Can you afford to live in Chile????

Chile Investment, how to invest in Chile, what to watch out for when investing, economic issues, currency exchange in Chile, and more.
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Re: Can you afford to live in Chile????

Post by admin » Tue Jul 24, 2018 3:54 am

Here is a great example of the real estate wealth in chile that is very under reported.

Friend of ours calls up in a panic. She just got a property tax notice, for the first time in 6 years. She freaked out because she had never gotten one before, and thought she owed 6 years of back taxes and might loose her house if she did not fix it fast.

We helped her buy the house for 125 million 6 years ago. Currently there is not a bank appraiser in the country that would not call it 250 million pesos from the curb, without even going inside the house. Half a million dollars, mas o menos.

It was a new tax assesment for the house. The house had been zoned rural agro cultural property for the 20+ years, and tax exempt.

What was the new tax apraisal?

45 million pesos. Only 11 million of that was taxiable. The tax bill was 8,000 pesos a quarter. Like $60 u.s. a year.

The goverment is still viewing that property as empty parcel in rural southern chile.

That is the only number the oecd, or anyone else, officially has to work with if they were just trolling through official databases to determine how rich or poor chileans are; or what the countries asset values are like compared to the rest of the world.
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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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Re: Can you afford to live in Chile????

Post by admin » Tue Jul 24, 2018 4:31 am

Here is another recent one, that effects how rich the world thinks chile is.

Concha y torro, the vineyard. Traded on the new york stock exchange since like 1994, and only just this month cancelled their listing in the states. Market value officially of 1.1 billion dollars.

I was not all that interested in their stock. It is a wine company, and not even my favorite wine. I really dismissed them as an investment target.

Then it was brought to my attention that they were reporting their average value of their property in chile at like $3000 u.s. per hector, and they own thousands of hectors of the most prime agroculture property in the world, and water rights to go with it.

I thought to myself, 'there is no way their land is worth just $3000 a hector'.

Especially because they hold agro land in the middle of santiago and other major metro areas in chile. It is not rural property anymore. Some of it is worth more than $3000 u.s., per METER.

I pulled their reports, did some googling on their property holdings, and some back of the napkin calculations, and came up with assets easily worth north of $10 billion u.s. in real estate holdings alone. Burn the vines, and liquidate the property at auction, and the company is worth 10 billion. Never mind the rest of the buisness, which in like 135 countries, etc, etc.

In fact, i think it is part of the reason they withdrew from the new york stock exchange. Shareholders were starting to ask questions about it, and i suspect it was starting to cause legal problems in the states with the regulators.

O.k., so that was a long way to making the point that company is just one example of value in chile used to say calculate things like the total value of chilean stock market by internatonal investors, credit rating agencies, IMF, oecd, etc, etc.

You could run through a lot of the companies in chile, both public and private, and find way more examples. The frigen military, the cabinerios de chile, and other goverment agencies own billions of dollars in real estate too, including things you would not expect a military to own, like hotels. Things that are never reported in those oecd numbers.

Bottom line, chile is way way under valued by the world, on sooooo many diffrent levels.
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.

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Re: Can you afford to live in Chile????

Post by admin » Tue Jul 24, 2018 5:24 am

Here, To compare zebras to say lions properly, in the other direction, how about poverty in latin america.

I was thinking about it. Of all of our house keepers over the years in chile, every single one owned at least one property worth more than $50,000 u.s. or more. A few owned several properties, including ones they rented out. As it is just me and my wife, we have always had housekeepers that worked part time for us, a couple days a week. So, they definetly are not getting rich working for us. Most either inherited or they bought them with the goverment subsidy. Not uncommon in families to for example the wife gets a goverment subsidized house, the husband gets one, and say grandma or one of the adult kid that lives at home gets one; yet, they all live under the same roof.

All my housekeepers have had at least one car in their family. No bmw's, but a running family car of some sort.

By comparison, I have had house keepers in mexico and central america. They really were poor, without a doubt. Their houses had dirt floors, and tended to be built on some really scarry side of a hill that was waiting for the next mudslide to wipe their families out. They never owned a car. Most could not read or write. If they owned their homes, they were not worth anything. They lived where they lived because their family always lived there. Sometimes they and their home, were really property of someone else. The finca system is alive and well in much of latin america.

that is poverty, and yea there still are realy realy poor people in chile, but nothing like those international studies try to "normalize" the annomoly of chilean poverty against latin american poverty and global poverty.

Chile really does have an interesting or diffrent sort of poverty problem. It is not extreme poverty like much of latin america and the developing world has, but it is also not fully developed sort of poverty.

