Thanks for the info Andrew, but this ROI is really poor for someone considering investing in a developing country like Colombia. Historically, the Colombian economy has faced a lot of turmoil and currency devaluation. I'd expect much higher return north or 10-15% to reflect that risk. Additionally, this is marketed at tourists, an industry that would be first impacted the most in an economic downturn.
Can you give examples of developing countries that average that? I've been researching and found no country in the world, let alone a developing country, that averages a gross rental yield above 10% per year, maybe South Africa (not developing). I got this info from GlobalPropertyGuide.com. I'd love to get more of the info you may have. Please share. Thanks!
Why in the world would I pay 4k USD to stay in that place? I understand running a business means seeking after profits, but if I go to Colombia I would want to pay LESS to live than in the U.S. Even if you compare that place to one of the more expensive locations in the U.S. and say, "you could never rent this cheap in New York". That isn't the point at all. Perhaps someone who makes 8k or 12k USD per month would be interested. Thank you for showing these places and making your videos though!
Great content but. Not the deal of the century. Margins are slim and the only exit strategy is to hope and pray for a buyer after renovations. Your content is in English and geared towards US buyers. Here we have far more lucrative opportunities to invest and multiple opportunities to exit an investment. Love your content but I dont agree that this is a good deal.
@@MedellinBuzz I just closed on 60 race street in Uniontown Pa. Paid 15k. Asking was 25k comps are around 110-130. Needs 25k in work. I know the area well. Its on the better side of town. I can refi or sell it as an exit strategy. In small towns in PA and Ohio there are DEALS. This side of towns rents for 1000 a month. As well.
@@MedellinBuzz If i purchase a property for 100k in Colombian. My capital is frozen. Few options to sell and no refi options. Too many sure bets in Pa to have my capital frozen in colombia.
@@MedellinBuzz another example. 246 west main street uniontown pa 15401. just went under contract. . Comps are 180 +. Listed for 59k. Great part of town. Need around 30k in renovations. Will rent for 2500. Two apartments and commercial space.
4,200? That is ridiculous! No one in their right mind would pay that much in Colombia. These prices are going to cripple Medellin's economy in the long run.
@@MedellinBuzz I find it hard to believe that the landlord would be able to rent it at that price. However, if he finds a tenant and eventually this becomes the standard rental price per square meter, the long-term consequences for the local economy could be negative. The minimum wage in Colombia is considerably low, and quality jobs are not widely available, meaning that people would spend most of their salary on rent. This, in turn, could decrease spending on other goods and services that help sustain other businesses and the economy. While the landlord alone won't cripple the economy, if many others start asking for such high rent, the consequences might not be good.
The greed virus has been unleashed and I would say the parries over. The good news is there are endless options in Colombia.. Snd much better deals than are to be found in Medellin.
@@albollinger5431 are you kidding, the greed started in 1499 when it was found by the Eurpeans. It's been one of the most corrupt and greedy countries for centuries. We Colombians, who were born poor, now have the opportunity to take advantage. To your point, yes there are poorer cities to take advantage of for sure.
@@MedellinBuzz Yes this not a bargain any more.. do you think people go to Colombia to pay more..? you are not realistic.. i would know.. .. better take advantage now like you said.. till people start getting smart..
I wanted to buy in Medellin after visiting many times over the last 3 years, but it's no longer the bargain it once was perhaps because of the influx of investors. The prices and rents are getting ridiculous.
Good look finding consistent renters at that bloated price point. I’ve run a ton of data on Medellin and have been visiting for over a decade and the vast majority of high end “luxury” units are lucky to get 40% occupancy year over year, and they are often asking half of what this unit would be asking. There may be a few naive tourists who overpay - and a few who don’t care they that they are getting fleeced, but this isn’t built to be a consistently rented out unit. Hope the buyer knows that
@@MedellinBuzz I actually own two pieces of real estate. Better strategy would be to address the substance of what I said than try to hurl baseless insults.
