Category: CATEGORIES

Buying Stocks Versus Real Estate Investing

Stocks Versus Real Estate. Photo credit Pixabay.

Which Is Better?

Updated December 16, 2024. Which is potentially better? Buying stocks versus real estate investing. The best answer is that the stock market tends to increase in value faster than real estate. Historically, from 1968 to 2009, the S&P 500 has resulted in returns of 7.5% annually. But real estate prices head in the direction of outpacing inflation, but just slightly. After accounting for inflation, home prices have increased by 1.5% per year.

But, after accounting for inflation, stocks have returns of approximately 7% per year. Remarkably, the stock market gain of 7% is 4.65 times the rate of real estate. But there is more information to think about. In reality, stocks have experienced more peaks and valleys, making them a far riskier investment.

But numbers don’t tell the whole performance story. You also have to look at the impact of tax advantages, income yield, and the fact that real estate investments often allow for significant leverage.

Which investment is best depends on more than just their returns; other factors must be considered. But if history is an indicator of future performance, both stand to produce attractive gains in the long run.

The Benefits of Investing in Real Estate

In real life, real estate has higher risk-adjusted returns than the stock market. Despite their potential to generate sizeable returns, stocks have no tangible value; on the other hand, real estate is a valuable, tangible asset and profit generator.

The Big HOWEVER…

One reason why real estate as an investment has better annual returns is leverage. With real estate, the investor can do a significant amount of financing to leverage the property and purchase the property without adding a lot of risk to the investment.

However, real estate as an investment has a much stronger return POTENTIAL, especially with rental properties. Not to mention the awesome tax advantages.

Tax Advantages of Rental Properties

  • Operating expenses are deductible
  • Mortgage interest is deductible
  • Depreciation deduction of 27.5 years for buildings
  • Defer capital gains tax
  • Owner expenses are also tax deductible
  • Avoid FICA taxes
  • Qualify for pass-through deduction

Two Real Estate Investment Scenarios

This leverage can amplify small returns greatly. Let’s say you decide to buy a house or apartment for $100,000 using your own money. Say the value of the house increases by 3%. $100,000 times 3% equals $103,000. This means you have earned $3,000 on your initial investment of $100,000.

Now let’s say you find a house or apartment and purchase it for $500,000. But you only invest $100,000 of your money. Then you finance the other $400,000 with a mortgage. Let’s say again that this property increases in value 3%. $500,000 times 3% equals $15,000 profit.

Leverage Your Way To Big Profits

So, let’s take a look at difference in the potential profits. In both cases you have made a $100,000 investment. The big difference is the leverage that you use. In the first scenario, you purchased the house with your $100,000 and did not ask for a mortgage because you already met the buy price.

Conversely, in the second scenario, you also invested $100,000, but you asked for a mortgage of $400,000. The $400,000 mortgage that you asked for here will give you more leverage when you own the $500,000 house or apartment.

In the second scenario, you are using more advantageously using leverage. In the second scenario, you have now increased your potential profit to $15,000 versus the $3,000 with the same $100,000 investment in both cases.

Big Difference In Returns Is Leverage

In the second case, the leverage increased your returns by $12,000 for the same initial investment. Not bad…. But keep in mind that when you borrow money from a lender you usually have to pay the lender an origination fee at the closing as well as possibly other closing costs. Also, usually you will have to make monthly payments for each month that you own the property.

Nonetheless, most people choose to use leverage. When dealing with real estate, leverage can completely increase your returns when looking at potential investments. The idea behind leveraging real estate is to use other people’s money to increase your returns without having to put as much capital into buying the property yourself.

Many people still ask the question of which is better: buying stocks versus real estate investing? Real estate has a much stronger return POTENTIAL because of leverage. For myself, I like leverage. You can have $0 dollars and no credit. All you have to do is find the right property and put it under contract and the leverage of real estate will make you a nice return on that property.

Rent Out The Property

The other big reason that investors choose real estate is that investment properties can be rented out to generate more income. Look at the total money needed to make the mortgage and other payments each month. If you can justifiably increase the rent to cover the cost of the property, the rest is profit before taxes.

Real Estate Has Greater Potential Returns

In my opinion, real estate investments have a much greater potential return over the stock market if you look at the long-term returns. However, be that as it may, investing in real estate is arguably time consuming.

You or your management team will need to factor in the time spent to maintain your properties in order to justify having a portfolio that includes real estate. But if you take the time to set everything up properly, the investment returns on your real estate properties will dramatically increase your wealth for the long-term.

Greater Initial Time Commitment For Real Estate

If you are looking to buy houses or apartments that need to be renovated before you sell or place a tenant to rent out the property, going through this process is very time consuming. If you are perhaps younger, and have a lot of energy, this could be feasible way to invest and make nice returns. In addition, in many countries real estate investors also have enjoyed greater real estate tax advantages than have the investment in stocks.

