Argentine Real Estate

[Chascomus]

Yes they have certified checks here, but they still are NOT used for property purchasing. I sold my car a year ago and the guy gave me a certified check. What it means is their bank puts aside the amount of the check and takes responsibility for the amount of the check. All with Bank Boston. But I wouldn't do a real estate transaction using certified checks. No way. Just cash OR in some cases if the sellers and buyers, by coincidence use the same financial institution both parties can get on the phone and do a wire transfer getting the confirmation while ON THE PHONE that it was realized. The typical way is CASH on the table! My people deliver direct to the office where signing is taking place. This way we don't walk around with $$$

[Thomaso276]

Checks are used for business transactions (don't know about real estate) but foreigners cannot open checking accounts. I believe you can have a savings account with a CDI which is easy to get.

Don't know about certified checks, if they even have them.

You hit it right on using the word "trusted". No one here trusts anyone else and for good reason. They do not trust the gov't or banks most of all. Hell, I don't trust myself sometimes!

[After5]

The lack of title insurance and confidence in financial institutions makes me wonder how it will all work out because sellers here want cash in their pockets when they hand over the deed. I cannot imagine them giving you a deed for a cashier check or trying to coordinate the bank transfer so that both parties are secure.

What's needed is a trusted escrow agent. In the U. S. typically it would be a lawyer or title company. In Argentina, presumably the escribanos or casas de cambio will offer escrow services.

Are checks (ordinary or certified) used at all in Argentina?

[Moore]

Kudos to the government.

Those of us old enough to remember the 2001-2002 devaluation and corralito remember that a business crisis was predicted due to the new cash restrictions.

Entities that wished to continue business slit their wrists but then did the unthinkable in order to survive. They began accepting checks, transfers, and credit cards and eventually realized it wasn't so bad after all.

[Thomaso276]

Front page article today in the Clarin that AFIP is proposing a law to eliminate cash only real eastate transactions sometime in 2007. Gov't is concerned about laundering money, underreporting tax liability and proposes that transactions be completed with checks, bank transfers or credit cards (I'd like to put a 150g charge on my Visa please, 6 pagos sin interest)

Real estate sector is up in arms claiming it will lead to a recession (good for the dollar I guess) I agree that closings should be more professional - dumping stacks of hundreds on a desk is third-worldish. My concerns would be the banking system is so shitty. I guess you would be handing over a certified check from your home country and let the seller figure out what to do with it.

After having gone through a cash transaction, I now find myself worrying that the gov'ts attempt to clean up this system and implement modern finacial procedures may screw it up more. The lack of title insurance and confidence in financial institutions makes me wonder how it will all work out because sellers here want cash in their pockets when they hand over the deed. I cannot imagine them giving you a deed for a cashier check or trying to coordinate the bank transfer so that both parties are secure.

Imagine you initiate a transfer and set the closing for a week later when the money will be in the sellers account. Come closing time no one else shows up, claiming some bullshit fraud on your part and their right to keep your money or simply disappearing. Try and get money back in this system!

[Lunico]

DH,

Neither of those links work! And all of that sounds great (currently my tongue is in my cheek)

Lunico

[Webcams]

What are the tax structures like for buying property, can a foreigner own property in Argentina?

Would buying property there be worth the occasional visit and to hold onto?

Anything Like IN LA or Vegas where they have "nice touristy areas" Beach Property etc?

[Moore]

I know it's grown, but is tourism is the number one business in the country?

Prices in London are outrageous, they make New York seem cheap. But prices in many parts of the continent, Paris, Rome, and Madrid included, were amazingly low last time I checked. Not so hard to find decent apartments there for <US$200k.

It does seem, however, that many Argentina figures are skewed by the most expensive developments where foreigners are buying. In a recent article, the developer (Puerto Madero) said that 50% of his sales were to foreigners and some prices were US$280/ m2. That prices out about 97% of the locals and the vast majority of Americans.

[Thomaso276]

The real estate market is driven by foreigners who purchase property here. Tourism is the number one business in the country. Many people see prices as a real baragin compared to the prices in their own countries. Which is true. Compare an apartment price here with one in London or Madrid or Paris.

When there is a downturn in the economies of USA and Europe, Argentina will suffer more. I can imagine thousands of vacant places with no buyers. Geez, I see thousands of "for sale" signs now.

Kirchner is in NY asking the big companies to invest here. They are pointing out the lack of utillity rate increases, the bond default, certain affilliations with leftist presidents and a pending energy crisis. I don't imagine there will be a postive reply. The nature of the beast here is just too inconsistent.

[Moore]

I came across this brief report by the Center of Advanced Studies of Universidad Argentina de la Empresa. Some real estate data is presented, but there are some big hiccups in some of the monthly trends. Building permits and property/rent values have consistently increased year over year but the supply figures don't jive.

[AllIWantIsLove]

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[Exon123]

Today I attended the "Invest Show 2006" at the Sheraton Hotel & Convention Center in Porta Madreo, $20 peso's admission.

About half the booths were selling investment real estate in Buenos Aires, with promise's to rent it out for you after you bought them for all cash. You could buy anything from one apartment to a whole building under construction. Another quarter were selling Condo's in Miami, even one scam selling Condo's in Las Vegas of all places. The best price I could find was $900 dollars per meter for new construction here in B. A.

But I didn't go there to invest. I went for the Chica's, it was sorta like hanging out at the "Duty Free Shop" at the airport without the pressure of waiting for an airplane that's going to kick your ass all night long.

I'm going back tomorrow.

Exon

[Norman Stormin]

In the last two years, at least for gringos from Los Angeles. It appears that the international housing inflation crisis has its epicenter in L. A. And Orange counties.