If you’re looking for quick cash, this blog post is not for you. This post is about the Real estate market, specifically the market of Medellin, and how, if done correctly and in a timely manner, real estate can increase your net worth exponentially over time, given, of course, that you execute on the right opportunities at the right time.
In this industry, gains are made by being patient, by studying the market, and by analyzing data with technology in order to recognize opportunities. We at Spring Living Medellin execute at the needed moment, once we have made sure the investment is fruitful and have calculated the risks. There’s no use for a plan that has no execution. Therefore, Real Estate requires not only planning, researching and strategizing, but also a key element of the underlying equation is: execution.
If you’re looking to invest and create passive income to fund your lifestyle, financial goals and future tranquility, we welcome you to read until the end, as this post contains some of the most important ins-and-outs and the how to invest in a city that’s inspiring nothing but love and media attention around the world.
Welcome to Spring Living Medellin, an innovative real estate company that focuses on the development of short-term rentals, airbnb-legal buildings, property management, legal and sales advice, all exclusive to the city of eternal spring: Medellin. We are experts in this market, with over 7 years of experience in sales, real estate investments, online marketing, interior design, property development, and finance.
If you don’t know what Medellin is, or you’ve never been here, you owe it to yourself! If that’s the case, make sure to check out our blog about it. CLICK HERE.
In COVID-19 times, the investment and financial world has been frantically looking for alternatives for safer investments, where big swings and volatility are mitigated by long-term fundamentals and stabler demand curves.
That’s why investors, in times of trouble, seek to invest in Gold, Silver, Real Estate, and other “safer assets”, as ways to diversify their portfolios, and ensure long-term success in their financial goals while the world is going crazy, as these are related to products and services that will be used no matter what the economic cycle is doing.
Medellin, the second largest city in Colombia, is located within a country that has had its history written by renowned writers by the likes of Gabriel García Marquez, 1982 Literature Nobel Prize laureate, artists like Fernando Botero, Fernando Gonzalez (philosopher), and more contemporary musicians like J Balvin, Juanes and Shakira.
This specific city, Medellin, has been attracting a sophisticated crowd of investors and visitors, as well as the attention of some the most advanced real estate funds in the world. The international community, and especially the media, all forecast a heavy period of development in the city over the next 7-15 years, in matters involved with innovation, blockchain technology, artificial intelligence, real estate, entertainment and tourism.
In real estate & tourism, the biggest bets are on the future increase of prices for re-sales , return on investment (monthly passive income), and creating wealth based on capital appreciation in diversified investments like ground-up construction (pre-construction), airbnb legal condos, luxury hotels, glamping, and the new global trend: co-workings. So, if you are considering your next investment, and returns back home are stagnant and meager at best, here are the top reasons why you should invest in the real estate market of Medellin, Colombia.
Let’s start from the macro to the micro:
1. Global Scale – Timing: worldwide, people are locked at home. They cannot wait to start looking for tickets to reclaim their lost freedom once the travel ban and quarantine are over. We are desperate to get out of our homes. This most likely in the near future will create a “rebound effect”, meaning perhaps twice as much tourism as before.
The population of the world won’t miss a chance, once it’s possible, to get out and get some fresh air in a different country. Whether it’s the beach or the tropic, perhaps now might not seem like a great time for the travel industry, but regardless, if you’re an investor that is looking to generate wealth in the mid to long-term, you must have a different perspective in your investment horizon.
Having a larger scope can help see the bigger picture. Properties are likely discounted due to the crisis, with a higher dollar in contrast to the COP (we’ll talk about this in a sec); this is the perfect scenario for your investment. Timing is key. Don’t forget that “woulda/coulda/shoulda” and hindsight are 20/20.
2. Geographical Location: With perfect 75º weather, one can enjoy perfect blue skies for days without stop. It’s the ideal place to live, vacation and explore. Fortunately, it’s a 3-hour flight from Miami, making it easy to get in and out!
3. Economy: compared to rest of Latin America, Colombia has very friendly laws for doing business. After COVID-19, it will be the leading economy in the region, above competitors like Brazil, Argentina and Chile. In addition to a strong economy, Colombia is betting heavily on products and services that are marketed and have added value, like entertainment, tourism, luxury gems & jewels, big data, blockchain technology, product exports and the creative arts.
4. Exchange Rate: “geo arbitrage” is a term used to describe the return on investment generated by the difference between two currencies. This allows you to speculate and generate additional income from the shift in FX. If exchange rate is up when you buy and low when you sell, the % difference on that movement will be the exact amount of extra profit you’ll make just based on the that currency difference. So, besides property appreciation and monthly income, you’re getting extra profit based on the devaluation of the national currency.
5. Real Estate Market: it’s a stable market, with stable growth and more room for it, with laws that are strict, yet friendly with airbnb (short-term rentals). Innovation is hitting the sector with lots of good opportunities, backed by an increasing historic appreciation, stable yield & income, and a demand curve (tourism & resident base) that is increasing every year by a rate of 15-20%.
6. Legality of short-term rentals: short-term rentals are legal only under strict conditions and certification process from the government and ministry of tourism. Companies or individuals that don’t comply under this strict property regime are taken out of operation, leaving only legal establishments/airbnbs to continue to exist. This is important, as this creates barriers of entry for new players and forces us to be provide a better service each time.
7. Lifestyle: nature and concrete blend perfectly in this arboreous city. The warmth of its people, the proximity to attractive towns like Guatapé, Jardin, Santafé de Antioquia, El Retiro and Llanogrande, plus two massive oceans with splendorous beaches (cartagena, Sapzurro, providencia) only an hour away by plane, make living in Medellin a remarkable experience, with access to all sorts of activities, nightlife, locations and climates.
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