Things to have in mind when buying a power generator (II)

(To read the first part on “Things to have in mind when buying a power generator”, press here)

Let’s continue reading about the things to consider when buying a power generator.

Another thing to consider before buying a generator is where you will put it. The power generator should be put in an outdoors area, since when they are working, they emit toxic fumes. Since the generators work with fuel, the fumes they emanate are toxic, and so they shouldn’t be on a closed area. Still, if you need to put it inside, you should install some kind of exhaust pipe that takes the fumes outside of the room, and you should also install an alarm that sounds when there is a gas or smoke leak.

On the other hand, the type of fuel you use on the generator is also something to consider. If you are planning on using the generator for a short period, you could use regular gas, but if you are planning on using it regularly, you should considering putting diesel. Even though diesel is more expensive, it consumes less than regular gasoil and engines that work with diesel generally requires less maintenance.

In addition, when you buy a generator, you need to estimate the type of capacity you need, according to the amount of energy you will require (and use). In order to calculate this, you need to consider that there are two types of appliances: those which have a type of constant energy expenditure (where you will need a resistive load) and those that need a load to start-up (i.e. a reactive load). The ones with a constant expenditure, won't use more volts than the ones that they indicate on the technical labels that each electrical appliance has (like the light bulbs, the toaster, and some heaters). Still, there are other appliances that have an engine, and so they need more energy to start working, like the fridges, and the washers. These appliances generally use 3 or 4 times the amount of volts indicated in the labels (when they begin to work).

It is always advised that you buy a power generator with an extra 20% capacity that you calculate, just in case you need to plug in an new appliance in the future.

Lastly, we should remind you once more that you shouldn’t buy any generator just because it’s cheap. You should always check the warranty the generator has, and the post-sale services you will be provided with. These two things are important when buying a generator, as well as verifying the technical requirements the generator has (on the instructions guide).

Even though with this tips you could have an idea of the type of generator you need for your house/company/office, etc… it is always recommended you ask a specialist to assist you, and so you make the right choice and buy a good generator that lasts longer and suits your needs.

Things to have in mind when buying a power generator

These days, due to the great amount of shutdowns that the people of Buenos Aires have suffered, many people are considering buying a power generator that provides energy when the light is out.

For those who are planning to buy a power generator, we will give you some tips to have in mind:

Firstly, some specialists say that you shouldn’t buy a power generator for its price. That is to say, that if you buy a generator because it’s cheap, without taking into account its brand or its technical properties, it will probably not last long, and it may even ruin the electrical devices you plug into it.

This being said, we will continue providing some specific tips you should bear in mind when you buy a power generator:

One thing you should consider when you are thinking about buying a power generator is the amount of hours you will use it. It is advised the you buy a generator that works 1,500 Revolutions per Minute (rpm) if you plan to use it for long hours, for example if you use it on a factory or for more than 12 hours a day; On the other side, it is recommended you buy a generator that works 3,000 rpm if you will use it sporadically, for no longer than 8 hours a day, or for specific things. The generators that work at 1,500 rpm are usually cheaper, but its maintenance is usually more expensive. Moreover, the generators that work at 3,000 rpm are not supposed to be used for more than 8 hours (without any breaks), and there should have a 40 minute rest before they continue working every 8 hours.

Moreover, according to the use you will give to the power generator, you have a variety of generators with different characteristics to choose from, like if you want an inverter generator, single-cylindrical, air cooled, etc.

Another thing to consider when buying a power generator is the type of electrical appliances you will plug into it. According to this, you will have to check if the power generator you want to buy has a type of voltage stabilizer. It is always advised that if you plan to plug delicate appliances (such as the TV, the Air Conditioner, etc.) the generator should have around 4 - 5% of line regulation. Still, if you plan to plug less “sensible” appliances, such as a drill, for example, that scope may be wider.

(To continue reading about the tips to bear in mind when buying a generator, click here.)

Shutdowns in Buenos Aires

Since the stifling heat appeared in Buenos Aires, there has been many shutdowns in different neighborhoods and localities of Buenos Aires. Some houses of Buenos Aires have been up to nine and even ten days without electricity at their homes. Others have been suffering shorter shutdowns, but itinerants which is really bad for the house appliances.

