top of page

How to Buy Real Estate in Medellín: The Complete Guide (No Fluff, Just Facts)

So—you’ve already decided you want to buy property in Medellín.This isn’t another “why Medellín is amazing” post. You’re here because you’re serious. You want the hard facts on how the process works, what pitfalls to avoid, and a few insider secrets most blogs and videos never tell you.

Important: The content below is taken directly from a detailed video by AK Joel who has been selling real estate in Medellín through his business Medellín Living . He gave me permission to turn his explanation into a blog post. I am not claiming authorship of the information — I’m simply republishing it with his permission so people who prefer reading can access the exact, practical steps he shared.

TL;DR summary (read this first)

  • Foreigners generally cannot get Colombian bank loans unless you’ve lived in Colombia for years and built local credit, or you are/are married to a Colombian citizen (exceptions exist — check with Bank Colombia directly).

  • Most buyers use cash or funds from a HELOC/home equity in their home country. AK Joel used a redraw of $250,000 at 5.65% from his Australian property to buy in Medellín.

  • Open a Colombian brokerage account They handle documentation and currency conversion so your funds are properly legalized and you avoid bank freezes and tax/filer mistakes.

  • Brokerage + government + spread fees usually wipe out ~1% or more right away — choose the cheapest broker and convert currencies smartly (Wise + send USD to broker was AK Joels method).

  • In Poblado remodeled apartments ran ~8.5–9 million COP / m² (see the detailed spreadsheet later).

  • Promesa (promise to buy) is signed with a typical 10% deposit (do not pay more than 30% upfront). Closing costs are ~3–4% of purchase price. Seller pays commission (3%).

  • Property management for rentals tends to charge 15% of gross Airbnb revenue.

  • If you’re serious about purchasing, you’ll find an application form at the end of this blog, you must meet certain requirements to fill out the form.


Step-by-step Guide:


Step 1: Let’s Talk Money (No, You Won’t Get a Local Mortgage)

The number one question asked is:

“Can I get a loan from a Colombian bank to buy property?”

Short answer: No.

Unless you’ve lived in Colombia for years, built up local credit, and hold residency, banks aren’t going to hand out a $300K loan to a foreigner who just landed here. Your U.S. credit score means nothing to Colombian banks.

That leaves you with three realistic options:

  1. Build Local Credit (Long-Term Option):If you live here, use local credit cards, and pay off smaller loans over years, you might qualify. But it’s a 2–4 year process—not practical for most buyers.

  2. Marry a Colombian (Or Be One):Colombian citizens (and their spouses or children) may qualify for local loans. But beware—the interest rates are steep. While you might get 5.5% in the U.S. or Australia, Colombia averages around 10%. For investors, that usually kills the numbers.

  3. Use a Home Equity Line of Credit (HELOC) Back Home:This is the most common method I’ve seen buyers use. If you own property abroad, you can borrow against its equity at a lower interest rate, pull out cash, and buy in Medellín. That’s exactly how AK Joel bought his place in Poblado—redrawing $250K from his property in Australia at 5.65%.

Bottom line: come with cash or a plan for cash. Don’t waste time browsing apartments without knowing how you’ll pay.


Step 2: Open a Colombian Brokerage Account (Non-Negotiable)

Once you’ve got the money lined up, your next move is opening a brokerage account in Colombia.

We recommend Alianza Valores, the country’s largest broker. Here’s why it’s crucial:

  • You send your money to Alianza’s U.S. account (on Wall Street).

  • They handle the conversion into Colombian pesos.

  • They file all the legal paperwork so your funds are properly registered as a foreign investment with DIAN (Colombia’s tax authority).

Could you wire money directly to your Colombian bank? Technically yes, but…

  • Banks may freeze your account for months when they see large transfers.

  • Incorrect filings can lead to tax nightmares later.

  • You risk violating contractual deadlines and paying penalties (10–20% of the property value).

A brokerage account avoids all of that. It also makes you a stronger buyer in negotiations because sellers know your funds are verified and ready.


Costs of a Brokerage Account

  • 0.6% transaction fee (brokerage)

  • 0.4% government fee (mandatory in Colombia)

  • Currency spread (hidden margin between market rate and what they give you)

From my research:

  • Alianza’s spread = 0.4%

  • Acciones y Valores (another option) = 2%

That’s the difference between losing hundreds vs. thousands on the exchange.

