PRICES PER SQUARE FOOT

Prices per sq. ft. should be considered only as one factor when determining value.

Consider the following prices per sq. ft. for the many new apartment complexes that Paul is offering for sale, as of the first day of 2006.

The lowest price was: $76. U.S. per sq. ft.
The highest price was: $174. U.S.per sq. ft.
The average price was: $121. U.S. per sq. ft.

Why the big differences?

The biggest difference can be attributed to land costs, which are based on LOCATION. Land fronting on the water costs more than if it were inland. Land within the Walled City costs more than land outside of the Historic District. Land in Castillogrande costs more than land in Bocagrande or Laguito, etc. Land costs are included in the per sq. ft. price, and they can represent as much as 20% of the total cost of the apartment.

1. Projects with spectacular views are usually more expensive than those with non-dramatic vistas.
2. Some projects include a parking space as part of the apartment cost. Others do not.
3. Some projects offer a full bath for each bedroom. Bathrooms and kitchens, on a cost per square foot basis, are the most expensive rooms in an apartment or house.
4. Apartment buildings with few apartments usually cost more per sq. ft. to construct, than projects with many apartments. In addition, the monthly maintenance fee is normally higher on buildings with few apartments, rather than many apartments.
5. Architects and Developers offer different concepts and specify varying grades of finishings.
6. Architects and Contractors with a good history of quality can charge more for their work. You may pay a bit more, but a good project earns a reputation often resulting in higher re-sale prices!
7. Developers marketing and pricing plans differ. One Developer may offer two different size apartments at the same price per sq. ft., while another may charge as much as 60% more per sq. ft. for a large unit than for a small one.

CONCLUSION

If you know what you are looking for, be specific, and tell Paul what YOU want, and he can guide you to a good value that will match your needs, investment objectives, and hopefully your budget.

New apartment project prices should be considered as "firm". If they are fairly priced, they do not decrease, BUT, they may increase 2-3 times during construction! FOR THIS REASON, IT IS IMPORTANT THAT YOU FEEL CONFIDENT YOU CAN BE ON TIME WITH YOUR MONTHLY PAYMENTS. Most sales contracts stipulate that if you are late with the monthly payment(s), the developer has the right to return your money, and void your Contract. If this happens, the chances are that your apartment will immediately be offered (and sold) at a higher price! In a strong real estate market, such as now exists in Cartagena, there is no reason for a Developer to offer a Buyer a discount. If a buyer should "drive a hard bargain and get a good deal", it may be an indication that the projects sales are slow, perhaps because the units are overpriced? If this is the case, it will be reflected in the future re-sale prices of the apartments.

Prices should be the same whether you buy through a developer's sales office, or a reputable independent real estate company. The major advantage of buying with an independent company, in addition to forming a more personal relationship, is the experience and local knowledge they can provide in being able to present a wide variety of properties and locations for the buyer's consideration.

When all the apartments have sold, and the Developer moves to a new project, you may want to sell? Consider the relationship you already have established between you and the realty company who sold you your apartment. If it was a good experience, (whether it was with Paul Juan, or another Cartagena realty company) consider working with them again. Colombia commission rates are low-about one half of what you may be used to. Most buyer's and seller's consider the honesty and work ethics of a good realty company worth much more than the "low cost" of the normal 3% sales commission.