Thread: Investing in Argentina
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03-03-10 05:58 #25
Posts: 2556
Venues: 398Originally Posted by Tokyohomeboy
In other words, the Argentine government has found yet another way to fuck every foreigner who was convinced over the past few years to "invest" in Buenos Aires real estate.
Still, I'm surprised by the ruling because Argentina law as previously been strongly in favor of the rights of individual property owners to use their property as they wish, thus explaining why people apparently with few limitations may use their apartments as commercial offices and / or privados.
Thanks,
Jackson
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03-03-10 01:29 #24
Posts: 2Yeah, and?
Originally Posted by Facundo
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03-02-10 20:37 #23
Posts: 3040Parking lots are great cash flow!
Originally Posted by Damman
All cash business, no headaches with cocksucker employees!
Just a few car dings occasionally!
You might pay a shitload of rent for the space but you will make a lot of tax free cash if it's in a good spot!
My bad luck is that I did NOT buy the building but I bought an existing business!
Shit!
TL
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03-02-10 20:27 #22
Posts: 366It seems illogical but...
Originally Posted by Damman
Argento
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03-02-10 20:03 #21
Posts: 374Originally Posted by El Queso
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03-01-10 20:03 #20
Posts: 552
Venues: 8Originally Posted by Damman
The problem is, you can only rent out spaces for between 350 to 800 pesos a month - I'm sure there are higher rents and probably higher costs as well.
I doubt that you will see too much appreciation on a parking space, but possibly. In the meantime, you won't be collecting much on rents.
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03-01-10 15:15 #19
Posts: 1885My advice is to invest in consumables
With rampant uncertainty in the marketplace on key inter-related issues such as inflation, interest rates and exchange rates, a peso next month is worth considerably less than a peso today.
Therefore, peso-denominated investment in long-lived assets may decline in value based upon the three, above-mentioned factors, regardless of the nominal sale price when compared to the historical purchase.
Therefore, I would recommend limiting long-term peso exposure, focusing on investment in short-term assets that (while denominated in pesos) are immediately enjoyed (consumed) by the purchaser. This instantaneous purchase and consumption eliminates future impact on these transactions by interest, inflation or exchange rates. These things are irrelevant because the asset purchased has been consumed and return or utility is measured in satisfaction, not ROI.
My recommended basket of commodities, on which I place a "strong buy" are: malbec, bife de lomo and fine Argentinian and Paraguayan chicas.
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03-01-10 13:23 #18
Posts: 374Invest in parking spaces. When I was told by a friend how much a parking space goes for in Buenos Aires, I about choked on my burrito: $16,000 US. We are not talking about a high end neighborhood. Maybe I missed something in the translation, $16,000 US for a parking space? Could this be possible? Guess I am naive about big city life.
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02-28-10 22:00 #17
Posts: 1885I'm not anti-argentine
Originally Posted by Felipe
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02-28-10 11:31 #16
Posts: 22Originally Posted by Madmax69
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02-27-10 13:25 #15
Posts: 216Court ruling; prohibited to rent to foreigners on short term basis.
A civil court ruling confirmed an earlier ruling that it is illegal to rent to foreigners on a short term basis (less than two years) if the building association has a ruling stating that short term rentals are prohibited.
This ruling has two implications for foreigners:
1. If many building associations adopt the ordinance or enforce their building association rules and regulations, then it could result in a shortage of apartments available to rent.
2. If a foreigner is thinking of investing or already has invested in an apartment with the intention of living part time in Argentina and then renting the apartment while away then he might not be able to rent it out if the building association has the prohibited regulation.
Just in case one is wondering why this ruling came into being, here are a few of the details.
A Canadian purchased an apartment in Recoleta with the expressed purpose of living in it part time and renting it out the rest of the time. Last year the owner rented to rowdy tenants who made lots of noise and the neighbors complained and then filed a complaint. A judge ruled in favor of the neighbors or the building association, and at the end of this week the court affirmed the ruling.
