Buying Property in Argentina
Having bought my first apartment in December 2004 and
two more in the following months, I can tell from my
experience that for those foreigners interested in buying
a property there will be no complications or restrictions,
not even with the currency at the moment of withdrawing
your profits. The purchase process is made of simple
steps you have to follow. First the buyer makes an offer
which consist of a small deposit (no more than a 10%
of the cost of the property). When the offer is accepted,
a closing date is set 30 to 60 days later for the payment
of the balance of the offer and delivery of the deed.
You do not have to be present. I gave my solicitor the
power of attorney who will perform the service for you.Your
cost will be a 3% to 4% Real Estate commission plus
the 21% VAT (valved added tax) on the commission. There
is no VAT on the purchase price of the property unless
is a new construction. You also pay the Notary to produce
a clean title. His fee and cost will run about 2.5 percent
of the purchase price, including the 21% VAT on his
fee.If you are a foreigner and are purchasing within
the city of Buenos Aires, there is a 2.5% stamp tax
paid to the city, but your first property is exempt
from this tax. If you are buying a second property the
2.5% cost is share in half with the vendor.It is much
more easy to buy a property from an argentine vendor.
In case you choose an apartment from foreign landlord,
it is necessary to make a 2-4 months errand at the public
tax office.In some cases (usually when the vendor lives
in the property for sale) it is necessary to make a
"Boleto de Compra-Venta". This "Boleto"
is like a selling contract that states the price, the
time scheduled for the operation, etc. By signing it,
you will have to pay 30% of the total value of the apartment.
Ralf Hobeck
Real Estate Agent
Prime Neighbourhoods
Where to buy? Buenos Aires has the largest and most
active Real Estate market. You will be comfortable living
on the Eastern side of the city in the neighbourhood
of Recoleta, Palermo and Barrio Norte. These areas are
very popular for tourists to stay if you plan to send
out your investment to tourist from all over the world.Why
buying here? Because is the perfect mix between commercial
and residential. All the night life is here nearby.
The means of the transportation (taxis, buses or even
the subway) are great. The commercial activity here
booming that the city´s government pays a lot
of the attention to security in these neighbourhoods.
Prices
Prices in those areas run from U$S 1300 per square
meter up to U$S 3000 per square meter. New construction
can be priced at U$S 3000 per square meter and more.
These costs are about 1/6th of the costs of Paris, and
a fraction of the costs of New York, to buy in the 12
largest and most beautiful cities in the world. These
prices will not last because the 3 pesos to one dollar
ratio will not last. There are 4 ways to profit: Appreciation
of the real estate as the economy comes back, a decline
in the value of the dollar, the re-establishment of
the mortage market, and a high on the rental return
on the short-term rental market. |
