Category Archives: Real Estate

Real Estate: In Argentine Development, Vineyards and Villas – Argentina

New York Times – By NICHOLAS GILL

TUNUYÁN, ARGENTINA — “I’m a Texas boy and love the ranch; this reminds me of that,” said Michael Brochu, a semiretired tech executive from Seattle who is awaiting the completion of his villa at The Vines of Mendoza, a development in the foothills of the Andes.

“Big open spaces,” he said. “It’s like Napa 30 to 40 years ago.”

Mr. Brochu first heard of the development, on 400 hectares, or 1,000 acres, when he purchased eight hectares of vines several years ago through its vineyard estate program.

According to the development’s Web site, more than 100 investors have already planted 280 hectares with 18 varieties of grapes, like Malbec and Syrah. A team of experts is available to help guide owners, and to produce wine at the development’s own facility.

When Mr. Brochu heard that the company would be building villas adjacent to the vineyards, he jumped at the opportunity. “The key for us is the whole concept,” he said. “We can participate as little or as much as we want. We drink wine, but we didn’t want to be in the wine business. It’s more of a lifestyle.”

The one- and two-bedroom residences — made of wood, brick and concrete — range from $350,000 to $900,000, depending on the layout and size of the plot. (Many real estate transactions are done in Argentine pesos, but developments seeking international buyers generally price properties in dollars.) Twenty-two villas are scheduled to be completed by the Vendimia, the grape harvest in March.

But The Vines of Mendoza — established in 2005 by Michael Evans, an American entrepreneur, and Pablo Giménez Riili of a well-known Argentine winemaking family — is far from being the valley’s only new development.

While several projects, like the 310-hectare Valle de Uco, were put on hold in the wake of the 2008 global downturn, most are preparing for their first residents.

At La Morada de los Andes, near The Vines of Mendoza, 83 lots are under development on more than 400 hectares of vineyard. Land prices range from $90,000 to $160,000, with construction costs estimated at $1,600 a square meter, or $150 a square foot. The first structures, including the clubhouse, are expected to be completed by the end of the year.

Title transfers involving residential property are much simpler than those for farmland, said Steve Rosberg, the founding and managing partner of Ushay Investments. “The lots are residential, not agricultural, and this is an important distinction,” he said. The development company owns La Morada, as well as the sleek Fierro Hotel in Buenos Aires and Los Arbolitos, the for-profit vineyard investment trust that owns the vines around La Morada. Its grapes are sold to area wineries, with the trust supervised by Mr. Rosberg’s son Andres, president of the Argentine Sommelier Association.

Homeowners at La Morada may invest in Los Arbolitos, but even if they do not, small amounts of the wine will be allocated to them and sold in the clubhouse to help offset their expenses. Also, the developers say there will be opportunities to defray their costs through rentals.

“We will provide full property management services so that they make revenue from their non-occupancy time,” he said. “We estimate that a gross 8 percent return as a very conservative projection.”

Spanish and Italian immigrants planted vines in the Uco Valley as early as the 1920s, but the valley, which is 70 kilometers long, or 45 miles, was considered too far from Mendoza, the provincial capital in central Argentina. Most of the region’s wine production was concentrated closer to Mendoza, in Luján de Cuyo and the Maipú Valley.

In the early 2000s, when Argentine wine began to take off on the global market, top names like O Fournier, Achaval-Ferrer and Catena Zapata decided the valley had the potential to produce intense wines with relatively low acidity.

Surrounded by snowcapped Andean peaks, the region often draws comparisons to the Napa Valley, north of San Francisco, for its tourism potential, which includes outdoor activities like skiing, biking, and horseback riding.

While wine is a central element to all of the Uco Valley’s developments, some, like Tupungato Winelands and Algodon Wine Estates, are becoming lifestyle complexes, with golf courses, polo fields, boutique hotels, spas and a country-club atmosphere.