@@MedellinBuzz The general rule of thumb is to stay clear of apartment building built before 1984 hence that was the time they passed earthquake-resistant building codes. Furthermore, your ROI estimates are lofty!
the 6% ROI is very very poor. you can get this for the bonds in US or some EU countries, tax free. does not sound like good investment. for rentals I would assume most of renters are expecting double digit ROI
Yes, that's why I said it's more for someone that wants to live in it. Also, I'm being VERY conservative with the numbers because many people have never had a rental before, so it's good to manage expectations.
Buyer BEWARE, Do your homework, read La Republica, El Portafolio, El Tiempo, the US Embassy in Colombia, read, read, read. Or watch RUclips, Alejandro Bremer, Vicky Davilla, the Blue, la FM, etc. Educate yourselves with the truth and perceived truth.
I like the numbers but if occupancy is higher, then utilities would likely increase too but yet you are keeping those costs unchanged... same with cleaning costs... It also looked a little unprofessional that "utility" was spelled "untility" in some of the scenarios you provided.
Yeah, and it involves more work to get higher ROI. Not an ideal investment for everyone. For this client, it worked out. I'll do a follow-up video once it's done and operating. Thanks for the comment.
That's a pretty low ROI for an investment that one has to put so much work into it, stay on top of things AND could easily be a lot less at the mercy of the occupancy. What people don't understand is that the Airbnb market in cities like Medellin is already overly Saturated. With 300k US dollars you could, buy an S&P 500 fund like VOO, and get better returns without doing any more work (no clogged toilets, defending bad reviews etc!). Or if venturous enough, just buy a few long term rental properties in the US and blow both right out of the water. Still a lot more involved than the stock market but can be more profitable due to the tenant paydown your mortgage, appreciation and tax benefits. Hec, I might as well make a video about it one of these days and become a RUclipsr too!
@@MedellinBuzz I'm interested in purchasing a property in medellin. I'll reach out for your service in the future. Does your business also have presence in other cities in Colombia?
Beautiful apartment, fantastic location, unique layout! I think this was a hidden gem! Excellent video, appreciated the breakdown as well at the end. Can't believe they had 90% occupancy. Keep us posted!!
Gringo Price. Guy from Canada @wanderinginvestor bought a 6 bedroom remodel like this for 162k. Smells funny because had two partners from Canada and Australia and everytime they are gone. 🤔
Yes I saw that. There’s a big difference in the location. You can definitely find cheaper properties in Laureles because it’s a lower socio economic stratum than el Poblado. The difference is even bigger considering that this one is in Provenza. Once you spend enough time here youll learn the difference.
🏠 Purchase Real Estate in Medellin: www.medellinmasterclass.com/realestateinvest
Thanks for the info Andrew, but this ROI is really poor for someone considering investing in a developing country like Colombia. Historically, the Colombian economy has faced a lot of turmoil and currency devaluation. I'd expect much higher return north or 10-15% to reflect that risk. Additionally, this is marketed at tourists, an industry that would be first impacted the most in an economic downturn.
Can you give examples of developing countries that average that? I've been researching and found no country in the world, let alone a developing country, that averages a gross rental yield above 10% per year, maybe South Africa (not developing). I got this info from GlobalPropertyGuide.com. I'd love to get more of the info you may have. Please share. Thanks!
Why in the world would I pay 4k USD to stay in that place? I understand running a business means seeking after profits, but if I go to Colombia I would want to pay LESS to live than in the U.S.
Even if you compare that place to one of the more expensive locations in the U.S. and say, "you could never rent this cheap in New York". That isn't the point at all. Perhaps someone who makes 8k or 12k USD per month would be interested. Thank you for showing these places and making your videos though!
You’re not the target audience. The other 1.4 million tourists are. lol
@@MedellinBuzz That is not true. The Medellin market is filled with folks that are living off their Social Security.
Great content but. Not the deal of the century. Margins are slim and the only exit strategy is to hope and pray for a buyer after renovations. Your content is in English and geared towards US buyers. Here we have far more lucrative opportunities to invest and multiple opportunities to exit an investment. Love your content but I dont agree that this is a good deal.
@@Ohcrapswithdavid give me one example to prove you’re not just blowing smoke.
