BuySellBA
Administrator
Latin Fever - International Property and Travel
June 01, 2006
Argentina is packed with attractions for the foreign investor, including the vibrant world-class capital city of Buenos Aires and huge tract of stunning, varied scenery. Although property prices have always been very low here, the economic crash and currency devaluation in 2002 reduced them further.
The economy is gradually recovering, with demand exceeding supply of quality properties and enlarging local mortgage market, prices are now steadily rising. According to Maria Reynolds of Reynolds Propiedades, rental yields in good locations of Buenos Aires typically range between four and eight per cent although Michael Koh of ApartmentsBA.com is more upbeat, claiming that investors in areas such as Recoleta could see a net rental return of 12 to 16 per cent per year.
“There have been three straight years of appreciation in property prices in Buenos Aires”, he says. “Many foreigners are buying real estate as an investment”.
Like Recoleta (where prices range from € 1,540 to 2,530 per square meter) another current hotspot is the newly developed neighborhood of Puerto Madero in the old dock area of Buenos Aires (€ 2,160 per square meters). A rented 67,000 euros one-bedroom apartment in the Recoleta neighborhood would net about € 755 per month. Lands with coast or lakes in Patagonia, vineyards at Mendoza and farms, land and hunting lodges at La Pampa and Buenos Aires province are also popular.
“My rental clients compare the price they paying to stay in a hotel versus a five-star apartment”, says Marcela del Campo of Settle Business. “People pay at least € 251 a night to stay at nice hotels. “The tremendous potential for rental income is just the icing on the cake for investors. Tourism is booming here in Argentina and I see no slowdown for the foreseeable future”, says Michael Koh.
But if living in the capital doesn’t appeal, Cordoba is a popular province attracting buyers. Its landscape of rolling hills, mountains and rugged cliffs is reminiscent of the south of France and although 500 miles west of the capital, its undeveloped land prices are very tempting, being from around € 170 per hectare.
To buy in Argentina, purchasers are required to obtain a tax identification number (CDI), which is done by granting a power of attorney to a resident so that they can get it for you. You then appoint a notary public (Escribano) to handle the sale for you. There are no purchasing restrictions for foreigners and buying is simple, usually lasting around six weeks. Fees, based on a percentage of the sale price, are made up of around two per cent notary fees and costs, estate agency fees of around three per cent, 21 per cent VAT, and stamp duty of around 2.5 per cent but varying in different provinces. Property taxes are set locally and depend on the property value. Buenos Aires is exempt.
www.buysellba.com
June 01, 2006
Argentina is packed with attractions for the foreign investor, including the vibrant world-class capital city of Buenos Aires and huge tract of stunning, varied scenery. Although property prices have always been very low here, the economic crash and currency devaluation in 2002 reduced them further.
The economy is gradually recovering, with demand exceeding supply of quality properties and enlarging local mortgage market, prices are now steadily rising. According to Maria Reynolds of Reynolds Propiedades, rental yields in good locations of Buenos Aires typically range between four and eight per cent although Michael Koh of ApartmentsBA.com is more upbeat, claiming that investors in areas such as Recoleta could see a net rental return of 12 to 16 per cent per year.
“There have been three straight years of appreciation in property prices in Buenos Aires”, he says. “Many foreigners are buying real estate as an investment”.
Like Recoleta (where prices range from € 1,540 to 2,530 per square meter) another current hotspot is the newly developed neighborhood of Puerto Madero in the old dock area of Buenos Aires (€ 2,160 per square meters). A rented 67,000 euros one-bedroom apartment in the Recoleta neighborhood would net about € 755 per month. Lands with coast or lakes in Patagonia, vineyards at Mendoza and farms, land and hunting lodges at La Pampa and Buenos Aires province are also popular.
“My rental clients compare the price they paying to stay in a hotel versus a five-star apartment”, says Marcela del Campo of Settle Business. “People pay at least € 251 a night to stay at nice hotels. “The tremendous potential for rental income is just the icing on the cake for investors. Tourism is booming here in Argentina and I see no slowdown for the foreseeable future”, says Michael Koh.
But if living in the capital doesn’t appeal, Cordoba is a popular province attracting buyers. Its landscape of rolling hills, mountains and rugged cliffs is reminiscent of the south of France and although 500 miles west of the capital, its undeveloped land prices are very tempting, being from around € 170 per hectare.
To buy in Argentina, purchasers are required to obtain a tax identification number (CDI), which is done by granting a power of attorney to a resident so that they can get it for you. You then appoint a notary public (Escribano) to handle the sale for you. There are no purchasing restrictions for foreigners and buying is simple, usually lasting around six weeks. Fees, based on a percentage of the sale price, are made up of around two per cent notary fees and costs, estate agency fees of around three per cent, 21 per cent VAT, and stamp duty of around 2.5 per cent but varying in different provinces. Property taxes are set locally and depend on the property value. Buenos Aires is exempt.
www.buysellba.com
