First, the usual disclaimers - which I generally find so droll, yet, quite hypocritically, I am now engaging in myself. I very rarely post on forum sites. I am more of a lurker/troll. When I do, it is generally to post a very targeted question. Only on the rarest of occasions do I enter into a discussion on the Internet. This topic, however, so caught my attention, that not only am I posting, but it caused me to stop and register for this site, in order to be able to do so.
DISCLAIMER - I am posting my opinion - nothing more, nothing less. Always seek independent counsel for your business affairs. I have been in the international real estate investment business for 26 years. So, when I saw the PH for sale in Cuba, it naturally caught my eye. It caught my eye, because as the NuWire article referenced by another poster states, current Cuban law does not “encourage” the sale of real estate. It can be exchanged between Cuban citizens, with government approval, but not sold in the “traditional” capitalist sense. I have found NuWire to be a relatively valid, credible and responsible source. So, all I would caution is this: Selling and buying real estate - no matter what you’ve heard - is easy. Getting clear, marketable, legally recognized and registered title…not so much. So, if anyone is going to pursue this deal, it shouldn’t be about how lovely the property is…or the price…it should be about getting clear and marketable title that is legally recognized by the government authorities. Otherwise, you may have bought and sold…but you will not legally own. Bottom line…caveat emptor.
As a side note, I have been predicting for 20 years what a “California Gold Rush” -like “madhouse” Cuba will be, if true international investing is allowed on a mass scale, whether by a government that is an extension of the current government, or by a new government. This condo sale, even if legal, shows the extent of that scenario. I am sure the unit is lovely, but asking almost half-a-million USD for condo in a country with the challenges Cuba faces, the probable lack of clear title, and the infrastructure limitations is clear evidence of the mania that will occur. You can acquire likely a similar and more modern unit in Brazil, Argentina, Uruguay, Chile, Ecuador or Peru for significantly less, all with greater certainty of title and much clearer legality (well…maybe exempting Argentina, where I would count my fingers after the final hand shake <wink>). Want to know the potential “real nightmare”? So, the gold-rush wave to buy up every piece of dirt in Cuba eventually occurs…and everyone is secure in the knowledge that they will make millions…and…then…the lawsuits begin. From who? For what? The “for what” is to clear up “unsettled” title issues and the “from who” is the vast number of Cuban exiles and their families who will lay claim that land belonging to their ancestors was wrongfully appropriated in an “illegal act” and still belongs to them/their families. Regardless of which side of the argument you buy, to ignore the ugly and very probable legal battles that will eventually ensue is to ignore a critical component of any Cuban real estate investment strategy. Get a good lawyer primed for when the gold rush begins…and…remember…caveat emptor.
