Real Estate in Bariloche, Argentina

Navigating the Labyrinth of Bureaucracy

Bariloche, Argentina is one of the last frontiers of decently priced properties, within a land of incredible, untouched, protected natural beauty. The views are intoxicating. A raw landscape beckons the outdoor lover and the bustling city located on the shores of Lake Nahuel Huapi offers a rich culture and international cuisine.

The area of Bariloche is a true paradise. It is a place like no other in the world because of its serenity and national parks. But what does it truly take for a foreigner to own property in the paradise of South America?

Bariloche is within the Zona de Seguridad or secured zone. It is possible to purchase inside this area, but it is difficult to find much data about the process and there is a lot of misinformation floating around in cyberspace. When my husband and I decided that we wanted to move to Bariloche permanently we felt it was in our best interest to do our own homework. We spent months researching this portion of the buying process before taking the leap into owning. In studying the situation, we found that there are certain aspects to the riddle that help in obtaining clearance.

Owning within the Zona de Seguridad, if not an Argentine citizen, can seem to be a labyrinth of a paperwork and bureaucracy. But with the help of Argentine lawyers, companies involved in the process, and submitting the correct paperwork, it is possible.

The Zona de Seguridad was a law that was created back in the late 1800’s because of government concerns regarding the conflicts between Chile and Argentina. It was set up to protect land within 100 kilometers of the Chilean border, the entire length of the country, or another way to look at it, anything west of Ruta 40.The Argentineans wanted to be sure that the land lining their borders was not bought up by foreigners, and, thus, creating a security concern. This law gathered dust until the 1990’s, when major real estate tycoons such as Ted Turner and Douglas Tompkins bought extensive plots of land. Once again, the fear of losing important property to foreigners brought this law back to the forefront.

Currently, with the new Cristina Kirchner administration, the entire cabinet has been changed to new blood. Many people involved in submitting the paperwork and dealing with the process believe that this is a good thing. Our lawyer helping us with the process, Escribania Dalessio who is based out of Buenos Aires, feels that this will eventually help the way in which the law is read. In creating a new Zona de Seguridad cabinet, it is believed that the new department head will be able to help speed up the process, though it is still an unknown at this point. The virtue of patience, which is needed in all facets of life in Argentina, is a true requirement when purchasing within Zona de Seguridad.

The process which can take anywhere from six months to two years, or more, is most easily understood and dealt with by obtaining a professional company to represent the buyer. There are lawyers and notaries that have created a needed business helping foreigners understand what is exactly required to obtain title. For clearance within the Bariloche area the most knowledgeable companies tend to be based out of Buenos Aires. It is extremely important to do the homework on which company would work best for the particular situation and to have the requisite paperwork in order before traveling to Bariloche. The paper trail needed, such as a police report and bank statements, are much easier to obtain while at home, instead of abroad. Also, it is best to start the process as soon as the property is chosen and the down payment has been paid.

The actual paperwork needed depends on each situation. Large plots of land such as ranches and huge agricultural farms, at this time, are slower to move through the process. This is due to more paperwork being needed and being subject to possible environmental studies. Also, a property that has no plans of being improved is not looked favorable upon. But each case needs to show a few details. For example, paperwork from an architect showing plans of improvement or building on the land, clean police reports, as well as displaying that the property is a possible resource of local jobs, will help in the acceptance The bureaucracy likes to see that the buyer is willing to help stimulate the economy. It is important to have these facts in writing and included in the first submission.

Once the property is decided upon, there are four different routes that the foreigner can take. They are as follows:

Fideicomiso: Also referred to as a trust, this is considered to be the safest and most popular of the options out there. The fideicomiso is a corporation or business that is created by Argentines. The trust is set up at the time of putting money down on the property. This is not a way for the foreigner to get around the clearance process, but instead is a way to purchase the property, knowing that they will never be denied ownership of the property because the title is held by the Argentine company. That is not to say that the foreigner is not able to try for clearance on their own while the property is in a trust.

