ABC for buying a home: Mabel Quintero's guide to deciding amid high rates and regulatory changes
Mabel Quintero, CEO of Finconsciente Photo: Courtesy
TL;DR
- Savings are not mandatory to start the home-buying process in Colombia; initial payments for new homes can be deferred.
- Young individuals often have greater access to housing subsidies, making early purchase decisions potentially advantageous.
- The primary home should be viewed as a necessity for stability rather than solely an investment, while investment properties require rigorous market analysis.
- Thorough market research, including comparing rental income in the area, is crucial before purchasing to avoid future surprises.
- Choosing between peso or UVR (inflation-indexed unit) loans depends on individual financial circumstances and current economic conditions.
- Penalties for withdrawing from a purchase are intended to compensate developers for financial risks caused by buyer non-compliance.
- Selling a property immediately upon receipt is often disadvantageous due to oversupply; waiting a year can yield better financial results.
- Personal housing projects should not be halted by market conditions, as opportunities exist for those who adapt to current rules.
- Financial discipline, active credit monitoring, and exploring options like portfolio purchases can optimize loan terms and costs.
- The biggest risk in real estate is improvisation, not necessarily interest rates.