To Sell Or Not To Sell?

[Jaredberryman]

It's really not that hard to get a tourist Visa. If this person got a Tourist Visa, he could go and invest in some property in the U.S., where he would get a better return on his investment renting it out. He can also get a U.S. bank account. If worse comes to worse, he can live in Argentina, while protecting his property investment in the U.S. You don't have to be there to own properties and rent them out. I have plenty of Argentine friends that have done this sort of thing.

 

[hazlo]

I think Selling is the way to go..... But I am getting mixed opinions as to how to get the money OUT of Argentina. BancoSur quoted me 6%. So for 300k that is a whooopping $18,000 wire transfer fee. Ouch! If anyone knows a cheaper way, let me know please!

But if yo are in the market to buy a great property, Check out my place for sale:

http://baexpats.org/classifieds/item/342-for-sale-by-owner-2-bedroom-condo-in-puerto-madreo/

 

[Rich One]

I hope it's a good plan because that's what I intend to do within the next 12/18 months.

My situation is a bit special since I pay low rental fees (3000 pesos for a house+garden+pool) but that's even more valid for expats using short term rentals & paying 1000 USD.
The landlords of the house I live in wish to sell the house. They are not too satisfied with the estimate given by the real estate agent, and hope for a price of around 190.000 USD. The market is really slow, it's unlikely they'll get dollars, they want to sell the house but not for a too low price, the house could take 3 months to 2 years to sell (impossible to know), etc. On the other hand, if I'm making enough money to offer to pay monthly 3.000 USD during 6 years, maybe will they be interested (total of 216.000 USD= a bit more than what they wanted, getting paid in USD will be their "premium" for selling me the house on monthly installments + avoiding the risk of a sudden peso devaluation, etc.).

Same could be said for an expat paying in Capital 1.000 USD for an apartment worth 150.000/200.000 USD, and intending to stay here for +4 years. Maybe it can be worth it to try to buy an apartment in a potentially profitable place (Caballito, etc.) worth 150.000, paying installments of 3.000 on 5 years.

That's a bit the other side of the OP message. A "window" to buy real estate is in front of us. Some may have the cash to buy straight, some others not (my case).

There's also a risk that the real estate prices crash within 24 months, like in 2002, so the timing aspect is important too. For instance, Uruguayan friends of mine bought a PH in Cabrera x Bonplan in early 2002, right after the corralito. They paid (I'm not joking) 40.000 USD at the time (groung floor = about 80/90 sq. meters, a room on a half floor and an azotea/terrace above of 80/90 sq. meters as well). This PH is likely worth now 200.000 or so.

I might even try this technic to launch my project of black truffles cultivation (in Patagonia, in a micro-climate, using lands where trees have been burned down some years ago = makes the soil poorer, raises the pH -not the same PH as above- + Calcium in the soil = perfect for truffles).

I'm wondering though if any expat has done that (negotiating directly with owners). The sales contract will be the tricky part though (when to do the "escritura", guarantees not to get scammed and such).

Frenchie one question? The present value of a payment of USD$ 3000 per month at an interest rate of 15% for 72 months seems much lower than $190,000 in my calculator is $153,451....! Assuming an 15% interest per annum ( The current interest rate on CD's) Doesn't look like a good deal for the landlord.???

http://www.calculato...ity-calculator/

 

[French jurist]

Indeed, like Steve and Rich One said, my calculation is a bit odd.

Here's how I would sell the idea:
- It's unknown/unclear if the owners would be able to sell their house cash within 2 years, while paying 3.000 USD installating from month number 1 would guarantee them to have received 72.000 USD after 2 years.
- It's probably unlikely they would receive USDs if they were to sell their house cash and there's a risk receiving pesos (sudden devaluation, whatever). The risk associated with receiving a payment in pesos must be considered.
- The owners would skip the Real Estate commission since a deal would take place directly with the buyer.

But indeed, my calculation likely falls too short but well, everything is negotiable in Argentina. I'll check out with an attorney after the vacations to see how protection can be assured.

 

[arlean]

Here is a quick note re Florida. one of my relatives is buying bank-owned real estate in Florida. He is in Brevard County though,not Miami. He has told me about some incredible deals. One he told me this week is a 7-unit compex for $200k. He has seen 3 bedroom CB houses in fairly good condition (but none perfect) for $26,000. Incredible. And in an acceptable area. However, prices are rising now and the $26,000 might be $40,000 now. It has taken a sudden jump, but the apartments are still there. One of the units is a commercial but is not on a major artery though it is on a thoroughfare. He thought the best idea would be to turn that into another living unit as well..

Just saying . . . in case anyone is interested.