Practical guide · General Questions · Basic level · 5 min read ·
How much money do I need to start investing in real estate?
It depends on how you want to get in. Buying a property on your own takes a down payment that is usually a large share of the price, plus deed and registration costs. Participating in a project with other people lets you start with small amounts: at Circular Urban, for example, from about 190,000 pesos, depending on the project.
In 30 seconds
- Buying a whole property takes a down payment, purchase costs and a loan for the rest.
- Participating in a project with other people lets you start with much smaller amounts.
- The minimum matters less than the money you can leave untouched for several years.
Before you start
Before talking numbers, be clear that there are two ways into real estate:
- Buying a property on your own, usually with a mortgage.
- Participating with other people in a project, through a fraction. We explain it in what fractional real estate is.
- Either works better once you have your emergency fund. If you're not sure, first check whether you're ready to invest.
Step by step
- 1
Work out what buying alone costs
For a flat, banks in Colombia usually finance up to 70% of the value, and up to 80% for social-interest housing. The rest is your down payment. Add notary fees, registration and the taxes on the sale, which add several points to the price and almost nobody counts at first.
- 2
Look at the cost of keeping it
Owning a property brings the cuota de administración, property tax, maintenance, insurance and the months with no tenant. That money is part of how much you need too, because it comes out of your pocket every month.
- 3
Get to know the small-amount option
With a participation you don't buy the whole property: you join the project's company with a fraction, acquired in tickets or participations. At Circular Urban the minimum varies by project and is shown on its page. In Circular Houses, a building in Medellín with short-term-rental flats and coliving, you start from about 190,000 pesos; in Solar Subway La Pintada, a solar system on a store in Antioquia, the minimum is on its page too.
- 4
Set your amount by your budget, not by the minimum
The minimum tells you where you can start, not how much you should put in. Only use money you won't need in the coming years and that, if the project doesn't perform as projected, won't affect your basic expenses or your emergency fund.
- 5
Think in regular contributions
Many people don't start with a large amount but with small, steady contributions: part of the prima (Colombia's mid-year and year-end bonus), a share of income each quarter. That way you learn as you go, come in at different moments and, across several projects, spread your money instead of concentrating it.
An example
Two people each have 10,000 units available. One wants to buy a 100,000-unit flat on her own; the other prefers to participate in projects. The figures are illustrative.
| Down payment needed (30%) | 30,000 |
|---|---|
| Purchase costs (illustrative) | 3,000 |
| Still missing for the one buying alone | 23,000 |
| Usable today by the one participating | 10,000 |
With the same money, one person can't buy yet and the other can already spread her 10,000 units across two or three projects. Neither option is simply better: buying alone gives full control, and participating gives earlier, spread-out access.
Questions you'll have
What's the minimum to invest in real estate in Colombia?
There's no single minimum. Buying alone takes the down payment and purchase costs. In a participation, each project sets its own minimum: at Circular Urban it usually starts around 190,000 pesos, about 50 dollars, and you see it on each project's page before deciding, with no commitment.
Does a small amount mean small results?
Results are proportional to what you contribute and to the project's performance. With a small amount, results in pesos will be small, but you learn how it works from the inside and, if you keep contributing and reinvesting, the effect of compound interest shows over the years.
Is it better to wait until I have the down payment?
It depends on your goal. If you want a home to live in, saving the down payment makes sense. If your goal is to have part of your money in real estate, you can start earlier with participations. We compare both paths in buying a flat or participating in projects.
Can I start with my prima?
Yes, it's one of the most common ways to make a first contribution, as long as your expenses and emergency fund are covered. The prima, Colombia's legal bonus, arrives twice a year, in June and December, so it also works as a natural calendar for regular contributions.
What other costs does participating have?
Read each project's page and participation agreement: they describe how results are shared and on what terms. The asset's operating costs, such as building fees or maintenance, are deducted before reaching the profit that is distributed.
Can I take my money out whenever I want?
No. A participation in a project has low liquidity: there isn't always someone ready to buy it. That's why the amount is set with money you can leave untouched for several years, not money you might need soon.
Common mistakes
- Myth
To invest in real estate I need hundreds of millions of pesos.
- In reality
To buy a property alone, yes, you need a large sum. To participate in a project with other people, the entry amount can be small.
- Myth
If the minimum is low, the risk is low too.
- In reality
The entry amount doesn't change the project's risk. You read the same risk disclosure statement with 190,000 pesos as with a much larger sum.
Your first step
Check each project's minimum
Each project shows its minimum amount, its active wave and its documents. Looking doesn't commit you to anything and gives you a real sense of how much you need.
See projectsKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
