(Photo opposite: Terrace at Doug’s place in Chile) Chile and Argentina have emerged as the safest, cleanest, countries to live or retire. Reasons include; safety and security, cost of living, price of property and rental housing, and the cleanest air and water on the planet. Conflict and war are not part of the political landscape of Chile and Argentina. Both countries are under-populated, welcoming, and in need of immigrants. Both Chile and Argentina are very different from the other countries in Latin America. They are more similar to Europe than Latin American countries like Mexico. They are cleaner and quieter. If you have ever been to Mexico and heard the barrage of cars with loudspeakers driving in residential areas with announcements blaring at levels easily understood miles away, then you can appreciate the quiet found in Chile and Argentina. Garbage is collected and not burned near your house.
If your plans are to rent your housing and experience your new country before investing permanently, then Argentina is an excellent choice. Cost of Living(COL)factors are all better in Argentina. Gasoline in Argentina is price controlled (@2.50usd per gallon) and is half the price of Chile(5+usd per gallon). Natural gas is also much cheaper in Argentina. Food and electricity, and public transportation, again, cheaper in Argentina.
Buenos Aires is often referred to as the “Paris of the West.” Personally(not being a ‘Big City’ kind of guy), I find BsAs less attractive. Real estate values have not gotten to ‘world real estate market norms’ and apartments in the nicest parts of the city are being snapped up by Americans.
For me the region around San Carlos de Bariloche is stunningly beautiful. The people are warm and friendly(yes, even to Americans) and the food is excellent. Never having spent “Kobe Beef” money for a steak, my choice for best beef is Argentina’s finest. The ‘city by the lake’ is beautifully crafted and perfectly set against mountains and blue water. In Bariloche, the cost of living is low, health care good to excellent, and there is skiing and mountain biking in every direction. There is such a sense of near-perfection in Bariloche. It is so civilized; so European. The underlying problem is well hidden, and at first it seems insignificant.
When I left the USA, I was leaving for Bariloche. I had visited and fallen in love with the town, the area, the people, the food. Even a bad day could be eased by walking a few blocks and looking out at the lake, to the surrounding mountains. People ask if the view is comparable to Colorado or Lake Tahoe in California. The answer is NO. Only Lake Louise in Canada comes close to the impact of Bariloche perched on the shores of Lake Nahuel Huapi. Bariloche is a wonderful place to spend time. There are problems in any place, and the problems in Argentina emerge when you want to move permanently to Bariloche(or San Martin de Los Andes, or anywhere in the Security Zone-which includes most of Argentine Patagonia).
The major problem is corruption. And the problem begins when you try and buy a home. Almost everyone will tell you “Americans can buy property in the Security Zone with no problem” but the Laws of Argentina say a foreigner must have 2 years of permanent residency to get title to real property. This means a total of 5 years living in Argentina, before you can buy and get title.(3years of temporary residency followed by 2 years of permanent residency). You will be told that “you are special” and “there are ways around the problem”(and you will believe these talented liars, because you want to believe). Everyone smiles as you hand over your money and receive the papers giving you claim to the property. The actual Title to the property comes from Buenos Aires and you watch as the application is filled out. You’re offered the finished paperwork to read and approve(your Spanish is not equal to the task-so they explain everything to you). Just the “automatic approval” of Buenos Aires is needed for the deal to be done, and “Happily ever after” begins…But in the end you join the hundreds of people who lost most, or all of their money. Some try to establish a “Trust” purchase or a “Special” purchase(or whatever). Even now when I ask one of the real estate snakes if I can buy; even when I let them know, I know, the smile barely flickers as they insist “Their clients have no problems with getting Title” only the clients of incompetent agencies have problems. I look into their eyes knowing they are lying to my face. They are very good liars. The facts are: the law changed in December of 2004. A new Secretary in charge of issuing land titles was appointed in August of 2005 and the titles issued to American residents stopped. I get emails from legal permanent residents(with 2yrs permanent residency as called for by the law) who were denied as well. Americans who bought a lot or parcel years ago, for a future retirement home, now find squatters, often indigenous people living on ‘their’ property. These properties are lost.
