I have been interacting with Colombia for the last three years. Many of my colleges think that I am crazy to be doing business in Colombia. However, I believe that we as investors need to be looking at the markets that are positioning themselves for growth and not the ones that are already hot and potentially over inflated. While in many parts of the world the real estate market is stagnant and the tourism is down, in Colombia is the opposite. Colombia has not suffered the devaluation of many other countries and its tourism is increasing. Colombia is a shooting star. It is a cash based economy, massive natural resources, US military contracts, booming tourism, solid banking system, low debt, strategic location, reducing the risks for investment.
From the perspective of the entry level investor and looking long term, I suggest Santa Marta. Yep, you heard me right. Many people are familiar with Cartagena and would have expected me to suggest this region. Cartagena is an awesome city with great potential. The main reason I did not pick Cartagena as my top choice, is because the entry level for real estate and land is high and the appreciation rate eventhough is expected to increase, I think Santa Marta's appreciation will be higher. Furthermore, Santa Marta has the foundations in place for becoming a far superior tourist destination than it already is. Here are couple of other reasons why I believe that Santa Marta is the place to be:
1) Ruta del Sol - this will connect Bogota to Cartagena in 12 hours compared to 18-20 hours right now. This will make the drive to Santa Marta approximately 13-14 hours.
2) New international airport between Barranquilla and Santa Marta. No need to fly to Bogota and then drive or take another national flight to the coast.
3) Plan Centro Santa Marta.
4) International Marina. http://marinasantamarta.com.co/ - This is only one of many future developments for the Santa Marta region.
One strategy could be to buy a colonial property in Santa Marta Centro and renew it. Remember both materials and labor cost a lot less here than in the US. With the right architect and workers, you can do wonders with a reasonable budget. Before you start I suggest that you do your due diligence, visit the area, get in touch with a local attorney that knows about real estate and taxation, avoid the multi-layer of middle-men that tends to increase the value of a property, etc. Investing in another country is complicated regardless of the country. For example, how is the taxation system in the country?, how friendly is the country to foreign investment? how is the legal system? Will you be an absentee owner? These are questions that must be addressed before you venture to another country to invest.
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