Buying apartments en verde

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otravers
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Re: Buying apartments en verde

Post by otravers » Thu Jun 16, 2011 3:37 pm

Yeah we keep hearing about irresponsible landlords, and we had one ourselves before we bought our own place. I'm not going to be that type of landlord (we had both good and bad tenants back in France).

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Re: Buying apartments en verde

Post by zer0nz » Mon Jun 20, 2011 7:42 pm

Bump,

This is a quote just from the internet for a apartment in a building in construction (or maybe not started yet).....

Monto UF Monto $
(*) Contra Promesa 10,00% 400,00 8.744.316
Pie 10,00% 400,00 8.744.316 1
Pago en cuotas (durante la construcción) 10,00% 400,00 8.744.316
Crédito Hipotecario 70,00% 2.800,00 61.210.212
Total 100,00% UF 4.000,00 $ 87.443.160

I dont know the completion date for the project, im just interested in the terminology and process

10% durante la construction, im guessing they will probably divide that per month from the start of the construction to the end, so if it takes 12 months, you need to pay 33uf per month...???

The Pie, is the deposit...., is that paid at completion of the building? at the start? or at the time you sign the contract?

What the $%& is contra promesa?, and when is that paid?

And Credito hipotecario, can i presume this is what they are offering through the construction company? or is this just an example?

anyone able to explaint his better?

thanks

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Re: Buying apartments en verde

Post by admin » Mon Jun 20, 2011 7:53 pm

Not sure about the context of the rest, but typically the payments are set out in the contract. Often they correspond to completion of certain things.

Watch out however for things where they for instance have the title issued by the city, and demand payment for the total, but the apartment and / or building is not done. We have seen that one a few times.

Closely related, watch out for the parking spaces also. We have had disabled clients sign deals on the condition that they get parking next to the door, only to have the parking lot reshuffled at the last moment. Most likely to close sales deals with other clients.
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Re: Buying apartments en verde

Post by zer0nz » Mon Jun 20, 2011 8:07 pm

admin wrote:Not sure about the context of the rest, but typically the payments are set out in the contract. Often they correspond to completion of certain things.

Watch out however for things where they for instance have the title issued by the city, and demand payment for the total, but the apartment and / or building is not done. We have seen that one a few times.

Closely related, watch out for the parking spaces also. We have had disabled clients sign deals on the condition that they get parking next to the door, only to have the parking lot reshuffled at the last moment. Most likely to close sales deals with other clients.
Damn i forgot carpark, im presuming it is standard to quote without also

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Re: Buying apartments en verde

Post by otravers » Mon Jun 20, 2011 8:37 pm

In the proposals we're looking at, the 10% pie is paid in equal installments over the period between signing of contract and delivery of the apartment. Say apartment costs $x and will be delivered in 18 months, then you'll pay $x * 10% / 18 each month, then remaining 90% at delivery.

Parking spaces are typically quoted separately. Bodega is not too hard to get included at no extra cost.

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Re: Buying apartments en verde

Post by zer0nz » Mon Jun 20, 2011 8:44 pm

otravers wrote:In the proposals we're looking at, the 10% pie is paid in equal installments over the period between signing of contract and delivery of the apartment. Say apartment costs $x and will be delivered in 18 months, then you'll pay $x * 10% / 18 each month, then remaining 90% at delivery.

Parking spaces are typically quoted separately. Bodega is not too hard to get included at no extra cost.

That seems nice and simple! what are you finding for cost of car parks?

also, How do banks work with finance being that 90% will be paid in 18 months time? the banks approve now and the money sits there available for when its ready?

thanks

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Re: Buying apartments en verde

Post by otravers » Mon Jun 20, 2011 11:19 pm

On parkings, it's not been our main focus and so far I've heard numbers all over the place, from 27UF to 500UF! Reality has to be inbetween. Consensus is to rent the parking space separately, for an extra 15-20.000 pesos/mo.

On mortgage structure: good question haven't started talking to banks yet.

We should also discuss gastos comunes. These seem to be in the 35.000-40.000/mo range in high buildings with elevators. Low rises with few amenities are probably around the 25.000/mo mark, but they don't build much of these anymore.

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Re: Buying apartments en verde

Post by otravers » Fri Dec 30, 2011 5:47 pm

Quick update: as discussed in another thread, we found builders a little too arrogant given the number of projects hitting the market and have decided we probably won't act for probably another 6 months at least to let the reality of a slowing economy sink in. Also the exchange rate situation should be more favorable, things add up and can easily a 20%+ difference in USD price (in the buyer's favor is my bet). The way I look at it, if you buy well, i.e. at the right combination of location and time, then it's just downhill ski from there to make money. I think 2012 will mean lower interest rates, cheaper peso and sellers who want to move product.

In the meantime we've started looking at galpones (garage-like structures) to buy one that we might rent out for commercial or parking purposes for a few years then remodel as a loft later on. People made such a killing doing this in Europe and the US and Santiago remains relatively affordable. I'm guessing you gotta be careful with occupancy assumptions though since commercial real estate tends to be pretty cyclical.

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