Is it normal for a property owner to insist on buyers to pay with CASH $100 US Dollar bills for an apartment purchase in Buenos Aires?

[Dazed & Confused]

@Todd yes it's been quite a ride in Buenos Aires the past 2 decades. I started buying at the bottom after the big corralito crash at the end of 2001. I know the cash part sounds crazy but you can definitely mitigate risks. I answered your PM.

Here is a photo of what the typical closing looks like. I took it at one of the closings I did several years ago. I think it was a $300,000 USD deal. My record cash deal was $3.5 million where the seller demanded to get paid in cash. I bought a building in Recoleta that I turned into a boutique hotel. It was surreal being in the basement of the bank with vacuum-packed cash from the USA Federal Reserve Bank.

View attachment 4009

This was ultimately why we didn't end up buying real estate in Buenos Aires. The property we did like the owner demanded cash.

 

[Billy Goat]

Unfortunately this is how it is here. It's how I bought my apartment too. Was all cash and I had to go to the seller's bank for the closing.

 

[Digital Nomad]

This was ultimately why we didn't end up buying real estate in Buenos Aires. The property we did like the owner demanded cash.

I think those that are thinking of buying here need to just really investigate well and find out the right way to do this without walking around with cash. @BuySellBA gives good advice. It is not like some are making it out where you have to fly on a plane and carry around bags of cash. Although I did talk to one American that did that! There are smarter ways to do it.

 

[Todd]

Forget buying an apartment in crypto. It isn't really accepted here for anything from the sounds of things. I saw this guy in Argentina now that is big into crypto. He is saying Bitcoin is illiquid here at any price. And even gold and silver with a 50% discount! That is insane. Locals only want cash.

https://twitter.com/x/status/1775491412571607126

 

[Johnny]

I got really lucky! When I bought my apartment last year I was able to pay the developer outside of Argentina and just made a bank wire. That was so easy. Wow, I feel so lucky now. I did not realize cash was the norm.

 

[BuySellBA]

Forget buying an apartment in crypto. It isn't really accepted here for anything from the sounds of things. I saw this guy in Argentina now that is big into crypto. He is saying Bitcoin is illiquid here at any price. And even gold and silver with a 50% discount! That is insane. Locals only want cash.

https://twitter.com/x/status/1775491412571607126

Totally true @Todd. When buying real estate locals don't want to hassle with anything other than cash. You can see this article from the Wall Street Journal from May 2013 and you can see back then, the CEO of our company was negotiating deals where locals tried to pay for apartments with gold bars. In that particular situation the buyer was willing to pay 50% premium to spot gold prices but the seller did not want to deal with gold bars even with a 50% premium to gold prices. Argentina is a very different place vs. many first-world countries.

It was a true pleasure to assist you with your purchase last year @Johnny. We can't wait to see how it turns out!

Buenos Aires Lures Foreign Buyers With Tumbling Prices - WSJ

By: Katy McLaughlin

buysellba.com

 

[Sunny]

Wow but this sounds so risky. I assume they have armored trucks who you can pay to transport the cash? No way I will be walking around like a drug dealer with this much cash. The property I am looking at is almost $200,000. I won't risk that. My realtor said I can send it to her cueva and she would help me move it. Ha! No thanks! What is stopping her from calling a thug to rob my cash? These cuevas want to charge 3.5% to 4% to get the cash. Is that correct?

Don't work with cuevas for this, Tax and Wealth Managing Groups are solid businesses that can be trusted and charge less than that. I have bought property here recently and worked with one of them. They exclusively accept referrals from clients with whom they have had long-standing relationships and that's what you want when buying property here.

What real estate agency are you working with? You will need to find a reputable escribano (notary) because, as a buyer, you get to choose one; he will do what a Title Company does in the States. Summarizing: make sure all the professionals involved are A+++ that speak English. I was able to transfer the funds (no escrow accounts are used here - in my case, the transfer took 48 hours to an account in Europe), but earnest money, the "refuerzo" and final costs/commissions must be paid cash always.