Some of the neighborhoods and localities of Buenos Aires that have had no electricity during the past few weeks are: Saavedra, Palermo, Núñez, Caballito, Once, Almagro, Boedo, Balvanera, Villa Crespo, Villa Devoto, Villa Urquiza, Floresta, Flores, Villa Mitre, Villa Santa Rita, Monte Castro, Villa Real, Paternal, Almagro, Villa del Parque, Recoleta, Barracas, Villa Ortúzar, San Isidro, Temperley, Vicente López, Ituzaingó, Castelar, Morón, Esteban Echeverría, Lomas de Zamora, Pilar, Berisso, La Plata, Luján, Villa Ballester, Lanús, Bernal, Florida, Turdera, Sarandí, Haedo, Olivos, Adrogué, Ramos Mejía, San Martín, Santos Lugares and Avellaneda.

The companies that are in charge of providing power services in Buenos Aires (both the City and the Greater Area) have informed that there will continue to be shutdowns unless the high temperatures continues. The reasons for the continuous power cuts in Buenos Aires were the high amount of consumption of energy, due to the use of air conditioners and those electrical appliances. The power levels of consumption in Buenos Aires have beaten some new records (and the infrastructure is not prepared for it).

The electrical power suppliers also added that there are special teams working on the affected areas. Still, there are too many neighborhoods of Buenos Aires that have no power and there are not enough people to work on all the areas.

In some areas of the City and the Greater Area of Buenos Aires there have been some street cuts and groups of people complaining about the power cuts and how they are affected by it (specially the older people that live in buildings and have no water and can’t go down the stairs, or people who need to keep their medication on a low temperature).

Even though it is not a solution and this should be treated thoroughly so that it doesn’t happen every summer, people are starting to go on vacations and the city and Greater Area of Buenos Aires will begin to be less crowded soon; so, power consumption will go down and power cuts should begin to decrease… Still, let’s hope this ends soon.

Improvements in the Construction Business

After several months of lack of news, finally, during the last 4 months there has been an increase in the percentage of sales on the construction supplies. From April, 2013, the sales over the supplies for the construction business have gone up. During July, the sales continued to climb up and they have reached an increase of more than 10%.

According to the INDEC (the government’s institution of Argentina in charge of taking statistics over the economic activities, among other measurements and duties), during the first two trimesters of 2013, the construction activity has evidenced an increase of 7% and 8.2% (respectively). Moreover, the positive news has also reached the real estate business, since in September an increase of 6.3% on the signing of title deeds has been registered in the “Colegio de Escribanos Públicos de la Ciudad de Buenos Aires” (The Notary Public’s institution of Buenos Aires).

This information about the increase on the sale of construction supplies has been given by the "Indice Construya", an index that it is elaborated by companies that manufacture and sell supplies for constructions.

These positive results would mean an increase and reactivation on the constructions in Buenos Aires. Therefore, these results could mean the beginning of new expectation on the real estate business, which has been waiting for a change for many months now.

Results show that the construction business is finally moving up instead of being frozen for many months in the last year. Still, it is a matter of waiting and seeing if the numbers continue to increase in the next months both in the construction and the real estate markets.

Decoration trends for 2014 in Buenos Aires

Just like it happens with clothes and accessories, decoration trends change every year, and that is why people usually change their rooms accordingly.

Those who are wondering which are the coming trends on decoration for 2014, we will give you some tips and up coming flashes so that you start thinking about what changes you may make in your house.

According to some decoration specialists, during 2014, the golden-coloured materials will be incorporated in the decoration of rooms. Only a few touches of gold (like in the pictures frames, or mirrors, or the edges of your cushions) will be one of the upcoming trends for 2014 in Buenos Aires. You should always bear in mind that if you want to add something new and chic in the decoration of your house, make sure it matches with everything else you’ve got at home, in order to keep balance.

