Medellín’s Laureles area is presented as a market where older duplex penthouses with large terraces can still offer lifestyle value and rental income potential, especially when renovated for longer-stay foreign tenants who work from home and want more space than newer developments typically provide.
Laureles as a target area
The apartments discussed are in a quiet, residential part of Laureles with greenery, parks, families, dog walkers, and limited commercial traffic. The area is described as increasingly attractive to foreigners who previously focused more on El Poblado but are now looking for calmer neighborhoods.
The target tenant is not primarily a short-stay party crowd. The expected renter is more likely to be a family, couple, remote worker, or executive-style tenant who wants:
- A large terrace
- A home office
- Walkable green surroundings
- Space for family or guests
- A quieter residential setting
- Monthly or longer stays
Daily Airbnb rentals are not presented as the strategy. The apartments can be rented on Airbnb-style platforms, but the rental period discussed is one month or more.
First duplex penthouse: higher price, strong terrace potential
The first apartment is a duplex penthouse of about 212 square meters. The asking price is $380,000, but the discussion suggests that the investment only makes sense if negotiated closer to about $350,000.
The apartment has strong natural light, high ceilings, a balcony, a large terrace, and views considered unusually good for Laureles. The living room is open to the climate, with no need for air conditioning or heating because of Medellín’s weather.
The layout includes:
- Living room
- Balcony
- Bedroom on the lower level
- Kitchen
- Maid’s quarters
- Two bedrooms upstairs
- Large terrace with jacuzzi
The main renovation focus would be the kitchen and terrace. The suggested strategy is to remove the maid’s quarters and create one larger kitchen, since the maid’s room is described as less useful for the intended rental market.
The terrace is considered the main income driver. The renovation concept includes:
- Updated jacuzzi area
- Green walls
- Lounge area
- Barbecue area
- Possible large-screen TV
- Strong photo appeal for rental listings
The existing jacuzzi, roof structure, and wooden terrace floor may need closer inspection. The building is described as about 13 years old, and the outdoor elements may require updating.
First property numbers
A renovation budget of at least $60,000 is suggested, with a possible total of $60,000 to $70,000 depending on contractor estimates and material choices. The recommendation is to obtain a serious contractor quote after an offer is in place rather than relying only on a rough estimate.
Estimated figures discussed:
- Purchase target: about $350,000
- Renovation budget: about $60,000–$70,000
- Monthly rental target: about $4,200
- HOA: about $582 per month
- Estimated occupancy for this type of penthouse: about 92%
- Estimated net rental yield: about 6.3%
The high HOA is partly attributed to the smaller building size and the apartment being one of the largest units. The HOA includes services such as security and elevator maintenance.
The advice given is not to under-renovate a Medellín penthouse. For this rental segment, the property needs to look strong in photos and deliver well in person. A cheaper renovation may weaken both occupancy and pricing power.
Second duplex penthouse: lower entry price and stronger yield
The second apartment is in the same street and is described as more affordable. The asking price is about $314,000, with a target negotiation price of about $300,000.
Its strongest feature is the view. The apartment has a large terrace, two floors, strong penthouse characteristics, and broad views across Laureles toward the surrounding hills and green areas.
The apartment already has useful features, but the layout is described as outdated and designed for a Colombian family rather than the foreign long-stay rental market. The renovation strategy would focus heavily on reworking the floor plan.
The suggested target layout is:
- Two large bedrooms
- One proper office area
- One guest bedroom
- Open living and social area
- Connected kitchen and terrace
- Large terrace with barbecue and lounge zones
The downstairs area could be converted into one of two master bedrooms. The maid’s quarters behind the existing wall could potentially be converted into or connected with an ensuite bathroom, because an ensuite is considered expected for a master bedroom.
The plan also includes opening the living area, kitchen, and terrace so the apartment feels brighter and more social. The existing marble floor is considered worth preserving if possible.
The upstairs currently has three bedrooms. One bedroom has a larger layout, walk-in closet, and bathroom. The smaller bedroom is suggested as a dedicated office, not just a desk in a room. The recommended setup includes a more complete work-from-home design, such as large screens and an executive-style chair.
Privacy on the terrace is also flagged as important. Because one neighboring side is visible, adding screening or a pergola-style solution is suggested to reduce neighbor issues and improve rental appeal.
Second property numbers
The estimated investment case for the second property is:
- Purchase target: about $300,000
- Renovation and furniture budget: about $80,000
- Target monthly rent: slightly above $4,200, with $4,200 as the likely final target
- HOA: about $350 per month
- Estimated net yield: about 7.5% pre-tax
The lower HOA and lower purchase price make the second property’s numbers stronger than the first, while offering similar rental potential.
Why older penthouses may be more investable
Older Laureles penthouses are presented as more interesting than many new-build or pre-construction units because they often have:
- Larger square meterage
- Bigger bedrooms
- Larger terraces
- More unique layouts
- Better potential for lifestyle-focused renovation
New developments are described as often having smaller rooms and smaller terraces, with developers trying to maximize unit density.
The argument is that Medellín has limited supply of large penthouses, and new supply often does not replicate the size or terrace quality of older units. That uniqueness is considered part of the investment case.
Key risks and caveats
The figures depend on negotiation, renovation execution, rental demand, tourism trends, the global economy, and currency movements. The transcript notes that Medellín prices and local costs have risen, including restaurants, going out, and HOA fees. The Colombian peso is also described as having strengthened.
The rental strategy depends on creating a high-quality finished product. Occupancy and monthly rent assumptions rely on the apartment being renovated and furnished to match the expectations of higher-end long-stay tenants.
The properties are presented as lifestyle investments as much as pure yield plays. The backup case is owning a large renovated penthouse in Medellín, but prices can still go down and should not be treated as guaranteed.
