Loan On Real Estate Possible?

[JPinBA]

I am the proud owner of a nice little place in San Telmo for six years now and I am staying here on a tourist visa.

Does anybody have experience with getting a small bridging loan (in dollars or euros) using this type of property as collateral? I was thinking about something like 3000 dollars.

Is it possible to do this without too much hassle?

Would the cost be reasonable or would it be expensive?

I was just wondering if it is worth to try this or if I better look for some other solution.

Your advise is much appreciated

JP

 

[nikad]

The sum is small, you will not get a regular loan using an apartment as collateral. Also being here as tourist banks will not give yo a loan. Interest is crazy high for loans anyway. If you can get a loan in the US it would be a much better deal.

 

[Rich One]

The rate is very high, loans in dollars or Euros not possible. If possible I would go to the bank right now !!!! borrow in dollars pay back in pesos at the oficial rate?? The Dollar went up 52 percent in the past year,,,,!!!

 

[JPinBA]

Thanks nikad,
I'll try something else then.

Get in touch with my bank right away!

 

[Fredd]

ask a loan in pesos, buy the dollars and pay back in pesos. this is the most simple cause you still can pay back without interests cause you can put the property as " garantia".
Do it in pesos only. dollar will continue rising up.
Im not shure about if you need an argentine document for this loan I presume you Do need it.
good luck
Fredd

 

[JPinBA]

Exactly Rich One,

Everything became much more expensive, but at the same time the banks gave me more and more pesos whenever I went to an ATM.
It's still going up all the time.

 

[JPinBA]

Yeah Fredd,
It's the DNI that I don't have, so I think it's not possible with an Argentinian bank.
But thanks for the idea to get a loan in pesos.

Cheers,
JP

 

[steveinbsas]

Yeah Fredd,
It's the DNI that I don't have, so I think it's not possible with an Argentinian bank.
But thanks for the idea to get a loan in pesos.

Cheers,
JP

Even if you had a DNI, unless you can provide evidence of income (the ability to repay) it's highly unlikely any bank will give you a loan.

When I inquired about this in 2009 I was also told that permanent residency was required.

I found private lenders willing to loan me $5000 USD, but they wanted at least 50% interest.

Everything became much more expensive, but at the same time the banks gave me more and more pesos whenever I went to an ATM.
It's still going up all the time.

If you are using ATMs in Argentina to get pesos you only receive the official exchange rate to one dollar. Last time I did that the rate was $4.7 per dollar.

Last week I used XOOM to change $450 at a rate of 6.6 pesos per dollar.

I received $2970pesos. If I used an ATM I would have received $2115 pesos. The service charge was less than $15.00 USD.

If you are from the USA I suggest you try XOOM. You don't need to have an Argentine bank account.

Edit: I just visited your website and see you are from The Netherlands. I don't know if XOOM is available there. If not, perhaps someone knows of an alternative service and will post about it..

 

[Rich One]

ask a loan in pesos, buy the dollars and pay back in pesos. this is the most simple cause you still can pay back without interests cause you can put the property as " garantia".
Do it in pesos only. dollar will continue rising up.
Im not shure about if you need an argentine document for this loan I presume you Do need it.
good luck
Fredd

May have misunderstood your statement ;" you still can pay back without interests cause you can put the property as " garantia".

Where are loans granted without interests?
Regards

 

[JPinBA]

Hey Steve,

Thanks for the Xoom tip. I am from The Netherlands indeed, but make some of my income in the US promoting cpa offers and all that, being paid with direct bank transfer. So I think there is a possibility there. I will certainly look into it.

That sounds like a good business, being a private money lender, making 50%. I don't think I will do that.

It's a pity though that banks make life so difficult with their crazy rates.

Because in many countries it's a very normal business, when you already own some property to borrow money and buy more property. With the rent you receive you pay the bank every month, and this way you can build up a nice portfolio over the years.

So that's one of those things I just don't understand about Argentina. Banks who don't want to loan you money for a solid investment shoot in their own feet in my opinion. It's not as if those houses walk away, so what's the risk? Oh well ... :mellow:

Anyway , thanks again for the tip.

JP