Perhaps Best Scenario Is Invest In Both

On the other hand, if you already have a job or other time commitments, you might not have the time or energy to focus on real estate investments. I completely understand this perspective. In this scenario, maybe it would be better to focus on the stock market and buy the S&P 500 on dips.

Which is better: buying stocks versus real estate investing? Real estate has a much stronger return POTENTIAL because of leverage. Honestly, I would invest in both.

Invest On A Regular Basis In Stocks

Investing on a regular basis rather than trying to time a lump sum investment can help you become a more disciplined investor. You’re forced to invest regardless of whether the price is high or low. This takes some of the emotion out of investing and avoids any delays in putting your money to work. Most financial planners advise saving between 10% and 15% of your annual income. If you want to learn some key stock market investment strategies, please read my blog on How To Invest Wisely In The Stock Market.

Invest In Real Estate

Conceivably the best scenario is to invest in both real estate and the stock market. This way, if you have some rentals and regularly invest in the stock market, no matter what happens to the economy annually you will have a better chance of coming out ahead in the long run for retirement.

However, time is always a factor and many people have to choose. Which is better: buying stocks versus real estate investing? If you feel you are in this category, then we highly recommend real estate. We would say real estate because it has a much stronger return because of the leverage factor.

What popular articles and blogs do you recommend?

A strategy that works very well is a combination of wholesaling and then balance that with rehab to resell. This way you are always flipping properties. Please read my blog on the Real Estate Investing Strategies That Work Every Time. With this strategy you can build up enough cash and capital so that you can start buying some residential rental properties. The residential rentals can then create long-term wealth.

If you have ever wondered if there is a way to get more money from your rental houses, please read this blog on the three ways to Boost Your Rental Property Cash Flows. This article goes in-depth into the three kinds of rental properties that you could be making more money are student housing, vacation rentals, and my favorite: rent to own. This will make your rentals into a real estate cash flowing machine.

Further Reading on FinancialGoodness.com:

If you are interested in Becoming A High-Net Worth Individual, please read our blog and watch the YouTube video by a fancinating guy named Andrew Hendersen, founder of Nomad Capitalist. He believes that the world has changed forever and says it’s time for you to “go where you’re treated best.”

Until our next blog, best wishes!

Matthew 7:8 NLT

8 For everyone who asks, receives. Everyone who seeks, finds. And to everyone who knocks, the door will be opened.

Last Updated on December 16, 2024 by Financial Goodness

Financial Goodness

George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge and skills through education in the areas of personal finance; real estate; investments; digital marketing; comparison of the best states to form LLC’s and comporations; and the best AI app for increasing your fluency in English.

George has been an owner of a residential real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Undoubtedly, the tax laws in the United States and Colombia, South America offer some very favorable tax incentives for owning real estate.

Consequently, as an entrepreneur, researcher, writer, and speaker I have sought the truth in everything I do, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.

Santa Barbara Is The Best Neighborhood In Bogota

Enjoy Living In Santa Barbara

Updated December 16, 2024. Santa Barbara is the best neighborhood in Bogota. Colombia’s capital, Bogotá, is brimming with hotspots that draw more and more locals and visitors each year. For example, Usaquén, and more specifically Santa Barbara, are definitely experiencing a renaissance. As a result, Santa Barbara is by far the city’s most vibrant one, packed with antique stores, modern cafés, outstanding eateries and a popular Sunday market.

Real Bogotanos Live In Santa Barbara

To illustrate the culture of the area, if you want to know how real “Bogotanos” live, look no further than Santa Barbara. Consequently, this is by far one of the most authentic and energetic neighborhood in the city. Additionally, if you look at the architecture of the buildings, the new urbanism is shaping the area with the property owners making the transitions with the construction companies to construct newer design buildings.

Map of Santa Barbara Neighborhood. Photo credit: Google Maps.

Santa Barbara Lifestyle

For those looking for new apartments for sale in Bogotá, Santa Barbara is the area to that promises exciting news. Accordingly, the northern neighborhood of Santa Barbara is taking a large move towards modern architecture. Furthermore, the new buildings have many amenities as well, including security, entertainment and community services rooms such as business suites that are all equipped with the latest smart technology.

For this reason, if you would like to find out more information go to Properati.com.co. Or click on the Neighborhood Guide and scroll all the way down to Santa Barbara, because for me, the best neighborhoods in Bogota include Santa Barbara. Quite simply, Santa Barbara is a gem of a neighborhood.

Price Comparisons

Let’s look at a price comparison of properties in the Santa Barbara area and compare that to the prices of properties in Cedritos, Bella Switzerland, and Chico. Likewise, if we glance at the website properati.com.co/guia_de_barrio/santa-barbara we can see that the price for apartments in Santa Barbara is just below $6 million.

Overall, the price of apartments in Santa Barbara is more than those in Cedritos and slightly more than those in Bella Switzerland, but less than the apartments in Chico Norte, which is just to the south of Usaquén on the south side of diagonal street named Diagonal 92.

In my opinion, Santa Barbara is the best neighborhood in Bogota. Santa Barbara’s new modern urban buildings are a buy for the price, the value, and strength of the U.S. dollar.