But the problem is not just in “Security Zone” real estate. American businessmen have written me saying they have closed their businesses in Argentina because of the need to pay off people to stay open. Any successful enterprise is greeted with increased demands for pay-off money. All real property deals or purchase of business contracts contain fraud. (I am sure there must be exceptions-but in 3 years I have not heard of any. My Argentine friends claim there are as many ‘legal’ contracts as there are unicorns) “Black money” is a phrase you will learn by heart if you try and force your way into the business or real estate worlds of Argentina. Black money is a factor in every contract for “big” money. Black money is the difference between the real value of property or a business and the price on the contract. Argentines do not believe in paying taxes. So they write up the contract for less so as to pay less tax. You as a buyer are expected to give the full amount demanded while receiving a contract that states you paid less. The difference in money is gone if you ever have a problem. Any secondary type of note you get is worthless in a court of law because it is evidence of Fraud - which is a crime -and immigrants are supposed to avoid committing crimes. If the investing environment in Argentina was not so antagonistic, I would be living in Bariloche today.
(Photo opposite: Bridge in southern Chile) CHILE IS NOT LIKE ARGENTINA. The cost of living is higher, the beef is tougher, the food in general is bland, the towns are not as spiffy and well maintained, the people are cooler and more distant. BUT the RULE of Law, is obvious, and the PROTECTIONS of Law are very reassuring. An American can buy real property with his US passport and a “Rut” number issued by the Chilean government for a small fee. The title is then registered and you have as good a claim to ownership as in the States(better perhaps because protection from state confiscation ‘Eminent Domain’ is better). If you want to go into business, you just have to follow the rules that everyone follows. Getting permanent residency is not complicated and there are no extra “fees.” The Chilean climate is a bit warmer and wetter but the countryside is beautiful. The new copper wealth is being translated into road building and paving projects. These projects along with the expansion of electrification are making a lot of previously remote land into prime areas for investment. The outdoor life in the 7th through the 10th Regions is as beautiful as any you might find in Canada or Alaska and the climate is similar to northern California/ Oregon. Places that would be National Parks in the States are going on the market as “raw land.” Now with road and bridge building projects nearing these remote jewels, Chilean real estate is about to go global (‘world real estate market norms’).
I just did a survey of property in the 7th to 10th Regions. Prices of property are the same as a few years ago. And there is not a ripple on the pool. International real estate investment firms don’t offer any information about property in Chile outside of Santiago and Viña del Mar.
The road and electrification projects are creating more opportunities.
The best thing is, in the event of a war or other political debacle, Chile is the safest place to go (Southern Hemisphere, political and currency stability). If nothing bad happens, the basic rule of “Invest in Beauty”(and someday the buyers will make you rich) is in force and investors make money and get to live in a beautiful place.
Chile Notes:
Chile is a prosperous country with large exports of copper and timber, and fresh fruits/vegetables, fish and shellfish. The oil hydrocarbon deficits are largely a matter of negotiation between the new Bolivian President (Bolivia has natural gas reserves) and the new Chilean President, (Bachelet is the first woman president of Chile). Chilean Pesos are one of the world’s strongest currencies.
There is a huge construction boom going on in Chile. The bottom line for Chile is a major upgrade of the infrastructure. Internet and highway connections in the country are excellent. For example, Highway 7 south out of Puerto Montt (10th Region)will connect with Hornopiren, and Chaiten, onward to Puerto Aisen and Coihaique and finally to Punta Arenas. This huge project, to connect all of Chile, will bring pavement to hundreds of communities. The population along this project will increase as people begin to explore the remarkable 10th Region and the beautiful (but colder-think Alaska) 11th Region.
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