Building houses/apt for profit.

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barrypii
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Building houses/apt for profit.

Postby barrypii » Tue Oct 18, 2011 12:48 pm

My wife is from Peru and we have just been given a 149m2 lot 30 km east of Lima. We are thinking about building a two story house or apt building on it.

Has anyone done this for profit before? We could use any and all advice. Thanks!


el conquistador

Re: Building houses/apt for profit.

Postby el conquistador » Tue Oct 18, 2011 8:12 pm

barrypii wrote:My wife is from Peru and we have just been given a 149m2 lot 30 km east of Lima. We are thinking about building a two story house or apt building on it.

Has anyone done this for profit before? We could use any and all advice. Thanks!


Making a profit on a property in Peru is difficult. If a gringo sells his property then Peruvians will offer little money.
Peruvians will offer a gringo little money for his property as they know that the gringo paid too much for his property in the first place. Don't be surprised if many poor people will come to visit your home and ask you if you could donate your property to them as they are poor and have no money to buy a property.
barrypii
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Re: Building houses/apt for profit.

Postby barrypii » Tue Oct 18, 2011 11:08 pm

Well a gringo didn't buy it :). My inlaws who are Peruvian purchased it and gave it too us. My wife also Peruvian so no one will find out about the gringo connection (hopefully). It is in a gated community near the Los Andes golf club.

From what I am seeing construction costs are around 300-400 per m2.

Why do you say it is difficult? The economy is booming, the land price in this development has risen by 20-30% in the past year and a half. More Peruvians are making more money and looking for better houses. Property values seem to be increasing all over. I am not saying it will be easy but surely it isn't impossible, is it?
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adrian Thorne
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Re: Building houses/apt for profit.

Postby adrian Thorne » Wed Oct 19, 2011 8:16 am

Barry please take the information provided by Euroman the Conqueror with a pinch of salt. Whilst he is a very entertaining guy the facts are totally without factual evidence.

After investing in several properties I achieved my goal without any of the events happening.

Building wisely can be very profitable. Land prices have rocketed, which places you in a great position. Building costs are still very low compared to resale value and as long as the transaction is conducted carefully by a national, who you must be able to trust, there is only a 5% tax liabillity compared to 30% if conducted by yourself.
barrypii
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Re: Building houses/apt for profit.

Postby barrypii » Wed Oct 19, 2011 9:27 am

Thanks for the information. Would you mind if I pm you? I really could use a friend who has done this before to help me avoid a few of the more common pitfalls. Thanks!
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bmike1
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Re: Building houses/apt for profit.

Postby bmike1 » Thu Oct 20, 2011 10:29 am

krrp the conversation pub;ic for those in a similar situation!
:-)~mike~(-:
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adrian Thorne
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Re: Building houses/apt for profit.

Postby adrian Thorne » Thu Oct 20, 2011 1:30 pm

bmike1 wrote:krrp the conversation pub;ic for those in a similar situation!


Sorry Mike there is a lot of point scoring with little relevence to the subject under discussion.
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Re: Building houses/apt for profit.

Postby bmike1 » Thu Oct 20, 2011 7:13 pm

:-(
:-)~mike~(-:
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Re: Building houses/apt for profit.

Postby Hans » Sun Nov 27, 2011 9:40 pm

hi, im a USA citizen born in Lima Peru , I'm currently living in the US but I'm thinking of buying a lot and build apartments to rent , who will i be paying taxes to? Peru or the US... i know ill have to report that extra income to the US, i just want to Know if the double Nationality will help me out to cut taxes and keep most of my profits. whats the first step to start this project?....please help me out

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