Moreover, shiny colours will be included in the decoration of many trendy places in 2014. Having a touch of shiny colours like, green, fuchsia, blue, and orange, among others will be a popular choice. On the other hand, those who prefer having a more sober decoration, black will be cool and trendy as well in 2014.Those people who would rather decorate their house with black, instead of having shiny colours, may go for it and choose black cushions, or vases, or even frames for their different rooms at home. Be careful not to abuse of black, since it could make the room look smaller and darker if you have too many things in black. It is always recommended to use neutral colours, like the always-in-trend- white, and add some touches of other colours (like black or the new shiny ones) in order to keep balance at home.

In 2014, another thing that will be trendy when decorating your rooms at home are the geometric shapes, used in fabrics, tapestry, and even furniture…

The decoration trend for 2014 is varied, so you may choose whatever you like and suits best with your house and your current decoration, and start “tuning” your rooms for next year…

Foreigners sell their properties in Buenos Aires

After almost two years of complications to get dollars, the foreigners that a while ago came to buy an apartment or property in Buenos Aires, now have decided to leave and sell their property. This is what it seems to have happened during the last few months, according to the analysis made in the Real Estate specialists in Argentina.

According to the Media and specialists on the Real Estate business, many foreigners who were interested in buying a property now don’t see it as an option, and those who have already bought a property, are now interested in selling it.

A few years ago, many foreigners came to Argentina, and Buenos Aires, in the search of an apartment with amenities; generally they looked for apartments in the most expensive neighbourhoods or areas of Buenos Aires, like Puerto Madero, Recoleta, or even in the northern area (outside the City of Buenos Aires) like Tigre or San Isidro. What seemed to attract the foreigners about Buenos Aires and its properties was those “classy” apartments with plenty of amenities (like Jacuzzi, sauna, etc.). The nice apartments, together with the convenience of the exchange rate they had in favour, really caught their attention. Today, since it is complicated to get dollars, and the whole world is going through an economic crisis, foreigners have chosen to sell the properties (if they have one here), so the situation has reversed; at least for now.

The Real Estate business situation in Buenos Aires and in Argentina is stuck at the moment, and the unstable economic situation does not help; so, it is matter of waiting and seeing what happens in order to start attracting foreigners who are interested once again in buying properties in Buenos Aires.

Compulsory expenses you need to pay when renting an apartment

When it comes to renting an apartment, the terms and conditions will depend on the arrangements made between the landlord and the tenant, and they usually differ in each contract. Still, there are some expenses and services that should be paid by the landlord OR the tenant.

Some examples of the expenses that are usually in charge of the tenant that rents the apartment are the light expenses, the gas bill, the telephone bill, etc. In some cases, some of these services are included in the maintenance fees charged monthly in the building. In those cases, the tenant usually pays the common maintenance fees in order to cover these expenses. Nevertheless, the maintenance fees is something that needs to be discussed before signing a lease contract, since the ordinary maintenance fees are usually paid each month by the tenant, and the extraordinary maintenance fees are usually paid by the landlord; still, this needs to be cleared beforehand, since problems usually arise over the matter. For example, if something breaks because the tenant misused it, who should pay it?

So, generally speaking, the monthly bills like telephone, gas, electricity, etc are usually paid by the tenant, but other expenses like the tax on Real Estate, etc are usually paid by the ladlord. Still, as we have mentioned at the beginning, the terms and conditions over expenses and its payment should be arranged between the landlord and the tenant before singing the lease contract… this way, future problems could be avoided.

Living in the City of Buenos Aires or outside of it?

In the last few years, many people who lived in the City of Buenos Aires have decided that the city and its hustle and bustle weren’t the best way to live. Still, having the family and the workplace in the City of Buenos Aires made people consider moving out of the city but no too far from it. With that, many people decided that living on the other side of the “bridge” is a good alternative.

Some people decided to move into “country houses" (gated neighborhoods) outside the city, where they could feel safer and have nature around them. Others tried living in places like Tigre and fell in love with its river. The alternatives on where to live are plenty since Buenos Aires is huge.