Price Comparison Of Santa Barbara

Price Comparison / m 2 Properties

Property comparison of prices of Santa Barbara with Cedritos, Bella Switzerland, and Chico Navarra. © Photo credit: https://www.properati.com.co/guia_de_barrio/santa-barbara

Colombia Pesos To US Dollars

Let’s calculate the Colombian prices to US dollar prices. As of today, Tuesday, December 12, 2019, 1 US dollar (USD) equals $3,382 Colombian pesos (COP). By the same token, let’s also assume that the average price for Santa Barbara neighborhood is approximately $5,950,000 COP. Doing the math $5,950,000 divided by $3.382 equals 1.759 per m 2. For those of you not used to thinking in square meters let’s take a look at what this can buy and you will probably be very surprised at the affordability.

Updated June 27, 2022. The US dollar exchange rate continues to climb against the Colombian peso. As a result, currently 1 US dollar (USD) equals $4,135 Colombian pesos. In short, this is an awesome time to invest in Colombia and take advantage of the great exchange rate!

Why Invest In Colombia?

The World Bank catalogues Colombia as the fifth country in the world, among 183 countries, and as the first in Latin America, to protect investors. In fact, the Colombian investment atmosphere has been considered as one of the most favorable for foreign investment. In addition, Colombia is one of the most open economies, in terms of percentage of property own by foreigners, in Latin America.

Four Apartment Examples In Central Santa Barbara

In our opinion, Santa Barbara is the best neighborhood in Bogota. Take advantage of the strength of the US dollar and invest in a residential home. Clearly, Santa Barbara’s new urban buildings are a buy for the price, the value, and strength of the U.S. dollar.

Here are four apartment examples that I found online today. To show a comparison, the first apartment is a brand new one bedroom apartment. However, the other three apartments were not new, but they are similar, modern apartments.

Finally, I was quickly able to find a one bedroom, two bedroom, and three bedroom apartments for comparison. All of these apartments are listed on the website by LA HAUS at lahaus.com.

Example Of A Brand New Apartment

The first apartment is located at Vita 118 location in central Santa Barbara. The unit has one bedroom, two bathrooms, and two parking spaces for a total of 73 m 2. The price is $511 million.

You can see this apartment online at www.lahaus.com/p/vita-118-apartamentos/bogota. The description of the new apartment at Vita 118 says the amenities include a swimming pool, fitness center, and a jazucci. As equally important, the outside aesthetics of the building are quite simply beautiful and amazing.

New one bedroom apartment in Santa Barbara Central, priced at $511 million COP. Photo credit: lahaus.com.

More Apartments In Santa Barbara Central

Firstly, I scrolled down the web page of Vita 118 until it said “More Properties in Santa Barbara Central” and clicked to enter to search for more real estate for sale. My computer immediately went to lahaus.com/propiedades/bogota/santa-barbara/santa-barbara-central.

Secondly, I was looking for a one, two, and three bedroom apartment. Ideally, I was looking for apartments that were newer and modern as a way to reduce overhead maintenance costs. Moreover, I was also looking for better priced deals. For this reason, I found these four apartments to do a price comparison, but there were other apartments in the same price range, as you can see in the chart I created below.

Santa Barbara Central Apartments

   Bedrooms                     m 2                          Price COP                 Price USD

1 BR – New 73 $511,000,000 $151,094
1 BR – Modern
But Not New		 55 $315,000,000 $93,140
2 BR – Modern
But Not New 		79 $480,000,000 $141,928
3 BR – Modern
But Not New 		117 $540,000,000 $159,669

Comparisons: Santa Barbara Apartments

In general, the price for the brand new one bedroom apartment was definitely higher at $511 million COP or $151,094 USD. In addition, the outside of the apartment complex is beautiful, possibly has a more exclusive address, and the amenities could make a difference.

However, from a real estate investment point of view, the one, two, and three bedroom apartments, that are also located in the same Santa Barbara Central area, were all newer and modern. In addition, the total prices were much more affordable.

In conclusion, if you are looking to purchase one of these apartments for yourself as a home or as a rental, we would have to suggest that the better deal would be to buy a newer, modern apartment for a much better price.

Furthermore, for the last ten years the prices of real estate continue to increase in value annually. Therefore, going forward, if the prices of real estate continues to increase, as it has been doing in the last ten years, you will be glad for the future equity in your property.

Below are the details of the modern residential apartments that are for sale with the current owners. However, please do your due diligence to determine the IRR for these properties. In conclusion, our outlook is that there are some good deals for buying a house for your family or for added rental income if you look in the Santa Barbara area of Usaquén neighborhood.

One Bedroom Apartment:

Modern one bedroom apartment in Santa Barbara Central, priced at $315 million COP. Photo credit: lahaus.com.

