A post-pandemic world presents countless opportunities across perhaps unfamiliar sectors, industries, and jurisdictions. Buying a property in Chile has been recently developed into a great idea for foreigners looking to relocate to Chile.
Here are key aspects and tips for buying property in Chile.
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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 buy property in Chile
- 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 its value over time.
- Great demand translates into lower prices.
- The national real estate market is currently undergoing 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
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 buy property in Chile, 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 considerable 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 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 in 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.