Is it a good investment to buy an apartment to rent out in Colombia?

Question

I have some capital and I am thinking about buying to rent. What numbers and costs should I look at first?

Ana Maria Gonzalez · Answer

As a real estate advisor, I know the Antioquia market and can guide you to identify investment opportunities with potential for profitability and appreciation.

My objective is to help you make an informed decision, analyzing location, price, rental demand, profitability, costs, and the property's projection.

If you are thinking of investing your capital, I can present options that fit your budget and the return you are looking for.

Michael · Answer

It depends on the numbers, not the emotion. Look: (1) gross profitability = annual rent ÷ purchase price — in traditional long-term leasing it usually stays between 5% and 8% annually depending on city and area; (2) subtract the real costs: property tax, administration, insurance, maintenance, vacancy and the 4x1000 when moving the money; (3) the legal cap on the annual rent increase (CPI of the previous year) limits how fast your income grows; (4) the appreciation varies a lot by area — the socioeconomic stratum and rental demand matter more than the shine of the project. Compare real sale and rental prices by city at https://colombiamove.com/mercado before deciding, and do not buy off-plan without investigating the construction company.

Is it a good investment to buy an apartment to rent out in Colombia?

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