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Paraguay is fast becoming one of the best options for international investment, both for internal and global situations. Diversity and vastness are its main features, besides its really low prices, compared to the global market.
When comparing a property in Europe, with another one with exactly the same features in Latin America, we can talk about prices differences that range from four, six, or even ten times cheaper. For example, a two bedrooms apartment in London costs about US$600,000, while a similar one in Paraguay City, is around US$150,000.
In the long term, terrorism and environmental issues are just some of the reasons to see the whole of Latin America as one of the most safe and sustainable resources in the world.
The Prices for Property in Paraguay
Property prices in developed countries can’t grow forever. They are more likely to stabilise, if not, to drop after the well known “real estate bubble” bursts.
On the other hand, in Latin America property prices have just started to react to the increase of demand. Despite circumstantial economic ups and downs, price tendencies are definitively on the raise.
Profits for Paraguay Properties
The average rental yield for a property in Paraguay is about 10% to 12% a year, over the value of the property, for permanent rentals. For holiday rentals, it may vary, depending on the area the property is located and the demand it faces in a particular period of time. It is commonly higher, but seasonal variations it make it harder to estimate average profits.
In case you need more information or have doubts on any of these issues, the specialised staff in January First Real Estate will be glad to answer all your questions, click here.
Buying Real Estate in Paraguay
Is Paraguay too much trouble?
Property prices in Paraguay are among the lowest in South America but buyers must be cautious.
Paraguay's corrupt legal system hinders the effective protection of property rights. There is no coherent national property survey or land register.
Due to lack of jobs in the countryside and the commercialization of agriculture, peasant groups staged a series of land invasions in 2004. These occupations often resulted in the expropriation of owners' estates. The government subsequently validated peasant ownership. Theoretically the original owners should have been compensated, but this has rarely been done.
There are no restrictions on the ownership of property by foreigners. They may also engage in commerce or industry without limitation.
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