Cabo Polonio, Uruguay

Foreign Investment Hotting Up The Uruguayan Real Estate Market

If the lure of rural, farm-ready countryside with rolling hills and an endless skyline sounds appealing, then a chakra - or ranch - in rural Uruguay is a must to consider. Unfettered and undeveloped properties range from around US$45,000 to US$55,000, while those that feature buildings, outbuildings, water services, and an electrical connection could go up to around $190,000. For those who want to live off the grid, these rolling farmlands provide the ideal opportunity as Uruguay is known to have favorable real estate conditions. For foreign investors, knowing how to tread these waters will make the world of difference.

Acceptance Of The Offer To Purchase

There are two very important relationships to form in Uruguay in order to get the ball rolling in terms of a property purchase. The first is the escribano (public notary) and the other is the abogado (lawyer). These two relationships form the foundation of a property purchase, as only deals that have been concluded in the presence of the public notary are deemed as official. This is because property negotiations can take some time, especially when there are multiple offers on the table. The escribano and abogado are also essential in terms of negotiating terms with the local government in order to get the paperwork through. There aren’t restrictions in terms of foreigners purchasing property in Uruguay and will count favorably towards permanent residency and citizenship. Most foreign transactions are concluded in US$.

Applying For Finance And Other Financial Products

One of the most notable stumbling blocks for foreigners in Uruguay is the difficulty to obtain finance. This is because the lending policies are very strict and require assurances from employers and other special documentation which many foreigners aren’t able to provide. Those who happen to provide all the necessary requirements will find that their lending products are fair and the interest rates are reasonable. Uruguayan banking is straightforward and very secure, but those who still happen to have ties with US banks might want to pursue other products such as home equity loans or similar for those who wish to use equity from their existing properties without the need for a sale.

Help To Work The Lands

Uruguayan locals are known to be honest and laid back. As workers, they are a diligent nation and are known to enter the job market from as young as fifteen. Around 8% of the workforce is in the agricultural sector, which means that there is sufficient labor to work those fields. It’s not unusual for these workers to be generational as Uruguayans are known to be close to their families and traditions. Uruguay also has an unemployment rate of 7.4% and while this is considered fairly high by US standards, this is one of the best unemployment rates in South America.

Ranch life in Uruguay is something to look forward to as the summers are balmy and winters are chill enough to provide the ideal soil for many types of crops. With favorable property conditions for foreign investors, Uruguay is a prime real estate location.

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