Post Elections, The Blue Dollar, And The Economic Horizon

GS_Dirtboy said:
Buyers are currently required to provide source of funds and people are still buying. It's the seller-side that has my attention. Let's take a simplified Bankarized scenario.

1. Foreign-owned property is listed for U$200,000.
2. Buyer agrees to U$200,000.
3. Bank says Dollars must be converted at the official rate. U$200,000 X 5.9 = A$R 1,180,000.
4. Seller will get A$R 1,180,000.
5. Now what? How does the seller get their funds? Convert to Dollars at the blue rate?
6. A$R 1,180,000 / 9.8 = U$120,408
Click to expand...
That's why when you price a prop in us dollars ,you take into account this gap,so in order for the seller to get the original amount equal to 200,000
he would have to price it 330,000 dollars at the official rate ,or forget about pricing in us dollars and ask straight up 2 million pesos and run to your cueva to get your 200,000 us
 
As that things are pretty much going to hell in a hand basket , many sellers are asking what they think their properties MAY be worth. That said , in many situations , a seller will take a greatly reduced price. A friend bought a warehouse/office where the seller was asking 300k , they offered 200k , and think it will go through. So , as was after the last financial meltdown , it appears a buyers market may be coming our way in terms of real estate and perhaps automobiles , as folks desperate will sell cheaply.

So , in GS situation above , offer 120k. That seems to be the REAL price after all.
 
Are the properties in "La Capital" overpriced at the moment or are they just at a risk of becoming really "under-priced"?
 
Venzuela has blocked 9 web pages based in the USA that published the Blue dollar rate 8 times de official rate. Maduro stated that if based in Venezuela de owners would be jailed...!! Is this a weiting on the wall....?
 
mc kenna said:
That's why when you price a prop in us dollars ,you take into account this gap,so in order for the seller to get the original amount equal to 200,000
he would have to price it 330,000 dollars at the official rate ,or forget about pricing in us dollars and ask straight up 2 million pesos and run to your cueva to get your 200,000 us
Click to expand...

The problem with this scenario is that there is an established market price for property. In the neighborhoods of Recoleta and the Palermos apartment selling price ranges from U$2400 to U$3000 / m2 depending on building amenities, view, location within these neighborhoods, property expenses, etc. The very nicest buildings might get a bit more. The sellers who price their property above this (and who are not willing to negotiate to the real price) are not selling. Buyers are not stupid.
 
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