In any market in the world foreclosures are a good bet to maximize an investment. This is an underdeveloped market in Colombia, and with our help, you can avoid higher prices by tapping this type of investment. It is necessary to understand the difference in law and appraisal systems in Colombia.
- Judicial Appraisal: This is the determination from property when it enters any legal proceedings, such as mortgages, liens or other capital agreements. It is calculated by the Catastral value of +50%.
- Castastral Appraisals are appraised by a district body. These are decided from government data on property, such as tax declarations. These are often not in date and can be up to 4 years behind the current market. An additional 50% is added when the property is being valued for capital agreement or legal reasons.
- Commercial Appraisal: For those in the West Commercial appraisals are familiar, and are calculated in much the same way. Value is determined by a licensed assessor who calculates fair commercial value based on economic, geographic factors as well as interior and exterior elements of the property.
Navigating This Emerging Market
The most common foreclosure is found with Judicial Appraisal of the property, meaning most of the properties available have a real value over 30% higher than the judicial value. The minimum bid accepted by most holding companies is typically at 70% of the judicial appraisal. This ability to buy so low in a thriving market makes investment in Colombia worth looking into by investors.
Keeping Up With the Foreclosure Opportunities
We watch the foreclosure market carefully, and we make frequent updates to our listings. This involves many different types of investments, including homes, commercial properties, farms, and warehouses throughout the center of Colombia. The market in Bogota and the areas nearby is very attractive for foreigners or locals seeking homes, business spaces or farming land.
Getting the Best Deal Possible
In any emerging market along with the benefits there also risks. Foreclosure of a property can involve title disputes, liens, and overdue taxes which need resolution. For this reason it is important to research each investment carefully in order to avoid future legal hassles or loss. It’s better to have expert help familiar with such research, and knowledge about local as well as international laws.
We have real estate expertise, but we also have experienced lawyers and agents who have the skills to resolve complex issues quickly. Contacting us before making a decision on a property is a good way of seeing less risk and greater benefit from this type of investment.