Buying Property In Argentina

[GS_Dirtboy]

(1)Bad time to buy.
(2)Losing money to rent it out
(3)very hard to sell, hard to move money out. Even hard to buy, are you aware of the 12% buying cost, not to mention the steps ..

Only Argies who live abroad feel the need to buy now, they always feel special of BsAs.

1. There are people making money on rentals. You have to know what you are doing. It needs to be the correct property in the correct building in the correct zone. Gone are the days when you could be an idiot and still make money renting property.
2. It is easy to move Dollars out to your overseas account through the Central Bank if you are are selling as a non-resident who purchased before November 2011.
3. You must get a certificate of sale from AFIP. To get this you must have paid your asset and rental income taxes.
4. How did you get 12% as the buying costs?
5. The purchase funds (Pesos or Dollars) must be declared. You must prove provenance of the funds (Pesos or Dollars) to purchase property here in Argentina.

 

[ghost]

1. There are people making money on rentals. You have to know what you are doing. It needs to be the correct property in the correct building in the correct zone. Gone are the days when you could be an idiot and still make money renting property.
2. It is easy to move Dollars out to your overseas account through the Central Bank if you are are selling as a non-resident who purchased before November 2011.
3. You must get a certificate of sale from AFIP. To get this you must have paid your asset and rental income taxes.
4. How did you get 12% as the buying costs?
5. The purchase funds (Pesos or Dollars) must be declared. You must prove provenance of the funds (Pesos or Dollars) to purchase property here in Argentina.

Each of these rules has at least 6 variations, depending on the day of the week, time of the day or phase of the moon. The big question is what is the compelling reason to invest in AR when it is so damn unpredictable. [isn't predictability one of the main tenants of investing?]

 

[PhilipDT]

I remember an old coworker of mine telling me that your first house or car is not an investment, your second one is.

I don't think it's 100% true but there is a lot of truth in it. Your primary residence is your home. You have an emotional connection to "home" that you shouldn't have to investments, when you look to buy a residence most people think first in what they want not what the market wants.

I've said in several theads that I don't understand why a foreigner would buy property here. The responses (from people who have bought or are decided on buying) always have the same flavor: If I buy it then it's mine; if I own it then I don't end up throwing away money in rent to someone else; I want to be able to do what I want in my own home.

Perfect, but recognize that that is a big part of the reason you're buying it, don't lie to yourself and tell yourself it's a financial decision. I guarantee that once you already have a place to live long term, if you start looking for another residential property to buy as an "investment" you'll probably be looking at very different properties.

 

[mariano-BCN]

(1)Bad time to buy.
(2)Losing money to rent it out
(3)very hard to sell, hard to move money out. Even hard to buy, are you aware of the 12% buying cost, not to mention the steps ..

Only Argies who live abroad feel the need to buy now, they always feel special of BsAs.

12 % costs? what do you mean? costs of the inmobiliaria, escribano and what else?

 

[GS_Dirtboy]

12 % costs? what do you mean? costs of the inmobiliaria, escribano and what else?

I'm not sure either. We can have different opinions about should/should not buy but let's stick to the facts when talking about the sale process.

Buyers' Costs:
1. 4% commission of the sale price.
2. 1.8% stamp duty paid in Pesos at the official rate
3. 2% Notary fees paid in Pesos at the official rate.
4. If you are not physically in Argentina then you will need to assign a power of attorney (poder). This is between U$500 - U$1000.
5. If you must send money here then there will be a fee for that depending on the daily rate.

#1 to #4 totals about 7% of the sale price in US Dollars.

 

[Matiasba]

I expect the situation will get a lot worse than it is today. It is just the beginning, it will surely happen a drop of the prices, as it happened in 1989 and 2001, although this time might be different, because of lots of others indicators.
Every ten years theres a moment when everyone needs desperately dollars, and that pushes rental prices and property prices down. That moment did not come yet, I think it will come, if not with this government with the next one. That is the time to buy.

 

[ajoknoblauch]

I expect the situation will get a lot worse than it is today. It is just the beginning, it will surely happen a drop of the prices, as it happened in 1989 and 2001, although this time might be different, because of lots of others indicators.
Every ten years theres a moment when everyone needs desperately dollars, and that pushes rental prices and property prices down. That moment did not come yet, I think it will come, if not with this government with the next one. That is the time to buy.

Shortly after a new government takes charge, then, the bills will come due...

 

[garryl]

I'm not sure either. We can have different opinions about should/should not buy but let's stick to the facts when talking about the sale process.

Buyers' Costs:
1. 4% commission of the sale price.
2. 1.8% stamp duty paid in Pesos at the official rate
3. 2% Notary fees paid in Pesos at the official rate.
4. If you are not physically in Argentina then you will need to assign a power of attorney (poder). This is between U$500 - U$1000.
5. If you must send money here then there will be a fee for that depending on the daily rate.

#1 to #4 totals about 7% of the sale price in US Dollars.

Also if your money is outside, the cost to move the money in Argentina, it cost me about 10-12% after all the dust settled. 2% notary fee ? My lawyer charged me a lot in dollars(because she speaks broken English). On the last day, the realtors and lawyer all dressed up(and seller) showed up at the bank, starting counting dollar bills by the bank table. Everyone took their money and run, all I had are problems.

If you are a cash buyer in US, the buying cost is almost nothing. Buying and selling real estate is like root canal in Argentina, plus the return is a joke, and managing is a nightmare, repair is impossible( have to wait part from Italy for a simple water heater problem, made in Argentina appliances break all the time, the lousy furniture made in China is more expensive than Pottery Barn here in BsAs, look at the Buenos Aires Design Center furniture, have you head of building explosion due to gas leak ?) Building expense goes up at 20-30% a year. Still want to buy ?I will sell mine to you. I would say, buy if you do not care the above tortures.

 

[garryl]

Here is a joke about my notary lawyer. I complained about my lawyer's high fee, but my realtor said she was worth it because she spoke English.

During the purchasing process, I asked my lawyer many questions and expressed many concerns, the answer I received from my lawyer was always the same :" You be quiet !" in English. I thought " wow, that's incredible rude, telling your client to shut up after he asks your a legit question". Later I realized she was trying to say " tranquilo", and telling me to relax. But her translation to English was so bad,

 

[Hybrid Ambassador]

Someone said once. You buy the gold mine but you rent/lease the dredging equippment.
If am to live there long term, will never rent but instead would own the property.