Colombia. The question about investment in properties abroad arises as a result of inflation in Colombia, which registered 9.67% in June 2022, according to the National Administrative Department of Statistics, DANE, and a dollar above 4,000 pesos.
Henley & Partners, a residence and citizenship planning firm, revealed in its latest valuation index that inquiries to acquire properties abroad increased 80% in the search for protection against market volatility and high inflations around the world.
In this regard, Emil Montás, real estate investor and owner of the real estate company Costa Destinations, with investment experience in the international real estate sector, pointed out that the interest in acquiring a property abroad arises as a form of investment to protect money in times of inflation and crisis, as has happened in several Latin American countries, among them Colombia.
"I am convinced that those who own their own business are masters of their own destiny. Undoubtedly, foreign investment in real estate or real estate, as they say in Colombia, has become a profitable form of business either to develop vacation or housing spaces, which means that the construction of real estate is viable with Colombian capital in certain parts of the world in the face of the devaluation of the peso".
Montás, with 23 years of work in the real estate sector, said that investments in properties abroad vary according to the model chosen, their location and especially the type of development, can range from a minimum of $ 150,000.
Given this, he announced five benefits of making real estate investment abroad
1. Protection of wealth and opportunities for capital generation: with the current devaluation of the Colombian peso, investment in dollars in foreign markets allows money to be moved and income to be received in a strong currency that always tends to rise.
2. Investment in tourist destinations: those who plan to invest in real estate outside of Colombia can choose between several tourist destinations that guarantee the visit or stay of people constantly. Approximately 3.5 million tourists arrived in the Dominican Republic in the first quarter of 2022 alone, it is located just two hours by plane from Bogotá, the same language is spoken and only a passport is needed to enter, so it is an attractive place for those who have plans to expand their investments.
3. Constant income: the investment in dollars in a property that is rented for days, months or continuously generates constant income, in the case of the Dominican Republic, in foreign currency. Thus, month by month people can receive the money with the option of reinvestment or saving in dollars "in the Dominican Republic we have sun all year round, that's why Europeans prefer us as a holiday destination, and that is a great business opportunity".
4. Valuation of the property: another advantage is that according to the investment model that is made in real estate abroad, the valuation of the property occurs year after year; for example, if a piece of land is bought or a property is bought in plans, especially if it is in the early stages of a work, the investor will pay a stipulated price, which by the time the development is ready, will have increased, there is already a profit out there.
5. Society to invest: people who have little money to invest abroad can receive professional advice to know which investment model best suits their capital and thus develop a project together. You even have the possibility of finding financing, a springboard that should not be discarded.
On the other hand, Montás highlighted the importance of expert advice on investment, clarifying that "sometimes you have a lot of money, but you invest in the wrong place and investment mistakes are paid dearly".