We are in the process of looking to buy a property in Paraguay. In due course, we will do a follow-up post to describe how the buying/transfer process works. Of all the issues to deal with when relocating, buying a property is a big step.
One of the many things we love about Paraguay is it is comparatively unregulated. Everyone is a real estate agent and car salesperson here. If you want to find a perfect property or car at an unbeatable price just drop a hint to any taxi driver or waiter. You came for a burger and left with a quinta on two hectares and a Toyota Ractis.
We jest, but this is sometimes how people find their perfect property. Why not? It dispenses with agents, the driver or waiter gets a commission, you get your property and car, and the seller is happy.
Of course, there’s always the possibility that things might not turn out so well; and with an unregulated real estate industry the range of things that can go awry are many and varied.
Tranquilo
Advice often given in Paraguay is ‘tranquilo.’ Loosely translated it means ‘don’t worry’. When someone senses a little stress or tension in the room they give this sage advice, with a slow up-and-down wave of their hand and a gentle smile…’tranquilo.’ We also take tranquilo to represent ‘taking your time, don’t be rushed.’ That is our approach when looking for property in Paraguay… tranquilo.
It is a buyer’s market so there is no need to rush in and pay a premium. It is common to walk away from a property only to be later contacted by the seller who wants to offer you a better price.
The great thing about Paraguay is that because the cost of living and renting is relatively affordable it makes sense to wait until the perfect property and price come along.
Part 1 – Where to find Properties for Sale?
Apart from the taxi driver and waiter, there are the usual haunts.
Facebook Marketplace & Groups – a typical FB listing might include a couple of out-of-focus images and an insightful description of the property such as ‘Ganga hermosa’ or ‘land’. It’s also common for the price not to be listed, or for the property to be listed over and over again with different prices. Generally, you will need to communicate with the seller initially on FB but quite often they will send their Whatsapp number. Google translate & Whatsapp make a great combination. That being said, FB is worth checking if you have the time and patience.
Independent Agents – We recommend Daniel Velázquez.
Specific Real Estate websites – Remax is the major player in Paraguay but there are others. They tend to have difficult websites that are clunky, hard to navigate, poor pictures, and incomplete descriptions. But again, they are a worthwhile starting point. The majority of agencies do not have representatives that live outside of Asuncion.
Infocasas (www.infocasas.com.py) and Clasipar (www.clasipar.com) – Infocasas is a dedicated property site and Clasipar have a range of items for sale.
Look for Properties Yourself – A common method of listing a property for sale in Paraguay is to nail a board to a post with the word ‘vende/o’ painted on it. And if you see an interesting property you can always approach the owner to inquire if they might be willing to sell.
Part 2 – Things to Consider
There are so many things that you might take into account when assessing a property. This is not a comprehensive Property Inspection Checklist. Instead, it’s a list of points that are a good start when thinking about house hunting in Paraguay.
Is the Title Clear?
A common occurrence in Paraguay is to come across a property that is listed for sale but is subject to a family dispute. The vendor will list a property without the knowledge or consent of other relatives who might have a legal interest in the property. It is critically important that the identity of the seller is established and that they are the listed owner on the title. Depending on the seller, this can be tricky.
Some real estate agencies claim they will not list a property unless a clear title has been established. And yet we have heard of situations where a purchase (through a real estate agency) fell through due to a title that was not clear.
Recently we asked a vendor for a copy of a title and found they were reluctant to do so. It is unclear why. It may have been that they did not want us to see what they had paid for the property, or they may have been concerned about handing over a document to parties unknown. Perhaps they did not have a clear title.
This is a scenario where you are reminded that we are in an unregulated environment. Buying a property in Paraguay is an adventure.
‘Lotification’ Syndrome
In recent times there has been a rush of excitement in the Paraguay property market among property speculators. The result has been that swathes of rural land have been acquired and sectioned into ‘lotes.’… lots and lots of lote’s. The size of the allotments varies, although it is not unusual to see sections as small as 11 meters x 30 meters being offered. It’s also quite common for people to purchase numerous lotes to create a larger property.
Reckless division of land presents several issues that buyers need to consider.
– if the lote’s around the property are developed how will this impact your property?