“For the Mendoza wine and real estate market, the first thing that has to be said is that it has been growing steadily for 15 years now,” said Andrés Ostropolsky, a Mendoza-based sales associate for Sotheby’s International Realty. The agency lists many properties in the region, ranging from vineyard estates at Casa Palmero to Casa de Uco, a vineyard complex where private home sites, as well as a hotel and spa, are under construction.

According to Mr. Ostropolsky, the asking price per uncultivated hectare ranges from $12,600 to $39,000, while the price per hectare of vineyard ranges from $35,000 to $98,000, depending on the location. In comparison, the price for a prime hectare of vineyard in Napa Valley ranges from $500,000 to $750,000.

“This growth has not been explosive, but continuous over time,” Mr. Ostropolsky said of Uco Valley prices. “The average rate for the appreciation of the land has been around 6 percent” a year.

Foreigners have not been allowed to buy large tracts of land in Argentina. “Recently the Congress has issued a law that allows a foreigner to buy up to 1,000 hectares,” Mr. Ostropolsky said. “In terms of vineyards, that’s a huge number. A big vineyard can be one of 150 to 250 hectares at the most.”

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.

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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.

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Growth in the Buenos Aires-Argentina hotel industry

The hotel sector in the Buenos Aires real estate market is attracting property developers. Tourism is on the up and there is a diverse variety of options opening up to investors.

Hotel industry information:

•    Hotels are the real estate sector that provides profit in the long term.
•    Boutique hotels are a new phenomena that is one of the popular options for investors.
•    The location of boutique hotel is crucial in its success. There is already an oversupply in areas like San Telmo and Palermo, with hotels finding it hard to compete.
•    The amount of money required to open a Buenos Aires boutique hotel is estimated at costing between $ 2 million and $ 5 million US dollars.  The expenditure per room costs between $ 150,000 and $ 250,000, including land and fittings.
•    On top of the costs of constructing and fitting a hotel investors also have to consider the costs of launching the hotel on the market. It takes a lot of time, hard work and money to earn a reputation as a reputable hotel.
•    Enterprises in the Buenos Aires hotel market have the best chance of increasing in value.
•    Mid-range hotels make up the part of the market that is growing the most, thanks to corporate tourism and business trips. This sector needs to be standardized so that clients know what services to expect in this type of hotels. Until what is expected in mid-range hotels has been established, larger, hotel chains will perform better as people can trust in what they will receive during their stay.
•    Hotels with limited or selective services are the new tendency for hotel developers, successfully combining quality, basic services and fair prices. Rooms in this type of hotel are smaller but well designed and are awarded three or four stars.
•    Mid-range Buenos Aires hotels withstand the economic crisis and have an income of around 12% annually.
•    The amount of money invested per room should not exceed $ 70,000 US dollars in 3 and 4 star establishments. Luxury hotels are much more risky investments as they require an investment per room of between $ 300,000 and $ 500,000 US dollars.
•    ‘Fractional’ hotel developments allow investors to diversify and lower the risks in investing. Fractional enterprises are typically hotels with timeshare homes, with one room ‘owned’ by 4 to 12 different proprietors. This is a smart investment in places where there is high seasonality.

The Buenos Aires hotel market is expanding, with boutique hotels and fractional, mixed hotels creating exciting and diverse options for investors.

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.

www.kierjoffe.com

Buenos Aires Real Estate Lawyers

Buenos Aires Real Estate Lawyers

The Buenos Aires real estate lawyers of Kier Joffe advise national and international industrial, commercial and services companies in drafting, negotiating and implementing real estates. Kier Joffe extensive experience in complex agreements enables the firm to develop pragmatic, cost-conscious solutions, tailored to meet the individual needs of each client. Consult with a Buenos Aires real estates lawyer at Kier Joffe and receive trusted and experienced counsel at very reasonable legal fees.

