The wealthy live in areas such as Las Condes and La Dehesa; closer to the mountains and with less smog and usually in new, security guarded, apartment blocks.

Chile being a very centralised country, it is also where you need to be to get things done. It is the economic, bureaucratic and cultural heart of Chile and it makes sense to be close by. In the Central Region, you’re never more than a couple of hours drive away.

If you do like Santiago, property is still very good value. A two bedroom, 80m2 apartment in the hopping neighbourhood of Providencia will set you back around US$130-150,000. A 140m2 or more house with garden in the same area can be found for just a few dollars more.

Also, many new apartments in Santiago fall under the law of “DFL2”. DFL2 apartments must be less than 140m2. The huge advantage of these properties is that they are free of income tax on rent and free of capital gains tax when you sell. They also have a reduction in property tax of 50% for 5, 10 or 20 years, depending on the size of the apartment. Property taxes in Chile are around 1-1.2% of the fiscal value of the property.

The Jewel of the Pacific

Walking along Paseo Atkinson on Cerro Concepcion (formerly Cerro Queen Victoria) and you could be walking along a terraced street in England. Reminders of Valparaiso’s British influence are not only to found in the architecture; there’s a British Church, St Paul’s, British street names and British schools.

Following 1914, the city fell into poverty, which is still obvious in some parts of town. However, major investments are being made in the city now. The reason? Valparaiso was declared a UNESCO World Heritage Site in 2003 due to its architecture, still functioning 100 year old funicular lifts and its ‘intangible cultural heritage’.

Now, some of Chile’s most innovative and finest restaurants are to be found in Valpo. Old mansions are being converted into loft-style apartments and boutique hotels are springing up. Over 50 cruise liners visit Valparaiso between October and March and out of season tourism is increasing as well.

There are excellent opportunities here. For an investment of around USD$300,000-400,000 you can buy and convert a Victorian mansion into loft style apartments for a return of 20-40%, depending on the value you find the original property. Loft conversions help to preserve the architecture of the city, much of which is in a poor state. These projects are very popular with people from Santiago as second homes.

If you just want to live in the city, for between us$100,000-160,000 you can find a large 200m2 house in one of the finest areas of town. The most touristy and also the best areas of the city are, without doubt, Cerro Concepcion and Cerro Alegre. These were the British and German enclaves during the 19th century and have the most beautiful architecture and best bars and restaurants. This part of town, that I’m lucky enough to call home, is like a little country village yet just a few minutes walk down the hill you’ll come to the bustling city centre with supermarkets, shops, more restaurants and wonderful turn of the century architecture.

For more modern living, Valparaiso’s sister city, Viña del Mar is just 10 minutes up the coast. Viña is a modern, high rise sea-side town that has excellent restaurants, bars, cafes, shops and a large mall. It has a few traditional areas with older architecture as well. In summer, the city is crowded but after March it becomes sleepy, despite being home to almost 300,000 people. Viña hosts a world famous music festival in February of every year. World famous and local groups battle it out for the gaviota - the Seagull shaped trophy given to the best act. The winner in 2006? None other than Wales’ finest, Tom Jones.

For more information, photos, restaurant reviews and tourism ideas in Valparaiso and around then feel free to browse my blog- www.corrugatedcity.blogspot.com

Pacific Views

If you want to get away from the city entirely then there are many small towns and villages both north and south of Valparaiso. All along the coast there are apartment blocks and also private communities where you can build your own house. In Algorrobo to the south you can find a 5000m2 (1.2 acre) plot in a well-developed community with swimming pools, tennis courts and horse riding for around USD$35,000 (www.santamariadealgarrobo.cl/ ). To the north of Valparaiso, La Foresta de Zapallar (www.forestadezapallar.cl ) offers 1 hectare/2.4 acre plots for around USD$25,000. In between there are many places where a small 1000m2 plot can cost in excess of us$80,000 or a few hectares of raw land can be found for under USD$50,000. It all depends on where you wish to buy.

