First American Realty Medellin www

Transcription

Medellin Colombia
Own a
Piece
of
Paradise!
First American Realty Medellin (FARM)
First American Realty Medellin
www.firstamericanrealtymedellin.com
Rich Holman Broker/Owner FARM
Background, Vision and Motivation
Texan from Atlanta, Minneapolis, Los Angeles & Naples
Experience in securities, investment banking,
publishing, real estate investing and mortgage banking
Came to Medellin Aug 2006 and fell in love with the city
Determined that Medellin was truly the “World’s Best
Kept Secret” and knew that it would soon be
“discovered” by the international community
Has worked to be first to market with a real estate
company that could effectively serve foreign interests
Favorite Saying – “My worst day in five years in Medellin
was better than my best day in 14 years in Naples
Florida”
Mission Statement
To be the trusted on the ground
resource for foreign buyers and
investors in Medellin residential
and commercial real estate!
A Quiz!
Colombia ’s Major Cities:
Bogotá, Cali, Cartagena, Barranquilla, Armenia,
Pereira, Manizales, Bucaramanga, Cúcuta, Pasto,
Ibagué, Neiva, Soledad, Soacha, Popayán, Santa
Marta and Medellin
When asking my friends and clients over four
years who have visited these cities, what % said
they preferred Medellin?
At A Glance
Quiz Answer
100%
Accessibility
• Medellin has daily flights from the U.S. and
Europe
• 3 ½ hours from Miami and Ft. Lauderdale
• Increasing competition among airlines
• Good road infrastructure
• Excellent bus and taxi availability
Medellin Highlights
• Population – 3,800,000 inhabitants including
unincorporated areas
• Second largest city in Colombia
• City of Eternal Spring, Own a Piece of Paradise, World’s
Best Kept Secret
• Elevation – 4900 ft near the equator
• Climate -- average range is 60-86 F and average daily 72 F
• A/C and Heaters – not needed (low utility costs)
• Bugs/Insects – because of altitude few flying creatures
and screens and lanais not required
• Cleanliness – culture of cleanliness, city and people very
clean
• Extensive world class library system, parks & museums
Medellin Highlights
• Education – 32 universities, students are serious and
motivated
• Transportation – efficient and available - buses (60 cents),
taxis ($2.25-$5.00), Metro & Metrocable ($1.25),
• Infrastructure – good roads, high speed Internet,
dependable utilities
• Paisa Culture – unique Spanish influenced friendly culture
• Tourism – up 35% over past three years
• Food & Water – Good food and excellent potable mountain
spring water
• Festival of Flowers and Festival of Lights (Los Alumbrados)
• Festive Night Life – Paisas work to live, not live to work
Medellin Real Estate Profile
• Population is 3,800,000 for Medellin including unincorporated
areas such as Bello and Envigado
• Has approximately 60 major neighborhoods (barrios)
• Barrio areas ranked by a Stratus from 1-6
• Higher Stratus means greater cost for taxes, utilities, HOA fees,
real estate prices, food and living costs
• Medellin has Stratus 6 locations in El Poblado, Envigado,
Sabaneta, Las Palmas and Laureles.
• El Poblado, the most exclusive barrio, is to Medellin what
Beverly Hills and Bel Air are to Los Angeles
• Total return is a combination of appreciation, peso
strengthening to the dollar and investment income
• Medellin Real Estate Value – least expensive real estate prices
worldwide for any cosmopolitan city!
• Ages of Clients - Under 40 – 25%
• 40-60 – 50%
• 60+ - 25%
• Background/Occupations
• Professional business people and mining personnel
• Couples – retired and semi-retired
• Second home investors
• Colombian Americans
• Tourists
• 65% US, 15% Canada, 10% Australia, 10% European/other
• Purchase and Rental Preference – 95% El Poblado
• Type of Property Purchased
• Penthouses – 60%
• Three BR – 25%
• 1-2 BR – 10%
• Single Family Homes and Fincas – 5%
• Price Points
• Average Price - $175, 000 USD
• Price Range - $50,000 - $400,000 USD
•Per cent foreign buyers – Less than 1%
Cost of Living
Unfurnished 2 BR El Poblado Medellin
Rent
HOA Fee
Property Taxes
Transportation
Gas
Electricity
Telephone
Internet
Cable TV
Household Help
Food
Entertainment
Health Insurance
Travel
Miscellaneous
Total Monthly Expenses
$450
$0
$0
$100
$25
$35
$20
$25
$25
$75
$400
$300
$100
$100
$50
$1,705
Cost of Living
2-3 BR El Poblado Medellin Purchase
Rent
HOA Fee
Property Taxes
Transportation
Gas
Electricity
Telephone
Internet
Cable TV
Household Help
Food
Entertainment
Health Insurance
Travel
Miscellaneous
Total Monthly Expenses
$0
$175
$75
$100
$30
$40
$20
$30
$30
$75
$400
$300
$100
$100
$50
$1,515
Property Costs
El Poblado Medellin
Rent for $400 to $800 per month- Unfurnished
Rent for $700 to $2000 per month - Furnished
Buy for $50,000 and up to $2 million
Avg. cost/sq meter New Construction - $1800
Avg. cost/sq meter 1-5 yrs. - $1200-$1700
Avg. cost/sq meter 5-30 yrs. - $600-$1200
What do foreign real
estate buyers
look for in Medellin?
