Real estate questions

Silviatic

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Hi all, I’m an Argentinian-Canadian considering retiring in Argentina. I haven’t been in Argentina since I was 12 except for a few visits no more than 2 weeks long over the decades.

When I check houses or apartments, the prices seem too high for a Latin American country and most of them are in USD. I wouldn’t buy unless is a safe and quiet neighbourhood.

My question is: are those prices real or exaggerated and people settle for less? And how do you transfer the money if there are restrictions on foreign currency?

Is it better to pay in full or apply for a mortgage and invest the money? And what about buying on paper ( when building is still in plans)?
We are looking into five to six years from now, plan ahead, visit and rent to choose the barrio well, and either BA o a smaller city such as Mar del Plata
Any ideas are welcome
 
You ask questions with complicated and ever-changing answers. I would highly recommend you use the search function on this site, settle in for a lot of reading and advice, and then, if you’re still feeling brave, ask away!
 
You have a number of questions that require detailed answers . The current answers may have no validity six years from now..?

  1. Properties are quoted in Dollars, prices vary substantially depending on the Barrio.
  2. Use the web page Soloduenos.com.ar to get a price overview
  3. The listed prices may be up to 20 % higher or more than the closing price Today!
  4. Mortgages are almost non existent, most sales are cash on the barrel
  5. Buying in el Pozo is an option to get a better price
  6. Transferring the funds has many options, ideally transfer the money to the seller overseas account
Recommendation : After the Pandemic is over rent an Airbnb for a couple of weeks and check for barrios, apartments , payment terms, buying in Green, etc.
So many cities and options, Rosario, Cordoba, on the Costa Atlantica, etc, etc,
 
You need to wait until you can visit in person. Argentina is unique, and very different from Canada.
Prices are indeed pretty high. FAR below Vancouver, say, but not comparable to the stereotype of third world countries.
And prices are in dollars, and sales are done in CASH US dollars. Its byzantine and weird, and requires good local help.
Mortgages are not really practical- they are hard to get, short, and will have insanely high adjustable interest rates. You will end up paying cash.

Really, come back for a month, and experience the reality. Then decide if its for you or not.
You can get some financing if you buy ahead of completion in a building that is being built- but the type of apartment may or may not appeal to you. Some people love em, some hate em. To me, the charm of Argentina is the ability to buy well built, older homes and apartments with iron, stone, tile, and woodwork you would pay millions for in european cities. But thats just me.
 
We are looking into five to six years from now, plan ahead, visit and rent to choose the barrio well, and either BA o a smaller city such as Mar del Plata

In five or six years Argentina could be totally different, or exactly the same. Come down and rent for at least six months, to have a chance to experience life here. A one or two-month trip is more of a vacation - not enough to really get to know what living in the Third World is like.
 
My advice on buying a dwelling / property in Argentina:

RENT, RENT, RENT ... You are free to come and go with very little, if any financial penalty.

In the meantime, search for an area that interests you. When you find one, learn as much as you can about it. Visit the area of interest every day of the week and at different times of the day. This simple little exercise, that so many people neglect to do, will potentially save you from making a bad decision about an area that looked good on the one our two occasions you visited it.

If you buy something and decide you need to sell it to fix a mistake ... well ... to use a kind reply ... it's not going to be that easy. The concept of buying and selling properties here isn't like EE UU. It's a long, drawn out process with a healthy dose of frustration most of the time.

Follow the old carpenter's adage ... "measure twice, cut once!" This is another way of saying, be doubly sure you are buying the right property. Check it out extensively. In that way, you will probably nail it on the first try. Fixing large financial mistakes here will hurt if you are in a hurry.
 
In the meantime, search for an area that interests you. When you find one, learn as much as you can about it. Visit the area of interest every day of the week and at different times of the day. This simple little exercise, that so many people neglect to do, will potentially save you from making a bad decision about an area that looked good on the one our two occasions you visited it.

Excellent advice. I did something like that, long ago. We lived in the suburbs, but once considered buying a house in DC. I knew nothing of the area so I took a book, a thermos of coffee, and parked the car in front of the property. I stayed there all day watching the street traffic - people and cars - to get a feeling of the block.

Buying a home is a huge commitment - the more you learn about it beforehand, the better.
 
Excellent advice. I did something like that, long ago. We lived in the suburbs, but once considered buying a house in DC. I knew nothing of the area so I took a book, a thermos of coffee, and parked the car in front of the property. I stayed there all day watching the street traffic - people and cars - to get a feeling of the block.

Buying a home is a huge commitment - the more you learn about it beforehand, the better.
That's exactly what I had in mind.

I was once interested in a property and I did pretty much the same thing. (Mind you, I wouldn't have done this if I had no intention of the place being my primary residence.) I visited the property every day for a month at different, random times of the day. It looked pretty good. Then I hit the perfect time I was looking for. There was a house directly across the street from the piece of land I had my eye on ... for all intents and purposes, it was well maintained and looked to be sleepy in nature. Well ... the occupant had some kind of a crazy schedule that brought the place alive at 5AM most days and they had a life partner that went to war with shouting and screaming when they returned from work ... must have been a third shifter. Anyway, this discovery saved me a ton of aggravation. Once I confirmed that it was not an isolated incident ... IT ACTUALLY HAD A PREDICTABLE PATTERN TO IT ALL ... I thankfully crossed the place off my list and realized I had done a good thing.
 
It also helps to talk with the neighbors, although they are generally defensive about their block.
 
You might also consider retiring in Uruguay?

some advantages:
- free access to USD, in Argentina you can only convert pesos to USD at the black market for the moment (at twice the official rate).
- no yearly wealth tax of 2,25% only a tax of 12% on dividends if you have not paid this tax abroad yet, otherwise you are exempt from the tax and this tax only applies if you have been a resident for more than 5 years. Uruguay is considering lowering this tax to 7% and increasing the time period before paying this tax to 10 years: https://www.lanacion.com.ar/economia/lacalle-pou-pide-al-parlamento-uruguayo-mas-nid2381942

For the reasons above, I am out of this country when the quarantine ends. (I will keep paying visits, but no way I want to settle in Argentina.)

Buenos Aires is just across the river, you can take a ferry several times a day in case you want to travel in Argentina.
 
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