Real Estate Without Borders — “Real Estate in Colombia”

Date: December 2, 2025
Host: Real Estate Without Borders
Guest: Mike Van Hout (Canadian real estate investor with experience in Canada, Panama, and Colombia)
Co-hosts: Dave, Daniel

Episode Overview

This episode dives into the realities of investing in Colombian real estate from the perspective of a seasoned Canadian investor, Mike Van Hout, who now splits his time between London, Ontario, and Medellín, Colombia. The discussion covers market opportunities, cultural perceptions, property acquisition, financing, lifestyle, and practical advice for North Americans considering Colombian property or expanding their investments abroad. The tone is open, anecdotal, and energetic, mixing professional insight with candid (sometimes humorous) stories.

Key Discussion Points and Insights

1. Mike’s Story: From Canada to Colombia

• Background: Mike started in Canadian real estate at 19, moving up from student rentals to apartment buildings, flips, and private lending.
• COVID Pivot: Moved between Tulum, Costa Rica, Panama, and ultimately Colombia based on travel openings and business opportunities.
• Arrival in Colombia: Drawn by strong worker recommendations and logistical convenience for flights and travel (e.g., connections between Panama and South America).

Quote:
“When you show up off the plane and you drive into the city, you fall in love. The climate’s amazing...there’s a lot of hustle and bustle. It’s nothing what people think.” — Mike Van Hout [02:36]

2. Colombia’s Unique Appeal for Investors

• Breaking the Stigma: Colombia still struggles with outdated “dangerous narco” stereotypes, but Medellín offers vibrant culture and climate.
• Social Media Impact: The influx of artists, influencers, and expats via platforms like Instagram and YouTube is changing perceptions and exposing the market’s potential.
• Market Opportunity: The actual market is cash-driven, with high yields possible but significant barriers for foreigners due to financing.

Quote:
“Colombia has this dangerous stigma, so it keeps people away — which is amazing, because otherwise it would get blasted.” — Mike [02:52]

3. Investment Mechanics & Financing Constraints

• Cash-Only Market: Financing is mostly unavailable for foreigners and very expensive for locals (interest rates ~13-14%).
• Legal Process: Requires using fiduciary (trust) companies to legalize and document incoming capital; the process is very strict to prevent money laundering.
• Deal Structure: Most buying/selling is done directly with sellers, not through escrow or typical Western legal structures.
• Visa Program: Investing a minimum (~$115K USD) qualifies foreigners for a multi-year visa and, eventually, residency and a passport.

Quote:
“You can’t finance here… It’s only cash… The banks do finance, but the rates here are north of 13 to 14% for Colombians.” — Mike [08:15]

4. Clientele and Demand in Colombian Real Estate

• Types of Buyers:
  • Single men drawn by climate and lifestyle — “First to look, last to buy.”
  • Families (especially second-gen Colombians in US/Canada) return to invest.
  • Investors (primarily seeking Airbnbs and rental yields).
• Airbnb Regulation:
  • Medellín is highly regulated—only certain buildings are zoned for short-term rentals (<30 days); licensed units cost 40% more and draw a fast/party tourist crowd.
  • Other cities have looser rules; opportunities vary by location.

Memorable Moment:
“...anything you buy here, you can rent for a minimum of 30 days…You have to have very specific spaces [for Airbnb]...” — Mike [13:52]

5. Market Economics: Prices, Rents, Cost of Living

• Prices:
  • Homes in fancy suburbs (Rio Negro/La Grande): $700K – $1M USD.
  • High-end rents in Medellín (Poblado): $1,200–$2,000 CAD/month for 1-bed.
  • Still comparable to Toronto prices from 12–15 years ago; daily expenses (food, cleaning) much cheaper.
• Impact on Locals:
  • Foreign demand has pushed up prices, but most locals still pay cash, limiting upward pressure compared to Europe (Portugal example).
• Expats and Digital Nomads:
  • Quality of life is high for those earning in USD/CAD, with cheap labor/services (house cleaning: $30 CAD/day).

“You can live for a thousand bucks a month, Canadian, if you want to.” — Mike [18:59]

6. Culture, Community, and Lifestyle

• Vibrant Social Life:
  • Medellín is family-oriented, community-based—contrasts with Toronto’s individualism.
  • Growing expat/entrepreneur network, but still “small world” feeling.
• Physical Aesthetics:
  • Colombian culture values appearance—plastic surgery (especially nose jobs), dental work, and style are widespread.
• European Connections:
  • Many wealthy Colombians have roots in Europe and send their children to Spain for study.