There are reputable companies in Argentina that are set up for this purpose alone. With the fideicomiso, the foreigner is able to purchase the property under the company’s name. There is a special power of attorney (a poder) that explicitly confirms that this is the buyer’s property and that the company has no power over the property without said persons consent. The company, with the owner’s money, is responsible for taxes on the place, as well as paying for any major improvements on the land. In exchange for their services there is a fee, which varies from company to company, but is around US$1500 to US$2000 per year. If the owner of the property decides that they would like to sell the piece before obtaining clearance, they will be subject to the capital gains taxes applicable at the time of sale. Also, any income that may be derived from the property will also be subject to a corporation income tax fee because of being held in a trust.

En Comision: En comision is different than the fideicomiso, in that the buyer has a relationship with an Argentine that they trust. The person purchases the property on the buyer’s behalf, with the buyer’s money. This is all written out in a power of attorney (again, a poder). The poder strictly prohibits the Argentine to sell, rent or do anything with the property. It is also stated that the piece, in case of death of the Argentine native, goes to the foreigner, with this option, the capital gains taxes and corporate income taxes can be avoided. The important point here is that the Argentine is completely trusted, because if clearance is not obtained the property will remain in the name of the said Argentinean. It is extremely important that the buyer move ahead on trying to obtain clearance immediately to show that they are not trying to get around the Zona de Seguridad process.

En Comision #2: The second version of the en comision involves the seller of the property and should only be done if the buyer knows and absolutely trusts the seller. It is the same process as the previously mentioned option. The power of attorney is, basically, the title until clearance is issued. The poder is applicable for ten years. If at the end of ten years an answer has yet to be received, it can be written for another ten years.

Permanent Residence: The fourth option is only applicable to those that plan on living in the country full time and are willing to travel the long road to permanent Argentine residency. According to different companies that we spoke with, after two to five years of permanent residency the buyer of the property is treated as an Argentine citizen. They then go through the regular process that any Argentinean would have to go through to receive clearance.

As stated before, there is a way to work through the bureaucracy madness, if so desired. It just takes patience and an understanding that things do not work the same way as in other countries. When we found our place, with its million dollar view, we knew that we were up to the challenge of jumping through the hoops. For us, it was worth it. Each day that I look out my window and see the sparkling, blue waters of Nahuel Huapi and snow-capped Andes mountains, I know there is no other place on earth where I would rather be.

Building a House in Mexico

How to Construct Your Own Cozy Casa

“Outside of the major cities, good rentals are hard to find, and honest landlords are even harder to find. I think owning your own home is more important in Mexico than in the US.” This is one of the reasons a trusted source gives to explain why he designed and built his home in Lerdo, Mexico. Rolly took the expat plunge in 2000, moving from Los Angeles to his newly constructed casa in north central Mexico.

Many Americans dream of a simpler life in the land of flowers and long siestas. But few turn that dream into a reality by building their own home south of the border. If you think about it, though, it is one of the best ways to complete the dream: choosing exactly what you want and working hard to get it.

Building projects in Mexico are not fairy tales waiting to happen. If you want to create your own home, brace yourself for a long road paved with delays, confianza (trust) issues, and cultural surprises. But it is not an impossible task. In fact, since labor and supplies are generally cheaper, you can usually get more for your peso by building, as opposed to buying, a home.

The Perfect Location
Whether you’re a beach bum or prefer the solitude of mountains, you’ll find your niche within Mexico’s borders. While it’s a good idea to check out popular expat gatherings – Baja California, the Lake Chapala region, and San Miguel de Allende,– don’t rule out the areas less tourist-laden. One expat family has lived in Torreón, an industrial city in northern Mexico, for the past forty-five years. While Torreón usually takes up no more than two pages in guidebooks (sometimes beginning with “if you must travel here”) some find it to be the perfect fit.

Generally speaking, people in the south are fairly reserved; those in the north have a reputation of being more engaging (though they are still more reserved than boisterous gringos). Before purchasing land, begin by renting in your desired location. You’ll quickly learn if you feel comfortable in the area and with the people.

Purchasing Property
Foreigners can own land in Mexico. If you find property in the restricted zone (within 50 kilometers of the coast or 100 kilometers of the border), you will need to apply for a fideicomiso. In this trust agreement, a Mexican bank takes title to the property. You, as the owner, will still enjoy virtually all rights, including using, selling, and naming a beneficiary to the land. In the interior of Mexico, you can own property in your own name. To do so, you will need to have an escritura (deed) prepared by a Mexican notary public.