Firstly, this one bedroom apartment that I found at lahaus.com, says it has one bedroom and two bathrooms, with one parking space. Also, this apartment has good lighting and ventilation, with a functional fireplace in the living room. Additionally, it is close to a wide range of shopping centers, restaurants, and banking. This one bedroom apartment is near Carrera 15, Calle 127, and Autopista Norte. Finally, the price of this one bedroom apartment is $315 million COP.

Two Bedroom Apartment:

Modern two bedroom apartment house in Santa Barbara Central, priced at $480 million COP. Photo credit: lahaus.com.

Three Bedroom Apartment:

First, I scrolled down and found a three bedroom, three bathroom apartment that looks new and modern. In particular, the description says this duplex penthouse is strategically located close to the Unicentro Bogotá Mall and is close to supermarkets and parks.

Second, the area is quiet and well lit. The first level contains dining room, remodeled kitchen, laundry, and bathroom. The second level contains the three bedrooms, a study, and two bathrooms, one with a jucuzzi. In addition to this, there is an elevator and two parking spaces. Finally, the price for this three bedroom 117 m2 apartment complex is $540 million.

Modern three bedroom apartment house in Santa Barbara Central, priced at $540 million COP. Photo credit: lahaus.com.

Conclusion

In our opinion, Santa Barbara is the best neighborhood in Bogota. At this time, Santa Barbara’s new urban buildings are a buy for the price, the value, and strength of the U.S. dollar.

What popular articles and blogs do you recommend?

Further Reading on FinancialGoodness.com: For more articles and blogs on real estate investing, check out our guides to Real Estate Investing Strategies That Work Every Time and the Best Real Estate Strategies To Make 7 Figures.

In conclusion, are you interested in taking advantage of the excellent opportunities in the capital city of Bogota, Colombia? In this case, if you are interested in purchasing a rental property, but are not sure about how to complete the process, please read my blog on how Everyone Can Buy And Own Property In Colombia. Overall, this article has many details about how to buy the affordable real estate in Bogota or Medellin that have the potential for excellent returns.

Last Updated on December 16, 2024 by Financial Goodness

Financial Goodness

George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge and skills through education in the areas of personal finance; real estate; investments; digital marketing; comparison of the best states to form LLC’s and comporations; and the best AI app for increasing your fluency in English.

George has been an owner of a residential real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Undoubtedly, the tax laws in the United States and Colombia, South America offer some very favorable tax incentives for owning real estate.

Consequently, as an entrepreneur, researcher, writer, and speaker I have sought the truth in everything I do, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.

Best Real Estate Neighborhoods In Bogota, Colombia

Updated December 16, 2024. Let’s meet the best real estate neighborhoods in Bogota, Colombia! Bogota neighborhoods in the northern part of the city, or what are called Bogota North neighborhoods, are absolutely exquisite. As a result, the North Bogota areas are definitely the nicest when looking for a real estate home or an investment property.

In addition, these homes have a higher level of security. Thus, the Bogota North neighborhoods are the best and safest neighborhoods to look for a home or apartment in Bogotá, Colombia.

Similarly, let’s take a look at some of my favorite neighborhoods for buying a home or for investing in real estate. In my opinion, they are the neighborhoods of Usaquén and Chapinero.

Usaquen and Chapinero Neighborhoods

First, we will focus at the beautiful neighborhood of Usaquen and then we will take a look at the trendy neighborhood of Chapinero.

Usaquen

The best real estate neighborhoods in Bogota, Colombia would not be complete without Usaquen. Usaquen is a beautiful and charming area in the Northern part of Bogotá. Nevertheless, Usaquen still has a nice small-town feel.

Specifically, Usaquen is among the 20 localities that make up the Capital District of Bogota. However, Usaquen was a separate municipality of Cundinamarca until 1954, when it was annexed into the city. As a result, Usaquen is the 1st locality of Bogotá, capital city of Colombia, and is located in the northern part of the city.

Similarly, today Usaquen is home to more than 474,000 inhabitants as of 2017. In addition, this district is mostly inhabited by upper middle and upper class residents.

Photo of Usaquen. Photo credit: Google.

Usaquen Location

Usaquen is bordered on the north by 240 Street. To the south by 100th Street in the town of Chico. In the west, by the North Freeway, located in Suba. Finally, on the east by the Eastern Hills, a long chain of hills forming the eastern natural boundary of the Colombian capital of Bogota.

Map of Usaquén neighborhood. Photo credit: Google maps.

Usaquen Sites Of Interest

  • The Country Club of Bogota, in fact, is the largest golf course in Bogota (the green area that is just above the word Usaquen on the map.)
  • Hacienda Santa Barbara, a colonial style Hacienda that now serves as a shopping mall
  • Unicentro, Bogotá shopping mall, dating back to the mid seventies
  • Santa Ana Centro Comercial, a shopping mall

Awesome Restaurants in Usaquen

Usaquen has many outstanding restaurants housed in colonial buildings. For example, Trendy Usaquen is a foodie hotspot. In particular, the Asian fusion eateries, upscale French bistros and mellow garden cafes cluster around Usaquen Park, the district’s focal point. Similarly, the brew pubs and chic cocktail bars keep the scene buzzing until late.

