These are crucial hours as far as Assets Declaration is concerned and, therefore, it is necessary to make decisions. Today, through strategic investment in Real Estate, it is possible to absorb the cost of declared assets and obtain good returns with maximum safety.
How to do this?
You can do this by acquiring property in Spain as well as in some cities in USA through auctions, insolvency administrators or banks, by registering title deeds in your name, by acquiring property 20% below the market value and 50% below its historic value, and subsequently obtaining high rental income while recovering value, and then proceeding to the sale process at the most convenient time.
This type of investment will allow absorbing the declared assets’ cost and, in turn, it will generate 10% annual net return in hard currency for 5 years, without leveraging the declared capital.
The graphic shows different alternatives you can choose from in order to access the assets declaration process. Through the implementation of a proper real estate investment strategy in Spain or USA, you will be able to recover the applicable penalty for undeclared assets at the moment the purchase is conducted and it will be possible to enhance returns with suitable risk-return balance.
Tips to avoid making mistakes
Consider offers carefully
There are different offers but it is essential to identify the level of certainty and probability of future returns projection, as we see that many of them are too optimistic and based on assumptions with very low occurrence probabilities. It is tempting to avoid a 10% cost but we recommend that you don´t choose unprofitable options which may also put an important part of your capital at risk.
Invest in property
There are different investment options: bonds, mutual funds, acquisition of property in Argentina and even real estate funds making investments in the country.
The real estate investment may be the most suitable option but it is essential to understand the real appreciation expectations and the rental income to be obtained.
In Argentina, the value of property is at their maximum historic level and no mid-term appreciation is expected. There are no strong mortgage loans offers, people´s income is not enough to purchase homes and, for investors, the returns form rentals are at their historic minimum levels and with a tendency to 0. In addition, mid-term appreciation probabilities are null or negative if a devaluation process takes place.
Therefore, investing in property or real estate funds in Argentina can hardly generate high returns in the next 5 years. Quite the opposite, we believe that strong losses can be experienced.
The solution
Only a proper strategy considering all the variables involved will allow you to optimize the way you can access the asset declaration process. The acquisition of property is one option. But this must be left in the hands of experts.