Buenos Aires Real Estate Guide

Mar
18
2010

I read most of the Buenos Aires real estate guides on lots of property related websites and by far the most comprehensive guide written by someone who invests in both commercial and residential property is published recently by Terry Clarke at Mainline Security Estate Management. Mainline Security Estate Management is fast becoming a market leading property consultancy in Buenos Aires, Argentina and South America.

I have taken an excerpt from Terry’s buying real estate guide and suggest that property investors considering buying Buenos Aires real estate talk to Terry about his own experiences before arranging either face-to-face or an online to consultation.

Buying Buenos Aires Real Estate

Buying real estate in Buenos Aires Argentina is relatively straightforward. There are bureaucratic hurdles, but it is important to follow the rules, as playing it straight will make your life easier when the time comes to sell an investment property.

Coming out of the stalls and down the fairway is finding the property. There are many estate agents or realtors (inmobiliarias) and we only deal with agents that we feel conduct business in an honest and professional manner.

Understanding fees levied by the inmobiliaria is your first hurdle. Estate agents or realtors charge both ends of the transaction, buyer and seller, and typically, you should expect to pay fees of between 2 % and 5%.

Critical research when Buying Buenos Aires real estate

Never be rushed, if you lose a property because of uncertainties so be it. If buying investment property, buy with your head and not your heart – heed our advice.

Choosing the right location with easy access to communications (subte, etc) are very important. Is the property far away from main avenues like Santa Fe, Alvear, Callao, etc? Is the subte close by? Is your property in the main tourist hub? Step across some of the major avenues that are boundaries and you are in another barrio and the property prices change. Knowing the city and understanding property values and buying trends for both sales and rental is critical when choosing an investment property.

Is the barrio or neighborhood safe? Like all capital cities Buenos Aires houses some of the wealthiest and poorest neighborhoods, is the property located in or around an area known for high crime. This is particularly important if you are looking outside the main ‘tourist barrios’ and at the low end of the market.

Are you talking to a reputable inmobiliaria? This is important because we will base our initial offer and pay our reserve based viewing the property and on the property particulars that should be correct and verified by the agent.

What is happening in the building and locally? Before suggesting a property, we speak to the porter, neighbors, and local real estate businesses. The state of the common parts, the service charge and the company that manages the apartment building are important ‘indicators’ that we research on your behalf. We always know somebody local and what is ‘said’ to be happening -environmental factors affect property price.

Is the property sound, does it need work? We have both structural engineers and architects who will attend older properties to quote on works before you make an offer.

Do the floor plans provided by the agent and your measurements match? It is important to both measure the property and check your findings against the floor plans provided by the agent to prove the square meters. Agents calculate property price in dollars by the square meter covered and uncovered.

At this point it is not common to involve a surveyor in property transactions, but if you are unsure of anything or plan to make alterations seek advice before making an offer. However, going back to an earlier point, this is a major investment, take your time and if the agent or the owner will not give you time, move on to the next property.

You cannot buy a property in Argentina without a CDI, (Clave De Identificación). I have avoided writing about the personal administration necessary to buy real estate in Buenos Aires Argentina and in particular about obtaining a CDI, (Clave De Identificación) from the AFIP, because I deal with this process in detail in my next article.

Once you have found a property, you can make an offer, this may be the full asking price or a slightly lower price or indeed much lower price if the property is grossly overpriced - owners always ‘chance their arm’ and the……BUYING BUENOS AIRES REAL ESTATE READ MORE>go