A coffee for $3.50: Argentina is the most expensive country in Latin America

[devilclam]

In reply to this

It would be very interesting to know how other "expats" feel about leaving Argentina and how expensive is actually too expensive for them to stay.

I make a very good US salary so I'm still a bit insulated from really feeling the pinch, though I've tightened my belt simply because I can't justify paying for something I know is outrageously over valued.

In terms of packing it up and heading back to the US, the cost of renting and transportation are the big ticket items for me that keep Buenos Aires competitive. Since I don't need a car, that keeps my expenses relatively low. When a city like Chicago starts to look cheaper in comparison, then I'll leave and go chase a job with an even higher salary. Then maybe I'll come back and buy property when the peso tanks again.

(Somewhat joking)

 

[Che1990]

I’m self-employed so what I earn is unstable but I do ok by UK standards and could live comfortably there, so I am also not too pinched here—for now.

Yes I have cutback and the uncertainty is killing me. The prices of everything keep going up, except the exchange rate.

What most angers me is that my efforts are worth half of what they were a year ago. The other day I had tonnes of work and worked 18 hours, to in real terms earn what I’d have earned in 9 hours a year ago.

Also the poor quality food and goods.

Most physical products you buy in Argentina are now more expensive than in the UK and other countries, but a far worse quality and nearly no variety.

Food, clothes, furniture. Luckily, services for now are still way cheaper here.

And it’s all a lie.

I believe more in Father Christmas than I do the dollar at $1200. And you’ve got Libra Milei comparing Argentina to Japan, it’s beyond ridiculous.

 

[QuilmesSlo]

when I was young lawyer, many many years ago, Argentina and LatAm were running hot. The senior partner was talking at a firm luncheon and basically said: don’t get complacent; these countries will default on debt. Your agreements will be tested and you need to pay attention because the good times are just that and the bad times will come too.

Argentina and volatility go hand in hand.

I don’t mean to sound like an ass; I know people are struggling and people are anxious about the future.

The current price levels cannot last. The question is how much patience you have and how much patience you can afford.

It’s still imo a very special place.

Wishing everyone the best.

 

[Ries]

I make a very good US salary so I'm still a bit insulated from really feeling the pinch, though I've tightened my belt simply because I can't justify paying for something I know is outrageously over valued.

In terms of packing it up and heading back to the US, the cost of renting and transportation are the big ticket items for me that keep Buenos Aires competitive. Since I don't need a car, that keeps my expenses relatively low. When a city like Chicago starts to look cheaper in comparison, then I'll leave and go chase a job with an even higher salary. Then maybe I'll come back and buy property when the peso tanks again.

(Somewhat joking)

Property here is, and has been for decades, priced in dollars.
Although property prices did drop significantly after the corralito, in 2001, the current crisis has not resulted inmuch in the way of price declines.
The exchange rate doesnt really affect property prices.
There some deals right now because Milei had caused expensas to go up so much.
The vast majority of property here is owned free and clear, and most sellers have no problem just sitting for years, waiting to get their price.
Having just looked at maybe 30 apartments, a dozen in person and bought and sold in the last month, I can say that only a pretty major global depression would make for huge drops in BA prices.
Way too many people who have no incentive to sell cheap.

 

[devilclam]

Property here is, and has been for decades, priced in dollars.
Although property prices did drop significantly after the corralito, in 2001, the current crisis has not resulted inmuch in the way of price declines.
The exchange rate doesnt really affect property prices.
There some deals right now because Milei had caused expensas to go up so much.
The vast majority of property here is owned free and clear, and most sellers have no problem just sitting for years, waiting to get their price.
Having just looked at maybe 30 apartments, a dozen in person and bought and sold in the last month, I can say that only a pretty major global depression would make for huge drops in BA prices.
Way too many people who have no incentive to sell cheap.

All fair points, though I think when the dollar is stronger relative to the peso it can be a bit more of a buyer's market. Some seller will be squeezed and need access to capital (presumably)

I've never looked into it seriously because it's not my priority right now, but a couple years ago the prices I saw whilst browsing casually seemed like a much better value but I don't have any hard data to base that on.

But admittedly, Argentina wouldn't be my first choice for an investment property for all the reasons discussed in these threads

 

[Ries]

No, I would not buy here for “ investment “.
Buy in Argentina if you want to live here.
Longterm, its better than renting, but its complicated and expensive to buy or sell. Transaction fees can be 10%.
However, Argentines have put their money in real estate for a century or more, and it has proven to be a safer investment for lower income locals than anything else.
Stocks crash, banks close, exchange rates ride a roller coaster.
But since almost no one I know has a mortgage, you dont get foreclosed.
And theycant kick you out for not paying taxes or utilities.
It works for argentines.
I still don’t think prices will tumble, though.