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Venezuela is fast becoming one of the best options for international investment, both for internal and global situations. Diversity and vastness are its main features, besides its really low prices, compared to the global market.
When comparing a property in Europe, with another one with exactly the same features in Latin America, we can talk about prices differences that range from four, six, or even ten times cheaper. For example, a two bedrooms apartment in London costs about US$600,000, while a similar one in Caracas, is around US$90,000.
In the long term, terrorism and environmental issues are just some of the reasons to see the whole of Latin America as one of the most safe and sustainable resources in the world.
The Prices for Property in Venezuela
Property prices in developed countries can’t grow forever. They are more likely to stabilise, if not, to drop after the well known “real estate bubble” bursts.
On the other hand, in Latin America property prices have just started to react to the increase of demand. Despite circumstantial economic ups and downs, price tendencies are definitively on the raise.
Profits for Venezuela Properties
The average rental yield for a property in Venezuela is about 10% to 12% a year, over the value of the property, for permanent rentals. For holiday rentals, it may vary, depending on the area the property is located and the demand it faces in a particular period of time. It is commonly higher, but seasonal variations it make it harder to estimate average profits.
In case you need more information or have doubts on any of these issues, the specialised staff in January First Real Estate will be glad to answer all your questions, click here.
Buying Real Estate in Venezuela
Venezuelan housing crisis
The administration openly tolerates the popular expropriation of properties and the violation of property rights. In Altos Mirandinos, 683 ‘property invasions’ were recorded in 2005 in which houses were simply seized by squatters.
Emergency situation
In Caracas, it was the mayor who declared an ‘emergency situation’ in January 2006, and allowed 13 buildings to be occupied, and the days following his action 32 more buildings were invaded or occupied.
The lack of new supply caused by Chavez’ policies has made Venezuelan real estate actually rise by 35%, according to the President of Metropolitan Real Estate Chamber of Commerce. The claim is largely rhetorical, because the uncertain situation is not good for property values.
Invasions of property by poor people have occurred throughout Venezuela, with the government turning a blind eye. Properties residents in some towns have even formed self-defense forces to avert building invasions.
For what it is worth, Venezuela is an open market to foreigners. Any foreigner can buy property in Venezuela with just a valid passport, a tourist visa and a Registro de Información Fiscal (RIF).
The RIF is a fiscal identification for all persons, and can be obtained for free by request at any Tax Administration office or the Servicio Nacional Integrado de Aministración or through a lawyer.
Margarita Island
Margarita Island, a piece of paradise in the Carribean belonging to Venezuela, is very popular with foreigners. It lies off the northern coast of Venezuela, and is the most southerly of all the Carribean islands. Its location means that it is out of the hurricane belt and offers low humidity and low rainfall. A duty free status was granted in 1966 and then upgraded to free port status in 1976. Transport is via Caracas international airport, or by modern ferries.
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