Now, those who work in the City of Buenos Aires (especially in the downtown area), and live outside the city of Buenos Aires, should consider that it will take them longer to get to work. Still, many people would rather spend more time travelling to get to work (or home on the way back) and enjoy living in a quieter place. On the other hand, those who don’t enjoy traveling from one place to another on a daily basis should consider moving to another neighborhood within the City of Buenos Aires (a more residential and quiet neighborhood). Another thing you could consider is moving in the “Gran Buenos Aires” area (the municipalities that surround the City of Buenos Aires) near a train station or an avenue that has plenty of means of transport to get to work.

Nowadays, most neighborhoods and areas that surround the city of Buenos Aires have a great variety of options when it comes to moving around the area and its surroundings, and they also have many shops and supermarkets where you can get everything you need, so that is something to consider when moving.

Nonetheless, time is something to consider, and whether you are willing to waiste time travelling or not. If you work from home, that will not be a problem; you may move any place you like within the city of Buenso Aires or outside. Last, something to consider before moving outside the City is the cultural alternatives you have within the city and outside the city… specially those who enjoy going out at night.

Taxes increase in Buenos Aires in 2014

After the budgetary meeting that took place on April, 2013 in the attempt of calculating the variations on the budget for 2014 in the City of Buenos Aires, the GOVERNMENT reached the conclusion that in 2014 the RAISE on the “ABL- Alumbrado, Barrido y Limpieza” (tax on street lights and cleaning) would increase on 40%.

According to some comments from the media, during 2014, the rise percentage would vary according to the valuation of the house: houses that worth up $150.000 Argentine Pesos will suffer a increase of up to 20%; those houses that worth between $151.000 and $300.000 pesos will suffer an increase of up to 30%; and those that worth more than $300.000 pesos will suffer as increase of up to 40%.

In relation to other years, the increase of the ABL in 2014 will not be as high as it has been in previous years, since during 2012 and 2013 there has been increases that reached 1000%. According to the government, this great rise on the ABL tax had to be made in order to determine the budgets for the coming year; plus, the prices where said to be behind according to the inflation rate.

The increase on the ABL tax in Buenos Aires for 2014 and on those that took place in the previous years were done in accordance with the “Ley Tarifaria” [Law on Tax rates in Argentina] signed in 2011, which allowed increases and also set some limits. As we have mentioned, even though the increase on the ABL will be high, it will not be as high as in the prior years.

It is estimated that with the increase on the ABL in 2014, around $4343 million pesos (just with the ABL tax will be collected. This sum has to be added to other taxes such as licenses, patents, among others. Altogether it is estimated that the Government of the City of Buenos Aires will collect 24% more on taxes than in 2013, and it estimates that it will have an expenditure of about 10,000 millions on public works.

Thus, for 2014, an increase of up to 40% is expected in the ABL tax. Still, the increase will depend on the price of each property, so we will have to wait for the bill to arrive.

Elections at CUCICBA in October

On October, 8th, 2013, elections took place at the “Colegio Unico de Corredores Inmobiliarios de la Ciudad de Buenos Aires (CUCICBA)” [Institute of Real Estate Brokers in the City of Buenos Aires].

After the elections, the results came to light and the “Lista Celeste y Blanca” was the one with most votes. Still, the opposing party, the “Lista Renovacion”, had 32% of the votes. This means that the “Lista Renovacion” will participate in the Governing Body of CUCICBA (3 members of the opposing list will participate), and it also has a group of 17 members at the assembly of CUCICBA.

These results turned out to be surprising for many because, if there are members of the opposing party, it is believed that the matters related to the Institute of Real Estate Brokers will be discussed in depth, and will result in the best interest of the enroled brokers.

As a result of the elections in October 2013 at the Institute of Real Estate Brokers in the City of Buenos Aires, the governing body is now composed by the following members:

Hugo Mennella (President); Carlos Sotelo (1^st Vicepresident); Hector D´Odorico (Vicepresident 2^nd); Jorge Antunez Vega (Secretary); Leonor de Achaval (2^nd Secretary); Norberto Mosquera (Treasurer); Fernando Cancel (2^nd Treasurer); Martin Boquete (Head Board member); Susana Spagnolo de Vincenti (Minute secretary).

