Housing market situation

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Re: Housing market situation

Post by admin » Mon Apr 01, 2019 3:38 pm

yea, i would not read too much in to that IPO other than it simply a good time to do one.

recently the head of socovesa was railing against the stupid municipalities and all the new goverment regulations. he said something like the permitting process had gone from 6-12 months, to 12 to 24 months due to how disorganized the cities are. even when they got all the permits, start building, the cities have been coming along for one reason or another and stopping the projects mid-way through because they changed their mind.

a lot of that has got to with other half-baked laws bachelet passed, and no one knows how to implement them in a consistent manner around country; seperate from her tax reform.

in any case, think i still prefer to own the companies building the apartments than any of the apartments they are building.
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Re: Housing market situation

Post by Donnybrook » Mon Apr 01, 2019 3:53 pm

PXYC wrote: 'I'm good with what I have, I will not risk it, I am bidding tops 150 palos appartment."
Very wise.When we were looking we had a very large sum for downpayment and were told we were crazy for not looking at bigger, more expensive properties. No, thanks.

I don't know what prices are doing now but we found Providencia and Vitacura more expensive than other locations for similar properties. But we were looking at houses. There is probably more available in Ñuñoa at your price point for apartments.

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Re: Housing market situation

Post by PXYC » Mon Apr 01, 2019 7:42 pm

those are the grey areas then :wink: :D

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Re: Housing market situation

Post by paladin » Mon Apr 01, 2019 8:51 pm

I can recommend Providencia, but not just any part. It’s a big area and not all really attractive if you are looking to buy as an investment. I have a standard one bed apartment, 2 blocks from Manuel Montt metro station, and believe me, the demand is high from renters. But as usual, the location is important, mainly because of traffic noise. There are always places for sale for example in a building virtually on the corner of Manuel Montt with Av Providencia, because renters cant stand tne 24 hour a day noise etc. so you need to ve careful. In my case, I bought in January 2018 and based on recent sales, it’s gone up by 12%. It has been rented constantly. If you are looking for that area, I suggest you go for one with parking, as many renters dont have cars as they arent necessary, so the parking can be rented separately to office workers nearby. Vitacura is a very different market, and one that in my opinion is not such a good business.

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Re: Housing market situation

Post by at46 » Mon Apr 01, 2019 9:04 pm

paladin wrote:
Mon Apr 01, 2019 8:51 pm
If you are looking for that area, I suggest you go for one with parking, as many renters dont have cars as they arent necessary, so the parking can be rented separately to office workers nearby. Vitacura is a very different market, and one that in my opinion is not such a good business.
Parking was a pretty good investment a few years ago, mainly because of lower entry costs and the sudden increase in car ownership and demand for parking. But not anymore, I don't think, because of how much it has appreciated over the last few years. You can price it separately of the apartment and see if it makes sense rent-wise, bearing in mind you might not be able to rent it during the summer months.

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Re: Housing market situation

Post by at46 » Tue Apr 02, 2019 9:45 am

And in terms of what's going to appreciate faster in the future - parking or apartments - my money generally would be on apartments. In Centro Centro and parts of Provi parking has done really well, and is probably a safe investment for a few more years. But at some point they will start really limiting car use in the city, and it'll plummet.

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Re: Housing market situation

Post by paladin » Tue Apr 02, 2019 4:17 pm

at46 wrote:
Tue Apr 02, 2019 9:45 am
And in terms of what's going to appreciate faster in the future - parking or apartments - my money generally would be on apartments. In Centro Centro and parts of Provi parking has done really well, and is probably a safe investment for a few more years. But at some point they will start really limiting car use in the city, and it'll plummet.
I wouldnt suggest investing in a parking space per se. What I do believe is that if you buy an apartment with a parking spot, you have two rental choices; the apartment and parking together for those that do have cars,or just the apartment to those who dont, and then rent tne parking separately. What I do know is that its very easy to sell an apartment with parking, compared with one without.
I think maybe you are exagerrating the possible effects of limiting car use in the city. There will always be cars in some parts, but perhaps not in the city centre. Even in London, where there is a charge for bringing your car into the city centre, still has cars and a demand for parking spaces that impossible to satisfy.
Each to his own opinion, but one important point to remember, is that unlike apartments, you never have the potential problem
of non payment of rent. If the renter doesnt pay, you block the space. The parking rental gives a higher % return than an apartment, and needs no maintenance.