The notary public will play a very active role in the purchase of land. In Mexico, all legal documents must be signed before the notary public to be legitimate. Ask yours to check that all debts and necessary payments have been made on the land. If you are purchasing land from a developer, have the notary public affirm that there are permits for development and construction included. Do not sign anything until you have a clear understanding of what the document says.

In addition, consider the following:

1. Avoid purchasing land labeled as “egido.” This is communal agricultural land and can be a legal headache. It is best to stay away from it.
   
2. Ask about water, sewer, and electrical connections. If these are not readily available, it can be very expensive to hook them up.
   
3. Check into city ordinances. Some areas, such as Cozumel, only allow construction on a certain percentage of the property and issue height limits.
   

Avoid getting wrapped up in “margarita fever” (initial excitement upon seeing the advantages of living in Mexico). Instead, take the steps one at a time. Do plenty of research, ask questions, and stay away from anything that seems suspicious to you. Pacing yourself throughout the process will help you find land you are ultimately satisfied with.

Finding Local Workers
Once you have land, there are a number of building options. If you are familiar with construction, you may consider heading up the project. If not, and even if you do have plenty of experience, it might be wise to find an architect and building crew.

Whatever you decide, you will hear the term confianza, and if you don’t, you will soon learn its meaning. Finding workers that are “de confianza” (trustworthy) is key. Taking on a building project without good local connections is foolish.

Fortunately, Mexicans are masters at networking. If you rent in an area before building, use the time to build relationships with dependable friends. They will connect you with someone they know, who knows someone else, and so on. This networking system exists because of problems of confianza, and will help you find a reliable architect and workers.

The Need for Supervision
Maintaining a regular presence on the site is essential. Stopping by on a daily basis, or spending all day on location, is not uncommon.

The “sí Señor” syndrome runs rampant on construction sites. Workers tend to avoid telling you “no.” While this may sound ideal (your orders are always followed!), it can quickly turn sour. Even if the architect, plumber or electrician, does not agree with your idea, chances are they will give it a resounding “yes.” They may do so, knowing in advance that your plan is impractical, terribly expensive, or simply not doable.

The attempt to please is highly regarded in Mexico. Unfortunately, the moment may be pleasant, but it will quickly pass. Then the headache of rebuilding a wall or reconstructing cabinets will set in. To avoid this, do ample research yourself. Stay on the site to oversee the progress. And don’t get bogged down if you do have to rework part of the construction; make sure the end result is what you want.

Take it Times Two…and then Some
While building projects often run over budget and take longer than expected, you can anticipate even more delays in Mexico. In fact, the waiting and dealing with the inevitable bumps are what drive some away from building here. Plan for delays and pad your budget before starting. It will be easier to tolerate the changes and delays, as well as the complex, and often infuriating, bureaucratic system. Occasional bribes are embedded into this system. They can help speed things up, but use them wisely.

Realistic Expectations
Tour houses before beginning construction on yours. Depending on your workers, your house may not have a “clean cut” finish. Some expats describe completed construction as a shoe that has already been worn in. View it as character; it is what makes a house a home in Mexico.

As an outsider, expect the unexpected. Even with experience and local connections. Your position as a foreigner increases the risk that you will be overcharged. Obviously you will need a grasp of Spanish to reduce costs.

Expatriate Living in Spain

Be Careful Before You Buy a Property

Having lived most of my adult life in British Gibraltar, I had always been just a few steps away from the much revered Andalusian lifestyle, but it wasn’t until November 2005 that my family and I braved the move across borders which culminated in an experience none of us will ever forget.

It was the sight of the spacious newly built townhouse in San Roque’s quaint village, which had tempted my family and me into buying a property. The strangest thing was that by moving into a another country, only a mile away from our original abode, my family now had to cross the border back into Gibraltar each day to attend work.

We have found that working on the Rock and living in Spain, allows you to enjoy the Spanish lifestyle to the fullest, yet still obtain many other benefits, such as the healthy exchange rate from Sterling to Euro if you work on the Rock and are most likely to be remunerated in Sterling. NHS healthcare is available, standard English education, and of course, some of the British culinary treats which cannot be found in Spanish supermarkets.

Our new routine began the moment we moved in, and I can tell you, it is interesting. Each day we catch a bus to the footstep of the Rock and subsequently stop at traffic lights, to await the landing or departure of planes. Once the lights turn green, we endure a refreshing and breezy walk across the airport runway – a rek guaranteed to wake you up thoroughly before the day begins! Walking is best. Driving a car through ensures lengthy queues.

