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Where to invest money laundering dollars: keys to the real estate market and what to pay attention to for a successful operation - Infobae
Source:
www.infobae.com
December 22, 2024
How to take advantage of properties that offer strategic options. Recommendations to maximize profitability and minimize risks in each investment
By Jose Luis Cieri
Experts point out that properties in a pit and garages are accessible and profitable options for those who launder dollars (Illustrative Image Infobae)
Brick and mortar remains a safe option for those looking to invest dollars from money laundering. Since the measure was launched, inquiries to real estate agencies and developers have grown by 50% to acquire undeveloped, brand new and used properties .
Real estate market sources highlighted a renewed dynamism in demand for properties in CABA, driven by new financing options and the opening of the Special Accounts for Asset Regularization (CERA), which generated more than USD 18 billion in the system until November . This context facilitated access to property, with an increase in searches and demand.
According to Alejandro Moretti , a member of the Board of Directors of the Buenos Aires Real Estate Association, “these investors are looking for properties with rental potential. An investment that offers low volatility and low risk is always real estate.”
In the city of Buenos Aires, prices start at USD 7,000 and offer average returns of $80,000 per month. This type of investment is attractive due to its low initial cost and the potential to generate stable income.
“The garages have low costs, are located in easily accessible areas and can be rented to people outside the building. These characteristics maximize profitability and increase the chances of finding tenants quickly,” Moretti added.
On the other hand, those who wish to invest more than USD 50,000 have more diverse alternatives, based on publications from the Cabaprop portal. Properties for tourist rental in neighborhoods such as Recoleta, Retiro or San Telmo could generate monthly rents of up to 350 dollars. These properties must have specific characteristics: they must be permitted for temporary rentals, have amenities and be small in size, such as a studio apartment.
Moretti stressed that “real estate agencies specialising in this type of management can provide significant returns.”
For those looking to allocate a property for traditional rental, the recommendation is to invest in one-bedroom units with a balcony, located near public transportation, such as subways and Metrobus, and green spaces such as plazas or parks.
(Illustrative Image Infobae)
These features attract a young tenant profile, around 30 years old, who prioritizes public transportation and values a pet-friendly environment. Monthly rents can exceed $400,000, depending on the neighborhood.
Moretti highlighted: “Supported by data from the Real Estate Market Statistical Observatory of the Real Estate Association, less than 1% of the contracts managed by registered brokers present delays in the payment of rent. This positions this type of investment as an option with very low risk.”
He stressed that the opportunity to launder up to USD 100,000 favors investments in real estate.
However, he stressed that the Ministry of Economy limited these investments to new real estate projects or those with less than 50% progress as of July 8, 2024, which is a major restriction.
As for the advantages of whitening, Domínguez indicated that tax exemption and long-term fiscal stability are attractive elements for investors. But he warned about the risk of an increase in tax pressure post-whitening and suggested that adhering to the Special Income Regime for Personal Property Tax (REIBP) could mitigate this risk.
From a tax perspective, it is essential to evaluate both the advantages and penalties associated with money laundering. “Proper advice helps to minimize risks and ensure that all the benefits of the regime are taken advantage of,” Domínguez advised.
Contingencies for proceeding wrongly
Location, expenses and tenant profile are determining factors to ensure a successful operation (Illustrative Image Infobae)
The real estate sector is emerging as a natural destination for laundered funds, driven by several reasons:
Although the initial regulations on money laundering allow the purchase of properties in the construction phase (“under construction”), the benefit of avoiding paying taxes applies only to these projects.
Dominguez criticized this limited approach, because he believes that the purchase of new and used properties should be allowed for a broader impact on the market.
Despite these barriers, he concluded that money laundering offers a valuable opportunity to regularize capital, "especially because of the fiscal buffer it offers."
www.buysellba.com
Source:
Dónde invertir los dólares del blanqueo: claves del mercado inmobiliario y a qué prestar atención para una operación exitosa
Cómo aprovechar inmuebles que ofrezcan opciones estratégicas. Las recomendaciones para maximizar la rentabilidad y minimizar los riesgos en cada inversión
www.infobae.com
December 22, 2024
How to take advantage of properties that offer strategic options. Recommendations to maximize profitability and minimize risks in each investment
By Jose Luis Cieri
Experts point out that properties in a pit and garages are accessible and profitable options for those who launder dollars (Illustrative Image Infobae)
Brick and mortar remains a safe option for those looking to invest dollars from money laundering. Since the measure was launched, inquiries to real estate agencies and developers have grown by 50% to acquire undeveloped, brand new and used properties .
