As A Foreigner, Buying An Apartment In Federal Capital?

[elchino]

hello all,

i'm currently on a student visa with temporary residency that l have to renew every year. I'm expecting to spend the next 5 years or more in the capital. Thanks to my girlfriend's mom, who's kind enough to provide me garantía to rent an unfurnished apartment for 2-year contract.

I did some calculation, the monthly rent is 3000 pesos, and there's a 20% increase annually stipulated in the contract. Assuming that the value of blue dollar also increases by 20% annually, I can approximate the annually cost of rent at a fix amount of 6000 dollars, and 5 years would be 30k USD

I looked at the selling price of similar apartments nearby, average is around 130k USD. I'm kinda tempted and asked some friends if it's possible for a foreigner to buy apartments here. Some say no, some say maybe.

Has anyone, without argentinian citizenship or permanently residency, bought property here?

As for now, I understand that it's nearly impossible to get money out of argentina. Does it imply that buying an apartment here would be a "life-time" commitment to argentina? given that you wouldn't be able to sell the property and bring the cash back home.

thanks

 

[la_guachita]

A lot of foriegners have property here, not a problem at all to buy. If you need a loan that's another story.

And yes you can sell, it's just a little complicated at the moment and you lose money on the conversion but nothing is impossible in Argentina.

 

[Davidglen77]

As a foreigner, you are allowed to buy property in Argentina, not a problem. It's somewhat complex not having residency as the escribano has about 5 more steps to take with a foreigner for a property purchase. On top of the purchase price, figure about another $25.000 pesos in legal and closing fees for a $100,000 U$D apartment plus $4,000 U$D in real estate commission. I personally wouldn't do it, unless you are planning on staying here for life. Good luck.

 

[elchino]

As a foreigner, you are allowed to buy property in Argentina, not a problem. It's somewhat complex not having residency as the escribano has about 5 more steps to take with a foreigner for a property purchase. On top of the purchase price, figure about another $25.000 pesos in legal and closing fees for a $100,000 U$D apartment plus $4,000 U$D in real estate commission. I personally wouldn't do it, unless you are planning on staying here for life. Good luck.

at this point, nothing is certain for life, i might or might not stay in argentina after a few years. but, maybe it could be considered an investment too? considering after 25 years, the rent gain recovers the cost of purchase. if selling it is such a hassle, just rent it to someone i guess

 

[thebookcellar]

I bought property here before I got me residency - I would only do it if you are planning to stay here a while. As mentioned, selling is a problem. For buying, whilst technically it is a simple process you may find that hidden costs turn up everywhere, your down payment (in dollars) of 30% of the value is generally under the table, plus when you bring money in through the bank it automatically gets changed to pesos. Your argument over the exchange rate with the seller will be a headache. Mine was, and that was 5 years ago, before the current 'dollar' situation.
As an investment - the same rules apply - plus if you ever leave the country you need someone you trust to look after the bills/inquilinos etc. so as no one makes money ffrom you apartment without you knowing. In my building the inmobililaria was renting a flat temporarily for dollars, and keeping the money for themselves. The representative told me, laughing, because the (Argentine) owner is in Italy...

 

[Davidglen77]

at this point, nothing is certain for life, i might or might not stay in argentina after a few years. but, maybe it could be considered an investment too? considering after 25 years, the rent gain recovers the cost of purchase. if selling it is such a hassle, just rent it to someone i guess

Ok valid point, but again, the money is forever (or as long as these populist governments last) in Argentina. And if you buy, leave and rent it out, how do you suppose you are going to get the rent money credited to you? The only way would be to have the person pay you abroad, or have them pay you with a credit card, drawn on an argentine bank via PayPal or other similar payment service. These workarounds are valid to an extent but just wait as the Arg government becomes more and more tech savvy, their tentacles reach deeper and deeper into your pockets and they will find a way to make paying rent by credit card, or other means "illegal". I've seen so many of these things happen in the past 6 years, I can imagine what is coming up next.......

 

[mrporoto]

Can be a problem,but I have experience in buying,similar situation to you.PM if you want a chat,no obligation.suerte

 

[la_guachita]

Sometimes I'm amazed at the range of experiences (and prices) among foreigners in Argentina. I bought from the owner and the only legal fees were AR$2000 for the escritura. By now escribana fees have probably gone up to AR$5000 though.

 

[Davidglen77]

Escribano fees are usually 1% of the purchase price and sometimes as high as 2%. I find this very perverted as their fee should be a flat fee like everywhere else in the world. I understand the real estate agency charging commission because they are involved in the negotiation of the price. The amount of administrative work required for a $150,000 U$D prpoerty is the same amount of work for a $500,000 property. Same papers to be filed, same libros, same registro, etc. But they charge a higher amount just because you are buying a more expensive apartment?? WTF??? Also remember all of the other fees, which the escribano COLLECTS but are then sent to AFIP, such as deed recording tax was 1% now as high as 3% in some places and several other taxes and fees payable to Cristina as well.......