How Does Buying A Real Estate Work Around Here?

[spiritk]

hi,
I'm living here for abit and has been entertaining with idea of buying an apartment in some central BA zone and turning it into student residecy\short-term rentals. Would love to know more about the procedures of buying a real estate here: Only by residents? How do you pay, dollars in a suitcase? Possible risks beyond argentina deciding one day that no foreigner may have an asset in the country anymore?

thanks!

 

[RodalfoWalsh]

Only by residents? How do you pay, dollars in a suitcase? Possible risks beyond argentina deciding one day that no foreigner may have an asset in the country anymore?

No, Yes, Not going to happen.

 

[GS_Dirtboy]

Anyone can buy property here (except perhaps Judge Griesa). You need to show provenance of the funds for the purchase. That's a fancy way of saying you need to show your money came from legitimate and declared sources. You need to consider usual and customary market trends for ROI on your investment. Owning property here is not a complicated issue. In any version of Argentina that I can imagine in the future your investment will be safe from forfeiture.

Hope this helps.

GS

 

[GMXam]

The only issues I've heard about are

1) once you've begun the purchase process (it takes lots of patience and a lack of caring once you've committed to the purchase) and

2) if you decide to sell, you may have a problem getting your cash out of the country or even out of pesos.

If you don't plan on keeping that property forever, you may want to consider whether it will be worth the trouble you may have if you decide to sell it in the future.

 

[steveinbsas]

Here are ten tips off the top of my head about buying real estate in Argentina:

1. Anyone can buy property in Argentina. If you are a resident you will have a DNI (ID number). If not, you can get a CDI from AFIP.

2. The buyer usually pays the real estate agent a commission of 3 or 4 percent but in addition to showing property and presenting offers, the real estate agent rarely does more than get the buyer and seller together for the boleto and the escritura (closing). A small (and refundable) deposit (one or two percent) is typically provided with the offer.

3. The escribano (who is "above" a lawyer in the professional hierarchy in Argentina and prepares all of the paperwork for the escritura/closing) should order the "informes" (report to see if there are any liens against the property) before the boleto. The buyer ALWAYS chooses the escribano (who usually charges 2%). Be sure the informes have NOT expired before the escritura/closing takes place. I believe the real estate agent can also order the informes (before the escribano is selected).

4. Real estate closings can also be done by "lawyers" who often charge less (1%), but I've always used an escribano with a great reputation and I can recommend one in Capital Federal that I know well.

5. The seller often chooses the location of the boleto and the buyer usually chooses the location of the escritura. Banks charge for the use of a private room for these transactions but usually offer account holders (of the individual branch/sucursal) a better rate.

6. At the boleto (which the escribano may or may not be present) the buyer usually pays 30% and the real estate agent usually takes his/her commission at the same time.

7. If the seller does not follow through with (complete) the sale he/she usually owes the buyer double the amount of the boleto.

8. At the closing the buyer pays the seller the balance due, the escribano is paid, and the keys to the property are handed over to the buyer. If you are buying a property that was occupied when you first saw it and made the offer, be ABSOLUTELY SURE it has been vacated AND NOT STRIPPED OF ANYTHING THAT WAS INCLUDED IN THE SALE on or before the day of the escritura! While it is customary for the seller to take the curtains, light fixtures and air conditioning units and leave the kitchen stove, it is NOT customary for the seller to remove the calefon (water heater) or claefactors (heating units).

9. As GS noted, you need to show the provenance of the funds for the purchase, at least to the escribano's satisfaction, as he/she is ultimately responsible for verification of the provenance to AFIP if they ask (at least that was my experience when I first bought property in BA in 2006).

10. I won't comment on how to bring money into Argentina today as it's been too long since I did that and many things have changed since then (multiple exchange rates), but whatever you do, DO NOT transfer funds into the country through the central bank at the official exchange rate.


Other members are welcome to add to or update anything in the above list.

 

[mmoon]

hi,
I'm living here for abit and has been entertaining with idea of buying an apartment in some central BA zone and turning it into student residecy\short-term rentals. Would love to know more about the procedures of buying a real estate here: Only by residents? How do you pay, dollars in a suitcase? Possible risks beyond argentina deciding one day that no foreigner may have an asset in the country anymore?

thanks!

In answer to your other questions:
Yes, literally, cash in a suitcase.
If there is a greater "possible risk beyond Argentina deciding one day that no foreigner may have an asset in the country anymore" I would like to hear it. And yes, possibly yes, because anything is possible these days.

 

[jantango]

The escribano fee of 1-2% of the purchase price and the real estate agent commission of 2-4% are both subject to the 21% VAT

Transfer tax and recording fees are 2% of the purchase price.

 

[Churchill]

[background=rgb(252, 252, 252)]9. As GS noted, you need to show the provenance of the funds for the purchase, at least to the escribano's satisfaction, as he/she is ultimately responsible for verification of the provenance to AFIP if they ask (at least that was my experience when I first bought [/background][background=yellow]property[/background][background=rgb(252, 252, 252)] in BA in 2006).[/background]

[background=rgb(252, 252, 252)]What exactly does this involve? Say for example we are talking about 50,000 USD, how does someone show where that came from? Normally, savings of that type build up over many, many years. What will satsfy an esribano? How many wage slips would they want to see? Signed sworn statement saying that money is mine enough?[/background]

 

[Vbkk]

@ Churchill. I just went through the same thing.... Get a letter from the bank saying that you have so much amount that available and how long you have been a customer with the bank, Signed and notarized by the bank manager, plus one year worth of bank statements. The escribano will take verify all the docs after that you can start the process of buying

 

[Churchill]

thanks for the info, the bank statement issue no big deal, the bank manager letter and getting it notarized sounds a real pain in the arse though.