Here is the article in Spanish from the daily newspaper, La Razon.
http://www.larazon.com.ar/notas/2010.../02148419.html
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01-27-10 13:39 #14
Posts: 530% on (top of) bank transfers
Hi,
Does anybody know if this 30% guarantee is still in place with the central bank, as two real estate agents told me it did not apply for properties, as long as they are you main residence. Of course, they may say anything to sell. And I dcertainly do not intend to carry 100,000 US in cash either!
Anyway, your feedback is most appreciated,
Thanks.
Palermitano
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12-16-09 19:01 #13
Posts: 1885That is the irony of it all!
Originally Posted by Argento
The multinationals can bestow their beneficence on some other country rather than take undue risk in Argentina.
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12-16-09 16:59 #12
Posts: 366The Shell story.
Originally Posted by Damman
So buying shares in Argentine companies is not a good idea. One day they are a rooster and the next day a feather duster. Depends entirely on the wim of the illogical government. And I have a 100 similiar stories.
As far as the government is concerned, it is great for their political clout to be seen as anti-business. And their constituents lap it up like mother's milk!
Argento
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12-16-09 14:48 #11
Posts: 374Business in Argentina
This is an excerpt from Tenaris' Annual Report on doing business in Argentina. Though it is dated (2002) it outlines some of the problems and BS a multi-national corporation has when doing business in Argentina. Another interesting development with Tenaris is Venezuela's Chavez nationalized the Argentine subsidiary of Tenaris (Siderca) earlier this year and old Christina's knickers were in a knot. Do not think the thing has been resolved yet. Maybe she just got paid off. Read any company's Annual Report (Repsol) and one can get an insight on how difficult it is doing business here. Stick with wine, women and song.
The Argentine government has historically exercised significant influence over the economy. In response to the current crisis, since December 2001 the Argentine government has promulgated numerous, far-reaching and sometimes inconsistent laws and regulations affecting the economy. We cannot assure you that laws and regulations currently governing the economy will not continue to change in the future, particularly in light of the continuing economic crisis, or that any changes will not.
Adversely affect Siderca's or Tenaris's business, financial condition or results of operations. Due to the current social and political crisis, investing in companies with Argentine operations entails risks of loss resulting from:
• taxation policies, including direct and indirect tax increases;
• potential interruptions in the supply of electricity, gas or other utilities;
• expropriation, nationalization and forced renegotiation or modification of existing contracts;
• restrictions on repatriation of investments and transfer of funds abroad;
• civil unrest, rioting, looting, nation-wide protests, road blockades, widespread social unrest and strikes; and.
• changes in laws and policies of Argentina affecting foreign trade, taxation and investment.
Several of the steps taken by the Argentine government as described above have had and could continue to have an adverse effect on the ability of Siderca to make payment of dividends or other amounts to us. Pursuant to certain decrees and implementing regulations of the Argentine Central Bank, Argentine individuals and companies, including Siderca, are subject to restrictions on the making of certain transfers of funds abroad and to the prior approval of the Argentine Central Bank. Until February 7, 2003, transfers by Siderca of U. S. Dollars destined to the payment of dividends outside of Argentina were subject to the prior approval of the Argentine Central Bank. For example, on December 4, 2001, Siderca distributed a dividend consisting of cash and shares of Siderar S. A. I. C. Instead of distributing the unregistered Siderar shares directly to holders of the ADSs, the depositary, pursuant to the Siderca American Depositary Receipt, or ADR, deposit agreement, chose to liquidate the Siderar shares in the Argentine market and deliver the cash proceeds to holders of Siderca ADSs. However, due to the Argentine government's emergency measures, the depositary was prevented from transferring out of Argentina either the ADS holders' cash payments or the proceeds from the sale of the Siderar shares until March 3, 2003. If restrictions of this kind were to be imposed again in the future, Siderca's ability to transfer funds in U. S. Dollars outside Argentina for the purpose of making payments of dividends or other amounts to us and to undertake investments and other activities that require payments in U. S. Dollars would be impaired.