Value
View
Location
Security
Amenities
New Construction Sales
In four years First American Realty
Medellin has sold just one new
construction project!
Why?
Because the first thing our buyers look
at is value in terms of cost per sq
meter!
Medellin Views
Why is there no pricing premium
for spectacular Medellin Valley
and mountain views?
Because the poorest people have some of
the best views so the locals place less of a
value on the view. This is one reason there
is no premium pricing for penthouses.
Location
95% of First American
sales are in El Poblado the
safest and most luxurious
neighborhood in Medellin!
Security
Since former president Uribe took office
in 2002 security has improved
dramatically throughout Colombia and
especially Medellin
Medellin now has a lower crime rate
than a number of US major cities
El Poblado is the safest and most secure
neighborhood in Medellin
99% of FARM listings have 24 hour
gated security
Amenities
Foreign buyers preferred amenities
Killer views
Large Terrazzo's and balconies
Quiet
Open floor plans with lots of sunlight
Walking distance to shopping and dining
Large master bedrooms
Island kitchens
Pools (I try to talk them out of this one)
First American Realty Medellin History
Incorporated May 2007 and operations began in Sept 2007
Web site launched Jan 2008
Offices
Medellin – El Poblado five blocks east up from Parque Lleras
Oriente – El Retiro ,Rionegro, Llano Grande, La Ceja, Fizebad – open 2011
Cartagena – partnership office in Boca Grande open in 2011
Santa Marta – 2012 plans
First American Commercial Realty Medellin (FACRM) commenced operations July
2010 – Joe Greco Partner
www.firstamericancommercialrealtymedellin.com
Commercial real estate brokerage, sales and leases
Commercial investment projects and developments
Poblado Suites
Medellin Real Estate Capital Group
First American Remodeling Services (2011)
Bi lingual American architect, Jeremy Zick, project coordinator
Five sets of vetted contractor teams
Assist residential buyers with remodeling
Phased project design and management for commercial rehab/remodel
First American Realty Medellin Services
Residential Sales – Rich Holman
• FARM web site www.firstamericanrealtymedellin.com
• 350 listings -penthouse, apartment, homes, studios,
fincas (country estates) in and around Medellin
• Eight bi lingual sales agents with cars to assist
• Currently getting 5-10% off list on average
Property Management – John Duque
• www.firstamericanrealtymedellin.com/aptlistings.html
• 45 furnished/unfurnished apartments primarily in the El
Poblado/Envigado area
• Amenities designed for North American/European
tourists
• Total turn-key management services for clients
Remodeling Services – Jeremy Zick
• In-house bi-lingual American architect
• Reliable vetted contractors
• Complete turn-key project management services
• Specs/plans apples to apples bidding process
First American Commercial Realty Medellin
Investment Opportunities – Joe Greco
Development Opportunities in and around the Zona Rosa area
of El Poblado – Parque Lleras, Provenza, La Linde, Astorga,
Manila and Patio Bonito
Conversion of existing homes and buildings into mixed use
and small rental apartment projects
Oversubscribed Poblado Suites renovation – five executive
suite apartment rentals three minutes from Parque Lleras
Planning phase for Green Energy Mountainside Retirement
Development in Copacabana just North of Medellin
El Retiro retirement plans 20 minutes from Rionegro airport
Pending Medellin Capital Group investment fund for
purchase and renovation projects similar to Poblado Suites
For investment packages contact [email protected]
Three Components of Investment Return in Medellin
Real Estate Appreciation (5-10% per yr est.)
2002 Uribe came into office - +20-25%
2003-2007 - +10-15%
2007-2009 – Sideways
2010 - +5.8%
2011 – Same track as 2010
Investment/Rental Returns (5-10% per yr est.)
Includes all costs and realistic occupancy assumptions
ROI analyses for all purchases
Peso to US Dollar Favorable Changes (5-10% per yr est.)
Past five years Colombian Peso outgained all major currencies vs
USD
Three years ago was at 2,600
2011 trades between 1,730-1,980
Owning assets in strong currencies is a good hedge against a
declining US Dollar
Medellin
Total Real Estate Return
Taking the mid-points of the
three investment components
overall returns for residential
real estate could approximate
22.5% per annum
Come Visit Us in Medellin
Now is the time to
“own a piece of paradise”
For More Information
Contact
Rich Holman
[email protected]
Broker/Owner
First American Commercial Realty Medellin
www.firstamericancommercialrealtymedellin.com
US Landline – 305-393-8872
Medellin Landline – (057) (4) 312-5473
Medellin Cell Phone – (057) 314-863-0621
Questions??
Free Bag of Choice
Colombian Coffee
for the Best Question!

First American Realty Medellin www

Transcription

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