Usaquen Sunday Morning Stroll

If you need rest and relaxation combined with a little exercise after a night out on the town in Bogota, the neighborhood of Usaquen is the perfect place for a Sunday morning stroll. For instance, the neighborhood of Usaquen is known for its Sunday flea market. You can walk around to see hundreds of artisans, featuring street musicians, gourmet food stands and stalls selling handmade jewelry.

Excellent Urban Cycling

If there’s one area in which Bogota is a world leader, its urban cycling in Bogota. Moreover, the great news is that the cycling route goes right through Usaquen! The metropolis of Bogota is credited with initiating the world’s first ciclovía in 1974.

As a result, Bogota has one of the world’s most extensive bike-route networks, with more than 375 km of separated, clearly marked bike paths called CicloRuta. In addition, free Bogota maps from PIT information centers show the CicloRuta paths. PIT stands for Punto de Información Turística Centro Histórico. PIT is located at Cra. 8 #9-83.

Photo of Ciclovía Bogotá. Photo credit: https://www.bicitravesiasbogota.gov.co/ciclovia-bogota

In total, about 121 km of city roads in Bogota are closed to traffic from 7am to 2pm on Sundays and holidays for the citywide Ciclovia, a well-run event to get Bogota out and bicycle around the city. If you feel like biking, you can rent a bike at Bogota Bike Tours.

Ciclovia runs along Carrera 7 all the way from La Candelaria to Usaquen. In particular, I have seen the Autopista Norte, in Usaquen, many times on Sundays. The left lane of traffic is closed with a long line of orange cones to separate the cars and the bicycles. Besides the bicycles, the bicycle lane also contains some rollerblades, scooters, skateboards, pedestrians and anything else without a motor.

Indeed, this much-copied two-wheeled happening regularly attracts around two million participants – 25% of Bogota’s population! In fact, it is amazing that so many people who ride their bikes on Sundays have smiles on their faces. Consequently, it makes me proud of the people of Bogota and their innate happiness for life.

The Ciclovia bicycle route. Photo credit: https://www.bicitravesiasbogota.gov.co/ciclovia-bogota

Usaquen’s Beautiful Park

Torca, located at the extreme north, is the largest park of Usaquen. Notably, the Country Club’s polo area was acquired by the District and transformed into a metropolitan park for northern Bogota. Undoubtedly, the Torca area is a place of absolute beautiful.

The Estratos Of Usaquen

The social classes of Usaquen are primarily the upper middle class and upper class. Hence, the socio-economic estratos are four, five and six. Consequently, in the highest estratos of five and six (six being the highest estrato), the residents pay an increase in the utility bill price for water, gas, and electricity.

Yet, when I drive around the Usaquen neighborhood it reminds me of the nicer, beautiful neighborhoods in the larger metropolitan cities of the US; London, England; Paris, France; or Madrid or Barcelona, Spain. Consequently, I really love the Usaquen area and believe it is one of the best real estate neighborhoods in Bogota, Colombia.

Usaquen Malls And Business Center

  • Unicentro Mall: being one of the largest malls in the city with people not only from the town of Usaquén, but from the entire city of Bogotá.
  • Hacienda Santa Bárbara Mall: unites the modern with the colonial architectural styles. Built on the grounds where the hacienda (the estate) was originally located.
  • Santa Barbara Business Center: a set of nine modern buildings between Calle 112 and 116 and between Carrera 7 and Carrera 9.
  • Santa Ana Mall: located on Avenida Carrera 9, is one of the most exclusive, upscale retailers in the city.
  • Cedritos 151 Mall: located on Calle 150 with Carrera 16.
  • Palatino Mall: located on Calle 140 with Carrera 7.
Unicentro Shopping Center in Usaquén. Photo credit: https://www.semana.com/contenidos-editoriales/esta-bogota-promete/articulo/unicentro-bogota-y-sus-programas-de-responsabilidad-social-y-ambiental/548004
Santa Barbara Business Center in Usaquén. Photo credit: https://es.wikipedia.org/wiki/Centro_Empresarial_Santa_B%C3%A1rbara#/media/Archivo:Centro_empresarial_St_b%C3%A1rbara_Bogot%C3%A1.JPG.

Important Neighborhoods in Usaquen

Furthermore, if you are interested in this area, I would highly recommend further research for the important neighborhoods in the Usaquen area. These great neighborhoods include:

  • Lijacá
  • Verbenal
  • San Antonio
  • Servitá
  • San Cristóbal Norte
  • Toberín
  • Barrancas
  • Cedritos
  • Bella Suiza
  • La Carolina
  • Santa Ana
  • Santa Barbara
  • San Gabriel Norte
  • Cantón Norte
  • Francisco Miranda
  • Las Margaritas
  • San Patricio
  • The colonial heart of Usaquén

Chapinero

The best real estate neighborhoods in Bogota, Colombia would not be complete without Chapinero. Indeed, Chapinero is touted as the hipster area of the city.