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Re: Housing market situation

Post by at46 » Tue Apr 02, 2019 11:48 pm

paladin wrote:
Tue Apr 02, 2019 4:17 pm
at46 wrote:
Tue Apr 02, 2019 9:45 am
And in terms of what's going to appreciate faster in the future - parking or apartments - my money generally would be on apartments. In Centro Centro and parts of Provi parking has done really well, and is probably a safe investment for a few more years. But at some point they will start really limiting car use in the city, and it'll plummet.
I wouldnt suggest investing in a parking space per se. What I do believe is that if you buy an apartment with a parking spot, you have two rental choices; the apartment and parking together for those that do have cars,or just the apartment to those who dont, and then rent tne parking separately. What I do know is that its very easy to sell an apartment with parking, compared with one without.
I think maybe you are exagerrating the possible effects of limiting car use in the city. There will always be cars in some parts, but perhaps not in the city centre. Even in London, where there is a charge for bringing your car into the city centre, still has cars and a demand for parking spaces that impossible to satisfy.
Each to his own opinion, but one important point to remember, is that unlike apartments, you never have the potential problem
of non payment of rent. If the renter doesnt pay, you block the space. The parking rental gives a higher % return than an apartment, and needs no maintenance.
I think the father you move away from Centro Centro, the more specific your situation becomes. Within a few blocks of the Centro I imagine it's pretty easy to rent parking in almost any building. And even there their rental return is lower than apartments, judging by portalinmobiliario prices.

But in Provi there's a fine balance between how livable the building is and how far it is from your parking renter's work. There are lots of parking spaces for sale in the Centro and few in Provi. That's because in the Centro owners know the value of the parking space and how easy it is to sell it on its own. So that's what they do when they can't find a buyer for both the apartment and the parking space. It Provi etc. the sellers give you a package deal where the price of the parking comes out cheaper than in the Centro but only because they can't sell it on its own due to lack of demand.

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Re: Housing market situation

Post by at46 » Wed Apr 03, 2019 11:09 am

paladin wrote:
Tue Apr 02, 2019 4:17 pm
at46 wrote:
Tue Apr 02, 2019 9:45 am
And in terms of what's going to appreciate faster in the future - parking or apartments - my money generally would be on apartments. In Centro Centro and parts of Provi parking has done really well, and is probably a safe investment for a few more years. But at some point they will start really limiting car use in the city, and it'll plummet.
I wouldnt suggest investing in a parking space per se. What I do believe is that if you buy an apartment with a parking spot, you have two rental choices; the apartment and parking together for those that do have cars,or just the apartment to those who dont, and then rent tne parking separately. What I do know is that its very easy to sell an apartment with parking, compared with one without.
I think maybe you are exagerrating the possible effects of limiting car use in the city. There will always be cars in some parts, but perhaps not in the city centre. Even in London, where there is a charge for bringing your car into the city centre, still has cars and a demand for parking spaces that impossible to satisfy.
Each to his own opinion, but one important point to remember, is that unlike apartments, you never have the potential problem
of non payment of rent. If the renter doesnt pay, you block the space. The parking rental gives a higher % return than an apartment, and needs no maintenance.
I think the father you move away from Centro Centro, the more specific your situation becomes. Within a few blocks of the Centro I imagine it's pretty easy to rent parking in almost any building. And even there their rental return is lower than apartments, judging by portalinmobiliario prices.

But in Provi there's a fine balance between how livable the building is and how far it is from your parking renter's work. There are lots of parking spaces for sale in the Centro and few in Provi. That's because in the Centro owners know the value of the parking space and how easy it is to sell it on its own. So that's what they do when they can't find a buyer for both the apartment and the parking space. In Provi etc. the sellers give you a package deal where the price of the parking comes out cheaper than in the Centro but only because they can't sell it on its own due to lack of demand.

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Re: Housing market situation

Post by paladin » Thu Apr 04, 2019 8:06 pm

Sorry atm46, but I cant agree with your theories about Prov . However, each to his own. If you hear of any parking places for sale, close to the Manuel Montt metro, please let me know, as I’m very happy with a 12% return with no risks.

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Re: Housing market situation

Post by at46 » Thu Apr 04, 2019 10:11 pm

paladin wrote:
Thu Apr 04, 2019 8:06 pm
Sorry atm46, but I cant agree with your theories about Prov . However, each to his own. If you hear of any parking places for sale, close to the Manuel Montt metro, please let me know, as I’m very happy with a 12% return with no risks.
Yes, peladin, to each his own. Your only risk being not making 20%+ return on an apartment anyway :)

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Re: Housing market situation

Post by eeuunikkeiexpat » Thu Apr 04, 2019 10:16 pm

IME, even in the regiones (in this case southern V Region), renting out your parking space is the norm and for me, it helps pay the gastos comunes. But location does make a difference as the previous upper mid-class condo I lived in I could not find a renter but when I returned to the place I previously lived four blocks away, it was again not a problem and an easy deal. And if they don't pay, they can't park there no BS occupancy laws like renting a habitacion.
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