Desirable towns north of Valparaiso are Maitencillo, Cachagua and Zapallar. Zapallar is second home to Chile’s richest. Mansions overlooking the beach can cost well in excess of USD$1 million.

Remember that all these coastal towns have incredible views out over the Pacific Ocean and along the coastline.

The Cost of Buying Real Estate in Chile

Construction costs are low in Chile. High quality construction is around USD$7-800/m2 all included, so it’s easy to buy a plot of land and build a large house for around us$100,000.

Buying property in Chile is quite easy but it’s also easy to get ripped off. It’s very common to find the same property listed by various agents. For example, I’ve seen the same property in Valparaiso listed by 3 agents at USD$180,000, $200,000 and $240,000. These huge discrepancies are normal in the Chilean market. If you’re not careful, don’t speak Spanish and don’t know the market you can quite easily spend more money than necessary.

The costs involved in buying property are low when compared to other countries. On a us$100,000 property, you should expect to pay around $1000 on the lawyer, $350-450 on notary fees and 2% to the real estate agent. If you are buying raw land then it is highly advisable to have it professionally surveyed. This might cost around $400-500. It is the buyer that, officially, pays the legal fees but it is common to share this cost. Sometimes sellers simply refuse to split the costs and there is nothing you can do about it. Many times they do split the cost. It’s luck of the draw if the vendor is willing to share the costs or not.

Once the contracts are signed, you must register the property. This should cost no more than about USD$750, often less (depending on the price of the property). You get the keys to the property when you sign the contract but it’s not officially yours until it is registered. It can take anything from 20-60 days to complete a purchase, depending on the complexity of the individual case and the speed of the lawyer.

If you do not speak Spanish or are unfamiliar with Chile and Chilean business practices, it is recommended that you hire a third party consultant to help you with your purchase. The fee you pay will almost certainly be more than recouped in the savings you will make due to the consultant’s inside knowledge.

My Chilean girlfriend and I assist foreigners in making investments in Chile. We have great personal experience of foreign investing and investment consulting in both Argentina and Chile. We used to work in Buenos Aires but moved to Chile due to its superior business environment, security, safety and economic prospects. We work with some of Chile’s finest legal professionals, people who assist high level government and business figures. We have excellent architects and banking contacts. Working alongside us, they will make sure your investment plans go exactly as they should. You can find out more about investing in Chile by going to www.pacificfive.co.uk

But why Chile?

Chile is an anomaly in Latin America. It has a stable and growing economy, very low levels of corruption, a trustworthy and unbribable police force, a stable democratic government and a growing middle class. The communications network is reliable and road infrastructure far and away the best in the region. Couple all this with the spectacular scenery and you’ve got a world class country.

The cost of living in Chile is higher than in the neighbouring countries. Chile is not a ‘bargain’ South America country but what you’re paying for here is the ordered, safe and friendly country described above.

That said, cost of living is between 20% and 40% than the US or Europe, depending on your lifestyle. Chile has low import tariffs and numerous free trade agreements that mean that many imported goods, such as cars, are cheaper than ‘First World’ countries.

Fuel costs are only a little lower than in Europe or the US due to the fact that Chile has no natural reserves of oil or gas. But eating out is a bargain-set lunches can cost as little as USD$3 and fine dining rarely costs more than USD$30 a head and very often less. Chile’s world class wines are available in the supermarket for obscenely little money! And the supermarkets here rival European stores for quality and choice of products.

Chile is a major producer of fruit and vegetables and the markets are literally overflowing with fresh produce and some of the biggest onions and carrots you’ll ever see in your life! Prices are under half of what you’d pay in a British supermarket. Chileans always burst out laughing when I tell them that one kiwi costs around 25p/50c in England. Here, you can get a whole kilo of kiwis for that price!

Real estate, as mentioned before, is excellent value and construction costs are low. You can buy or build your dream home for much, much less than is possible in the US or Europe. The most spectacular properties can be found in Chile for the price of a London doorbell.

Good luck!