although would be an investment for old age. So anyho put in an offer on a place today. Needs some work but has some nice features. Also see some potential to better the spaces. Hope it all works out.

User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Wed Jun 28, 2017 10:51 pm

On the other hand, a lot if us seen this sort if panic right after the 2008 crisis and chilean real estate came roaring back harder than almost every where else in the world.

At the end if the day, it will probably track the mining industry and politics more than anything. Which is exactly what it did in 2008. Not even the 8.8 earthquake really moved the needle ecomically (although it moved everything else).

Buy the dip, and ignore the white noise.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Wed Jun 28, 2017 11:01 pm

StrawberryHeartsForever wrote:So this is for a family home. Not an investment. Although would be an investment for old age. So anyho put in an offer on a place today. Needs some work but has some nice features. Also see some potential to better the spaces. Hope it all works out.
The question i ask myself with any property purchase: would i be o.k. looking at the view or whatever for 10 or 20 years if i get this wrong?

Any answer kind of on the yes side, then i move on to other concerns with the purchase. Pretty rare anywhere in the world to be underwater after 10 or 20 years, especially if you enjoyed living there rent free.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Wed Jun 28, 2017 11:38 pm

8 months of declines in the construction industry. For buyers, the name of the game however is trying to call the bottom.

https://www.df.cl/noticias/economia-y-p ... 01137.html

And it pretty obvious that when you get rid of the cause of that decline overall, that is probably pretty close to the bottom (hak, hak, election).
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Thu Jun 29, 2017 11:08 am

double post, but I thought related to the discussion on real estate prices. The mining industry is holding back on investment, waiting for the political situation to be resolved.

https://www.reuters.com/article/us-chil ... SKBN19J2L2

So, that means:

A. Pinera wins, and a flood-gate of investment money is opened that has been sitting on the sidelines. Even if he really does not reform much of the reforms, it will have a psychological boost for foreign investors. That will light a fire under the real estate markets across Chile.

B. The left wins, essentially being read as a black swan event from an investment perspective, and everyone starts pulling the plug on Chilean investment for another 4 years. Even if whomever on the left does not nothing in particular, or does make some reforms. At that point, there really will be some good deals in real estate.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

41southchile
Rank: Chile Forum Citizen
Posts: 247
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Housing market situation

Post by 41southchile » Thu Jun 29, 2017 2:15 pm

admin wrote:On the other hand, a lot if us seen this sort if panic right after the 2008 crisis and chilean real estate came roaring back harder than almost every where else in the world.

At the end if the day, it will probably track the mining industry and politics more than anything. Which is exactly what it did in 2008. Not even the 8.8 earthquake really moved the needle ecomically (although it moved everything else).

Buy the dip, and ignore the white noise.
Indeed,. same thing in NZ and Australia, average property prices in Auckland NZ have increased 100 percent since 08. I was telling a friend in Chile the other day about Chinese influence in NZ on property prices, he reckons there are Chinese property investors arriving here too, Idon't know if this has any truth to it, or wether it was a case of one or two have made the trip here and bought a few properties, certainly I don't think it would be anything like the volumes of investors that arrived in places like NZ, Aus and Canada during the last decade. en fin prices shouldn't crash here and even if they do soften a little as admin points out they could also rise even further. My suegra is looking for a Parcela on West side of Santiago, she is almost getting depression seeing the prices now compared to just a year or two ago. 120 million on the road to Melipilla, 60 o 70 way out in the middle of nowhere. Certainly no signs of a crash anywhere I've heard, good properties will sell fort good money, there is no buyer fever like in 2015, but certainly no seller desperation either. If you can afford it, personally I wouldn't wait
In the Lakes Region Chile for 6 years. It looks like New Zealand in some ways, and is nearly at the bottom of the world too, but there the similarities end.

41southchile
Rank: Chile Forum Citizen
Posts: 247
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Housing market situation

Post by 41southchile » Thu Jun 29, 2017 2:19 pm

StrawberryHeartsForever wrote:So this is for a family home. Not an investment. Although would be an investment for old age. So anyho put in an offer on a place today. Needs some work but has some nice features. Also see some potential to better the spaces. Hope it all works out.
Good on you, all the best hope it all goes smoothly.
In the Lakes Region Chile for 6 years. It looks like New Zealand in some ways, and is nearly at the bottom of the world too, but there the similarities end.