 

[enbits]

I got really lucky! When I bought my apartment last year I was able to pay the developer outside of Argentina and just made a bank wire. That was so easy. Wow, I feel so lucky now. I did not realize cash was the norm.

I think that's the only way I would buy a property in Arg. What's the developer's firm name?

 

[Todd]

Don't work with cuevas for this, Tax and Wealth Managing Groups are solid businesses that can be trusted and charge less than that. I have bought property here recently and worked with one of them. They exclusively accept referrals from clients with whom they have had long-standing relationships and that's what you want when buying property here.

What real estate agency are you working with? You will need to find a reputable escribano (notary) because, as a buyer, you get to choose one; he will do what a Title Company does in the States. Summarizing: make sure all the professionals involved are A+++ that speak English. I was able to transfer the funds (no escrow accounts are used here - in my case, the transfer took 48 hours to an account in Europe), but earnest money, the "refuerzo" and final costs/commissions must be paid cash always.

Yes the problem is that many sellers will NOT agree to work with any escrow accounts. They don't want to talk to anyone and just want cash. They don't understand things. Even with Escribano involved some sellers just want cash and don't want to fill out any forms or talk to any bankers or firms.
You can only go the escrow outside of Argentina route if the seller accepts to do that but one that I was interested in said no they weren't talking to anyone.

 

[Vince]

Don't work with cuevas for this, Tax and Wealth Managing Groups are solid businesses that can be trusted and charge less than that. I have bought property here recently and worked with one of them. They exclusively accept referrals from clients with whom they have had long-standing relationships and that's what you want when buying property here.

What real estate agency are you working with? You will need to find a reputable escribano (notary) because, as a buyer, you get to choose one; he will do what a Title Company does in the States. Summarizing: make sure all the professionals involved are A+++ that speak English. I was able to transfer the funds (no escrow accounts are used here - in my case, the transfer took 48 hours to an account in Europe), but earnest money, the "refuerzo" and final costs/commissions must be paid cash always.

This only works if the seller agrees and many won't want to deal with anyone. Argentines are a very difficult and untrusting group.

 

[enbits]

Yes the problem is that many sellers will NOT agree to work with any escrow accounts. They don't want to talk to anyone and just want cash. They don't understand things. Even with Escribano involved some sellers just want cash and don't want to fill out any forms or talk to any bankers or firms.
You can only go the escrow outside of Argentina route if the seller accepts to do that but one that I was interested in said no they weren't talking to anyone.

They have their reasons, mainly they can't get an international wire to Argentina. The limit is 12K US$ per year so there's no way to do it through local banking, Also in 2001 all US$ bank savings from people were converted to pesos... a scam by the government. Even if Milei removes the 'cepo' it will take a while for people to trust the government and banks again.

I'm Argentinian but I moved abroad for that reason, I earn in US$ but it is almost impossible to legally invest in the country, the economic system is so effed up.

 

[Sunny]

Yes the problem is that many sellers will NOT agree to work with any escrow accounts. They don't want to talk to anyone and just want cash. They don't understand things. Even with Escribano involved some sellers just want cash and don't want to fill out any forms or talk to any bankers or firms.
You can only go the escrow outside of Argentina route if the seller accepts to do that but one that I was interested in said no they weren't talking to anyone.

When I found a realtor I could trust, I explicitly asked them to only show me properties from owners with bank accounts abroad and that's what they did. It took me about a month to find a property I liked, but I was ok with that, as we were not in a rush. Sellers will not agree to work with escrow accounts because escrow accounts are not used in this market. That's why it is so important to have an escribano you can completely trust. My transfer from my US bank to the seller's European bank took 48 hours, during that time my escribano was legally responsible. I worked with one of the most reputable realtors in CABA, and felt as safe doing business with them as I did the three times I bought/sold properties in the States. In the beginning I couldn't understand that escrow accounts were not used here, and did not like that at all, but working with them and the escribano I felt in good hands.