Substitute Members: Nestor Walenten (1^st Board member); Eduardo Crivelli Granelli (2^nd Board member); Victor Capuccio (3^rd Board member); Gabriela Goldszer (4^th Board member); Roberto Mario Gomez (5^th Board member); Omar Porta (6^th Board member); Susana Di Dio de Representaçao (7^th Board member); Julia Mel (8^th Board member); Ana Rodriguez (9^th Board member).

Extension on the term for the declaration of money

In September 2013, the period for the declaration on undeclared money (and to buy Cedin and Baade Certificates with said money) came to an end. Since the Government managed to collect only 5% (approximately) of what they expected, they have decided to extend the period until the end of 2013. This way, with the extension of the period for 3 more months, the Government expects to increase the income of money from account that people have abroad.

Even though there have been different opinions on whether the period for the declaration of money should be extended or not, the President of Argentina had the last word, and decided to extend said period.

According to the Head of the AFIP [Administracion Federal de Ingresos Publicos – Public Income Administration in Argentina], Ricardo Etchegaray, on the tax level, the declaration of money and exchange of  Cedin and Baade Certificates were not profitable, and he recommended that the period should not be extended. Still, the Head of Foreign Trade in Argentina, Guillermo Moreno, thought the opposite and recommended that the period for the declaration of money should be extended, so that people can invest in Cedin and Baade certificates.

One of the objectives of the declaration of money was made with the intention of reactivating the real estate business in Argentina and help the economy of the country. One of the ways the government thought the Real Estate Business could start moving again was by creating the Cedin Certificates which can be used in the real estate transactions.

According to Guillermo Moreno, the proposal of the declaration of savings didn’t work as they expected because of the elections that took place in August and in October this year. Elections generally tend to create doubt and uncertainty. For this reason, the head of the Foreign Trade Department thought the period should be extended.

With this extension on the period for the declaration of savings and the creation of Cedin and Baade Certificates, it is expected that the government manages to collect the amount of money expected since the beginning in order to help the country’s economy.

The "stamp tax” in Buenos Aires' lease contracts

When a person celebrates a lease contract in Buenos Aires, whether it is private or commercial, that person should check if he/she has to pay the Stamp Tax (“Impuesto al sello”, in Spanish). This tax applies for those within the City of Buenos Aires.

The Stamp Tax should be paid when one of these situations happen:

-The lease or sub-lease contract has a commercial purpose and said property is within the City of Buenos Aires.

- The lease or sub-lease contract is for furnished apartments/houses that have a touristic purpose (and also is within the City of Buenos Aires).

Those who have to pay the Stamp Tax will have to pay 0.5% of the agreed price of the rent during the lease.

The payment of the Stamp Tax over the lease contracts is easy. In order to do it, the landlord or the tenant has to enter the website of “Rentas de la Ciudad de Buenos Aires” (Income website of the City of Buenos Aires). Here, the landlord or the tenant should register in the “AGIP” (Administración Gubernamental de Ingresos Públicos – Income Administration of the City of Buenos Aires) in order to get the payment talon (of the Stamp Tax). Once the landlord or the tenant manages to complete all the information, the talon will be done, and same will have to be paid in a branch of the “Banco Ciudad” (Bank).

Remember that the Stamp Tax should be paid within 15 days after the lease contract has been signed. If you fail to pay it within said period, interests will begin to sum.

If you have any questions on the Stamp Tax, you may find more information on the “AGIP” website, where you will also find a guide on the payment procedure.

How to start the eviction of a tenant who breaches a contract

One of the biggest problems that a person may go through when renting his/her apartment is that the tenant does not pay rent or that he/she breaches the lease contract. Even though nobody likes to go through this situation, the truth is that if the tenant does not comply with his/her duties, the landlord will have to end up filing a court order for eviction.

For those who are in a situation like this in Buenos Aires, and who may have to get an eviction order from Court, here are some tips and steps to follow.