StrawberryHeartsForever
Rank: Chile Forum Citizen
Posts: 125
Joined: Sat Jan 28, 2012 7:05 pm

Re: Housing market situation

Post by StrawberryHeartsForever » Thu Jun 29, 2017 11:31 pm

Thank you 41 south. I think this is a good time as any to buy else I could be waiting for ever and never get on the ladder! Prices in the UK have gone crazy out of reach for a lot of people who are not yet on the ladder. So I think I would rather regret buying than not buying. I don't think there will be much movement on the lower price properties anyway. That is my bracket, and there is little available for what I can afford. So I have to be realistic and make the most of it.

StrawberryHeartsForever
Rank: Chile Forum Citizen
Posts: 125
Joined: Sat Jan 28, 2012 7:05 pm

Re: Housing market situation

Post by StrawberryHeartsForever » Thu Jun 29, 2017 11:32 pm

And yes small sitios in el cajon going for 80 million and a year ago they were around 35-40. Crazy!!

User avatar
admin
Site Admin
Posts: 16465
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Housing market situation

Post by admin » Sat Jul 01, 2017 8:21 am

Here is a 'one that got away story'.

There was this lot I originally looked at just before I bought a similar lot in the same development. The owner wanted 20 million at the time, and it had been on the market already for about 3 years. It was much further back in the subdivision, than the one I ultimately bought, for 17 million. Don't regret that decision, as almost always lots towards the front of a development gain in price faster, and I was offered a deal on it I could not pass up. At the time the lot in back was way too high for what it was, but it otherwise ticked all the boxes. Good elevation, facing sun, view of the lake, etc.

Fast forward like 4 years, and by accident I happened to be talking to the real estate agent for that lot again about some other matter, and he mentioned it was still for sale, at the original price of 20 million. At that point, going market price for lots of that type was about 25-30 million. So, I spent a few days thinking about it, thinking about it. I didn't have the cash on hand, so called my brother. He was game to go halves. I call the real estate agent to tell him we are a go. They just signed a promissory agreement on it an hour before, after something like 7 years on the market. I missed it by one hour.

That lot is something like 40 - 50 million, perhaps more now.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
murf
Rank: Chile Forum Citizen
Posts: 336
Joined: Sun Jun 03, 2007 8:00 pm
Location: chicago

Re: Housing market situation

Post by murf » Tue Jan 16, 2018 8:31 pm

So I’m going to bump this thread rather than start a new one because the subject matter is relevant and continual.

I’ve been away from this forum and from Chile for quite some time (6 years since I last set foot in Chile).
I spent the holidays with the missus and family down there and I’ve got to say how shocked I was by how similar the sentiment is in Chile today is regarding the housing market to how the US and Ireland and U.K. were in the mid noughties.
Everybody is talking about how much their property is worth and how Chile is different and how market variables such as supply, demand and income valuation etc. do not apply.
There appears to be a flooding of cheap credit and banks appear to be “throwing “ money at the masses. In fact the hardest part of getting a loan seems to be the inexplainable wait time at every bank branch.

Agricultural land hours away from centers of economic vibrancy are commanding double and More than the price of agricultural land in the likes of the US, France, the U.K. and elsewhere. Land which has minimal profit capabilities and which has little development opportunities is commanding upwards of 25 million per hectare.
My family visited one such parcella last year three hours of Santiago which was on the market then for 50 million Chilean pesos. It was 2 hectares with an abandoned structure and this year my wife and I enquired as to whether it had been sold. The reply we got is that it has been on the market for three years with no takers so I asked if the owner had reduced the price to a reasonable asking price and the response was that “no, they had increased the price by 10 million Chilean pesos”.

I understand that there is massive governmental interference in the market via subsidies, grants etc. but surely this market is way out of kilter with established valuation methods.

What say the masses who frequent this fine forum?
"Life is what happens to you while you're busy making other plans"

Post Reply