Monthly Archives: August 2012

Real Estate: Investing in Buenos Aires-Argentina Property

There are many investors in this world, and each has his or her own investment style. That is, some choose to diversify and invest in multiple markets, others choose one market specifically, and still others stay liquid for much longer than the typical investor.

Investing in Buenos Aires Property – Evaluate Prices and Risks

With so many different markets to choose from, and so many different ways to invest, it’s no surprise that there has always been a great debate about the best way to invest. Typically, it comes down to financial assets versus property. This can be a tough debate, and frankly, it usually results in agreeing to disagree.

Many variables go into an investor’s decision. First is the investor risk aversion. Secondly, each investor has a differently structured investment portfolio, which will affect his or her future decisions. Finally, different investments require different amounts of liquidity.

Most experts agree that a good distribution of the portfolio is the best idea, as the saying goes: don’t put all your eggs in one basket. For example, while a bond may be much more liquid than real estate, it also carries certain risks that are not found in property investments. And this is no trivial point when in a country where defaults and seizures have become a regular part of recent history.

On the flip side, many argue that buying property relies too much on finding and keeping good, responsible tenants who not only pay on time, but return the property in the condition they found it in. Upon all that, there are also the costs related to getting tenants into the property, and the standard exit costs.

When investing in a financial asset, many choose to avoid the traditionally volatile Argentine options and set their sights abroad. This strategy can easily be applied to property, as well. For example, Uruguay is a just across the river, and is a great opportunity for an alternate investment.

The other major issue for any type of investment in real estate Buenos Aires has to do with the capital to be gained, and the price of entry. That is, if an asset is unusually low and has a projected rise in its future, it is more than just as asset; it also offers capital gain income. However, the state can often distort the price of entry. For example, 2002 brought many property sales because becoming liquid was the best way to go, as construction costs were unusually low, and liquid assets meant building opportunities.

But the world has changed greatly since then, both internationally and in Argentina. The international financial crisis also affected the cost of property, and locally, relative prices have been greatly distorted. Prices are too low for sellers to be comfortable selling, the market has simply become a more complicated place.

In short, neither financial assets nor physical ones win the battle, but it is important to evaluate the risks of any investment, even property investment, before taking the plunge.

The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires  lawyer in Argentina.

Argentina Probate Estate Attorney Fees

Argentina Probate Estate Attorney Fees

The amount of professional fees to be paid is key when deciding whether to open a succession or not; therefore, we will address this issue separately so as to clear all possible doubts about it.
At Kier Joffe we have a wide range of payment terms available to clients so that they may easily pay our professional fees for the service provided.

Moreover, as we handle succession proceedings exclusively, we study each case thoroughly and offer clients the best terms of payment possible.

Professional fees are charged for the professional work performed by the attorney handling the case, and they do not include the expenses that may be incurred as a result of initiating the succession proceedings in court, such as the publication of estate notices, the obtainment of any missing birth or death certificate, or the delivery of chain of title reports.

Kier Joffe abides by the legislation in force setting the percentage range for counsel’s fees that may be fixed in the City of Buenos Aires. Such range goes from 11% to 20 % of the actual value of assets, which is reduced by 25% as provided for by the Attorney’s Fees and Rates Law. On the other hand, such percentage in the Province of Buenos Aires, ranges from 7% to 25% of the tax valuation (which is usually close to the actual value) or actual value of the assets to be transferred.
In our experience, it is always convenient to reach an agreement with the attorney as to the amount of fees and terms of payment, as judicially determined fees may be much higher than those that could have been agreed in a Fees Arrangement.

Generally, Kier Joffe’s professional fees range from 10% to 15% of the actual value (market value) of the assets to be transferred. The greater the number of assets or assets’ value, the lower the percentage of fee applied.

Our clients may choose to pay in installments until the ruling acknowledging the legal heirs to an intestate succession and its certified copy are issued; or, they may pay the total amount of fees once succession proceedings are concluded.

In certain cases, heirs decide to sell real property following the “fast-tracking purchase” system once the ruling acknowledging legal heirs is issued. The proceeds of such sale are then used to pay professional fees.

It is to note that if no fees arrangement is signed, the attorney may request the court to fix the corresponding amount of professional fees, which may end up being much higher than those that might have been agreed with the client.

Each case is special and particular, that is why we are always willing to discuss each case individually so as to agree on the best payment terms possible. We seek to be a solution, not a hurdle, in the difficult circumstances you are facing.