Medellin Colombia Own a Piece Paradise! · Rent for $700 to $2000 per month - Furnished Buy for $50,000 and up to $2 million Avg. cost/sq meter New Construction - $1800 Avg. cost/sq

First American Realty Medellin www.firstamericanrealtymedellin.com

Own a

Piece

of

Paradise!

First American Realty Medellin (FARM)

Medellin Colombia



Background, Vision and Motivation

Texan from Atlanta, Minneapolis, Los Angeles & Naples

Experience in securities, investment banking, publishing, real estate investing and mortgage banking

Came to Medellin Aug 2006 and fell in love with the city

Determined that Medellin was truly the “World’s Best Kept Secret” and knew that it would soon be “discovered” by the international community

Has worked to be first to market with a real estate company that could effectively serve foreign interests

Favorite Saying – “My worst day in five years in Medellin was better than my best day in 14 years in Naples Florida”

Rich Holman Broker/Owner FARM



Mission Statement

To be the trusted on the ground resource for foreign buyers and investors in Medellin residential

and commercial real estate!

First American Realty Medellin


Colombia ’s Major Cities:

Bogotá, Cali, Cartagena, Barranquilla, Armenia, Pereira, Manizales, Bucaramanga, Cúcuta, Pasto, Ibagué, Neiva, Soledad, Soacha, Popayán, Santa

Marta and Medellin

When asking my friends and clients over four years who have visited these cities, what % said

they preferred Medellin?

A Quiz!


Quiz Answer

100%

At A Glance




Accessibility

• Medellin has daily flights from the U.S. and Europe

• 3 ½ hours from Miami and Ft. Lauderdale

• Increasing competition among airlines

• Good road infrastructure

• Excellent bus and taxi availability



• Population – 3,800,000 inhabitants including unincorporated areas

• Second largest city in Colombia • City of Eternal Spring, Own a Piece of Paradise, World’s

Best Kept Secret • Elevation – 4900 ft near the equator • Climate -- average range is 60-86 F and average daily 72 F • A/C and Heaters – not needed (low utility costs) • Bugs/Insects – because of altitude few flying creatures

and screens and lanais not required • Cleanliness – culture of cleanliness, city and people very

clean • Extensive world class library system, parks & museums

Medellin Highlights




• Education – 32 universities, students are serious and

motivated

• Transportation – efficient and available - buses (60 cents), taxis ($2.25-$5.00), Metro & Metrocable ($1.25),

• Infrastructure – good roads, high speed Internet, dependable utilities

• Paisa Culture – unique Spanish influenced friendly culture

• Tourism – up 35% over past three years

• Food & Water – Good food and excellent potable mountain spring water

• Festival of Flowers and Festival of Lights (Los Alumbrados)

• Festive Night Life – Paisas work to live, not live to work

Medellin Highlights



• Population is 3,800,000 for Medellin including unincorporated areas such as Bello and Envigado

• Has approximately 60 major neighborhoods (barrios)

• Barrio areas ranked by a Stratus from 1-6

• Higher Stratus means greater cost for taxes, utilities, HOA fees, real estate prices, food and living costs

• Medellin has Stratus 6 locations in El Poblado, Envigado, Sabaneta, Las Palmas and Laureles.

• El Poblado, the most exclusive barrio, is to Medellin what Beverly Hills and Bel Air are to Los Angeles

• Total return is a combination of appreciation, peso strengthening to the dollar and investment income

• Medellin Real Estate Value – least expensive real estate prices worldwide for any cosmopolitan city!

Medellin Real Estate Profile



• Ages of Clients - Under 40 – 25%

• 40-60 – 50%

• 60+ - 25%

• Background/Occupations

• Professional business people and mining personnel

• Couples – retired and semi-retired

• Second home investors

• Colombian Americans

• Tourists

• 65% US, 15% Canada, 10% Australia, 10% European/other



• Purchase and Rental Preference – 95% El Poblado

• Type of Property Purchased

• Penthouses – 60%

• Three BR – 25%

• 1-2 BR – 10%

• Single Family Homes and Fincas – 5%

• Price Points

• Average Price - $175, 000 USD

• Price Range - $50,000 - $400,000 USD

•Per cent foreign buyers – Less than 1%




Cost of Living

Rent $450 HOA Fee $0 Property Taxes $0 Transportation $100 Gas $25 Electricity $35 Telephone $20

Internet $25 Cable TV $25 Household Help $75 Food $400 Entertainment $300 Health Insurance $100 Travel $100 Miscellaneous $50

Total Monthly Expenses $1,705

Unfurnished 2 BR El Poblado Medellin



Cost of Living

Rent $0

HOA Fee $175 Property Taxes $75 Transportation $100 Gas $30 Electricity $40 Telephone $20 Internet $30

Cable TV $30 Household Help $75 Food $400 Entertainment $300 Health Insurance $100 Travel $100 Miscellaneous $50

Total Monthly Expenses $1,515

2-3 BR El Poblado Medellin Purchase




Property Costs

Rent for $400 to $800 per month- Unfurnished

Rent for $700 to $2000 per month - Furnished

Buy for $50,000 and up to $2 million

Avg. cost/sq meter New Construction - $1800

Avg. cost/sq meter 1-5 yrs. - $1200-$1700

Avg. cost/sq meter 5-30 yrs. - $600-$1200

El Poblado Medellin



Value

View

Location

Security

Amenities

What do foreign real estate buyers

look for in Medellin?