“There’s a big sex appeal here, you know, that I feel like we just don’t…” — Mike [22:19]

7. Practical Tips and Pitfalls for Foreign Investors

• Due Diligence:
  • Foreigners often pay higher prices (“gringo tax”); Mike uses locals or employees to negotiate.
• Risk Appetite:
  • No escrow system; deposits are made directly to sellers—a trust-based system alien to most North Americans.
• Key Restriction:
  • Absolutely no traditional mortgage financing available for foreigners.
• Visa Steps:
  • 3-year real estate visa available with a minimum $115K USD investment, renewable, with residency available after 5 years and eventual path to citizenship (with language requirement).

8. Recent Trends & Global Outlook

• Increasing Foreign Interest:
  • Social media hype (“hype game”) is building; similarities to past waves in Mexico and Costa Rica.
  • Changing dynamics due to economic and political concerns in Canada/US.
• Market Seasonality:
  • Medellín is busy year-round, thanks to constant tourist flow and wealthy Colombian domestic travelers.

“If the Colombians don’t pick it up, the tourists do… If they find they’re missing that void in their life, they just want to be cool.” — Mike [25:41]

9. Authorship, Arbitrage and North American Realities

• Arbitrage Mindset:
  • “Make Canadian/US dollars, spend locally” is still the winning formula, but more Canadians are questioning “what’s next?”
• Changing Crime and Safety:
  • North American cities grappling with more public safety concerns; listeners challenged to update their assumptions about “danger” abroad.
• Caution on Investing:
  • With current global uncertainty, Daniel and Dave lean toward holding cash or investing in their own businesses versus jumping into a red-hot real estate or equities market right now.

“I think the win is always make Canadian dollars, US money and live somewhere…” — Mike [30:09]

10. Final Advice & How to Connect

• Best Opportunities in Colombia:
  • Mike recommends hands-off investments via Colombian funds yielding 14–15% or property flips on small apartments ($30–60K USD), with yields of 14–22%. But “everything needs a team.”
• Contact:
  • Instagram: @mikejohnvanhout
  • Available for investor tours, one-on-one advice, and as a connector for Canadians in Colombia.

Quote:
“Just the most important thing is you cannot finance here…my DMs are always flooded with ‘can’t finance?’” — Mike [45:14]

Notable Quotes & Timestamps

• On Colombia’s market reality:
  “I sell houses, but I’m also a connector… the opportunity and the movement is pretty heavy.” — Mike [06:51]

• On perception vs. reality:
  “People spell Colombia with a U… They also think Colombia is full of drug dealers and narcos…” — Mike [05:39]

• On the “gringo tax”:
  “Everything I buy, I put my staff up front. They buy for me. I don’t put my face because the prices are different.” — Mike [15:55]

• On lifestyle:
  “I have my apartment cleaned every Monday…for $30 Canadian. She does everything.” — Mike [23:57]

• On regulations:
  “…if you want an Airbnb, the building has to be zoned for Airbnb and then those units are 40% more.” — Mike [11:51]

Timestamps by Topic

• 00:00-03:50: Mike’s background, journey from Canada to Colombia
• 03:50-07:25: Social media, breaking into the Colombian market, “Canadian dream”
• 07:25-10:30: Opportunities and limitations in the Colombian real estate market
• 10:30-13:50: Typical buyers; Airbnb, rental restrictions
• 13:50-17:15: Rental market, cost of living, impact on locals
• 17:15-23:19: Quality of life, expat experience, investment returns
• 23:19-27:04: Visa, ownership, and legal processes for foreign buyers
• 27:04-32:24: Safety, stereotypes, and reality vs. international reputation
• 32:24-38:22: Market cycles, currency effects, rates, and investment outlook
• 38:22-43:09: Discussing cash, business investing, and cryptocurrency
• 43:09-46:10: Final thoughts, culture, how to get started in Colombia

Takeaway

This episode delivers a candid, on-the-ground look at Colombian real estate as a robust—albeit cash-only—market open to enterprising North Americans tired of limited options or high prices at home. It mixes practical steps, warnings, and colorful inside stories, demystifying everything from stigma to legal hoops to nightlife. If you’re considering international property, especially in Latin America, this is a must-listen for realistic expectations and firsthand wisdom.

For more: Reach out to Mike on Instagram @mikejohnvanhout. "Just DM me, but remember — you can’t finance here!” [45:13]