'Foreign investments in Argentina' Real Estate  

Foreign investments in Argentina

Bob Frassinetti (24.232.135.205) -

Foreign investments in Argentina

It is worldwide known by now that Argentina devaluated it's over rated peso

during the first months of 2002, after one of the worst political and

economical crisis in it's late history.

Most foreign businessmen still have the picture of an extremely expensive

country in which to invest their hard earned money. The 90s were the days of

the one to one, peso and dollar were worth the same, at least for the over

27 million Argentineans. Those were the days of travelling abroad and

importing almost everything, from computers to toilet paper. But the 90s are

part of our past now. Today the peso rates 3 to 1 Dollar and 4 to 1 Euro,

traveling abroad is an expensive alternative, and touring throughout this

gorgeous country has become more and more appealing to locals as well as

foreigners who very much appreciate the exchange rates.

Moreover, it has become appealing to invest in Argentina thanks to the new

political decision of treating foreign companies the same way -in legal

terms- as the local ones. The local government through this policy aims to

encourage foreign capitals to invest productively in Argentina in long term

projects.

Through means of the Decrete from the executive power, number 1853/93, the

law 21.382 states that there won't be any special requirement for foreign

companies to invest in Argentina, at the same time they'll be entitled to

relocate their liquid and productive profits at any desired time.

The simplicity of the procedures as well as the reduced requirements and

paperwork make these sort of investments even more appealing in the

expansionist economic process Argentina is going through.

In order to carry on a productive project in Argentina, the foreign investor

or investors' group would have to contact the local authorities regarding

the basic documentation and requirements in order to start off.

In this way it's highly recommended to work with a bilingual staff to carry

on with all the legal and social requirements and in this way avoid any

misunderstanding. Even more it has become very common to carry on joint

ventures or mix companies with local contacts that can work on the follow up

on the spot without any restrictions of language, time or space.

These mix companies or projects that we're talking about are specially

important and interesting for it has appeared to be clear that there are

many locals with outstanding projects and ideas, and many other people who

happen to live abroad and are willing to invest in potentially good

projects. That combination has proven to be brilliant.

The particular case of Alan Faena a local designer and bright mind joint the

outstanding Philippe Starck to bring back into life an old -nonetheless

gorgeous early 1900s building and transform it into the El Porteńo hotel and

condominium located in one of Buenos Aires most preferential areas: Madero

Docks.

This is just a mere example of the combination of the local and foreign

brightness and ability to foresee a fantastic future.

Argentina has a tourist and cultural potential that hasn't yet been

developed to it's highest exponent. The possibilities within this market are

immense, and the fact that the country has now reached an economical and

social stability result in a prosperous and propitious investment moment.

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Comment #1 Jeffrey Heklenberg (69.76.179.60) -

I am deeply interested in investment in your country.

• www.lhl.lib.mo.us/

Comment #2 Millennium Elite (68.85.190.28) -

Millennium Elite, a company based in Michigan, USA, opens pizzerias/deliveries that are very profitable in Argentina for $20,000.00 U$D. We open sitdown/delivery pizzerias for $60,000.00. We do EVERYTHING. Profits are analyzed at the end of each fiscal year and divided as follows. The owner operator receives 30%. 20% Goes to making the business bigger and better (future marketing, aethetics, etc.). 40% goes to the principal investor for the ENTIRE life of the business. 10% goes to Millennium Elite. The businesses are 100% operated by Argentina's finest. They are a very hardworking people when opportunities are made available. The shame is not enough has been done yet, but Millennium Elite and intelligent foreign investors hope to change that! You can own a piece of a restaurant in Argentina and enjoy the fruits of your investment! We love it when people travel to see their restaurants and have a slice of their own pizza or delicious empanada! Please email us at millenniumelite@gmail.com for a more detailed business plan. Only prospective investors! Thank you! -Millennium Elite

Comment #3 Lee (147.26.111.208) -

I would be interested in more specifics about investing in Argenta. It seems you are talking about rehabing real estate. I would be very interested in investments involving real estate in Argentina. Please contact me with more information.

Thank you

Comment #4 Jana (66.161.252.89) -

Looking for pre-construction property in Buenos Aires...apartments, condo's and homes. I buy and resell to investors and am looking to wholesale real estate in Argentina.

Comment #5 Sherman Thurston (65.60.70.2) -

I am very interested in realeastate investing ( Rehab as well as new construction) in Argentina. I am currently working with some surrounding countries to devlope high end beach communities and would like more information on the possiblilty of Historic Renovation of commericial and residential structures and new beach front contruction.

Comment #6 Sue Head (86.193.241.129) -

Hola.. We are interested in finding properties for our US clients in foreign markets. However, the exchange rate risk and poilitcal risk is difficult to get around when selling this idea.

Any advice on how to sell this option to my clients?