At Kier Joffe, the firm’s real estates lawyers focus on the following areas of real estate law:

-Real estate planning
-Commercial development
-Realty operations
-Legal counsel to commercial real estate owners
-Legal counsel to real estate developers
-Legal counsel to building companies
-Completion and sale to third parties
-Design and posting guaranties
-Commercial real estate provisions of adequate funding

Professional Advice From A Real Estates Law Firm In Buenos Aires Argentina –

Speak With A Knowledgeable Buenos Aires Real Estate Lawyer – Call +54 115 218 3100.

Consult With A Buenos Aires Real Estate Lawyer Of Kier Joffe

Kier Joffe is composed of professionals continuously trained through programs of technical and business management at a national and international level. The firm’s real estate lawyers, practice law as a profession and are aimed at satisfying our customers with an intense dedication. By understanding the needs and requirements of our clients we can provide the proper assistance for the task at hand.

Skilled Real Estates Lawyers in Buenos Aires, Argentina

The Buenos Aires real estates lawyers of Kier Joffe are highly oriented to the practices of business and real estates law. The attorneys of the firm support their clients in all commercial and real estate challenges, and assist them in strategic change processes and business succession. Kier Joffe focus their work on an extensive set of core competencies, with specialties in legal consultation, litigation and arbitration.

A Buenos Aires Real Estate Lawyer With International Experience

At Kier Joffe, the firm’s Buenos Aires real estate lawyers have a distinct international perspective, with appropriate cross-cultural experience. The firm has proven expertise in arbitration at the national and international level. In addition, Kier Joffe staffs real estate attorneys who are involved in several international legal committees and major arbitration institutions. Trust a Buenos Aires real estate lawyer at Kier Joffe to handle local and cross-border issues competently, reliably and quickly.

Client Committed Buenos Aires Real Estate Lawyers

Clients of Kier Joffe seek quick, practical and expert legal advice about their problems. For exceptional, strategic challenges and processes of change, they want sound legal guidance and professional support.

The Buenos Aires real estates lawyers at Kier Joffe set themselves high standards with a consistent customer orientation. The firm renders customized service to its clients, while emphasizing its core competencies to reflect a high degree of professionalism and experience. Each mandate is assigned to a partner at Kier Joffe who acts as personal contact of the client. By staffing only the most well-trained real estate lawyers in Buenos Aires, Kier Joffe are efficient and creative at resolving the legal issues of its clients.

A Highly Qualified Real Estates Law Firm In Buenos Aires, Argentina

Managing complex commercial legal challenges and litigation is a main expertise at Kier Joffe. Clients of the firm are entitled to tailor-made and practical advice. The firm’s Buenos Aires real estate lawyers concentrate on their core competencies, allowing them to provide effective and value-added solutions. All professionals at Kier Joffe are highly qualified in their areas of practice.

Professional Advice From A Real Estates Law Firm In Buenos Aires Argentina –

Speak With A Knowledgeable Buenos Aires Real Estate Lawyer – Call +54 115 218 3100.

Loyal Real Estate Lawyers in Buenos Aires, Argentina

The clients of Kier Joffe are decision makers in the economy. Many of them manage their own company or bear responsibility in international, strategic or conceptual environment. They seek fast, practice oriented and competent legal advice to their daily problems.

In times of change and extraordinary, strategic challenges, the Buenos Aires real estate lawyers of Kier Joffe offer professional assistance and create sound legal solutions. The MME Partnership is responsible for the quality of the client relationships. The Buenos Aires lawyers of the firm are delighted to assist and work with businesses and professionals of Argentina.

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.

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Argentina Abogados Herencia y Testamento Buenos Aires Abogados

Best Buenos Aires Real Estate Lawyers – Top Buenos Aires Real Estate Attorneys – Prove Buenos Aires Real Estate Lawyers – Buenos Aires Real Estate Attorneys

Buyers are Lured by the Advantages of a House in Buenos Aires, Argentina

Though higher prices and the lack of affordable credit make buying a house in Buenos Aires more difficult than purchasing a compact apartment, many buyers are willing to pay the difference in order to enjoy the advantages a house can offer.  A house can provide recreational spaces such as a garden and/or patio, swimming pool, and barbecue pit.  The owner is free to remodel the house without having to get prior approval from a homeowners association and avoids having to pay homeowners association fees for the maintenance of community property areas.