👉 Pro tip: Alianza only accepts USD or EUR. If your money is in AUD, CAD, etc., use Wise to first convert to USD before wiring. It’s cheaper than letting other brokers handle the conversion.


Step 3: Find the Right Property

Once your brokerage account is open, you’re officially a serious buyer. That’s when Medellin Living steps in. Here’s how they work with clients:

  1. Zoom Call: They clarify your needs (investment, lifestyle, budget, etc.).

  2. Property Spreadsheet: You’ll get an in-depth Excel sheet with property options, videos, comps (since there’s no MLS in Colombia), and price per square meter benchmarks.

  3. Property Viewings: You mark what you like, they schedule viewings, and refine the search until you find “the one.”


Typical benchmark:

  • Good rate in Poblado (remodeled): ~8.5 to 9 million COP / m²

    • If you see 12 million COP / m² in that niche, it’s overpriced.

    • If you see 6 million COP / m², it’s probably underpriced (a bargain or a fixer/issue).


Step 4: Make an Offer & Sign the Promesa

When you’ve found your property, the process looks like this:

  1. Informal Offer: They send your offer via WhatsApp to the seller (welcome to Colombia). It includes:

    • Price

    • First payment amount & date

    • Closing date & final payment

  2. Due Diligence: Their lawyer checks the title, ensures no mortgages or liens, and confirms the property is clear to buy.

  3. Promesa de Compraventa: This is the purchase agreement. You’ll typically pay 10% (never more than 30%) as the first payment. This can be signed in person or remotely via DocuSign.

  4. Final Closing: Usually 90% payment at the notary, where you sign, get the keys, and take the classic handshake photo. Too busy to be here? You can give power of attorney to your lawyer.


Sellers often have multiple offers. Buyers who are loan-dependent are less attractive because the bank can take months and then still refuse the loan. Sellers like buyers who say: “I have cash or funds in a brokerage account and can pay quickly.”

Negotiation tip: Tell the seller you already have a brokerage account with funds or can transfer into it within days — this strengthens your position versus local buyers who might get a loan (or other foreign buyers waiting on banks).


Step 5: Understand Closing Costs

Expect 3–4% of the purchase price in closing costs, which include:

  • Notary fees

  • Government fees

  • Brokerage fees

  • Legal fees

Example: On a $100K property (though you won’t find much at that price in Medellín), closing costs run $3–4K.

💡 Commission is always paid by the seller (3%).


Step 6: Property Management & Renovations

Buying for investment? Most management companies charge 15% of Airbnb gross revenue. If you need property management, interior design, or renovations, Medellin Living has an in-house team that can handle that too.


Timeline from “found the property” to “keys in hand”

  1. You like a property → make informal offer via agent/WhatsApp.

  2. Negotiation → price, deposit amount/date, closing date finalized.

  3. Offer accepted → in-house lawyer does due diligence.

  4. Promesa signing → commonly 10% deposit at signing (DocuSign possible).

  5. Buyer transfers deposit from brokerage account within contractual time (commonly 5 working days after signing).

  6. Closing at notary (remaining amount paid, notary registers deed). You get keys and photo opportunity — or your lawyer signs via power of attorney if you can’t attend.

  7. Registration & tax filings are completed by lawyer/agent as required.


Final Thoughts

Buying real estate in Medellín isn’t the same as buying in the U.S., Canada, or Australia. The system is different, the paperwork is different, and the pitfalls are real. But with the right guidance and setup, the process is smooth and transparent.

  • Come with cash or know how you’ll access it.

  • Open a brokerage account before wasting time on viewings.

  • Use comps to avoid overpaying.

  • Always run due diligence with a trusted lawyer.


If you’re still in the “research” stage and don’t meet the three requirements below, this blog will still help you understand the process — but Medellin Living only works with buyers who are ready to act within 30 days.

Requirements to work with Medellin Living:

  • Have $150,000+ in cash ready to invest (there are no practical loans for foreigners in Colombia).

  • Want to buy in Laureles, El Poblado, or Envigado only.

  • Ready to buy within 30 days (this service is not for research-stage questions).


If you meet the conditions below and want help, fill out this form now:


Keep in mind: This is not for people who are just in the research stage—no free Q&A sessions will be provided for those not prepared to purchase.


Comments

bottom of page