Housing market situation

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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Jul 20, 2020 3:05 pm

GAminer wrote:
Mon Jul 20, 2020 2:53 pm
tiagoabner wrote:
Mon Jul 20, 2020 2:06 pm
Britkid wrote:
Mon Jul 20, 2020 1:44 pm
Thanks for the interesting article, and the other interesting part was evidence of rents in decline. Has anyone asked for a discount on their rent? How'd it go?
I asked for a discount in rent because I knew the market was pretty much dead (not because I needed it). My contract would run out on June 30, so I reached out to my landlord in March to check if they would be willing to budge. They weren't, so I started to look for options.

I was previously paying $850.000 for a furnished, 600 sqft, two-bedroom apartment close to the corner of Apoquindo and Manquehue, in Las Condes. It was at a desirable location and I got it during the protests last year (IE. I moved in a hurry, I didn't have time to shop, I was previously living next door to the protests), so I was surely overpaying a bit. I found similar apartments going as low as $650.000 in the same area, or slightly lower in other areas close-by.

I eventually rented a non-furnished, 900 sqft, two-bedroom apartment in Concón for $450.000. I now have a sea view and I'm living at an apartment 50% larger and I'm paying much less for it. I'll most likely buy it in 1-2 years. I'm fortunate that the industry I work at wasn't really hit by the pandemic, so I was in a good position to shop around.
How were you able to change regions during this quarantine?
There is a "permiso" for that, although it is now known as a "Salvoconducto individual - Mudanza". There was quite a lot of paperwork involved in the process, including a notarized "moving permit", but I fortunately had quite a lot of time to chase it all.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

PXYC
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Re: Housing market situation

Post by PXYC » Mon Jul 20, 2020 11:17 pm

fraggle092 wrote:
Mon Jul 20, 2020 11:45 am
PXYC wrote:
Sun Jul 19, 2020 11:26 pm
The main testemony of this "La Tercera" article didn't followed the rules, he requested loans in different banks for 12 appartments at the same time. This is maybe.. illegal? It's a shame the system allows this to happen.
Didn't make my comment very clear, but I wasn't sympathising so much with this individual except as the victim of a system that allowed him enough rope to hang himself. Of course he overextended, and there are of course many Chileans in worse circumstances.

I was actually referring to this grossly materialist society where getting money to conspicuously consume seems to be the only point of life. Hence the drug dealing example. But maybe I should have kept my ideas to myself!
Yeah lots of people could have done what he's done out of impulse for better future prospects, just sayin'.. not to lose focus.. he did something illegal, I don't think the system should save these multi properties small investors. Just sell it or face foreclosure and get it over with.

PXYC
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Re: Housing market situation

Post by PXYC » Mon Jul 20, 2020 11:26 pm

I did a quick round on portal inmobiliario today and there are almost no new appartments for sale here in Providencia. Its definitely a renters market in the big city. :)

paladin
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Re: Housing market situation

Post by paladin » Tue Jul 21, 2020 8:53 pm

PXYC wrote:
Mon Jul 20, 2020 11:26 pm
I did a quick round on portal inmobiliario today and there are almost no new appartments for sale here in Providencia. Its definitely a renters market in the big city. :)
Providencia doesnt have any good available land to build on except maybe away from where people want to be. Try El Golf

PXYC
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Re: Housing market situation

Post by PXYC » Tue Aug 25, 2020 3:07 pm

So, I entered today on remates macal for some brief minutes. Auctioned appartments in better areas of Santiago still at same price as the normal market. I guess I will never understand why remates in Santiago don't include the factor "auction" discount.

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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Fri Sep 25, 2020 10:41 pm

Has anyone been keeping an eye out on the rental market? Apartment rent prices seem to have crashed all over Santiago. The last 2 buildings where I lived in Providencia and Las Condes now have apartments renting for 40% less than what I was paying.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

PXYC
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Re: Housing market situation

Post by PXYC » Mon Sep 28, 2020 10:06 pm

tiagoabner wrote:
Fri Sep 25, 2020 10:41 pm
Has anyone been keeping an eye out on the rental market? Apartment rent prices seem to have crashed all over Santiago. The last 2 buildings where I lived in Providencia and Las Condes now have apartments renting for 40% less than what I was paying.
On what comunas? By late August I looked for 3B appartments in Providencia or El Golf and prices were not 40% down, not even close. In the momentum I also looked for apartments to buy and ended making an offer on one that I liked with a price way below average, hopefully I'll move somewhere in December/January - i need more space!, if something changed in my life with this pandemy is that I will never ever again compromise on space.