– how will the roads, drainage, and infrastructure be impacted should the surrounding lotes be acquired and developed?
Infrastructure
Related to lotification is the consideration of infrastructure. When coming from Western countries it is easy to take for granted the processes, we have become accustomed
We have seen instances where people have invested in housing development zones, built a house and waited for the infrastructure to appear…paved roads, drainage etc. And waiting, and waiting.
And it is not just housing developments. You might be considering a parcel of land on a relatively undeveloped road. The risk is that land around your parcel has been lotified. Presumably, at some point in the future those lotes may be built on. The question is, how will the unpaved road cope with increased traffic?
Before purchasing any parcel of land it is wise to establish the status of nearby land. You might just be buying next to a large lote development.
Beware of duff, duff
Associated with lotification (but not always) is the issue of noise. South Americans love their music. There are sound systems that are mounted into vehicles with the dimensions of small shipping containers. We have been in relatively rural, remote locations where the constant duff, duff of a ghetto blaster is present.
It is advisable to visit an area during the day, night and weekends to get a feel for the level of ‘duff duffness’ in that part of the world.
Mosquito’s
We have had no issues with insects, however, in some parts of Paraguay, mosquitoes can be a problem. There are several viruses associated with mosquitoes, so it is worth assessing this when looking at property.
Flooding
‘Only buy a property in Paraguay after seeing it during the wet season’. This is advice we have been given many times.
Paraguay is blessed with an abundance of water. So much so that it literally bubbles from the ground. The flip side is that it does not take a huge deluge to result in an excess of above-ground water. If the property is accessed via non-sealed roads then this becomes even more important to consider. Roads can be washed out and entry/exit prevented. All things to consider.
Supply of Water, Electricity
Water connection sources range from wells to community water schemes. The cost of scheme water is only a couple of dollars per month and the quality is generally good. Regardless, you cannot take access to water for granted. Also, keep in mind that there are areas that have water access issues.
Electricity is cheap, however connection issues can be expensive. We recently visited a property that had previously been connected to the power supply but had been abandoned for some time. The resourceful owners had decided that the cables and poles of the house were going to waste so they removed and repurposed them.
One tip, when checking the power supply make sure to confirm if the connection is single wire or 3 phase. The difference result in whether you can run a few lights and the odd appliance (single wire) or run heavy duty machinery. If you are thinking about building you would want 3 phase if possible.
Estimates vary however we have been reliably informed that re-establishment of power lines can be a costly exercise.
House Wiring & Plumbing?
If you have spent most of your property purchasing life in Western countries it is likely that you have taken the quality of electrical work and plumbing for granted. When you inspect a property, you will often take a cursory glance at the wiring and plumbing systems because it is a given that they are ‘up to code.’
We come to Paraguay to enjoy the freedom, however we need to remember that this comes with risks, especially when you are talking about house infrastructure.
It is imperative to establish what you are getting yourself into. Regardless of whether or not you are an electrician or plumber there are things you should look out for and ask about.
Plumbing
- Where does the black/grey water go? Is there a septic tank?
- If there is a septic tank, where is it located in relation to any existing water sources ie a well?
- Are the toilets and sinks properly vented to ensure water drains efficiently and mosquitos are not breeding in the drains?
- Is the water supply town fed or by an onsite well?
- What is the depth of the well and the condition of the water?
- Where is the town supply fed from? Is it reliable and well managed?
- Has the drinking water source been tested?
- Does the house have a hot water heater?
Electrical System
- Where is the fuse box and what is its condition?
- Is the electrical system properly earthed?
- Are there sufficient power sockets?
- Are the light switches and sockets adequately fastened into the wall?
Of course, there is no substitute for getting the advice of a trusted, qualified professional. That is partly the reason that we recommend taking your time because you will hopefully make connections that know of competent professionals who you can call on.
Ultimately, it is likely that you may have to spend some money to bring these systems up to standard. By doing your pre-purchase due diligence you are then best placed to negotiate these costs into the purchase price.
Timber Frame
Many houses in Paraguay have timber roof trusses and they can be a beautiful feature of the house. Regardless, timber is seldom treated to resist termites.