@@MedellinBuzz I just closed on 60 race street in Uniontown Pa. Paid 15k. Asking was 25k comps are around 110-130. Needs 25k in work. I know the area well. Its on the better side of town. I can refi or sell it as an exit strategy. In small towns in PA and Ohio there are DEALS. This side of towns rents for 1000 a month. As well.
@@MedellinBuzz If i purchase a property for 100k in Colombian. My capital is frozen. Few options to sell and no refi options. Too many sure bets in Pa to have my capital frozen in colombia.
@@MedellinBuzz another example. 246 west main street uniontown pa 15401. just went under contract. . Comps are 180 +. Listed for 59k. Great part of town. Need around 30k in renovations. Will rent for 2500. Two apartments and commercial space.
@@Ohcrapswithdavid you do know this is a channel about Medellin? Right?
4,200? That is ridiculous! No one in their right mind would pay that much in Colombia. These prices are going to cripple Medellin's economy in the long run.
No one would pay them or they’re going to cripple the economy because they’re going to be paid?
@@MedellinBuzz I find it hard to believe that the landlord would be able to rent it at that price. However, if he finds a tenant and eventually this becomes the standard rental price per square meter, the long-term consequences for the local economy could be negative. The minimum wage in Colombia is considerably low, and quality jobs are not widely available, meaning that people would spend most of their salary on rent. This, in turn, could decrease spending on other goods and services that help sustain other businesses and the economy. While the landlord alone won't cripple the economy, if many others start asking for such high rent, the consequences might not be good.
The greed virus has been unleashed and I would say the parries over. The good news is there are endless options in Colombia.. Snd much better deals than are to be found in Medellin.
@@albollinger5431 are you kidding, the greed started in 1499 when it was found by the Eurpeans. It's been one of the most corrupt and greedy countries for centuries. We Colombians, who were born poor, now have the opportunity to take advantage.
To your point, yes there are poorer cities to take advantage of for sure.
@@MedellinBuzz Yes this not a bargain any more.. do you think people go to Colombia to pay more..? you are not realistic.. i would know.. .. better take advantage now like you said.. till people start getting smart..
I wanted to buy in Medellin after visiting many times over the last 3 years, but it's no longer the bargain it once was perhaps because of the influx of investors. The prices and rents are getting ridiculous.
After my 4th trip I bought a property. Medellin is amazing.
Wow so you can have a good living in Medellin for 2000$ a month but this apartment will cost you 4200? Crazy.
It will cost a tourist that on Airbnb. There's a difference between living here full-time and visiting here for a month or two.
Very well detailed,breakdown of buy,renovate and sell,or rent out property.
@@nodigidii thanks! 🙏
Good look finding consistent renters at that bloated price point. I’ve run a ton of data on Medellin and have been visiting for over a decade and the vast majority of high end “luxury” units are lucky to get 40% occupancy year over year, and they are often asking half of what this unit would be asking.
There may be a few naive tourists who overpay - and a few who don’t care they that they are getting fleeced, but this isn’t built to be a consistently rented out unit. Hope the buyer knows that
@@ThaddeusMathematics tell me you don’t own any real estate without telling me to don’t own any.
@@MedellinBuzz I actually own two pieces of real estate. Better strategy would be to address the substance of what I said than try to hurl baseless insults.
@@ThaddeusMathematics I know you don’t own luxury apartments in Poblado based on your baseless comment. Argument done.
@@MedellinBuzz so prove us all wrong and post what this unit actually rents for along with the occupancy rate.
@@ThaddeusMathematics will do. As I said in the video, it’s going to be remodeled, and up on airbnb in about 8 months.
Great video Andrew, I can’t wait to see the renovation. Keep up the good work 👍👍👍👍👍
02:02 knocking down walls in a condo building isn’t a smart idea. Structural integrity may be an issue
@@CoachatCole not when it’s construcción tradicional. Not my first rodeo.
@@MedellinBuzz The general rule of thumb is to stay clear of apartment building built before 1984 hence that was the time they passed earthquake-resistant building codes. Furthermore, your ROI estimates are lofty!
