Argentina is the second largest country in South America. It benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Argentina is the most economically developed country in Latin America, with the highest GDP per capita.

View our Investment Property for sale in Argentina

Fresh Property Co and Argentina

Argentina is a tricky market, still recovering from the economic and political crisis from only 6 years ago, property prices are still massively undervalued compared to other capital cities of the world.  So why aren’t more agents offering Argentina to Buy-to-Let investors?

Off Plan property represents a huge opportunity for property investors.  Although some developers are now catching on to investors buying off plan because it is undervalued and adjusting their prices accordingly, there is still some excellent deals to be found.

In truth, these developers do not pay commission.  In markets like North East of Brazil or Egypt, where developers will pay agents up to 20% commission per sale, moving to a market like Argentina where developers wont pay a penny or 1% if the agent is lucky, does not really compare in “business value”.

So, what’s wrong with Fresh? Don’t we want to forget Argentina and go after 20% commissions?  In theory – yes! - in practice – no!  Being consultants with the best interests of the property investor in mind, we are willing to accept less profit, and pass the gain of high rental yields and high capital appreciation to the client.

This is why we charge a finders fee, which covers our research, sourcing and assistance through the sale.

Now, there are many pluses with the Argentina property market, and here are just a few:

• No Capital Gains Tax for Individuals
• Low purchasing costs
• No Lawyers/ Solicitors – yes – in Argentina the system in this respect is excellent.  One notary public, must transact the purchase, and full legal obligation falls on that notary if they fail to protect both sides.  A much faster and better system than in the UK, where slow and non-communicating conveyancing take months to agree one sale!
• No mortgages or financing – OK, so this is a plus and a minus, but for investors this keeps rental demand and rental yields high.

But of course, like any market where huge gains are to be made there are risks and downsides:

• Anti-money laundering laws – These were introduced so that the government could track the cash coming in and out of Argentina, for a cost, of course.  Not so much a downside as an annoyance, it makes sending money in and out of Argentina a little complicated.  Not difficult – just complicated.
• Underdeclaring Property Values – This problem is not unique to Argentina, and has been common place in other markets like Bulgaria as well.  A little annoying but something investors need to be aware of.  Properties in Argentina tend to be purchased with black money and white money.  It may have stemmed from Argentineans wanting to give the government as little property tax as possible, as they still feel the government was ultimately responsible for the crisis a few years ago.
• Peso and the US dollar – When sending money to Argentina, you may have to send US dollars, which will need to be converted to Argentinean Pesos, and then back to US dollars.  Very annoying and costing around 2% of the value.

Another concern we are asked about is “Will Argentina have another crisis?”.  If you look at the conditions and circumstances leading up to the 2001-02 crisis, and you look at the state of the economy now – booming forward, I would have to say “Not likely”.

Despite the few niggles, investors getting property in Argentina, particularly Buenos Aires are going to do exceptionally well.  By the time financing comes in, property prices will surge, as they always do.  And Fresh Property Co will continue sourcing and offering amazing property to our clients.

Why Invest in Argentina?

• 12 month tourist season in Buenos Aires
• High Rental Yields from 7 – 8%
• Excellent capital city location prices from US$1,500/ sqm.
• No restrictions for foreigners to buy
• Low buying costs – up to 8%
• No capital gains tax for individuals
• Very fast recovery from 2001 economic crisis
• High projected capital appreciation
• Strong local rental market
• Politically Stable
• Booming economy
• More than 500 multinational companies operate in Buenos Aires
• Growing tourism market – 7.6% expected growth in 2007

Why We Love Argentina

• The Tango
• The Capital Buenos Aires – the culture, the people, the “Paris of South America”
• Polo – the game – the national obsession
• Fantastic Argentinean wine from Mendoza
• The Andes
• The Lake Districts – Villa Pehuenia and Bariloche
• National Parks
• The Plains of the Pampas
• Iguazu Falls – the biggest falls in South America – bordering Brazil and Paraguay
• Indigenous cultures preserved through fantastic and preserved ancient ruins
• Patagonia – virgin forest, lakes, ice fields and glaciers
• Estancias – large farms and cattle ranches all over the country, producing world-famous steak.

View our Investment Property for sale in Argentina

Argentina is a very large country, but using set criteria, Fresh Property Co carefully select investment opportunities, in areas with large capital growth potential.

We are giving investors the chance to access different types of investment, depending on what you are looking to add to your portfolio.

We can offer:

• City apartments in emerging locations which can be let to a longer term tenant.
• Land in strategic locations, which is ideal for either land banking or building, which can bring spectacular returns.

For current investment opportunities please click here.