If you read our article about why you should do business in Chile, and it enticed you enough to decide to take the plunge down south, then our advice about how to invest in property in Chile might be valuable to you!
Investing in property in Chile, either for residential or commercial purposes, is a smart decision. Chile’s capital, Santiago is considered the second best city to do business in Latin America. It also reigns as the third Latin American city with better quality of life. Moreover, it is considered a global city ranked as the 53rd highest-income city in the world, estimated to produce USD 160 billion by 2020. This article will focus on the reasons you should invest in property in Santiago, Chile and how you can do it.
We provide a simple guide to how you can buy a house or apartment in one of the most economically stable cities in Latin America: Santiago, Chile.
When and How to Invest Property in Chile?
Since the tax reform, which imposes a 19% VAT on property sales, came into effect, home sales have plummeted and will continue to drop at a slower rate over the next few years. For investors this means now is the time to buy property in Chile. With an oversupply of real estate projects around Santiago, especially in the most sought after neighborhoods, real estate companies are more likely to give buyers flexible payment plans and/or discounts.
Banks will also provide more manageable loans and mortgages. The drop in sales and the change in financing, will cause banks to have fewer operations to finance, which means that although at the beginning of 2017 banks will be giving credits to last year’s boom purchases, towards the end of the year they will not be able to meet their mortgage banking goals, which will lead to activation campaigns for new clients, i.e. better rates on loans and/or facilities in costs.
Why Invest in Property in Chile?
Property prices in Santiago have been increasing steadily for over ten years. From 2004 to 2015, prices increased nearly 70%, with only a small decline of 0.7% during the global financial crisis of 2009. The apartment market in Southern and Northwestern Santiago has mainly driven this price increase with a strong growing demand since 2014. During this year’s firs quarter, prices in the South of the city increased by 12.7%, while Western and Eastern Santiago averaged a price increase of 7%. Chile, is also considered the least corrupt country in all of Latin America. According to the Heritage Foundation,
Property rights and contracts are strongly respected, and expropriation is rare. The judiciary is independent, and the courts are generally competent and free from political interference.
Where to Invest in Property in Chile?
Depending on what you are looking for when buying or renting a house or apartment in Santiago de Chile, the best districts to live in Santiago are: Providencia, Las Condes, Vitacura and Lo Barnechea. The first two are trendy neighborhoods with shopping malls, restaurants, office space and apartment buildings perfect for young people or, since these areas host several large company headquarters, people who want to live near their workplace. The other two are mostly residential neighborhoods ideal for expats with families. Both areas have international schools nearby, particularly Vitacura, have parks and country clubs, and offer both houses and apartments, though Lo Barnechea is characterized by luxurious, more expensive homes
Before Investing in Chile.
When relocating to a new city, it can be difficult to find the right property. While having general knowledge of the city can help, expats moving to Santiago will be better off seeking professional advice. You might also want to consider real estate and legal services when investing in property in Chile to make sure you strike the best and fairest deals. Remember that before you decide to invest in Chile, that you become aware of immigration regulations and visa laws so that you can make that kind of decision. There is much to consider, but it will be a worthwhile decision for you to invest in the growing and booming economy of Chile!
If you want any more information about relocation to Santiago, or any city in Latin America, please contact us now.