Having a Property Investment in Chile is Valuable
If you have researched about why it is good to have a business in Chile, and it interests you enough to think about investing in the country, you are going to need solid advice to get started. Regardless if it is for commercial or residential, having a property investment in Chile is a wise move. Santiago, the capital of Chile, is the 2nd best city for businesses in Latin America. Furthermore, it is the 3rd best city in Latin America with regards to the quality of life. Aside from that, it is recognized as a global city ranked number 53 with the highest income which is estimated to reach $160 billion by 2020. The focus here is on the reasons why it is a good idea to invest in a property in Santiago, Chile.
Here is a simple guide for you to follow on how to go about it especially when it comes to buying a house or an apartment in Santiago, Chile.
When You Should Invest in Chile
The tax reform imposes a 19% property sales VAT, which has caused home sales to suffer and it will keep dropping slowly in the coming years. This means now is the best time to start investing in a property in Chile. Since there is a real estate oversupply of projects in Santiago, especially in the popular neighbourhoods, real estate companies will most likely offer flexible payment plans/discounts.
Banks are also going to provide easier mortgage and loan offer to anyone. The financial changes and sales decrease are going to cause banks to have lesser finance operations. This means that even when 2017 began, banks are going to give credits to the boom purchases of 2016. When this happens, they will not be able to fulfil their banking and mortgage goals. Then, it will lead to campaigns for activation. These are for clients to have better loan rates and the cost of facilities.
Why Have a Property Investment in Chile?
Prices of properties in Santiago have had a steady increase for more than 10 years. The prices almost increased by 70% from 2004 to 2015 and it only declined by 0.7% during 2009’s global financial problem. The apartment sector in the Northwest and Southwest of Santiago mostly caused the price increase and the demand has been growing since 2014. In the 1st quarter of 2017, there was an increase of 12.7% in prices in the Southern part of the city. Chile is one of the least corrupt countries in Latin America. Based on the research by the Heritage Foundation, there is high respect for contracts and property rights, and the cases of expropriation are very rare. They have an independent judiciary, and most of the courts do not have political interference and are competent.
Where in Chile to Invest in a Property
This depends on the requirements of the investor if it is for renting an apartment or a house. The most ideal places to live in Santiago, Chile are Las Condes, Providencia, Lo Barnechea, and Vitacura. Las Condes and Providencia are mixed neighbourhoods with restaurants, shopping malls, apartment buildings and offices ideal for the younger crowd. These 2 places are also good for people who want to live near where they work. There are large companies that have headquarters there. Majority of Vitacura and Lo Barnechea are residential areas perfect for families and expats. You will find international schools in both areas, especially Vitacura. There are country clubs and parks with apartments and houses here. However, Lo Barnachea has more expensive homes for those who want a luxurious lifestyle.
Before You Invest
When moving to a different city, finding the ideal property can be challenging. Even if the general knowledge of the city is helpful, expats still need professional advice when moving to Santiago. It is also good to consider getting legal and real estate services before investing in Chile. It helps you to find the best deals. Remember, you should know all about the immigration rules and regulations before investing in Chile. There is a lot to consider before you invest. It will be a wise decision for you to have a property investment in Chile since the economy is booming.