| Patagonia, Argentina |
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Photo courtesy of Reynolds Propiedades
“Be practical,” advises Paul Reynolds, a Canadian-Argentinian realtor whose company, Reynolds Propiedades (argentinahomes.com), has been in the business for four decades and has been matching foreign buyers with prime Patagonian land since 2002. “To get bottom-rung prices, you have to buy thousands of acres. And unless you’re desperate to escape the modern world, you’ll want to be within an hour’s drive of an airport and with at least some amenities.” Forested lots in accessible parts of the Andean foothills run between $4,000 and $6,000 per acre, rising to $80,000 or more in a gated lakeside community with utilities and a golf course. For an acre in a tourist hub such as Bariloche or El Calafate, don’t be surprised to part with nearly a million dollars. > Location At the western margins of the south-central Chubut province, 230 miles from the nearest commercial airport at Comodoro Rivadavia, 5,600-acre Lago La Plata is fed by glacial meltwater from nearby Andean peaks. Connected to the better-known Lago Fontana by the turbulent, mile-long Río Unión, it is revered by fly-fishermen for its prizewinning trout. > Title Argentina’s well-organized land registries enable escribanos, or notaries public, to trace property ownership efficiently, making title insurance purely an option. Conflicts arise more frequently with untitled inhabitants as Argentinian law awards ownership to settlers with 20 years of proven occupancy. Check that sellers are free from liens; properties can be embargoed without their knowledge. Joint buyers should consider establishing a fideicomiso bank trust, a legal concept imported from Mexico. > Special conditions Although Argentina’s constitution imposes no restrictions on foreign ownership of real estate, increased vigilance over land ownership in “strategic zones” is complicating land purchases in border areas and mineral-rich regions. Government-specified “security zones” vary by province, but most sales of land within 62 miles of a frontier will invite scrutiny. An approval process exists, but getting the necessary authorization can take as long as a year. There is no surefire solution, but some escribanos recommend using a fideicomiso trust, perhaps with an Argentinian partner, to minimize risks. > Real estate closing Closing a real estate deal in Argentina is complex. A buyer’s physical presence is not necessary, as the buyer may grant power of attorney to a third party to sign contracts. Most sellers, however, will accept only U.S. dollar bills, and transfers to bank accounts held abroad can lead to tax complications. Fees and commissions can also add significantly to transaction costs. Real estate agents typically receive a 3 to 4 percent commission from both buyer and seller; buyers must also pay a 2 percent notary fee. Taxes on property ownership vary by province but must be cleared before resale. Sellers pay a transfer tax of 1.5 percent, in addition to a province-levied stamp fee of between 1 and 4 percent. > Services Access to drinking water in Patagonia’s mountainous regions, which are ripe with crystal-clear lakes and streams, rarely presents a problem. On the arid steppe, however, the water table can lie some 1,600 feet below ground. Argentina’s subsidized electricity presents the cheapest on-grid heating source, as gas-main systems are limited and access to bottled gas can prove unreliable in harsh weather. Solar panels, wind turbines, and stream-driven hydroturbines provide efficient off-the-grid power sources. > Building It makes the most sense to contract a local architect to handle red tape as well as design. Always get three estimates for construction, although high-quality workmanship might be limited in remote areas. New-construction costs in Patagonia can amount to $120 per square foot; materials are some 30 percent cheaper in Buenos Aires, but transportation and storage might negate savings. Comments (0)
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