Should You Invest?
The central valley area of Chile has the greatest amount
of arable land making it the most densely populated part of
the country, with the majority living in and around the capital
Santiago, making it an ideal location for investment. The
concentration of population has, however, caused housing shortages
and put a strain on commuting in and around the area. Government
housing policies looking to increase owner-occupancy levels have so
far been successful and subsequently other Latin American
countries are looking to follow suit.
- Rents can be freely agreed between landlord and tenants in
Chile.
- Chilean law does not distinguish between nationals and
foreigners as either landlords or tenants and foreign investment is
encouraged.
- Property rights are strongly protected by Chilean law.
- The country is seeing increasing interest from foreign first
time buyers.
- Non residents are taxed on their Chilean sourced incomes.
- The capital city Santiago has recently seen a boom in office
building construction.
Rental Yields
The small rental market in Chile has proved to be quite
competitive. Apartments in the Santiago region can achieve yields
of up to 10% on larger properties. Apartments to the south of the
city have slightly lower yields of 4.09%-7.5%.
Price History
With the Chilean government continually looking towards
providing better housing for its citizens, the property market in
Chile is a popular agenda. Tourism is annually increasing, and the
emergence of a new middle class makes the country a strong Latin
American contender for investment. Predictions by the Economist
Intelligence Unit see Chile as being the first Latin American
country to reach a GDP in excess of $10,000 per capita. A 300 sq m
apartment in the centre of the Santiago region can cost
approximately $300,000 while to the north of the region a 250sq m
apartment can cost $180,000 with yields of 10%.
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