Argentines always look to the United States as the top destination to invest outside the country. For its many benefits, including a return in dollars and the security of an economically stable country. Although there may be variations between investors, in general their needs are similar.
We can identify a series of recurring queries among Argentine investors looking to put their savings in the US real estate market. I share the most frequent questions and doubts that will serve those who are thinking of investing in brick in that country.
Writing. One of the most frequent queries is whether the property has its own deed. It is particularly popular in the condo-hotel model, where an investor buys a hotel unit, and receives a title deed. It is a question that arises from confusion with other types of investment, such as timeshare, where you do not have a deed.
Signature of the contract. As Argentina is in the southern hemisphere and the United States in the north, it is not surprising that one of the most frequently asked questions by Argentines is whether they can sign the purchase remotely or if they should travel to the US. Fortunately, the advances Technological changes also impact the real estate market and, especially in a post-pandemic context, each part of the buying and selling process can be carried out remotely: the creation of an LLC (limited liability company), the opening of a bank account, the signing of the contract, and even the administration of a unit, and even its subsequent sale.
Use of the unit (condo-hotels). Another question that is often asked in the case of condo-hotels is whether the owner can use the unit for some period without affecting its profitability. There are hotel management programs that offer this possibility and others that do not. For example, the owner can use a unit for two weeks, without affecting his net rent. It is a formula that allows you to do business and tourism at the same time. This benefit is generally stipulated in a Rental Management Agreement, which details the conditions for it to happen.
In other cases that are not condo-hotels, such as apartments, it will also depend on the Administration. There are investors who decide to buy apartments to be rented long-term, with annual contracts, while others prefer to benefit from tourist and short-term income. The first will not give much room for the owner to use his property, but the second will.
Unit status. Many potential investors ask if the units are delivered fully furnished and equipped. This also gives freedom to the different types of investors and their varying needs. That is to say, there are those who prefer to furnish their properties, so that they can have a desired aesthetic, and others prefer not to have to take charge, and that the property is delivered ready for use: turnkey. This is especially favorable for foreign investors, who can not only buy the property from a distance, but also avoid traveling to furnish it, and have a management company that is in charge of maintaining and renting it. This is another outstanding and differentiating point that condo-hotels offer.
Unit administration. As mentioned above, a question that naturally arises for someone interested in acquiring a property in the USA is whether they can disengage from the administration of their unit. Being outside the United States, it is one of the most important and conditioning consultations. If there is a company that can manage the unit, be it in the case of an apartment, house or condo-hotel, this facilitates the whole process for the investor, who will be able to do without searching for a trusted Property Manager who does it.
Visa or Green Card (EB-5). Lastly, the query is being made more and more frequently as to whether investors can obtain a Green Card or investor visa, through the purchase of a property in the United States. This is possible, although certain conditions and requirements must be met for it to happen, including the amount to be invested and the type of project. There are real estate developments that have been specially designed to offer the EB-5 visa, such as OneWay Residences Kissimmee.
It is important to clarify all these possible doubts, among others, before investing in remote real estate in the United States, since investment in this market is not complex, much less impossible, but it does have certain processes and steps to follow, for which you have to internalize beforehand. It is recommended that all potential savers -with or without experience in real estate investments in other countries-, have the advice of developers with verifiable and certified track records and experience in the real estate segment.
In summary, clearing up doubts and knowing every detail of the project where you want to invest is key when making the decision. The clearer the information provided by the developer, the less risk the investment will have.
Miriam Manfredi Sales Director of Konnectia,and
specialist in real estate developments based in the United States.
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