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Redondo
08-14-07, 02:34
Does anybody know what the average price per square meter is in Puerto Madero?

If I understand it correctly the AFIP is taking the average price per m2 for Puerto Madero, as the minimal price you need to pay. Is this correct?

BadMan
08-14-07, 09:25
Minimum $2000 US, though all the newly built buildings are going for between $3000-$5000 a sq meter. Propably the most expensive area in BA, right ahead of Recoleta and Palermo. I would probably say the minimum now is around $2,500, I am not sure what the " official " minimum might be or who makes that call. But the prices I quoted are the minimums I have seen.

Bad

Thomaso276
08-14-07, 09:42
On Saturdays in La Nacion or Clarin they publish a chart of prices for new and used properties for different neighborhoods in the city. It also includes rental price ranges.

Usually in the properties section.

The information is supplied by realtors. Puerto Madero is the most expensive and probably the most empty.

Redondo
08-14-07, 11:32
Thank you, that were the numbers I as thinking about.

My guess is that you can buy an appartment 'officially' for around 2500 dollar a square meter.

Do you guys think the prices still can go up?

Seaman
08-14-07, 11:38
AFIP is the tax agency. So why do you refer to them in terms of paying? Paying tax yes, paying for a property, no.

The property tax is based on the paperwork filed with the city government. This paperwork has one piece of paper showing the property value. This value is not allowed to be lower than 60% of the actual price of the property. (They say that is law down here, which I would believe. In other countries it would be considered fraud when you file a lower amount then the actual value.)

A property sold for US$100k will be filed as a property worth US$60-US$70k. Remember that the seller also has to pay tax over the property, so the seller also wants to have a lower figure on the paperwork.

If you are considering buying property in Puerto Madero, well, if you want to live in a ghost part of town at night, please buy it there. There is a lot of nice property available / being built at the moment in Recoleta / Palermo areas. You can use your US$ there to buy a nicer / bigger place.

If you like a quieter part of town, look at Belgrano. Nice apartments down there, not too expensive, and quieter at night then Recoleta & Palermo.

Seaman.


Does anybody know what the average price per square meter is in Puerto Madero?

If I understand it correctly the AFIP is taking the average price per m2 for Puerto Madero, as the minimal price you need to pay. Is this correct?

Seaman
08-14-07, 11:43
What do you mean with "officially"? The 60% thing? Yes, that is possible, however you still have to PAY 100%. So your "official" US$2500 will be in fact a US$4166 / m2 apartment!

Prices are still going up, and they will be going up till the next crisis. However prices which go up do not mean that you can actually sell it for the higher prices. (No it is not a normal economy down here!

Seaman.


Thank you, that were the numbers I as thinking about.

My guess is that you can buy an appartment 'officially' for around 2500 dollar a square meter.

Do you guys think the prices still can go up?

Redondo
08-14-07, 15:07
What do you mean with "officially"? The 60% thing? Yes, that is possible, however you still have to PAY 100%. So your "official" US$2500 will be in fact a US$4166 / m2 apartment!

Prices are still going up, and they will be going up till the next crisis. However prices which go up do not mean that you can actually sell it for the higher prices. (No it is not a normal economy down here!

Seaman.It does make sense to pay 100% if you pay part of the book, that would never happen offcourse. I just would like to know about which figure is acceptable for the AFIP. My guess it would be around 2500 dollar a m2

I like Puerto Madero yes and I have also lived in Recoleta and I don't like to live there. I am there to live and not to party (eventhough there is no action in Recoleta or Palermo neither) and it's close to everywhere where I want to be.

StrayLight
08-14-07, 15:20
I bought an apartment here, and as I understand it, the annual taxes work like this.

First, there is the ABL Rentas, which I believe goes for your city services. You basically inherit this on existing property, and the value listed on it isn't even remotely connected to what you pay for the property. The key thing to note is that your property is divided into two things: the land on which the building sits, and the building itself. In my case, the land comprises about 3% of the overall value, and the building comprises the other 97%. In any case, this is actually a quite small tax. Mine is only a few hundred pesos a year.

The other tax you pay is the annual "impuesto a los bienes personales," or tax on personal assets. This also includes vehicles, furniture, and other assets. But for the property portion, this tax is based on (1) the amount you paid for your property in pesos, and (2) that land / building division that's on your ABL Rentas.

In short, using that land / building division, you depreciate the building value by 2% a year, and hold the land value steady. Then, you deduct a standard deduction of about $102,300 pesos. From that, you compute your tax by multiplying the result by 0.75%.

Something like that.

Redondo
08-14-07, 15:32
Maybe my question is not clear but I would like to know how much you need to pay for a property to have it accepted by the AFIP.

I understand that if I pay for example 1500 dollar on paper (and let's say another 1500 off the books) for an appartment in Puerto Madero this will not be accepted and then I can't buy the appartment as the AFIP won't allow the transaction.

I would like to have an estimation of the price the AFIP calculates for this

BadMan
08-14-07, 16:32
No offense but you should ask your escribano, we are all speculating here. The Escribano is the one who knows. Besides this is basically in effect tax evasion you are talking about, I would say contact a reliable Escribano and work out the details in private. Sidney and Exon might get all hysterical again. Always pay all your taxes;)

Bad

Facundo
08-14-07, 17:40
No offense but you should ask your escribano, we are all speculating here. The Escribano is the one who knows. Besides this is basically in effect tax evasion you are talking about, I would say contact a reliable Escribano and work out the details in private. Sidney and Exon might get all hysterical again. Always pay all your taxes;)

BadRedondo,

The rules as of the end of March have changed. It is difficult for the seller to avoid taxes by having the paperwork reflect a lower price because AFIP, as I understand it, has required real estate agents to report actual selling prices. Of course, if the seller has a foreign bank account and you pay him directly from a foreign bank account for a portion of the cost than you might just get away with AFIP accepting the discounted sale amount. Just remember, AFIP has been getting tough about the evasion of taxes.

I think the advice to contact an escribano is good and you might want to also contact an international law firm like Baker and Mckenzie and they can advice you on this sort of thing. Also, if in the future you decide to sell the property, they can give you advice regarding the rules of getting the money out of the country.

Redondo
08-14-07, 18:02
No offense but you should ask your escribano, we are all speculating here. The Escribano is the one who knows. Besides this is basically in effect tax evasion you are talking about, I would say contact a reliable Escribano and work out the details in private. Sidney and Exon might get all hysterical again. Always pay all your taxes;)

BadYou don't know what arrangements I make or don't make with the seller.

I would just like to know what the estimated minimum is what will be accepted by AFIP

Redondo
08-14-07, 18:03
Redondo, the rules as of the end of March have changed. It is difficult for the seller to avoid taxes by having the paperwork reflect a lower price because AFIP, as I understand it, has required real estate agents to report actual selling prices. Of course, if the seller has a foreign bank account and you pay him directly from a foreign bank account for a portion of the cost than you might just get away with AFIP accepting the discounted sale amount. Just remember, AFIP has been getting tough about the evasion of taxes.

I think the advice to contact an escribano is good and you might want to also contact an international law firm like Baker and Mckenzie and they can advice you on this sort of thing. Also, if in the future you decide to sell the property, they can give you advice regarding the rules of getting the money out of the country.That is exactly why I asked, as I would like to know what the accepted value now is.

BadMan
08-14-07, 18:39
I would just like to know what the estimated minimum is what will be accepted by AFIPWhich is why you should ask an Escribano, the only person qualified to give you the answers you are looking for, that or keep listening to our bullshit answers.

Bad