Photo of Chapinero. Photo credit: Google and Alejandra Porto.

As an example, in this neighborhood, you’ll find Bogota’s under 30 creatives, young professionals, students, and a large LGTB community. Overall, the feeling of the area is a bit more underground. Specifically, enjoy the hip eateries, coffee shops, and independent design boutiques to discover around every street corner.

Map of Chapinero neighborhood. Photo credit: Google maps.

Chapinero Location

Chapinero is located in the north of the city and is one of the more affluent districts of the city of Bogota. Consequently, this district is mostly inhabited by upper class residents. Thus, the boundaries are Calle 39 in the south, Avenida Caracas in the west, Calle 100 in the north and the Eastern Hills in the east.

Chapinero is the 2nd locality of Bogota, capital of Colombia. As well, Chapinero is among the 20 localities that make up the Capital District of Bogota. Hence, Chapinero has its own local administration that is under the jurisdiction of the District’s Government secretariat. 

Chapinero’s Economy

Generally, the Chapinero economy is one of the most important commercial and economic zones of the capital city of Bogota. Banking and financial centers are headquartered along Calle 72, Carrera 7 and Calle 100. Whereas, the major shopping areas located along Carreras 11 and 15.

Furthermore, several universities are based in the located in Chapinero, including:

Chapinero Restaurants

As well, the zone of Chapinero also includes popular dining areas and nightlife centers. For instance, look for the Zona Rosa, the Parque 93, and the Zona G (G stands for Gourmet), known for its wide selection of upscale restaurants.

Chapinero Points Of Interest

  • Chicó Museum (Museo del Chicó): which includes an old manor house and a surrounding park.
  • Our Lady of Lourdes Basilica (Basílica de Nuestra Señora de Lourdes)
  • 93rd street park (93 Park; Parque de la 93): which is also a hot spot for upscale restaurants, bars and nightclubs.
  • Shopping centers:
    • Avenida Chile (formerly known as Granahorrar)
    • Centro Andino
    • Atlantis Plaza
    • El Retiro

Chapinero Alto

Finally, the best real estate neighborhoods in Bogota, Colombia would not be complete without mentioning Chapinero Alto. In contrast to the flatness of the city, Chapinero Alto (Upper Chapinero) is located between Carrera 1 and Carrera 7, as the streets begin to slope up into the mountains.

Chapinero Alto lies roughly between Calle 40 in the south and Calle 70 in the north. As a result, a lot of students live around Calle 45. This is due to its proximity to the Universidad Javeriana, one of the country’s oldest, most traditional, and prestigious institutions. 

Likeable Neighborhoods In Chapinero

Finally, I would highly recommend further research for the likeable neighborhoods in the Chapinero area. These neighborhoods include:

  • El Nogal
  • El Chicó
  • Antiguo Country
  • Rosales
  • Villa del Cerro
  • Chapinero Central
  • Chapinero Alto
  • La Cabrera
  • El Lago
  • El Virrey
  • Quinta Camacho
  • Pardo Rubio
  • Marly
  • La Salle
  • Bosque Calderón
  • La Porciúncula

Conclusions

In conclusion, the neighborhoods of Usaquen and Chapinero are my favorites whether you are buying a home or looking for investments in real estate. Therefore, please research these neighborhoods further and I am sure that you amazed by the amenities and possibilities that these locations have to offer.

Again, the best real estate neighborhoods in Bogota, Colombia are in the north. The Bogota North neighborhoods are absolutely beautiful. In my opinion, the best neighborhoods are located in the neighborhoods of Usaquen and Chapinero.

Neighborhoods For Investment

If you are looking to invest in Colombia, please read my blog on the Real Estate Investing Strategies That Work Every Time. Therefore, these three real estate strategies are: residential rentals; wholesaling; and rehab and resell. All in all, these three strategies are among the most popular real estate strategies that produce consistent results regardless of the timing. Additionally, these investment strategies will increase your families long-term wealth.

If you are interested in learning the best ways to to improve your rental property cash flows, please read our blog on the three ways to Boost Your Rental Property Cash Flows. As a result, these strategies will help you build your long-term wealth as a real estate entrepreneur.

What popular articles and blogs do you recommend?

In addition, if you are interested in Becoming A High-Net Worth Individual, please read my blog and watch the YouTube video by a fancinating guy named Andrew Hendersen, founder of Nomad Capitalist. In short, he believes that the world has changed forever and says it’s time for you to “go where you’re treated best.”

That’s it for now. By and large, I hope you have received value. Lastly, I look forward to providing you with more information and value on the great real estate investments in Colombia. Best wishes.

Last Updated on December 16, 2024 by Financial Goodness

Financial Goodness

George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge and skills through education in the areas of personal finance; real estate; investments; digital marketing; comparison of the best states to form LLC’s and comporations; and the best AI app for increasing your fluency in English.

George has been an owner of a residential real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Undoubtedly, the tax laws in the United States and Colombia, South America offer some very favorable tax incentives for owning real estate.

