Cost of Land

[ChalecoVerde]

Hello all, not sure if this is the correct sub-forum. I came across some land in Formosa that is selling at about $340/hectare. The price seems extremely low especially when compared to neighboring Paraguayan land. The Argentinian land seems to be about 1/3rd the price of land in Paraguay Chaco although the Argentinian soil seems richer. I understand that the land in Formosa can support cultivation of cotton, corn, and cattle.

I'm guessing that it has something to do with export restrictions and currency controls. But those are temporary phenomena so the land in Argentina appears to be undervalued.

What do you think? Does this price sound typical for that region, what is the best region to buy land for cattle?

 

[Dougie]

I'm familiar with both Formosa and Paraguay, but not so much with the current land prices.

The tax burden is lower in Paraguay. Income tax is 10%. The VAT is 10%. There are no export taxes for cattle that I'm aware of. The currency is fairly stable.

I wouldn't consider export restrictions and currency controls a temporary phenomena in Argentina. They've been around for more time than not for the last 20 years.

If what you say about the land prices being much cheaper in Formosa at the moment is true, I'm guessing it's for the reasons above.

Both Formosa and the Paraguayan Chaco are still very much the wild west. Very rural, undeveloped, smuggling, drug trafficking, run by the same corrupt families for the past 30 years. Has it's charms and drawbacks.

Is this just a business venture or part lifestyle choice too?

 

[ChalecoVerde]

I'm familiar with both Formosa and Paraguay, but not so much with the current land prices.

The tax burden is lower in Paraguay. Income tax is 10%. The VAT is 10%. There are no export taxes for cattle that I'm aware of. The currency is fairly stable.

I wouldn't consider export restrictions and currency controls a temporary phenomena in Argentina. They've been around for more time than not for the last 20 years.

If what you say about the land prices being much cheaper in Formosa at the moment is true, I'm guessing it's for the reasons above.

Both Formosa and the Paraguayan Chaco are still very much the wild west. Very rural, undeveloped, smuggling, drug trafficking, run by the same corrupt families for the past 30 years. Has it's charms and drawbacks.

Is this just a business venture or part lifestyle choice too?

Hello Dougie,
Very true, these conditions should not be considered temporary.
I read some news that raising cattle in Argentina is no longer profitable due to these restrictions and taxes.
Another difference might be property tax. In Paraguay for rural land, it would be less than 1/10th of a percent. Do you happen to know the cost in Argentina?
This land doesn't seem to be so remote. Probably only a couple hours from Asuncion. At least in Paraguay, you would have to travel quite a bit farther to get to the "wild west."
It's a fun business venture, probably a stupid one, ha!

In general, has there been a significant effect on property prices in terms of their USD value since the free float of the Peso was removed?

 

[on the brink]

In Argentina, cattle raisers figure that of four trucks that leave the ranch, they get to keep just one. The other three go to the government through a zillion of taxes, fees, and "retenciones".

 

[Dougie]

I meant wild west more in the sense of just undeveloped, little law enforcement, freedom to do whatever, corruption. The Paraguay River dividing Asuncion and Formosa is rife with cigarette, marijuana and cash smuggling.

Maybe check around Concepción too. I've heard prices are a little cheaper up there. Sounds like a fun venture, good luck!

 

[Alpinista]

In Argentina, cattle raisers figure that of four trucks that leave the ranch, they get to keep just one. The other three go to the government through a zillion of taxes, fees, and "retenciones".

What is the price range per ha in uruguay at the moment?

 

[ChalecoVerde]

What is the price range per ha in uruguay at the moment?

Good question. I would be interested in a Brazil, Uruguay, Paraguay, Argentina comparison for cattle-raising caliber level land. In the US, it's outrageously expensive.

 

[on the brink]

What is the price range per ha in uruguay at the moment?

It depends on many factors, like type of soil, location, road access, and parcel size. Small properties are more expensive per hectare. Cattle-raising land is cheaper than agricultural land.

Prices range from two thousand to five thousand dollars per hectare.

 

[mc kenna]

I have rifle and saddle, you provide horse and ammo, and i'm there, let me know lol

 

[Bajo_cero2]

Hello Dougie,
Very true, these conditions should not be considered temporary.
I read some news that raising cattle in Argentina is no longer profitable due to these restrictions and taxes.
Another difference might be property tax. In Paraguay for rural land, it would be less than 1/10th of a percent. Do you happen to know the cost in Argentina?
This land doesn't seem to be so remote. Probably only a couple hours from Asuncion. At least in Paraguay, you would have to travel quite a bit farther to get to the "wild west."
It's a fun business venture, probably a stupid one, ha!

In general, has there been a significant effect on property prices in terms of their USD value since the free float of the Peso was removed?

At Formosa only cebu can survive. The wheather ia super hot. Entre Rios, Santa Fe, BA and Cordoba are better and a lot more expensive, for cattle.
It is 1100 from BA and it is the far west not only because it is far, wild, undeveloped, jungly.
You should be carefull about how close it is from the Pilcomayo river. It might be a fraude.
There is a bann for buying land close to the frontier for foreigners, i’m not sure if this is still valid.
Also, the Pilcomayo river change its course every year. So, the land you buy might be at Paraguay the next year.