Video Briefing

Nomad Capitalist: My Bogota Home Tour

Feb 14, 2024Video Briefing17:12Watch on YouTube

The Colombian permanent‑residence program grants residency to anyone who purchases real‑estate valued at 650 million Colombian pesos (COP) or more. One buyer acquired a home in Bogotá’s Bulat neighbourhood in 2019 for 660 million COP—about $576 000 at the time (≈ 3 500 COP/USD). The property’s price later appreciated in both local‑currency and dollar terms, though a recent dip in the Colombian market left the owner slightly above the original purchase price.

Cost and residency requirements

  • Minimum investment: 650 million COP (≈ $185 000 USD at 3 500 COP/USD) qualifies for the permanent‑residence program.
  • Purchase price of the featured home: 660 million COP (≈ $576 000 USD in 2019).
  • Monthly condo fees: ≈ $130 USD, covering basic utilities, rubbish collection, cleaning, and 24/7 security.
  • Potential rental income: ≈ $1 300 USD / month (previously rented to an older couple).

Currency risk and long‑term value

  • The COP/USD rate fell to 5 000 COP per USD in 2023, reducing the dollar value of local assets.
  • By 2024 the exchange rate had improved, but the peso remains weaker than in 2019, meaning the home’s dollar value is modestly lower than its purchase price.
  • In markets with strong international demand (e.g., major Colombian cities), currency fluctuations matter less for long‑term investors.

Practical advice for prospective buyers

  • Assess actual usage: Buy only if you intend to spend significant time in the country; otherwise, consider a larger investment than the minimum to avoid “minimum‑spend” pitfalls.
  • Budget for upkeep: Annual costs for this property are roughly $2 000–$3 000 USD, covering taxes, cleaning, and minor maintenance.
  • Plan for renovation timelines: Local contractors can complete custom work in 4–8 weeks, compared with 6–12 months for imported furnishings.

Renovation and local sourcing

  • The owner worked with a local contractor, Danielle, to reconfigure the layout: three bedrooms (one converted to an office), three bathrooms (including an en‑suite), and repurposed maid’s quarters for storage and an extra “man‑cave” bathroom.
  • Emphasis was placed on locally sourced materials to support Colombian craftsmen and shorten lead times:
    • Wood furniture (beds, coffee tables) made locally.
    • A Colombian‑leather Chesterfield sofa.
    • Emerald‑tone accents, leveraging Colombia’s abundant emerald production for affordable décor.
  • Renovation costs were described as “reasonable” and the process was notably swift, with flooring replaced within a ten‑day trip.

Living experience and community

  • The neighbourhood consists mainly of owner‑occupied, older‑age residents, fostering a stable community with long‑standing security staff (some serving 20–30 years).
  • The building, constructed in 1984, offers unobstructed mountain views to the north and east, and a mix of historic brick façades with newer glass developments.
  • Daily life includes easy access to supermarkets, boutique stores, diverse restaurants (Peruvian, Italian, Colombian), and street‑side vendors selling fresh produce such as avocados.
  • The climate is described as an “eternal fall” (≈ 16–18 °C / 60 °F), supporting a wardrobe suited to mild temperatures.

Financial outlook for a property portfolio

  • Maintaining a single home costs ≈ $3 000 USD / year (including taxes and periodic cleaning).
  • Replicating this model with multiple properties could create a low‑maintenance, globally diversified real‑estate portfolio that also provides residency options.

Overall, purchasing property at or above the Colombian residency threshold can be a viable path to permanent residence, provided buyers carefully evaluate usage needs, currency exposure, and the benefits of local renovation resources.

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