Apartment purchase cost?

[Manhatt05]

Thank you sooo much!!!
I thought my dream of purchasing and living in BA was over

 

[DK72]

Thank you sooo much!!!
I thought my dream of purchasing and living in BA was over

Any way, i hope you do not intend to buy an apartment based on research done in the US. And I hope you already know Argentina/BsAs, otherwise dont jump into buying something quickly. Also keep in mind it is a buyers market. So the prices you in internet are generally 10-30% above market value.

nb: dont get me wrong, BsAs is a great place, especially if you have a foreign income / pension.

 

[Manhatt05]

Thank you
And yes I am presently searching midway and another main real estate site (has ‘24’ in the name) but can’t remember off the top of my head
I appreciate all your advise. We are looking at Recoleta and Palermo

 

[Ries]

I was not referring to the overall cost of the real estate- but to the cost of the transaction, including taxes, fees, and so on. I have found that in the USA, my cost, as a percentage of the sales price, is less to close than in Argentina. In my state in the USA, we use an escrow company, no lawyer, and the total additional cost above real estate agent commission is not a lot.
I have purchased a couple of properties in Buenos Aires, and there never was a 21% VAT tax on the total sales price. Most recent was in 2019.
I dont remember what the total cost to buy was, but I know it was under ten percent of total, but a couple of points higher than it was for previous deals in the USA.

 

[Ries]

you need an escribano. and you really need to be in Buenos Aires to figure out all the details. Its a complicated system, Napleonic in origin, and while I have purchased real estate in the USA basically over the phone, you need to allow more time, more hassle, and more unexpected delays when buying in Argentina.

 

[steveinbsas]

While buying a property directly from the owner will eliminate the real estate commission entirely and the VAT tax of 21% which it would be subject to, another cost which hasn't been mentioned is the escribano's fee.

Most escribanos charge 2% of the actual price paid for the property.

The VAT tax of 21% will also apply to the escribano's fee, so add 21% of the (most likely) 2% of the actual purchase price the escribano will charge to the to the total cost.

Even if a different price than the actual price paid for the propertuy is "declared" on the official escritura, the escribano's fee will be based on the actual price that is being paid, and both the buyer and the seller have a clear interest in telling the escribano the exact amount.

 

[Jhandu]

Hello All
We live in Orlando Florida and are recently retired. We are planning on retiring to Buenos Aires soon. We have been looking at apartments to purchase in Recoleta. But noticing additional costs of closing for the buyer seem outrages! Example
The buyer pays the real estate 3-4% fee and additional 21% VAT (to my understanding is taxes), and others. To bring total buyer closing cost to 6.63-8.34% and the 21% VAT.
this seems so high, how can anyone afford to do this? Am I correct on this and can anyone assist me with input?
Thank you so much in advance

The 21% VAT is on 3%-4% real-estate agent fee, not on whole transaction.

 

[sac13]

VAT most of the time can be negotiated here with the real estate agency. If you do pay make sure they give a factura .

 

[steveinbsas]

VAT most of the time can be negotiated here with the real estate agency. If you do pay make sure they give a factura .

Based on my own experience, most real estate agents don't charge the VAT, but they don't provide official "facturas" for the commissions, either, indicating that they have no intention whatsoever of reporting the income-

On the other hand, the escribanos for my three property purchases in Argentina have provided facturas that included the 21% VAT.

 

[earlyretirement]

Yes, steveinbsas is exactly correct. Most realtors you can ask them to waive the IVA and tell them you don't need an official receipt. If they aren't declaring the transaction most of them prefer that so they don't have to pay income tax on it.