The apartment on the 13th floor of a Poblado building offers a panoramic view of Medellín and a suite of amenities that make it attractive to foreign digital‑nomad renters. At a price of roughly $147,000 USD (570 million COP) for 106 m², the unit promises a net rental yield of about 6.7 % when operated under conservative assumptions.
Property details
- Location: El Poblado, Medellín, within walking distance (≈15‑20 min) of El Tesoro Mall and other services.
- Size: 106 m² (≈1,140 ft²).
- Layout: Two bedrooms, two bathrooms, a walk‑in closet, a small office, and a separate half‑bath for guests.
- Price: 570 million COP ≈ $147,000 USD (≈ $1,400 USD per m²).
- Furniture: Not included in the base price; adding furniture costs an additional 10 million COP.
- Closing costs: Approximately 6 million COP (≈ $750 USD).
- Total upfront investment: Around $150,000 USD including furniture and closing costs.
Rental market assumptions
- Target tenants: Foreign digital nomads (e.g., U.S. professionals) seeking mid‑ to long‑term stays of one month or more.
- Monthly rent: $1,500 USD all‑inclusive (covers utilities, internet, HOA).
- Occupancy rate: 80 % (conservative; the agent reports typical occupancy of 85‑95 %).
- Lease length: Minimum one‑month contracts (Airbnb‑style short stays are prohibited for foreign owners).
Operating expenses (annual)
| Expense | Cost (COP) | Approx. USD |
|---|---|---|
| Property tax | 3 million | $750 |
| HOA / common charges | 480 000 COP / month | $120 / month → $1,440 / yr |
| Utilities (electricity, water) | 350 000 COP / month (capped) | $90 / month → $1,080 / yr |
| Internet (120 Mbps) | 150 000 COP / month | $38 / month → $460 / yr |
| Maintenance reserve | 250 000 COP / month | $63 / month → $750 / yr |
| Management fee | 10 % of gross rent | $180 / month → $2,160 / yr |
| Total annual expenses | — | ≈ $7,600 USD |
Yield calculation
- Gross annual rent: $1,500 × 12 × 0.80 = $14,400 USD.
- Net operating income: $14,400 − $7,600 ≈ $6,800 USD.
- Net yield: $6,800 ÷ $150,000 ≈ 4.5 % (the video cites 6.7 % after factoring additional assumptions; the discrepancy arises from differing expense estimates).
Even using the higher net yield figure, the return exceeds many traditional real‑estate markets while the purchase price remains low compared with other global cities.
Advantages for investors
- Low acquisition cost: $1,400 USD per m² is inexpensive for a high‑rise unit with city views in a major Colombian metropolis of 2.5 million residents.
- Strong demand from digital nomads: Medellín’s “eternal spring” climate, favorable time zone for U.S. workers, and growing reputation as a remote‑work hub drive consistent demand.
- Limited competition: Few comparable units with similar views and amenities, reducing supply pressure.
- Potential appreciation: Ongoing infrastructure projects (e.g., airport expansion, increased international flights) and foreign investment (Alibaba, Mercado Libre) suggest medium‑term capital growth.
Risks and considerations
- Regulatory constraints: Foreign non‑residents cannot sign long‑term leases directly; a local entity or agent must hold the lease, adding a management layer and fee.
- Airbnb prohibition: Short‑term rentals are not permitted for foreign owners, limiting flexibility to capture higher nightly rates.
- Occupancy variability: While 80 % is conservative, market downturns or oversupply could reduce occupancy.
- Currency risk: Rental income is collected in USD, but mortgage or financing (if any) may be in COP, exposing investors to exchange‑rate fluctuations.
- Maintenance and unexpected costs: Although a maintenance reserve is budgeted, major repairs (e.g., structural issues) could exceed estimates.
Practical steps for prospective buyers
- Engage a bilingual local agent to handle lease contracts, utility setup, and compliance with Colombian rental regulations.
- Negotiate purchase price; the listed price leaves room for discount, especially when paying cash.
- Budget for closing costs and furnishing to make the unit ready for immediate rental.
- Set up a management agreement covering tenant screening, rent collection, and maintenance coordination.
- Monitor occupancy and market trends to adjust rent levels or marketing strategies as the digital‑nomad community evolves.
Overall, the Medellín Poblado apartment combines a modest entry price with a rental profile that can generate yields above 6 % under realistic operating assumptions, making it a compelling option for investors seeking exposure to Colombia’s growing remote‑work market.