Consequently, as an entrepreneur, researcher, writer, and speaker I have sought the truth in everything I do, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.

Invest In Real Estate In Bogota, Colombia

Why Invest In Bogota, Colombia?

Updated December 16, 2024. Bogotá is everything a capital city should be. It is the economic, cultural and artistic heart of Colombia. Bogota should be thought of as a vibrant core and a beam of modernity. This mix is the quintessential feel of a country that is held together between the exotic Caribbean and the captivating Andes. Bogota is so much more than a mere springboard to South America. Bogota is, in fact, one of the best Colombian experiences! But the big question is, why should you invest in real estate in Bogota, Colombia?

Facts About Bogota, Colombia

Colombia’s capital city of Bogotá, the Capital District, is the country’s largest city. The population of Bogota is estimated to be at 8 million. 3 million of these people live in the areas immediately surrounding Bogota. Meaning there are 11 million people living the greater Bogotá area.

Moreover, it is also interesting that Bogota is the fourth highest capital city in the world. The altitude of Bogota is 8,600 feet or 2,640 meters above sea level. For people reading from the U.S., the city of Denver, Colorado, also called the Mile High City, has an altitude of 5,280 feet above sea level or 1609.3 meters. So, Bogota is a high city!

A view of the center of Bogotá with the Andes in the background. Photo credit: Unsplash

Bogota, Colombia Is Rapidly Growing

In the last few decades, Bogotá has been expanding rapidly. Bogotá has rising tourism, a booming economy with high consumer confidence, an expanding middle class, and falling interest rates.

Not to mention, the cultural, historic highlights that make Bogota one of the of Latin America’s most rewarding destinations. “It’s a city that’s starting to catch up and come up after being held back for a long time,” said Sam Miller. Miller is a Canadian that moved to Bogotá years ago. He loves living in Bogotá, Colombia because the air temperature is so much better than living in Canada.

Sam Miller co-founded a real estate investment company called Colombia International Real Estate (a subsidiary of Lifeafar). Miller said in a recent interview, that there are tremendous opportunities “with a growing middle class and one of the largest English-speaking populations in Latin America.

As a result, Bogota, Colombia now completes for international home buyers. The sprawling metropolis of Bogotá now has sleek skyscrapers, and some of the finest restaurants, nightlife, museums, and shopping scenes in Latin America. Let’s look at those opportunities now in Bogotá for tourism, economy, and the real estate property market forecast predictions.

Growing Tourism In Bogota, Colombia

In Bogotá and across all of Colombia, tourism is on the rise. Over the last decade or so, tourism in Colombia has soared by more than 300%. The tourism has risen from one million foreign visitors in 2006 to more than three million in 2017. Colombia is a country that has seen unprecedented tourism growth over the last ten years. Consequently, Bogotá continues to lead the way as Colombia’s most popular destination for foreign visitors.

According to Ministry of Tourism data in 2018, Bogota receives 51% of the country’s total tourist traffic, followed by Cartagena at 11%, and Medellin with 10%.

Between 2011 to 2017, the number of annual passengers arriving at Bogota’s El Dorado International airport jumped from 20 million to 31 million. Airlines have added new direct flights to Bogota from destinations like Amsterdam, Europe, and Los Angeles to accommodate the rapid increase in Bogota travel.

In 2019 and beyond, we expect steady tourism growth to continue across Bogotá and all of Colombia. Likewise, Colombia continues to shed its dangerous reputation. Subsequently, Bogota will continues to receive glowing press releases and is building its name as South America’s hub for technology and culture.

The ever-evolving city of Bogota is forecasted to continue to attract a steadily growing stream of business travelers and government workers. These business travelers and government workers are in addition to the tourists, vacationers, and remote workers attracted to the city. If you would like to invest in real estate in Bogota, Colombia, please let us know.

Economic Growth In Bogota, Colombia

All of Colombia has seen tremendous economic growth over the last ten years. The country’s economic prosperity is evident in Bogota’s positive indicators. As the seat for government and business in Colombia, Bogota averages around 30% of the country’s GDP. In particular, the city is home to most of the multinational corporations. As well as national and governmental agencies in the country.

In its American Cities of the Future report for 2017/18, the fDi Intelligence research center recognized Bogotá as having the second-best strategy for promoting foreign direct investment in South America. Bogota was second only to Sao Paulo, Brazil.

Currently, the local economy is primarily based on the service sector, including financial services and telecommunications. Looking to 2019 and beyond, we expect to see solid growth in Bogotá’s tourism and agricultural sectors.

Over the next ten years, a steady economic upturn is forecasted to continue in Bogota and across the country. This is due to increasing oil prices, steady private consumer consumption, and recovery of non-oil exports, among other variables.

Real Estate Investment Opportunities

Bogota real estate investment opportunities. Photo credit: Unsplash.

The Bogota real estate opportunities are fantastic. Bogotá (and all of Colombia) has enjoyed historic real estate growth over the last ten years. Under the administration of President Álvaro Uribe in 2003, Colombian real estate prices took a massive uptick after crime rates have decreased. Since then, property market prices have gone up steadily across Colombia, rising an average of 8% per year in Bogotá.

