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

[earlyretirement]

.[/B]

I would also like to add, for those unfamiliar with how property transactions go down here in Argentina. Forget the clean, safe, low risk bank cheque 'exchange' process you are comfortable with in the first world, here we get down and dirty with real cash... you can almost see the cocaine crystals glistening on the greenbacks as they're being counted by the buyer.

Expect to turn up to the exchange with a suitcase full of greenbacks which may mean carrying hundreds of thousands of bucks with you through the streets of BsAs. Sure, the exchange might be held in a 'secure bank' or in some other pseudo secure location but is it worth the risk?

Beware, on EVERY level.

I agree with Trevorcito that you must Beware and be careful on every level. However, the other part is exaggerated and not sure what the part about "you can almost see the cocaine crystals glistening on the greenbacks as they're being counted by the buyer" was referring to. That part seemed odd.

If you're doing everything in white you just set up an account with a reputable firm like Banco Piano or one of the other long standing and reputable banks in town. You don't have to carry any cash at all. You just do the closing there at the bank and yes it is in cash but they just bring it out and count it out on the table.

And if you do have to transport money there are legitimate money transfer firms (the money exchange firms can recommend safe ones to use) that will insure the delivery. It does cost a few hundred dollars but you by no means would need to carry the cash yourself in the street.

I do agree the system is totally crazy and antiquated. But it is what it is. You just have to find the best way to do it without taking undo risk.

 

[solerboy]

I have been directly involved with three property transactions in Argentina, and two of the three were done via the counter clerk doing direct transferes between my and the other party's bank accounts. Only one of the three was done in cash.

 

[TrevorCito]

I agree with Trevorcito that you must Beware and be careful on every level. However, the other part is exaggerated and not sure what the part about "you can almost see the cocaine crystals glistening on the greenbacks as they're being counted by the buyer" was referring to. That part seemed odd.

My 'cocaine crystals' statement refers to the 'crudeness' of the transaction... it's unrefined, complicated and highly risky. Sorry, it does come across as a bit abstract/obscure/strange but it stems from this article: http://www.guardian.co.uk/world/2009/aug/17/cocaine-dollar-bills-currency-us

 

[earlyretirement]

My 'cocaine crystals' statement refers to the 'crudeness' of the transaction... it's unrefined, complicated and highly risky. Sorry, it does come across as a bit abstract/obscure/strange but it stems from this article: http://www.guardian.co.uk/world/2009/aug/17/cocaine-dollar-bills-currency-us

Absolutely the transactions can be crude and complicated. NO doubt about it and I 100% agree with you. However, they don't have to be highly risky if you structure it properly.

 

[Dipoots]

Everybody has a different idea of what a high price is, and what a good deal is- but if you can buy a 2 bedroom in Palacio Salvo for $130k US, I sure dont consider that to be "higher that BA".
An equivalent apartment in an equivalent building and location in BA could easily be double or triple that.
In fact, I dont think you could buy an apartment in a building like Palacio Salvo in any city in the world for anywhere near that little money.

http://realestate.totaluruguay.com/...alacio_Salvo_as_seen_from_Plaza_Independencia

this looks nice! and cheap

 

[earlyretirement]

Meanwhile, in Buenos Aires, the 14th floor of Edificio Kavanagh is for sale- for a measly 3.6 Million dollars.
http://www.bastay.com/buenos-aires-real-estate/edificio-kavanagh-14th-floor-reduced-in-price-3-6m

I totally agree that real estate in Buenos Aires is much more expensive than in Montevideo.

Not sure that is the best comparison as that one in the Kavanaugh building is an entire floor and quite large. I've actually been in that apartment and it's quite cheesy! I actually met the owner of that property and he's quite a character!

But I have to say the guy has horrible taste in decor. That is one of the most beautiful buildings in Buenos Aires and just a classic building and the owner put in all kind of funky disco lights and other things. Totally whacky guy...

 

[earlyretirement]

I totally agree that real estate in Buenos Aires is much more expensive than in Montevideo.

Not sure that is the best comparison as that one in the Kavanaugh building is an entire floor and quite large. I've actually been in that apartment and it's quite cheesy! I actually met the owner of that property and he's quite a character!

But I have to say the guy has horrible taste in decor. That is one of the most beautiful buildings in Buenos Aires and just a classic building and the owner put in all kind of funky disco lights and other things. Totally whacky guy...

Here is one of the photos of the living room with the neon red and green lights!

http://www.buenosairesluxury.com/the-living-room.asp

When I was there, this guy was showing me the red and green NEON lights like it was something cool or something. I had to really struggle not to start laughing out loud! It was so hard to contain myself from telling him it was a disgrace to do something like this with such a beautiful property in one of the most classical buildings in Buenos Aires.

 

[mbw]

I don't know the answer. For logical, personal reasons we are going to sell our modern, small condo in a 24 hour secured building. If you want more details, send me a private message.

 

[GS_Dirtboy]

Getting Dollars into Argentina costs between 0% and 1%. Getting Dollars out of Argentina costs between 6% and 7%.

 

[cbphoto]

I think the problem is not so much the $'s in (that is not the easiest task either.. having to prove all the funds, FBI report etc..) but getting the official rate of somewhere around 4.6% for your $'s. When it is time to get your monies back out of the country.. again proving that you did not have any rental income/owe any extra taxes.. plus by the time you are ready to sell.. the Argentine government might/most likely will have changed it's policy on you taking your money out of the country..more than likely capital gains taxes will also have gone up...and the official pesos to $ exchange rate will still be way off...
I also don't have a crystal ball.. but almost 100% sure the getting money in getting money out will cost you much more than 0%-7%

Roughly 10% in total closing when you sell
Roughly 7% to get your monies out
Roughly 30% difference in the official $ rate vs. reality.

So 47% of the value of your property gone if you were to buy it today and sell it tomorrow...at the "same price"

I am no expert.. and I am sure some will point that out to me following this post
But that doesn't sound like a good investment..