Chilean Real Estate Investment is in the best moment
This time, we talked to Julio Eduardo Riveros Aranguez, real estate consultant at Royal Real Estate, who will tell us about his extensive background and experience, real estate investments in Chile, why today is the best time to invest in Chilean real estate, and what benefits for investors exist.
HalloCasa: “Good afternoon Mr. Riveros. Thank you for your time to participate in this interview.”
Julio Eduardo Riveros Aranguez: “Thank you so much for choosing me for this interview. I hope I am able to answer all your questions accurately.”
HalloCasa: “Please, introduce yourself and your business and describe your real estate services in Chile.”
Julio Eduardo Riveros Aranguez: “Currently, I’m working for a real estate company called Royal Real Estate, which considers itself as one of the best and which has a vast amount of real estate experience. Royal Real Estate is responsible for facilitating all steps along the real estate purchase including stakeholder management such as banks and notaries to make sure our clients have access to good services and good conditions. Apart from that, we offer administration services and manage real estate properties for investors. Our service is very complete, which has led thousand of Chileans invest with us.
Myself, I have developed my real estate experience over time. Since I joined Royal Real Estate I have learned how profitable and accessible it can be to acquire a property through Royal.”
HalloCasa: “Which city do you operate in?”
Julio Eduardo Riveros Aranguez: “We are located in Manquehue Norte 260, Las Condes, a few steps from the Metro Manquehue in Santiago de Chile.”
HalloCasa: “Please tell us a little bit about city, the most demanded project types and the current level of foreign investment.”
Julio Eduardo Riveros Aranguez: “Generally the projects of greatest demand are apartments located in sectors that are close to Metro stations, since the Metro is the main axis of transport in Santiago. At the moment, various new Metro stations are being built and real estate buyers evaluate real estate projects which are relatively close to them.
Foreigners who want to invest must have their permanent residence in Chile or need to be in the process of doing so. Currently, there are many applications as the rate of immigrantshas grown in recent years. However, the amount of immigrants is still lower than that of other Latin American countries.”
HalloCasa: “What do you think is the biggest current challenge of a real estate consultant in Chile?”
Julio Eduardo Riveros Aranguez: “I think the biggest challenge of our business is to communicate our trustworthiness to our clients and to ensure that what our clients are truly satisfied when working with us. This also includes the communication of potential obstacles which always come along the way, be it a delay or unwanted news.
In the end, we need to communicate that we are there to ensure that the client´s needs are fulfilled and that we do not try to take advantage of the investor or seller but that we want to provide him a unique value including a peace of mind that his property is being managed by a credible and trustworthy real estate service provider.”
HalloCasa: “Size, profitability, location … What is the first thing which a foreign investor should look at?”
Julio Eduardo Riveros Aranguez: “When a person wants to invest, they have to seek the highest possible return and should look at the profitability of the real estate property, especially when investing in a real estate project.
However, this does not solely apply to foreigners. Also Chilean real estate buyers define many conditions before renting or buying a property, especially with respect to the location. Fortunately, at Royal we offer the best projects in terms of profitability and location. ”
HalloCasa: “What suggestions would you give to international investors who want to migrate to Chile?”
Julio Eduardo Riveros Aranguez: “I would say that they should look at the suburbs that are being valued more in terms of the value of the square meter. In Santiago, the great boom is in the San Miguel area, which is still accessible today, but will soon become one of the suburbs where the apartments will become most valued in the city. This also applies to Santiago Centro, Ñuñoa, etc.
If foreign real estate buyers look for properties with proximity to other foreign compatriots, the Central Station and Independencia suburbs are the best options.”
Chile, the best moment for invest it’s arrive and it’s Today
HalloCasa: “How is the Chilean real estate market developing?”
Julio Eduardo Riveros Aranguez: “The real estate market has been stabilizing little by little.
In 2015 there was a massive and abusive purchase of apartments due to the new Tax Reform. This reform said that on all new purchases of apartments a VAT (Value Added Tax) of 19% would be charged. which for me is one of the most expensive taxes in the world.
This was to be applied from 2016, so real estate buyers moved their investment decision to 2015 to be exempt from that payment.
Therefore, in 2016 there was a sudden drop of real estate purchases being even worsened by the fact that banks didn´t approve mortgage loans as esasily as before anymore and requiring a downpayment of 20%.
Today, banks are financing more real estate purchases again and the a 20% downpayment is not necessarily required anymore.
In addition, the currently low interest rate by the Central Bank is affecting mortgage loans which lead to more accessible dividends for people who acquire a property.”
HalloCasa: “In your experience, what are the most predominant nationalities of people who invest in Chile?”
Julio Eduardo Riveros Aranguez: “In my experience, the nationalities of people who come from Peru, Colombia, Venezuela and Brazil who have emigrated to our country for better opportunities and who want to settle down in Chile represent the biggest share.”
HalloCasa: “What are the best places to invest today?”
Julio Eduardo Riveros Aranguez: “The suburbs of San Miguel, Estación Central, Independencia, Quinta Normal, La Florida and Macul can be found with profitable and accessible projects. All those are located in Gran Santiago are. There are also very profitable projects in Rancagua, La Serena and Concepción.”
HalloCasa: “What are the greatest benefits for a real estate investor currently living in Chile?”
Julio Eduardo Riveros Aranguez: “The trend that exists is that mortgage loans are at a historically low level since 2009.
Additionally, there is a lot of demand for property rentals by students, couples and families. So those investments have a great demand and are able to provide good monthly returns.”
HalloCasa: “Mr. Riveros, we know that your time is limited. We would like to thank you for this informative and in-depth interview. Would interested readers be able to contact you if they have any follow-up questions? Thank you very much for the interview.”
Julio Eduardo Riveros Aranguez: “Yes of course. Investors can contact me through HalloCasa or by contacting me directly via the cell phone number +56 992 383 818 or email firstname.lastname@example.org. Thank you.”
HalloCasa: “Thank you very much for being with us. Always welcome to HalloCasa. ”
Julio Eduardo Riveros Aranguez: ”Thank you very much”