In four years First American Realty Medellin has sold just one new

construction project!

Why?

Because the first thing our buyers look at is value in terms of cost per sq

meter!

New Construction Sales



Why is there no pricing premium

for spectacular Medellin Valley

and mountain views?

Because the poorest people have some of the best views so the locals place less of a value on the view. This is one reason there

is no premium pricing for penthouses.

Medellin Views



95% of First American sales are in El Poblado the safest and most luxurious

neighborhood in Medellin!

Location



Since former president Uribe took office in 2002 security has improved dramatically throughout Colombia and especially Medellin

Medellin now has a lower crime rate than a number of US major cities

El Poblado is the safest and most secure neighborhood in Medellin

99% of FARM listings have 24 hour gated security

Security



Foreign buyers preferred amenities

Killer views

Large Terrazzo's and balconies

Quiet

Open floor plans with lots of sunlight

Walking distance to shopping and dining

Large master bedrooms

Island kitchens

Pools (I try to talk them out of this one)

Amenities



First American Realty Medellin History

Incorporated May 2007 and operations began in Sept 2007 Web site launched Jan 2008 Offices

Medellin – El Poblado five blocks east up from Parque Lleras Oriente – El Retiro ,Rionegro, Llano Grande, La Ceja, Fizebad – open 2011 Cartagena – partnership office in Boca Grande open in 2011 Santa Marta – 2012 plans

First American Commercial Realty Medellin (FACRM) commenced operations July 2010 – Joe Greco Partner

www.firstamericancommercialrealtymedellin.com Commercial real estate brokerage, sales and leases Commercial investment projects and developments Poblado Suites Medellin Real Estate Capital Group

First American Remodeling Services (2011) Bi lingual American architect, Jeremy Zick, project coordinator Five sets of vetted contractor teams Assist residential buyers with remodeling Phased project design and management for commercial rehab/remodel

http://www.firstamericancommercialrealtymedellin.com/


Residential Sales – Rich Holman • FARM web site www.firstamericanrealtymedellin.com • 350 listings -penthouse, apartment, homes, studios,

fincas (country estates) in and around Medellin • Eight bi lingual sales agents with cars to assist • Currently getting 5-10% off list on average

Property Management – John Duque • www.firstamericanrealtymedellin.com/aptlistings.html • 45 furnished/unfurnished apartments primarily in the El

Poblado/Envigado area • Amenities designed for North American/European

tourists • Total turn-key management services for clients

Remodeling Services – Jeremy Zick • In-house bi-lingual American architect • Reliable vetted contractors • Complete turn-key project management services • Specs/plans apples to apples bidding process

First American Realty Medellin Services

http://www.firstamericanrealtymedellin.com/

http://www.firstamericanrealtymedellin.com/aptlistings.html


Investment Opportunities – Joe Greco

Development Opportunities in and around the Zona Rosa area of El Poblado – Parque Lleras, Provenza, La Linde, Astorga, Manila and Patio Bonito

Conversion of existing homes and buildings into mixed use and small rental apartment projects

Oversubscribed Poblado Suites renovation – five executive suite apartment rentals three minutes from Parque Lleras

Planning phase for Green Energy Mountainside Retirement Development in Copacabana just North of Medellin

El Retiro retirement plans 20 minutes from Rionegro airport

Pending Medellin Capital Group investment fund for purchase and renovation projects similar to Poblado Suites

For investment packages contact [email protected]

First American Commercial Realty Medellin

mailto:[email protected]



Real Estate Appreciation (5-10% per yr est.)

2002 Uribe came into office - +20-25%

2003-2007 - +10-15%

2007-2009 – Sideways

2010 - +5.8%

2011 – Same track as 2010

Investment/Rental Returns (5-10% per yr est.)

Includes all costs and realistic occupancy assumptions

ROI analyses for all purchases

Peso to US Dollar Favorable Changes (5-10% per yr est.)

Past five years Colombian Peso outgained all major currencies vs USD

Three years ago was at 2,600

2011 trades between 1,730-1,980

Owning assets in strong currencies is a good hedge against a declining US Dollar

Three Components of Investment Return in Medellin


Total Real Estate Return

Taking the mid-points of the three investment components overall returns for residential real estate could approximate

22.5% per annum

Medellin


Now is the time to

“own a piece of paradise”

Come Visit Us in Medellin


Contact

Rich Holman

[email protected]

Broker/Owner


First American Commercial Realty Medellin www.firstamericancommercialrealtymedellin.com

US Landline – 305-393-8872

Medellin Landline – (057) (4) 312-5473

Medellin Cell Phone – (057) 314-863-0621

For More Information

mailto:[email protected]

http://www.firstamericanrealtymedellin.com/

http://www.firstamericancommercialrealtymedellin.com/


Free Bag of Choice

Colombian Coffee

for the Best Question!

Questions??

Documents

Medellin Colombia Own a Piece Paradise! · Rent for $700 to $2000 per month - Furnished Buy for $50,000 and up to $2 million Avg. cost/sq meter New Construction - $1800 Avg. cost/sq