No seller is ever happy to hand over a large commission to an agent that they feel just showed up to unlock the door and sold your house by chance. And truthfully those days are gone. Right now real estate is continuing to crumble in many countries around the world. You will not ever hear this from the average broker because they are playing a confidence game. My studied opinion is that the US and European real estate property markets will continue to fall in real, if not nominal values. Canada and Australia are still in a bit of bubble but beginning to deflate. Many homes in Greece have actually lost near 50% of their value since the crisis there. The downward spiral will continue.
And I feel that as paper monetary instruments devalue, those with money and sense will look for hard assets of value elsewhere. My belief is that Chile will be one of the countries to benefit from this safe-haven play of assets. Why? Because land taxes are not at the onerous levels of the West. The natural beauty is unsurpassed and land with great scenery is more likely to retain its value. Also the climate is temperate, there is an abundance of water for crops, and the people, government and economy all work.
Besides, Chilean real estate never really reached the nosebleed heights of the other world markets. Easy credit wasnít available. No banks were offering no-money down home mortgages to people without jobs. Traditionally much more money is required as a down payment before you can get some skin into the real estate market here.
Will property prices go up? Quite possibly they will. If they don't, they should still go down less than in debt-ridden major western countries. The reason being that Chile has been careful with deficit spending whilst debt-laden countries will begin to suffer & fail in ways that only broke and bankrupt economies can. Such nations will bring their real estate markets down along with the economy.
No prediction is certain though, because I don't have a crystal ball, nor do I know how government monetary and economic policy will change day to day. But, as a recent example, in Britain rich Greeks drove up the London luxury housing market as they fled Greece with their money, snapping up a multiple number of flats per buyer. Whilst at the same time, the Greek real estate market was taking a nose dive.
All in all, Chile is the logical place to take refuge from the coming storm. If you want security, a natural resource economy unburdened by huge debt, a self-sufficient people, a government ruled by law, and breathtaking beauty, then Chile is a wonderful choice.
Hey, but donít take my word for it, do your own homework.