Imagine being able to own a lot in Colombia. Many foreigners have this dream. However, for many, the dream remains nothing more than a dream, because the process of finding and buying land in Colombia seems overwhelming to many. Not only do you need to navigate land ownership documents in a foreign language, but you also likely don’t know what the steps involved in foreign land ownership are.
We work with people from all over the world (USA, Canada, all over Europe, Australia and many countries within Asia) to help them bring their dreams of Colombian land ownership to life. Foreigners who buy land will often use it for agriculture, livestock, home (or cabin) construction or various other commercial (or non commercial) activities such as camp grounds, hiking trails, micro-farms, land conservation areas, animal rehabilitation centers, sports fields and ranches to name only a handful of examples.
Colombia is a predominantly rural country. According to the Agustín Codazzi geographic institute, over 70% of the national territory is rural. However, the internal turmoil of the 1980s and 1990s forced people to leave their lives behind and venture into new territories, fleeing the conflict and also searching for a better future for themselves and their families, creating an exodus from the countryside to the cities.
With the signing of the peace accords between the Colombian government and the FARC guerrillas, a window of opportunity has opened into Colombia’s many natural riches for foreign and national capital. One of these opportunities is investing in land lots.
“According to Colombian migration data, the flow of foreigners into Colombia with interest in settling in the country grew by 32% percent in 2018 compared to the previous year.”
This trend shows growing interest in many to make a life in Colombia, which makes acquiring a piece of land in a country so ripe with potential a deal that could yield impressive returns.
So, how can you find a lot in a country like Colombia at a good price?
The way a sale is published in Colombia can vary depending on whether the seller is a natural or legal person, a Bank, or the State.
When the seller of the lot is a natural or legal person
Another sales strategy still used by many landowners is posting notices in high-traffic public areas. However, this option is inaccessible to foreigners, precluding them from learning about some good for-sale-by-owner deals.
When the lot is in judicial foreclosure
When the lot’s owner is a bank, the sale results from a delinquent mortgage, which means that the previous owner purchased the lot with a bank loan using the property as collateral. As the owner failed their obligation to repay the loan, the bank seized the asset and auctions it to recoup the loan. While banks can advertise these lots through third parties who offer them for sale by auction, the courts handling the foreclosure are under the obligation to advertise these proceedings independently so that any interested person can participate. One way courts advertise auctions is by publishing posters that inform the auction date and location. There are also websites where all the information about judicial auctions is available, such as rematagram.com and rematesjudiciales.com.co. These auctions can be attractive, as prices range between 20 and 50% below market value.
When the lot belongs to the State
For the case of lots owned by the State, there are different types to consider. State-owned property (“terrenos fiscales,” in Spanish) may be attributable (“adjudicable”) or non-attributable (“no adjudicable”). Attributable assets are those whose ownership can be transferred from the State to a private owner under certain legal conditions.
Some real estate assets are referred to as unclaimed property (“bienes baldíos”). These State assets have never been awarded to any private owner.
Vacant assets (“bienes vacantes”) had a previous owner, but the holder of their deed is unknown due to the owner abandoning the property.
Because of the variety of State-owned property conditions, it is recommended to visit the closest property registrar to assess their legal situation before closing a deal.
Of all the possible sale options, one of the best ways to find a lot for sale in Colombia at a good price is searching for judicial foreclosure auctions. You can search for land that has been foreclosed on here. Although the acquisition process can be slow due to foreclosure regulations, their below-market price is an excellent incentive. An added benefit is that properties sold in judicial auction are delivered completely unencumbered and free of debts or liens.
If you’d like to own land in Colombia, be sure to get in contact with us today. We have land scouts on the ground searching for the best Colombian land deals. Not only does Tycoon.to help with sourcing the best land deals, but we also offer owner financing allowing you to pay a small down payment and then reasonable monthly payments. We’ll hold your hand through the entire land purchase process.