Inversiones En Pozos.

[French jurist]

I recall, back in 2003, that many construction sites were stopped, likely because the crisis of course.

With the local situation likely to be berzerk in late 2015 & 2016, I wonder about the risks

 

[nlaruccia]

First, I thought invest in Pozo meant put money in oil stocks!

That's funny. My Argie friend though it meant investing in soil or dirt.

 

[Davidglen77]

Actually these "pozo" projects are not as risky as people think because of regulations that have been put into place in the last few years. I don't know the exact number, but the builder has to demonstrate liquid assets of like 50% of the project's cost to be even able to offer these unbuilt apartments for sale, then the building is completed with the people who buy into the project. If you look into it, there really aren't many cases in the last 3 or 4 years that you will find of people losing their money. What does happen and more times than not is that the project is completion date is delayed, not because of the builder but because of government red tape (which will strangle you in Argenitna) to get the final certificate of occupancy so that you can move in. So if you are told a specific date, tack on 6-8 months and make sure you have somewhere to live for that long, and if you get to move in when they told you the project would be finished, well then you get a nice surprise....if it was such a risky deal first you wouldn't have so many of these projects around and when you go to look at them, usually most of the units have been already purchased.

 

[thorsten]

Is there a way here that payments are released based on milestones? For instance, you buy an apartment and deposit the money into a special account. However, the construction company only gets access to a certain amount for each step; if its confirmed that its done, it will get the next milestone payment and so on. This way, the project developer is sure the funds are available and the buyer does not have the risk to pay the whole thing and the company makes a run with the money without holding their part of the deal.

 

[Alicia karr]

Is there a way here that payments are released based on milestones? For instance, you buy an apartment and deposit the money into a special account. However, the construction company only gets access to a certain amount for each step; if its confirmed that its done, it will get the next milestone payment and so on. This way, the project developer is sure the funds are available and the buyer does not have the risk to pay the whole thing and the company makes a run with the money without holding their part of the deal.

But that would be so un-Argentine!