is this the right time to buy a flat in Argentina?

[mariano-BCN]

Hi all,
I'm wondering if this is the right time to consider buying a flat for me there. I travel every year and tend to stay for a couple of months -not 'cause I like the country so much but 'cause there're certain people I like- , 'cause I may work through the internet .

Properties were last few years very expensive (actually everything was more expensive than in Amsterdam) and I'm wondering if they're more affordable if you pay with Euro's (I'm living in Amsterdam, in the Netherlands) or eventually in dollars though a bank pay.

Does it really make a difference if you're able to pay in Euro's or Dollars?

Cheers

 

[Davidglen77]

You can probably negotiate well if you offer to pay in dollars or euros, however if you don't have the foreign currency already in the country, how are you going to get it here is the complicated part. There are ways of paying someone outside of the country for a property, but you'd have to consult an escribano well practiced in doing this or you risk major problems with AFIP at some point. Used to be you could wire the money here from out of the country, they would pay it out to you in pesos ARG, but then you could buy back the dollars or euros (at a higher rate of course) to pay the seller. Now even if you wire foreign currency in to Argentina, they will automatically change it in to pesos ARG and no way to buy the foreign currency back.

 

[mariano-BCN]

Paying is indeed a practical problem.
I heard about this case: an Argentinean living in Spain paid in euro's 60.000 euro's for a flat in BsArs (he managed to lower the price with 12%, is that nowadays common?) and did the payment into a bank account of the owner's brother who is living also in Spain. And the brother keep the money in Euro's in Spain for the owner.
It seems weird to me 'cause it requires lot of trust between the three persons involved but that worked out.

 

[Iznogud]

I'd say not just yet. This shit is still too fresh and people are reluctant to go with it. By the end of the year they might be less so.

Real estate and construction are hurting badly. Come summer those activities slow down even further. Then it might be a good opportunity.

Do not let this stop you from looking and finding ways o close the deal.In order to buy you will have to prove to the AFIP that money changed hands locally (I guess).

 

[cbphoto]

No It is not a good time to buy a flat...

 

[TrevorCito]

Are you crazy? No, don't do it. This country is not investment friendly so you risk losing a large part or all of your investment when you sell and try to take your money home. They have a sordid history of default and radical/unpredictable political/social policy that would make any intelligent investor run for the hills.

You will be better off renting a fully furnished apartment for a couple of months each year rather than buying. Buy USA blue chip corporate bonds which pay 4.5 percent annually and use the yield to pay for your fully furnished rental in bsas. Just a thought.

 

[mariano-BCN]

Looking at the prices at the site duenovende.com.ar: they're still rocket high :-(
as if BsArs is a 1st world city!

 

[solerboy]

Looking at the prices at the site duenovende.com.ar: they're still rocket high :-(
as if BsArs is a 1st world city!

The value of my apartment in Palermo is about 20% of a similar apartment in a simular neighbourhood in London. I think prices are still low here compared to many places.

However, it's a bad time to buy property becuause if the political and economic climate as discussed above.

Better looking at Spain if you want a bargain.

 

[earlyretirement]

NO, I would not say now is a good time to buy. I'd wait a year or so and see what happens. There are MANY restrictions and controls going on now and most sellers are trying to sell their places if they can sell them at market rates.

I'd wait to see what the next restriction or control is.

Make no mistake however, properties are still "priced" in dollars and valued in dollars. Not as many transactions now but there are still transactions going on and all they are doing is just having the funds wired to the seller's account abroad.

I wouldn't necessarily say property prices will go down either. But I still think it's wise to wait a year. There isn't anything else safe to invest in Argentina besides real estate or land. So there should always be value in them in good areas.

Also, I think that CFK will eventually do another amnesty program where she allows people to bring back funds into Argentina and pay little to NO taxes if they are buying real estate. Of course this go around I'm not sure she would have many takers.

I'd recommend you wait to see what happens before buying now.

 

[Ceviche]

Better looking at Spain if you want a bargain.

The fundamental rule of property investment is buy close to where you live or visit off and on. Not in some distant land where you go once in 2-3 yrs!