In our opinion, Bogota is definitely a very exciting global investment opportunity to consider. If you would like to invest in real estate in Bogota, Colombia, please let us know.

Understanding Housing Estratos

To understand real estate opportunities within the city, let’s understand how the government housing stratum system works.

In Colombia, homes are ranked in socio-economic categories known as estratos. Estrado 1 are the least expensive and Estrato 6 are the most expensive properties. Bogota has four or five estrato 6 areas versus the single estrato 6 area in Medellín. According to Rich Holman, chairman of Lifeafar, Bogota properties in estrato 6 can be as much as 40 to 60% more expensive than the same properties in Medellin.

In particular, the Bogota’s rapid economic growth and expanding middle class are putting pressure on the upper estratos. This in turn is driving up demand even further in these already pricey areas. As a result, as real estate becomes more difficult to obtain, opportunities lie in new upcoming neighborhoods that have been previously overlooked.

It should be noted that with the majority of its properties in estrato 3 and 4, the increasingly trendy Chapinero Alto is a great example of an emerging barrio.This emerging barrio has a lot of room for growth (the term barrio in Colombia is used to describe any urban area neighborhood whose geographical limits are determined locally).

Therefore, more home buyers, renters, and business owners seek affordable pricing in neighborhoods like Chapinero Alto. The increased demand and urban renewal are likely to translate to increased property prices. Consequently, investors who purchase properties in up-and-coming neighborhoods now will likely see substantial returns as real estate prices continue to climb in Bogota and across Colombia.

USD Strength Compared To The Colombian Peso

Yet another attractive reason to invest in Bogotá real estate is the current currency exchange of the Colombian peso (COP) against the U.S. dollar. 

Total real estate housing units sold each year from 2018 to 2021.
Photo credit: BBVA Research.

April 13, 2023 update. By emerging markets, the Colombian peso and the Brazilian real are the only two Latin American currencies that are gaining the most ground against the US currency.

November 8, 2022 update. In Colombia, people see the purchase of housing as a great investment. The current currency rate against the US dollar continues to be a favorable opportunity to acquire new housing with exceptional financing conditions and interest rates. New homes in Colombia grew by 9.4% in 2021.

In addition, the vision for 2022 continues to be encouraging. In 2022, is projected that investment in housing will grow by 10.6%, with more than 240,000 units sold.

March 26, 2019 update. As of March 26, 2019, the COP is trading at 3,144 to the USD compared to 1,872.5 on this day eight years ago.

To illustrate, the present-day U.S. dollars investor holds 67% more buying power than investors eight years ago. Similarly, for 2019 buyers with U.S. dollars, the undervalued COP makes high-quality real estate in a rapidly appreciating market a global bargain. Furthermore, with the great exchange rate these days for the US dollar, the Colombian markets are very appealing when looking to purchase real estate.

The Bottom Line For Real Estate Investment

In conclusion, tourism and economic factors continue to improve in Bogota. In our opinion, we do not expect the rate of real estate to slow down in the next five to ten years. Sam Miller says that “in emerging neighborhoods like Chapinero Alto, we see unparalleled opportunities for substantial returns as real estate demand continues to climb.”

Thus, imagine five to ten years of growth in real estate as demand continues to climb with an average of 8% a year in Bogota! So, invest in real estate in Bogota, Colombia! Bogotá is everything a capital city should be as the tourism and economic factors continue to improve.

In future articles I will investigate different neighborhoods for investment. We will explore the neighborhoods of Usaquen, Chapinero, and Chapinero Alto. We will give you our thoughts as we look at potential properties for growing wealth through real estate investments. In our opinion, Bogota is definitely a very exciting global investment opportunity to consider. If you would like to invest in real estate in Bogota, Colombia, please let us know.

Please read my blog on how Everyone Can Buy And Own Property In Colombia. We recommend doing more due diligence on specific property regions and areas you may be interested in. We would also recommend looking at property in Bogota or property in Medellin. Both of these locations have the potential for excellent returns. If you have a question or need more help, please send us a message.

Last Updated on December 16, 2024 by Financial Goodness

Financial Goodness

George Alexander Roy III and our team are experts in helping you to seek wealth through investing and tips on how to succeed. Join us at FinancialGoodness.com to increase your knowledge and skills through education in the areas of personal finance; real estate; investments; digital marketing; comparison of the best states to form LLC’s and comporations; and the best AI app for increasing your fluency in English.

George has been an owner of a residential real estate investment business that focuses on wholesaling, fix & flip, and long-term buy-and-hold property strategies with a consistent increase of annual revenues. Undoubtedly, the tax laws in the United States and Colombia, South America offer some very favorable tax incentives for owning real estate.

Consequently, as an entrepreneur, researcher, writer, and speaker I have sought the truth in everything I do, no matter how difficult. Hopefully this value and service will help each person achieve their financial freedom sooner.