@@PK-nn3sx thanks for the insight. I’ll do a follow up video once it’s done and on airbnb.
When does the Hilton open?
I don't know.
the 6% ROI is very very poor. you can get this for the bonds in US or some EU countries, tax free. does not sound like good investment. for rentals I would assume most of renters are expecting double digit ROI
Yes, that's why I said it's more for someone that wants to live in it. Also, I'm being VERY conservative with the numbers because many people have never had a rental before, so it's good to manage expectations.
Buyer BEWARE, Do your homework, read La Republica, El Portafolio, El Tiempo, the US Embassy in Colombia, read, read, read. Or watch RUclips, Alejandro Bremer, Vicky Davilla, the Blue, la FM, etc. Educate yourselves with the truth and perceived truth.
Yep, that's good advice. Gracias!
I like the numbers but if occupancy is higher, then utilities would likely increase too but yet you are keeping those costs unchanged... same with cleaning costs... It also looked a little unprofessional that "utility" was spelled "untility" in some of the scenarios you provided.
@@inceptionman1011 thanks I will update that.
Don't look at the Colombian market like the one in the USA. Completely different dynamics!!!
@@DanielCodianni For some context, I’m from Colombia not the USA
Roi is wack on these for the amount of work involved.
Yeah, and it involves more work to get higher ROI. Not an ideal investment for everyone. For this client, it worked out. I'll do a follow-up video once it's done and operating. Thanks for the comment.
Great video Andrew!
That's a pretty low ROI for an investment that one has to put so much work into it, stay on top of things AND could easily be a lot less at the mercy of the occupancy. What people don't understand is that the Airbnb market in cities like Medellin is already overly Saturated. With 300k US dollars you could, buy an S&P 500 fund like VOO, and get better returns without doing any more work (no clogged toilets, defending bad reviews etc!). Or if venturous enough, just buy a few long term rental properties in the US and blow both right out of the water. Still a lot more involved than the stock market but can be more profitable due to the tenant paydown your mortgage, appreciation and tax benefits. Hec, I might as well make a video about it one of these days and become a RUclipsr too!
Yeah I went very conservative in numbers. Not everyone is a rockstar airbnb host like me, gotta mange expectations.
will you share this spreadsheet
Hey bro quick question, I’m 18 and wanna do property there. Do you need credit?
@@JoseMaradona-f9o You need money.
You do. But there are ways to get in.
Would have been nice to have gotten it 20% cheaper, but the neighborhood will save the investment...
Yeah it’s recession proof.
Never heard of OCI
@@DondiniMontefusco it’s great, check it out some time.
Nice video .. I own I a property in San Lucas .. never knew about home owners insurance .. recommendations ?
4000 ? Is that arbnb?
@@wendyprada8734 yes.
Great video as usual. Excellent breakdown on the expenses and RIO. Makes total sense for the right person.
Very underwhelming, not gonna lie.
I could have hyped it up and inflated the numbers, I’d rather show the truth.
@@MedellinBuzz I'm interested in purchasing a property in medellin. I'll reach out for your service in the future. Does your business also have presence in other cities in Colombia?
@@nepatriots77 Only in Medellin.
Beautiful apartment, fantastic location, unique layout! I think this was a hidden gem! Excellent video, appreciated the breakdown as well at the end. Can't believe they had 90% occupancy. Keep us posted!!
Not impressed with the old unit and low ceilings.
Yep, that's why they are going to remodel it.
Awesome video. Haven't stayed in provenza yet. Still navigating Laureles.
Love watching your ideas. Make the tv room outside bedroom an office.
Gringo Price. Guy from Canada @wanderinginvestor bought a 6 bedroom remodel like this for 162k. Smells funny because had two partners from Canada and Australia and everytime they are gone. 🤔
Yes I saw that. There’s a big difference in the location. You can definitely find cheaper properties in Laureles because it’s a lower socio economic stratum than el Poblado. The difference is even bigger considering that this one is in Provenza. Once you spend enough time here youll learn the difference.