Is real estate price converted to pesos at purchase?

Sequoia1321

Registered
If someone - not well travelled, limited economic resources, not very experienced in these matters, doesn't know country and doesn't speak language - arrives here and buys real estate, that's the pure opposite of stability. That's in my view a high risk investment because you cannot know how things will turn out for this person here. Chances are, that after a few years you will move back and make a significant loss on your real estate (only buying and selling is at least 10% of your investment). Don't get me wrong, I encourage anyone to explore new countries and get out of the comfort zone, but don't put all your money on it. Have a plan B. Come here, wait and then after a few years you can still buy.
Well, with all due respect to Sequoia, that's pretty much the case we have on the table here. Of course I understand your friend's position. For similar reasons I also bought a place here two years ago.
To clarify, I'm not necessarily planning what you suggested above that I may be doing. Just trying to understand the situation. What do you mean by your statement that "(only buying and selling is at least 10% of your investment)."
 

Alpinista

Registered
To clarify, I'm not necessarily planning what you suggested above that I may be doing. Just trying to understand the situation. What do you mean by your statement that "(only buying and selling is at least 10% of your investment)."
Typically you spend 5-7% on fees when buying. Notary, real estate agency, taxes, lawyer (if the transaction is complex, usually not necessary) etc. The same then applies when you sell object (not even considering potential taxes on gains). I don't know the exact numbers and they might not be linear (e.g. taxes might be higher in % for more expensive objects). If you find an object without real estate agency, then you can lower this amount. My calculation (thumb of rule) is probably that the number is between 8 and 15% for (buying and selling). Then there might also be fees for the transaction (depending on how you can structure the deal; but bringing the money to Argentina is usually not free). So the costs may vary from case to case, but they can be considerable especially for buying / selling within a relatively short time.
 

EL_TIGRE_de_Tigre

Registered
Typically you spend 5-7% on fees when buying. Notary, real estate agency, taxes, lawyer (if the transaction is complex, usually not necessary) etc. The same then applies when you sell object (not even considering potential taxes on gains). I don't know the exact numbers and they might not be linear (e.g. taxes might be higher in % for more expensive objects). If you find an object without real estate agency, then you can lower this amount. My calculation (thumb of rule) is probably that the number is between 8 and 15% for (buying and selling). Then there might also be fees for the transaction (depending on how you can structure the deal; but bringing the money to Argentina is usually not free). So the costs may vary from case to case, but they can be considerable especially for buying / selling within a relatively short time.
EXACTLY!

TAKEN FROM MY POST @ 9:01PM yesterday:

"(And the $250K purchase does not take into account all the associated fees and costs with the transaction ... but it bumps that $250K number higher.)"

Sequoia,

There is an old saying, and mind you, I am not apply the saying to you for asking questions. Quite the contrary, you are exhibiting high intelligence by asking questions so that you can learn and avoid future trouble.

But If after someone receives good answers (and guidance) to their questions, on a topic they aren't experienced with, by people who are, then the seeker of knowledge acts contrary to the answers / guidance ... Then the saying very well may apply:

"You can't save a fool from themself."
 

DomoDomo

Registered
I might be wrong but swear I read a thread that included pretty much step by step instructions for buying an apartment in BA, wiring the dollars, etc. Searching through can't find it. I saw this one in the past and it has good information but does anyone recall a more detailed post? Thanks!
 
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