Latam Real Estate
Latam is an interesting destination for investment as it often with a plan B residency permit.
Medellin, Image Credit: Wikiccomons.
For GDP/Capita comparison the local giants, Argentina, Mexico, Brazil stand at 11k, 10k and 7k per year.
A quiet plan B country nestled between Brazil and Argentina with mostly european population
- Half of the 5m population lives in Montevideo, GDP/capita $17k, which is slightly higher than Chile
- income requirement of $1500/month and 6m+ requirements or buy 400k of real estate and stay 60 days.
- 5.6% gross yields in the 4% to 9% area
- higher yields on expat flats renting at 3k
- rental income tax at 12%, territorial for first 10y
- less unsafe
- guruguay does not suggest a real estate agent on her website
- overseaproperty talks about 2014 prices and recommends contacting reynoldspropiedades
- nomadist map of montevideo
- GDP/capita $14k,
- permanent residence scheme for housing around 300k, no stay required
- rental yield 6.7%
- overbuilt, new builds have renters preference, much vacancy
- income tax at 5%
- less unsafe
- serveral influencers recommend not to buy in Panama: endless new better construction lead to oversupply and high vacancy.
- GDP/capita $12k,
- many income based visas, territorial tax, stay required
- 6.3% gross yield
- income tax at 15%, territorial
- relatively unsafe
- GDP/capita $10k,
- Investable city are Playa del Carmen, Tulum
- playing on nomads staying for month, not tourists staying weeks
- yield at 4%
- income tax at 25%
- permanent residence for purchase of home with value of 170k, no stay required,
- can also get 4Y residence/permanent residence with proof of assets.
- unsafe outside expat enclaves
- GDP/capita $6k,
- Investable city are Carthagena and Medelin. The wandering investor advises against Bogota, for Medelin.
- yield at 6.4% for Bogota but above 10% with highend airbnb flat for US expat
- income tax at 26%
- permanent residence for purchase of home with value of 150k, no stay required has been cancelled
- Gustavo Petro elected in Aug 2022, this is the first ever left wing Colombian president.
- safety: no dar papaya
Update 20230216: According to sovereign man research, the permanent residence deal in Colombia has been discontinued. Buyer only now gets temporary residence, needs to show up every 6 month in the country and will be upgraded to permanent after 5Y. Citizenship path now takes 10y while it used to be a back-pocket deal. I would suggest to not buy in Colombia so as not to reward bad behavior.
- gross yield 5.7% (2% in Buenos Aires, which means negative net)
- income tax at 21%, cgt 15%, wealth tax
- no indexation of rent on inflation
- can renegotiate every 2 years, there was rent control from 1943 to 1979.
- Brazil 5.3%
- Chile 4.9%
- Paraguay: assuncion 3%, tax at 10%
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