Sue Head

Orange County

www.suehead.com

Comment #7 Bob Frassinetti (201.231.97.91) -

Building Real Estate Investment for Collectors & Collectibles. Investment with a future……… Buenos Aires with a view

It often comes to my mind that life’s all about taking pleasure in the things you do. I’m an art & antique dealer, a collector in my own way. It comes from my heart, it’s an inner impulse. I enjoy very much a great item, interesting crafting, and the uniqueness in the things I own. I have collected items even before I was a dealer; all sort of interesting things that caught my eye. When I was a child, these actions of mine were referred as hobbies, now; I’m a collector, into collectibles. I don’t mind labels.

Recently I got hold of an article about investing in collectibles. Very interesting reading. That pointed to different approaches to this way of investment. Throughout the article the author approached the pros and cons of investing in collectibles, the sales profits, the losses throughout time and the low return of your investment… It’s obvious; an item goes a long way before it’s appreciated as an antique or vintage item. For example, Christie’s –the famous British auction house- has just recently begun to auction 1970s vintage items. So, you can figure out how long you’ll have to wait…

To us, collectors’, waiting isn’t a problem, and our collectibles are not just mere money investments of which we’re expecting a monetary return soon. Most of our returns are passionate feelings awaked by the beauty of the item we’ve acquired; non tangible profits are one of the best possible returns for a collector. The exact moment in which you spot the object of your affection, when you point it out from the crowd and decide it has to be yours, has no price.

Collectibles go all the way from toys to scholar items, from stamps to sculptures, art pieces, vintage trains and antique cars…

Indeed, our collectibles are investments. Of course these items can be bought and sold over and over, and in each transaction we can make some extra money. But investing in collectibles is not just about the money, and anyone who’s a collector knows what I’m talking about.

We, collectors, invest our time and money not just in the purchase of the item in question but also in its conservation and also in its background history.

Investing in collectibles is exiting and interesting. But I don’t think we look at this “investment” in monetary terms, at least not the whole of it. I think collectors are natural investors that consider the economical side as much as the emotional and non tangible ones.

I’m thinking that at this moment in time marching my 2 pet projects together, The Buenos Aires Toy Museum and “artdealer.com.ar” could be developed into a profitable Real Estate holding investment, thought by collectors for fellow collectors.

The idea is simple; it would consist of purchasing a property in one of Buenos Aires most exclusive areas and developing boutique-museum lodging. A special location for collectors from all over the world who appreciate Argentinean made items –from vintage toys to art-, customized rooms exhibiting one of a kind collectibles, special experts on Argentinean collectibles arranging antique hunts to unknown and valuable markets within Buenos Aires, are just some of this investment’s attractive features. In terms of investments, Argentinean Real Estates is one of the most profitable ventures at the moment offering US Dollar gains and profits not in “pesos”.

At this moment it’s just an idea, which I’m developing. I’ll follow up on this as soon as I have some more spare time. Bob Frassinetti

• Real Estate Investment for Buenos Aires, Argentina

Comment #8 Patrick (190.49.20.146) -

Hi everybody,

It is true that politicians are seeking foreigners to invest in Argentina but consider that it is almost imposible legaly own a property in some places in Argentina, the famous frontier zone, witch are in my opinion the most beautifull and economicaly the beste spots to invest.

It is also dificult to open bankaccounts and transfer money from abroad, for example you can buy a property outside the frontier zone and do a wire transfer to your local bankaccount in Argentina n order to pay for the property but the bank only releases your money the day of the legal transfer of the property and does not allow you to transfer more money for furniture or a car.

Most people have to open also a bankaccount in a bank in Uruguay and travel to this country in order to have cash money.

It is a pity because there are a lot of oportunities in Argentina to invest and realy people are very gentle, but like always there are restriccions for foreigners even with money.

Comment #9 Federico de la reta (190.172.158.167) - Fri Apr 18 10:43:11 2008

Hi, i m the Vice- President of Great Estates Argentina. First of all i want to tell that is not difficult to invest in our country. There are differents alternatives to transfer money.

We usually work with foreing investors and we never had any problem.

There are a lot of oportunities in this country.

My regards.

Federico de la Reta

www.greatestates.com.ar

Comment #10 Patricia Robertson (64.136.26.235) - Wed Apr 23 16:58:53 2008

Hello, I am currently living in Mexico and am interested in upside possibilites in Argentina or Uruguay. What percentage has real estate appreciated in the past 2 years, what is the current climate? and who has an honest real estate agent who speaks English and knows the markets very well? What about rentals? How large is the ex pat community, please?

Comment #11 claudio from Patagonia - Sun May 25 11:35:47 2008

I've been reading the commentaries of the forum and don't agree with what a person indicates as for the difficulty of the foreigners of investing in the frontier zones. I sell a field to 65 kilometres of the border and know a Frenchman who has bought nearby (and he not live in Argentina) that comes to pay only the quotas. You'l be able to say that my field isn't in the frontier neither has a lake and even has a native forest, but if a good investment is looked by the recoverable capital by means of the production of the field (like the mister Frenchman does) I believe that they should consider it: possesses fresh water, rains very much, snows, the closed perimeter, has title deed and is financed. The fields in Cholila are the most expensive (a hectare costs US$ 10.000), in The Maiten still it is possible to buy to accessible prices (a hectare or 2, 5 acres it costs US$ 800). Definitively, it is not difficult to invest in Argentina.

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