The current economic instability brought on by the global financial crisis is causing many people who have capital on hand to insure their money by investing in the purchase of a house.  They feel that in the short and medium run money will be worth less and tangible goods and property will increase in value.  Though house prices in Buenos Aires experienced an increase in values two to three years ago, prices have stabilized over the past year and a half.

When looking at housing prices, the value of each home is unique. The most important factors in determining the value of a house are the size and location of its lot and the quality of construction.  The same house on the opposite side of the street can be priced differently due to its immediate surroundings and the direction in which it faces the sun.  Housing prices also vary according to the neighborhood, its comfort features, the amount of free spaces it has and whether it has a pool, barbecue area, and a one or two car garage.

In the highly exclusive area of Barrio Parque (Palermo Chico), prices can vary in a wide range from USD 2,500 to USD 4,500 per square meter.  In Barrancas de Belgrano and the southern residential area of Caballito, prices range from USD 1,800 to USD 2,500 per square meter.  In most other areas, prices vary between USD 900 to USD 1,700 per square meter.

The houses in greatest demand are those found in the more residential sectors within each neighborhood, nestled between other good quality homes. Proximity to transportation and schools and being close, but not too close, to a freeway are the other factors people favor.

The most requested neighborhoods are Belgrano R, Nuñez, Palermo and Colegiales.  A modern house in the northern part of the city of Buenos Aires, which includes Belgrano, Nuñez, Palermo, Colegiales and Villa Urquiza, with a good-sized lot and a house measuring 200 m2 is averaging between USD 280,000 to USD 320,000.  In Nuñez a 190m2, two story, four bedroom house on a lot measuring 8,66 meters wide by 24 meters long with a garage, pool, club house and barbecue area is priced at USD 300,000.

The housing market in premium neighborhoods is quite special.  The pocket between Avenida Figueroa Alcorta, Juez Tedin and San Martín de Tours is the highest priced area of Buenos Aires.  There are no more than two hundred houses nestled in a park like setting.  The sale of these homes is more complex than an apartment; each house has its own style and there can be variations in how well the home has been maintained.

An essential requirement in homes of this level is a spacious garden.  A garage is ideal; however, in the more exclusive areas residents have ample street parking available.

In Barrio Parque and Gran Bourg the price of a lot is averaging USD 3,500 per square meter.  The costs of construction vary according to the quality of materials used, surface size and layout; however, costs range between USD 1,000 per square meter on the low end and USD 2,000 per square meter for higher quality.

Those who sell their house in Barrio Parque are likely to move to a quality apartment in Recoleta.  The difference in price allows them to purchase a second apartment as rental property.  Those who buy a house in Barrio Parque obtain a luxury home with a spacious garden and pool in the highest valued area of Buenos Aires which will never lose its value.

In the Buenos Aires’ real estate market, houses are sold for three different purposes.  The first is for residential use where the buyer intends to live in the home or rent it out.  The second is for the land.  In this case, the buyer is usually a developer who demolishes the original house and builds an office or apartment building.  The third situation is where the house is refurbished and/or remodeled for commercial use.  The latter two purposes have accounted for the greatest number of sales and have experienced the greatest increase in value.  They also account for a reduction of the availability of residential houses on the market.

Buyers will continue to be drawn to the benefits of a house in which they can find more light, sun, space, and air, while they have the freedom to modify their property as they wish and avoid costly homeowners association fees.  The one negative point is security, being more vulnerable to theft.  That is why most buyers prefer a house on a well-lit street close to transportation and schools.

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.

www.kierjoffe.com