Real estate market sources highlighted a renewed dynamism in demand for properties in CABA, driven by new financing options and the opening of the Special Accounts for Asset Regularization (CERA), which generated more than USD 18 billion in the system until November . This context facilitated access to property, with an increase in searches and demand.
According to Alejandro Moretti , a member of the Board of Directors of the Buenos Aires Real Estate Association, “these investors are looking for properties with rental potential. An investment that offers low volatility and low risk is always real estate.”
Options
An affordable alternative to enter the real estate market with less than USD 50,000 is the purchase of garages.In the city of Buenos Aires, prices start at USD 7,000 and offer average returns of $80,000 per month. This type of investment is attractive due to its low initial cost and the potential to generate stable income.
“The garages have low costs, are located in easily accessible areas and can be rented to people outside the building. These characteristics maximize profitability and increase the chances of finding tenants quickly,” Moretti added.
On the other hand, those who wish to invest more than USD 50,000 have more diverse alternatives, based on publications from the Cabaprop portal. Properties for tourist rental in neighborhoods such as Recoleta, Retiro or San Telmo could generate monthly rents of up to 350 dollars. These properties must have specific characteristics: they must be permitted for temporary rentals, have amenities and be small in size, such as a studio apartment.
Moretti stressed that “real estate agencies specialising in this type of management can provide significant returns.”
For those looking to allocate a property for traditional rental, the recommendation is to invest in one-bedroom units with a balcony, located near public transportation, such as subways and Metrobus, and green spaces such as plazas or parks.
(Illustrative Image Infobae)
These features attract a young tenant profile, around 30 years old, who prioritizes public transportation and values a pet-friendly environment. Monthly rents can exceed $400,000, depending on the neighborhood.
Moretti highlighted: “Supported by data from the Real Estate Market Statistical Observatory of the Real Estate Association, less than 1% of the contracts managed by registered brokers present delays in the payment of rent. This positions this type of investment as an option with very low risk.”
To take into account
Sebastián Domínguez , CEO of SDC Tax Advisors, provided his analysis on the advantages and disadvantages of current money laundering.He stressed that the opportunity to launder up to USD 100,000 favors investments in real estate.
However, he stressed that the Ministry of Economy limited these investments to new real estate projects or those with less than 50% progress as of July 8, 2024, which is a major restriction.
As for the advantages of whitening, Domínguez indicated that tax exemption and long-term fiscal stability are attractive elements for investors. But he warned about the risk of an increase in tax pressure post-whitening and suggested that adhering to the Special Income Regime for Personal Property Tax (REIBP) could mitigate this risk.
In detail
Tax experts recommended the following:- Professional advice: Having a licensed professional is key to avoiding mistakes.
- Investment option analysis: Buying a studio or two-room apartment in affordable areas represents an interesting opportunity, due to the increase in rental profitability and the possible increase in the value per square meter in the future.
From a tax perspective, it is essential to evaluate both the advantages and penalties associated with money laundering. “Proper advice helps to minimize risks and ensure that all the benefits of the regime are taken advantage of,” Domínguez advised.
Contingencies for proceeding wrongly
- Detection of undeclared assets: If the tax authorities detect undeclared assets that exceed 10% of the total laundered assets, the “tax cap” is lost, although the benefits for regularized assets are maintained.
- Tax adjustments: Non-regularized assets will be subject to tax adjustments, penalties, interest and, in serious cases, criminal prosecution.
Location, expenses and tenant profile are determining factors to ensure a successful operation (Illustrative Image Infobae)
The real estate sector is emerging as a natural destination for laundered funds, driven by several reasons:
- Real estate appreciation: Current property prices are at low levels, generating expectations of capital appreciation and rental yields.
- Mortgage loans: Improved access to credit facilitates the purchase of property, promoting dynamism in the sector.
- Tax benefits: Changes in Personal Property, new limits for the single tax and advantages of the REIBP increase the profitability of investments.
- Money laundering: Regularizing up to USD 100,000 free of charge enables options such as acquiring garages, small apartments or improving the quality of current housing.
Although the initial regulations on money laundering allow the purchase of properties in the construction phase (“under construction”), the benefit of avoiding paying taxes applies only to these projects.
Dominguez criticized this limited approach, because he believes that the purchase of new and used properties should be allowed for a broader impact on the market.
Despite these barriers, he concluded that money laundering offers a valuable opportunity to regularize capital, "especially because of the fiscal buffer it offers."
www.buysellba.com