Even though we endure the strangest of journeys each day of the week, it is not a hindrance to the benefits of living in one country and working in another. Yet little did we know when we first moved to Spain, that we were about to hit a minor snag, that would turn into a major struggle which was to last almost nine months. Buyers Beware!

Purchasing in a new housing development is never easy. In fact, most expatriates should arm themselves with sound advice before attempting to part with their hard-earned cash, and that means enlisting a recommended lawyer who comes with good references. Unfortunately, my family and I jumped into a bargain deal only to find that we were left without electricity and water, and had to subsist on a developer’s supply for what was said to be only a “temporary” period.

We were simply allowed by all legal parties to move in without a ‘License of First Occupation,’ and there was no possibility of being able to obtain utility connections without the License being issued by the local council.

We filled buckets of water from a tap in the street, and fed an extension cable from a box positioned outside in the pavement, which allowed us only a precarious drip feed of power. As one of the neighbours had legal wrangles over his own property, the council would not issue the necessary license until all was resolved. Thankfully, my command of Spanish helped me to enlist the support and assistance of the local Spanish community, who were already well aware of these legal traps. Obviously, learning the language goes a long way in helping you protect yourself in a foreign country.

When buying a new build, you must ensure this document is available before completion of the purchase, and any promises of a forthcoming License “after” completion can be a mere trick to ensure a quick sale.

It finally took the intervention of a small documentary program on Granada TV some nine months later, before the council would finally allow the acquisition of legal utilities.

Despite the difficulties, I know that we made the right decision in moving to Spain. Instead of allowing anger to consume us, we put our faith in the people who expressed warmth and sympathy. We now enjoy the very best of a culture that welcomed us with open arms throughout our ordeal.

The License of First Occupation
For those wishing to buy into a new housing development in Spain, it is essential to check that the local council has issued this important document before completion of the purchase. This License is an official approval from the council, and states that the development is fit for occupation. No license means no prospect of a contract with utility companies who seek a copy of this document before providing their services.

Buying a Home in France

It Only Takes a Little Money and Nerve

Over a decade ago my British-born husband and I began our quest for a stone cottage in Brittany, the land of legends and myths, menhirs and dolmens, www.bretagne.com. The countryside is reminiscent of Devon and Cornwall- where I had lived for several years-but more mysterious.

Our pursuit began with the Internet www.french-property-news.com, where we could look at color photos and post our tailored request for that idyllic stone house: the building should have four intact walls; the roof should be in good repair and the supporting beams sturdy. And it had to have enough ground for a garden.

We discovered that in our price bracket of FF100,000 (roughly $18,000 at the time) we would be looking at properties with dirt floors and no indoor plumbing. The least expensive properties were being snapped up quickly by British buyers. We started to feel that if we didn't jump on a jet for France we would be too late.

Then came an email from an elderly British gentleman, Don Payne www.brittany-properties.com, a French property consultant, who acts as an intermediary between the French immoblier (real estate agent) and notaire, France's version of a real estate attorney www.notaires.fr. He was based in Brittany and had located a farmhouse that would be perfect for us based on our wish list. His email described a property located in the Côtes d'Armor www.cotesdarmor.com area of Brittany in the commune of Saint Mayeux; the attached photos pictured the maison of our dreams. Anxious and cautious, we made a bid at half the asking price, a little on the high side for our budget. The French owners, Monsieur and Madame Blanchard, took the lowball offer and the paperwork was set in motion.

To begin the process we signed a compromis de vente or sales agreement and mailed off a check for 10 percent of the agreed selling price from our French bank account at Societe Generale www.socgen.com, introduced to us by our consultant while we were in the U.S.

Exactly three months later we wired enough funds from our U.S. bank account into our French bank account to pay for the house and notaire's fees, which can vary from 3 percent to a little over 7 percent depending on whether the home is brand new or over five years old. Then of course our French property consultant's fees had to be paid. Since we didn't use an immoblier, we were saved additional commission fees.

Instead of having the consultant or the notaire sign the papers for us by proxy, which is not uncommon, we boarded a 747 charter flight www.new-frontiers.com. At Orly airport, we picked up our rent-a-car and drove five hours through the night to reach the commune of St. Mayeux in the wee hours of early morn.