The timber is usually painted with a veneer coating and prior to sale this is often re-applied. The danger this presents is that the timber can appear to be in good condition, despite the fact that it may have termite related damage.
Rising Damp and Condensation
Many buildings in Paraguay have rising damp and/or condensation issues. Concrete or brick foundations are like wicks that mop up the water and salts and bring it into the walls of buildings. Generally, precautions such as damp-proof membranes ar
e not used during construction. The result is that walls are often seen flaking and crumbling from the floor up to about knee height. Dampness is also commonly seen in the grouting between floor tiles.
Condensation results from inadequate ventilation and is commonly seen as mold on walls.
Is There a Thoroughfare on the Property?
Particularly in less developed areas it is not uncommon for there to be tracks through properties that neighbors use to move around. If you are fine with people walking across your land then no problem, but the important thing is that you are aware that is the case. You do not want to buy land only to learn after the sale that neighbors will expect that these tracks remain.
Asbestos
Asbestos is not so common here, but we have seen it occasionally.
Rubbish ‘Caches’
Paraguay people are generally neat and keep their properties in reasonable condition, however sometimes you do see rubbish ‘stashed’ on rural properties. Usually under trees or partially buried. If you were interested to buy a property in Paraguay that had this issue it might be worth discussing with the possibility of having the site cleared prior to purchase.
Surrounding Agricultural/Industrial Practices
Large areas of Paraguay are used to grow soybeans. There is an abundance of clips online that might give cause to think twice about living anywhere near these activities. With crops comes spray drift, and with spray drift comes…
This is a primary reason why we are in the region of Cordillera. This rocky, rugged region is unsuitable for large-scale soy production. However, Cordillera is host to many brick kilns, and with kilns comes smoke. Here in Caacupe, this is not an issue although Tobati and its surrounds have many kilns.
Security
Fencing is a priority for us. We have heard of accounts of properties being robbed. Although it does not appear to be any worse than NZ we would not consider owning a property without it being adequately fenced. Our definition of ‘adequate’ means that the fence could not be easily climbed and it would be able to contain a dog the size of a donkey.
Another consideration concerning security is an assessment of the area. We have been advised not to buy property near affluent expats as these areas are more likely to be targeted. We cannot verify this advice but it is worth considering. As always, ask questions!
Can You Maintain the Amount of Land?
Recently we spoke to an expat who lives on a relatively large plot of land. He advised that in retrospect he would not purchased such a large section. Paraguay is so fertile that to keep on top of the maintenance of even a few hectares can be a mission. It is far easier to maintain and secure a smaller property and if you design the property well you can get a lot out of a small piece of land.
Orientation
You go to the property in the morning and the house is bathed in stunning sunlight. By mid-afternoon, the sun has set and the trees on the other side of the property rob the property of the afternoon sun. It is good practice to visit a property at various times of the day.
Is There a Caretaker on the Property?
On rural properties, it is not uncommon for a caretaker to be employed to maintain the property. Some buyers are happy about this. Personally, we prefer to maintain our own property and not have the financial commitment of paying for a caretaker. The last thing we would want to do is buy a property and put a caretaker out of a job, so we do not consider properties that have an existing caretaker.
Cell Towers
We have visited a few beautiful properties that have been too close to towers. For us this is an absolute deal breaker. You would think that it would be easy to spot but sometimes, due to trees or nearby buildings, towers may not be so easy spot initially.
What Do We Particularly Look Out For?
At a minimum, the property must have an established water source. Sellers will always say it is no problem to drill a well, and in many parts that is true. However, depending on the depth, wells can be expensive to drill.
Also, established, well-maintained fruit trees are high on our list. The mango-rosa Brazilian mango’s are incredible. If we see even one mango-rosa tree on a property our hearts flutter. We feel likewise about the avocado trees.
We also look at neighboring properties. If the neighbors wave that is a good sign (and more common than not).
So that’s just a few things to keep in mind when looking to buy a property in Paraguay. It can be a bit daunting, but the great news is there are many beautiful options available. You just need to kiss a few frogs to get the Prince. And on a final positive note, once you have purchased the property, the security of title is solid; and this is more than can be said in some other parts of South America.
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