Tips for Investing in Chile’s Real Estate Scene

Chile’s Real Estate Scene

Under normal circumstances, real estate will always hold and increase their value over time.

A post-pandemic world presents countless opportunities across perhaps unfamiliar sectors, industries, and jurisdictions. Investing in Chile’s real estate scene has been recently developed into a great idea for foreigners looking to relocate to Chile.

Here are key aspects and tips for investing in Chile’s real estate scene.

Why buy real estate in Chile?

Whether talking about Chile or another country, investing in real estate is always a great idea. Some of the benefits of buying real estate are:

  • It considerably strengthens your retirement funds, general estate and overall lifestyle once you reach retirement age.
  • Under normal circumstances, real estate will always hold and increase their value over time.
  • It entails much less risk than stock, commodities, metals and general capital market instruments.
  • Pre-sales and/or home auctions can be taken advantage of to maximize your investment.
  • One does not need to be an expert and counselling is cheaper compared to other types of investments.

Choose to invest in Chile’s real estate scene

  • The timing is exactly right: Recent social upheavals and a global pandemic have decreased real estate prices across the board in Chile.
  • Real estate will usually hold and increase their value over time.
  • Great demand translates into lower prices.
  • The national real estate market is currently undergoing a strong reactivation.
  • A big, experienced, and liquid market for low price investment properties.
  • Down payments are extremely reasonable alongside other payment benefits and flexibilities.
  • General access to down to earth mortgages rates. 
  • Demand for rent is increasing post-COVID 19.
  • Tax benefits for mortgage credits.

Tips to consider when investing in Chilean real estate

Look beyond Santiago

Real Estate Contract with a house on top

Low investment properties” can basically pay themselves virtually for free.

Whilst true that the capital city houses the largest chunk of the population, incredible opportunities arise down by the 4.200 km of coastline. Consider the hills of the Andes mountains, and through the large and gorgeous wine country spread throughout various regions of the Country.

Whether talking about housing projects or development and tourism projects, potential building locations are countless, each with its own particularities and submarkets.

Focus on low price “investment properties”

Each real estate scene is different and the Chilean one as well. If you are looking to Invest in Chile’s Real Estate Scene, it is best to get in touch with local experts who know the country and the market. Even though real estate investment is generally considered low risk, getting poor counselling and advice can definitely increase the level of risk at play. Only local experts can provide vital assistance with local banks and mortgage negotiations plus, provide feedback regarding the specific location where you or your company may be interested.

Particularly in Santiago, there is a huge offer to acquire so-called “low investment properties” which can basically pay themselves virtually for free. These are typically small and cheap apartments located in relatively cheap neighbourhoods where down payments are very low. This allows for tenants to pay credit offsetting monthly mortgage payments.

This option is a cheap, low risk and a great way to strengthen your real estate portfolio. 

Pre-purchase due diligence and health checks when acquiring properties

To ensure full and absolute compliance with local legislation, tax and administrative burdens, it is very recommended to perform constant property health checks on recently acquired properties. There are taxes and compliance requirements to consider to avoid fines and eventual foreclosures.

Likewise, before acquiring an existing property, it is a very good idea to conduct due diligence on the property and related parties with a trusted local attorney and/or partner. By doing this, you can ensure there are no encumbrances in play which may affect the property’s value and/or the actions you take.

Get expert support as you invest in Chile

Although Chile is a very favourable business destination, there are complexities when doing business abroad due to legal and cultural considerations.

At Biz Latin Hub, our team of multilingual professionals offer services that can help you as you grow your operations into Chile. We provide solutions tailored to your specific needs, including due diligence and legal representation. Contact us to find out how we can help you with your business.

Biz Latin Hub market entry and back-office services, including corporate tax planning

Receive the latest news and advice about expanding your business globally.

Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements.

  • This field is for validation purposes and should be left unchanged.

Marketing permission: By submitting this form, I give my consent for Biz Latin Hub to be in contact with me via email using the information that I have provided in this form and for the purpose of providing me updates about doing business, entity formation, legal entity compliance, accounting, back office services, PEO and/or for marketing purposes.

What to expect: If you wish to withdraw your consent and stop hearing from us, please simply click the unsubscribe link at the bottom of any email that we send or contact us at [email protected]. We value and respect your personal data and will do the utmost to protect it. By submitting this form, you agree that we may process and use your information in accordance with the stated terms and conditions in our privacy policy.

Pin It on Pinterest

Share This

Share This

Share this post with a friend or colleague!