I had to ask a storekeeper if she had heard of our village, Longaës, which turned out to have only two houses; imagine that, we would own half a village. The storekeeper disappeared into the rear of the shop and returned with a topographical map used by bicyclists. We found our village on the map and hastily made our way down the lane and through the fields to view the 18th century house that Jacque built.

It certainly was a fixer-upper: dirt floors, rotten upstairs floor beams, overgrown gardens, obstructed drainage ditches, missing roof tiles, rotten window frames, 10-foot tall spiky brambles growing in through the roof, birds nesting in the rafters, and rat droppings everywhere inside the musky, moldy, and fungus-covered dwelling. My rose cottage dream looked like a Money Pit nightmare.

We lept to our rental car and sped to a phone box to call our consultant and cancel the deal. Alert to our intention, he invited us to see his gîte, which is a rural self-catering holiday cottage.

Though his house was far from perfect, history oozed from every crack and imperfection. Our qualms soon turned to calm as we imagined our farmhouse in a more finished state of repair. We would indeed travel to the notaire's office the following day for a formal reading of the title conveyance clause en tontine, which allows the property to pass from husband to wife and vice versa without having to be distributed to children or other heirs under French law. It is also a good idea to have a French will written by a bilingual solicitor or attorney www.lawfrance.com when purchasing property in France.

House Hunting in FranceHouse Hunting in France

The Languedoc Offers Reasonable Prices and Good Weather

Even with the recent decline of the dollar against the euro and the increase in real estate prices in France, finding an affordable dream house in a small village or the countryside in France is still possible. One area that still offers reasonable prices, year-round mild weather, beautiful scenery and few tourists most of the year is the province of Languedoc. Since this is one of the fastest growing real estate markets in France, buying a house here a good investment is as well.

Languedoc includes the three departments of L'Herault, Le Gard, and Lozere. The area is mostly rural. The three largest cities are Nimes, Montpellier, and Beziers. The coastal areas are mild in the winter and not too hot in the summer. Montpellier boasts more than 300 sunny days a year.

Where to House Hunt
Languedoc offers good places to live—city or village, the coast, or the mountains, as well as a choice of housing: house, villa, apartment. The coast tends to be deserted in the winter and crawling with tourists in the summer. As you go inland, you will find year-round active towns and villages with shops and markets. Prices are lower and there are fewer tourists. The mountains offer isolated houses with lots of land, but colder and wetter weather.

Determining your budget and what kind of house you are looking for is the first step to narrowing your choices. Many houses are old and in poor condition. Are you willing to consider renovation work, or do you want a house you can just move into? Are you looking to move there full time or is this going to be a second home? Do you need easy access to medical care? If this will be a second home, how frequently and when are you planning to be there? Isolated empty houses are targets for vandalism. Are you looking to rent when you are not there? Will you retire here in the future?

Find a Liason
The second step is figuring out how to arrange your house-hunting trip. If you have a limited amount of time, setting up appointments in advance is important. The more specific you can be in describing your requirements, the easier it will be for agents to help you. If you are fluent in French you can work directly with local realtors. Another option is to use a company that acts as a liaison between foreigners looking to buy and the realtors. One advantage of using an intermediary is that they work with several realtors. (In France there is no such thing as multiple listings). The other advantage is that many of these companies are British owned and have English-speaking personnel.

Not all companies operate the same way. Some charge an upfront fee whether you buy or not. The fee, if you purchase, may be paid by you or included in the fee for the realtor. Many companies will facilitate the entire purchasing process. Ask ahead of time if this is included.

The best time to house hunt is off-season from November to March. Agents tend to have more time to focus on your requirements. It also allows you to see the area when the weather is least desirable and life is at its quietest.

Bring Your Documents
If you plan to make a decision when you see that dream house, you want to have all of your documentation with you. This includes: birth certificates, marriage certificates, tax returns from the last three years, bank and brokerage statements, and a list of assets. You also want to find a contractor (builder) to check out the house.

If renovation work is needed, get an estimate. Remember though, in old houses, estimates don't take into consideration those surprises that you sometimes find behind the wall. Unless you are planning to be there while the renovation work is going on and you speak fluent French, you will also need to find a knowledgeable person to oversee the project.