First of all, it is always recommended that you get advice from a lawyer, since he/she will help you and tell you what you should (and shouldn’t) do in your special situation. Otherwise, you may end up having more problems if you make a mistake, like getting your tenant to sue you.

Generally, the steps to follow when trying to get an eviction order for a tenant that breaches a contract is more or less the following in Buenos Aires:

-    First, you should probably send a legal notice where you inform the tenant that if he/she does not comply with his/her obligations, you will be forced to file an order for eviction (you should detail the cause of the notice, like lack of payment, termination of the lease contract, etc.)

-    If the tenant fails to answer, you will then probably have to file an order for eviction. Due to the new legislation in the City of Buenos Aires (law no. 684 bis), there is a faster way of getting the eviction order. Before this law came into effect, the landlord may have to wait years in order to get his property back. This new type of procedure only applies in those cases where the tenant fails to pay rent for a couple of months, or if the lease contract has expired. After proving that the landlord is right (and that he/she is not lying or hiding information), the eviction order should come out quickly.

In order to prove that the tenant is not complying with the lease contract, the landlord will have to file documentation on the matter. Within the proof the owner may file we can mention the lease contract, the bank account details (if the tenant used to deposit rent) or the receipts of the landlord (showing the landlord has not paid during the last few months), etc.

As we have mentioned at the beginning, it is always recommended that you ask a specialist who may assist you so you don’t have more problems and you solve the situation faster.

Property prices per square meters in pesos in the City of Buenos Aires

Even though the mind of several Argentines is still set in “dollar” mode, nowadays it is normal to find prices in Argentine pesos. The “pesificacion” (the way they call the process of changing the methods -or currency- of payment from dollar to pesos) for the real estate business was planned in order to unlock the selling-buying transactions, especially after it became harder to get dollars.

According to the media, in July 2013, it was estimated that the selling price of properties in Buenos Aires rounded the 500.000 argentine pesos. Moreover, in June 2013, the average sale price on the real estate transactions was of 575.000 argentine pesos.

Still, these are just statistics, since some specialists also comment that since there is not much demand or supply in the real estate market, there aren’t prices at all, and in general, prices tend to stay the same. This was explained by the President of the “Camara Inmobiliaria Argentina” [Real Estate Organization in Argentina], Roberto Arevalo. He also added that those owners who need to sell their property and who are tired of waiting, usually tend to lower the prices.

Other data that was collected on the price per square meters in the City of Buenos Aires and on the number of title deeds that have been closed during 2013 showed that the number of deeds on more expensive properties has risen. Still, the highest percentage of transactions on the Real Estate market signed in the City of Buenos Aires round the 250.000 and 500.000 Argentine pesos.

To conclude, the price per square meter in the City of Buenos Aires over properties has kept steady during the first half of 2013, especially due to the freeze on the sales that the Real Estate business has gone through. Nonetheless, in the end, each sale price will depend on each property and on the agreement that the buyer and the seller reach at the moment of closing the deal.

Selling an apartment with a lease contract in force

In many forums over the Web, one question seems to appear over and over again: may an owner sell his/her property if a lease contract is in force in Buenos Aires, Argentina?

The answer to this question is: Yes. Now, what the owner can't do is to throw the tenant out of the apartment, since it would breach the lease contract. Still, if the tenant agrees to leave, an arrangement could be made, but it is generally not the case. So, unless the tenant agrees to it, the landlord cannot tell him/her to leave, and the tenant may stay until the lease ends.

So, those who want to sell his/her property with a lease contract in force, may deal with the new buyer of the property so that they agree to buy it and continue with the lease contract until it comes to an end, and he/she will also have to obey the terms and conditions of said lease. Once the buyer agrees to this, the sale of the apartment may be made.

Once the sale is done, the tenant should be notified of the new owner of the apartment, together with the changes relating to the payment of the rent (who the tenant will have to pay to, where, etc.)

So, if you are thinking of selling your apartment and there is a lease contract in force, you should first tell the buyer of these conditions so that he/she keeps complying with the contract, and then you should notify the tenant once the sale has been made. Still, if you have any doubts, you should ask a lawyer or a specialist who can give you some advice on the matter.