 

[enbits]

When I found a realtor I could trust, I explicitly asked them to only show me properties from owners with bank accounts abroad and that's what they did. It took me about a month to find a property I liked, but I was ok with that, as we were not in a rush. Sellers will not agree to work with escrow accounts because escrow accounts are not used in this market. That's why it is so important to have an escribano you can completely trust. My transfer from my US bank to the seller's European bank took 48 hours, during that time my escribano was legally responsible. I worked with one of the most reputable realtors in CABA, and felt as safe doing business with them as I did the three times I bought/sold properties in the States. In the beginning I couldn't understand that escrow accounts were not used here, and did not like that at all, but working with them and the escribano I felt in good hands.

Can you pass me the contact information of this realtor? Thanks

 

[Sunny]

Sure. I'll send it to you via message.

 

[Vince]

They have their reasons, mainly they can't get an international wire to Argentina. The limit is 12K US$ per year so there's no way to do it through local banking, Also in 2001 all US$ bank savings from people were converted to pesos... a scam by the government. Even if Milei removes the 'cepo' it will take a while for people to trust the government and banks again.

I'm Argentinian but I moved abroad for that reason, I earn in US$ but it is almost impossible to legally invest in the country, the economic system is so effed up.

Yes correct. Money matters here are complicated for locals too. People got screwed and while the younger generation doesn't remember their parents and grandparents do. Will take a long time to trust again.

When I found a realtor I could trust, I explicitly asked them to only show me properties from owners with bank accounts abroad and that's what they did. It took me about a month to find a property I liked, but I was ok with that, as we were not in a rush. Sellers will not agree to work with escrow accounts because escrow accounts are not used in this market. That's why it is so important to have an escribano you can completely trust. My transfer from my US bank to the seller's European bank took 48 hours, during that time my escribano was legally responsible. I worked with one of the most reputable realtors in CABA, and felt as safe doing business with them as I did the three times I bought/sold properties in the States. In the beginning I couldn't understand that escrow accounts were not used here, and did not like that at all, but working with them and the escribano I felt in good hands.

There is not some database where you know which owners have bank accounts outside. This is comical to think a realtor will know all the properties like this. Maybe if they get lucky or know about a few but you are going to limit yourself if you can only find properties like this. A great lawyer is key. They don't use escrow here. You can only send abroad if the seller will allow you to but this is not too common.

 

[Johnny]

I think that's the only way I would buy a property in Arg. What's the developer's firm name?

It was a big relief to buy a new construction and being able to pay outside of Argentina. I looked at several developments but none of them would let me pay outside of Argentina. The developer that I purchased my apartment was G&D Developers. I am going to buy another new construction with them so I spent time meeting with them. Their office is in Soho. I also had lunch with the owners of the company and they were very nice. They also did an asado for all the owner/investors of the building that I bought in. I loved it!

 

[earlyretirement]

It was a big relief to buy a new construction and being able to pay outside of Argentina. I looked at several developments but none of them would let me pay outside of Argentina. The developer that I purchased my apartment was G&D Developers. I am going to buy another new construction with them so I spent time meeting with them. Their office is in Soho. I also had lunch with the owners of the company and they were very nice. They also did an asado for all the owner/investors of the building that I bought in. I loved it!

G&D Developers are really fabulous and ethical people. I have been working with the owners, Daniel and Gabriel for over 20 years. I have purchased many, many properties with them in several different buildings and they always delivered what they promised. Nicolas with their office is also fabulous. Very good people.

 

[GraceH]

Can you pass me the contact information of this realtor? Thanks

Can I also get this info?

 

[Sunny]

Can I also get this info?

Sent.

 

[Digital Nomad]

I saw this news today. Milei is saying he doesn't care if people send money in blue. Does anyone know if this applies with anything including real estate?

Politics - Milei said that he does not care if the opposition does not support the May Pact and stated: “Cristina is not coming back again.” - Infobae

Milei said that he does not care if the opposition does not support the May Pact and stated: “Cristina is not coming back again.” - Infobae Source...

www.expatsba.com