July 31, 2022

Pawel Kentaro Grendys explains how to avoid common real estate purchase errors in Latin America

Real estate investing can be very simple. This is a great business that offers high returns and little risk. This type of opportunity is abundant in Latin America, which has relatively affordable land for both properties and for raising livestock. Investors should invest in this market as soon as possible to increase their profit margins. Pawel Kentaro Grendys, an expert in Latin American real estate, offers insight into how to avoid common errors when making purchases.

It is more difficult to do business abroad. Foreign investors are subject to different laws and regulations than your country of origin. These tips and tricks will help you make the best decisions for yourself and the market.

“Latin America’s real estate market can be complex,” explains Kentaro. “It is crucial to consider the legality of the sale, the reliability of the seller, and the quality of land. Although security and conditions in Latin America are improving, it’s still better to be safe than sorry.”

Additionally, there are many bureaucratic procedures that can become overwhelming in certain countries. These include currency exchange controls and taxes. This category includes Brazil and Colombia, two of Latin America’s most lucrative and exciting markets. These problems can be avoided if you speak with an experienced attorney.

Tax laws can vary depending on who owns the property and how much income they have. In Colombia, for example, foreign property owners have to pay taxes on land values determined by local municipalities. The tax rate can range from 0.3% up to 3.3%. The land assessment takes into account the land’s value, its location, as well as any adjacent buildings or real estate.

Chile is at the lower end of the tax spectrum. A property tax of 1.2% is charged on urban real estate and 1% for rural areas. Residential properties are subject to a 0.98% tax. Additional fees may be applicable to properties in certain situations.

Visa and residency rules differ by country. It can be confusing if the terminology is unfamiliar. Understanding the rules and regulations that may affect your investment is important. In addition, the purchase of property or housing can also lead to temporary and/or permanent residence rights in certain Latin American countries.

Investors can apply for the temporary resident visa in Colombia if they own real estate properties with a minimum value of $85,000. To be eligible for a permanent residence visa, you must have a minimum investment of $159,000.

Mexico is a comparable opportunity for foreign investors. However, it requires more investment. Investors who own real estate worth at least $170,000 are eligible to receive a temporary residence visa for up to four years. Property owners may also be eligible for visa options in smaller markets like Panama and Ecuador. However, the requirements and benefits of these visas can vary depending on the market.

Adds Kentaro, “Foreign investors who want to do business in Latin America have always considered the political climate in that region a key indicator. It is important to keep up-to-date with the latest developments and dynamics in government before investing in any country.”

Latin America is an attractive, diverse, and lucrative region to invest in. The region offers many opportunities for investors due to its diverse landscapes, dynamics, and benefits. Latin America offers many options, whether you are looking for a property for retirement or land for growing crops. You should not skip any step in the investment process. It is best to consult with an attorney or other local professionals about these issues in order to avoid making mistakes.