It makes difficult trying to make the stats across latin america square when you have make chile fit in to those stats. I really think it is time that chile be better compared to say the lower income european countries, than the rest of latin america for development bench marks.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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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.

at46
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Re: Can you afford to live in Chile????

Post by at46 » Tue Jul 24, 2018 4:51 pm

Interesting info on liquid pay of ingenieros in Chile:

https://imgur.com/a/mKektb1

Full report here:

https://www.sidis.net/animate.pdf#page=1

Henryadis
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Re: Can you afford to live in Chile????

Post by Henryadis » Fri Jul 27, 2018 4:29 am

Dear All Community,

I do not know a lot of about the Country ..

I only travelled last year for first time- and what came to my attention was the security, the friendliness of people and most importantly the
amazing beauty of the country ...

I am very convinced that in the tourism industry along the Carretera starting P.Montt are huge .. and many things are underdeveloped .. for. ex. a booking website for accomodation and cabanas instead of using the expensive for owners such as bookings.com and so on..

My conclusion is that for people who love nature and just want to live a simple life in one of the last undestroyed corners of the world with industry ..
that could be a Choice..
I meet many smart people on my six weeks from all over the world who would love live there ..
Cheers
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bert.douglas
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Re: Can you afford to live in Chile????

Post by bert.douglas » Fri Jul 27, 2018 8:56 am

The map overlay is nice.
It would be much better if you turn it upside down and align by latitude.
This way you can compare climates directly to a more familiar region.
Best to use the same map projection (mercator most likely) for both maps.

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Re: Can you afford to live in Chile????

Post by admin » Fri Jul 27, 2018 10:01 am

That is a great one.

It would probably be more useful to take a chilean map, flip it, and overlay it on the north american western coast line. The baja mexico to say oregon or washington state.

I have always used that anology when people have asked me where to live in chile. I ask them what sort of climate they would choose in the west coast of the u.s. because it corresponds prety closly to the layout of chile, and a lot of people have been to california or at least watched a lot of movies about it.
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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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Re: Can you afford to live in Chile????

Post by Magnyz » Fri Jul 27, 2018 10:11 am

Aligning with latitude and comparing Chile to northern europe does not work very well because nothern europe has the Gulf stream and Chile has the Humboldt which means a lot for the climate.

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Re: Can you afford to live in Chile????

Post by nwdiver » Fri Jul 27, 2018 1:57 pm

admin wrote:
Fri Jul 27, 2018 10:01 am
That is a great one.

It would probably be more useful to take a chilean map, flip it, and overlay it on the north american western coast line. The baja mexico to say oregon or washington state.

I have always used that anology when people have asked me where to live in chile. I ask them what sort of climate they would choose in the west coast of the u.s. because it corresponds prety closly to the layout of chile, and a lot of people have been to california or at least watched a lot of movies about it.
More like the Baja to Alaska.......
It's all about the wine.

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Re: Can you afford to live in Chile????

Post by admin » Fri Jul 27, 2018 5:14 pm

yea, pretty close.

I got 2,653 mi the length of Chile, and 3,700 or so from southern California to anchorage (looks like google calculated that on driving length).

But the analogy works better anyway. Wine and growing regions are in the center. Dessert in the south. rain and snow up north. Lots of mountains near the ocean. Volcanoes along the way. Major population centers are sort of in the middle.

The European one does not work as well because of the alps, Mediterranean (we really got nothing like the Mediterranean in Chile), etc. Like I was in Austria last year, and it really is kind of closer to what you find in the Patagonia around Futa. Even that is stretching it.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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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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Re: Can you afford to live in Chile????

Post by 72Shilden » Fri Aug 17, 2018 3:39 pm

Would one European salary be enough for two people to live in Chile?

If we come there with my girlfriend, we'll be able to work from afar and earn the equivalent of 1500€ a month, or something like 1.1 million pesos a month. Would it be realistic for both of us to live on that income, including renting a flat in Valparaiso, where my girlfriend's family lives She's looking for info right now, but she has spent the last 6 years in Russia, and her family owns their house, so they can't really tell what the price of living in the city is.

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Re: Can you afford to live in Chile????

Post by Donnybrook » Fri Aug 17, 2018 5:52 pm

I think that is a bit low for two people. People here tend to think more in US dollars than Euros. I would say US$2000 - US$2500 is more realistic. Furnished flats are expensive and furnishing them even more so. You don't get kitchen appliances here or even light fittings in rented accommodation.

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