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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Sep 28, 2020 10:46 pm

PXYC wrote:
Mon Sep 28, 2020 10:06 pm
tiagoabner wrote:
Fri Sep 25, 2020 10:41 pm
Has anyone been keeping an eye out on the rental market? Apartment rent prices seem to have crashed all over Santiago. The last 2 buildings where I lived in Providencia and Las Condes now have apartments renting for 40% less than what I was paying.
On what comunas? By late August I looked for 3B appartments in Providencia or El Golf and prices were not 40% down, not even close. In the momentum I also looked for apartments to buy and ended making an offer on one that I liked with a price way below average, hopefully I'll move somewhere in December/January - i need more space!, if something changed in my life with this pandemy is that I will never ever again compromise on space.
Providencia and Recoleta. I used to live in Las Condes at Avenida Apoquindo, close to the corner with Manquehue and next to Stadio Italiano. Rent prices there are down 40%. It was a 2-bedroom apartment, though, I haven't checked prices for 3-bedroom places.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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admin
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Re: Housing market situation

Post by admin » Tue Sep 29, 2020 7:01 am

I really have not payed much attention to the apartment rental prices, but that makes sense.

Between people that lost their jobs and had to downgrade, exudust from santiago, and airbnb owners that are now forced in to the long term rental market, there is probably 40 percent more one and two bedroom apartments on the market now. Probably got a few people that have upgraded.

They will be working through the stock of apartments for the next year or two.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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snobrd4life
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Re: Housing market situation

Post by snobrd4life » Sun Oct 11, 2020 10:06 am

snobrd4life wrote:
Wed May 20, 2020 10:30 am
May 20, 2020 update...

Add the regular summer vacations and pandemic to the mix... our buyer's new bank has dragged their feet at every step of the way. The quarantines have been excuses for the banks to not move any processes along. Bank executives, processors and lawyers (not Spencer Global, they've been wonderful to work with) have excused themselves from accountability of any kind. Supposedly there is no "home office" structure even though the buyer's bank is a well known Canadian multinational.

I won't bore you with too many details, but answers and progress to any step in the process seem to take 3-4 weeks even with legal support. Feedback has been that employees are dragging out the process as much as possible to avoid making any judgments or decisions without superiors nearby to pat them on the back.

I can only imagine what is going on with the rest of the economy that depends on the banks as a part of doing business in Chile. You could say they are covering their asses which is how they have come to be the idols of Latin America banking, but at the same time I would say how much opportunity are they really leaving on the table by essentially doing nothing at all?

Supposedly we might be able to sign the closing papers next week if all goes according to plan, but seriously never thought this whole process would take 7+ months...
I meant to post this about a month ago, but have been a bit busy to make time for the forum. Here goes...

Sept 10, 2020 update

We finished today after almost a year. I'll outline how things progressed from my last update.

June 2 - buyer's bank finally sends papers to notary
June 3 - our POA signs papers
July 1 - deed submitted to Conservador de Bienes Raices
July 8 - deed registered in Conservador de Bienes Raices
July 24 - buyer's bank generates the vale vista order and will need 5 days until they can be cashed
Aug 31 - vale vista finally released to POA. Bank had to do "diligence"
Sep 10 - funds were wired from POA to our bank account. POA's bank needed to do their own diligence.

Basic summary, we sold our Chilean property via POA to avoid having to make the trip due to estallido (and later covid). Going in I knew very well that there would be issues due to no longer being a Chilean resident with valid carnet so we got legal help. All in, the whole transaction took us about a year from start to finish. Cost a little more than I would have liked to get it all done, but was less than having to fly our family of four to Chile to sign papers multiple times. Plenty of gripes along the way, but we always felt reassured having Spencer Global on our side. Big thanks to them!

Words of wisdom (nothing extraordinary, just my experience in case anybody else is considering selling)

-Real estate is an illiquid investment.
Ours made great returns (not in liquid rental income, but in appreciation) before we decided to sell. Fortunately ours continued making returns for nearly a year between signing the offer papers with our buyer/tenant. We wouldn't have sold unless we thought the capital could be put to better use.
-Fx rate doesn't matter until the day the wired funds clear your bank account.
During the course of our transaction, the USD to CLP swung by about 150 pesos (710 to 861). Fortunately we converted CLP to USD at about 60 pesos higher than the fx rate when we decided to sell. By no means did I ever feel like we would have been underwater on our investment even if we would have had to convert at 850, but what an emotional ride. I used to check the rate every morning to see how it would affect estimated liquid capital to be able apply to our next investment. It's a relief to not have that uncertainty anymore. I recommend planning for various fx rates and then plan for a few extra worst case scenarios. If you are at all not comfortable, maybe you should just continue to hold the real estate.
-Chile is neither Venezuela or Argentina
I now live in South Florida and the horror stories that I hear from various latino work colleagues and neighbors. They are dealing with our have had to deal with real red tape and gut-wrenching decisions regarding real estate. I never regret having bought in Chile and hope to do so again in the future.

Edit: here is the link to the first post in my story: viewtopic.php?f=19&t=14666&start=456#p198536
ese ruido blanco es una alarma en mis oídos
Not in Chile for now, but still lurking.

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admin
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Re: Housing market situation

Post by admin » Sun Oct 11, 2020 11:11 am

nice write-up.

The problem I have when I go to describe a "typical" real estate transaction is that we have seen so many exceptions to the rule over the years, that my descriptions get so generic and qualified that they are not very helpful.

so, sort of individual case studies are helpful.
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.

Britkid
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Re: Housing market situation

Post by Britkid » Sun Oct 11, 2020 4:37 pm

Thanks for the update and best of luck.

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