Advice paying rent

[Neilcampbell31]

Hello all,

I am currently living in a shared apartment in Palermo and pay US$500 per month. I have lived there for 3 months and really like it. I have two options in terms of paying rent: I can pay in US Dollars or Pesos. I didnt bring a supply of Dollars so I have normally pay in Pesos.

However, unsurprisingly, the equivalent US$500 has meant that my Peso rent is increasing:
M1: $2250 (US$500)
M2: $2350 (US$500)
M3: $2450 (US$500)

Using the exchange rate I see on the streets [circa 4.4 to the US$] It seems that I am now paying $550 pcm and not $500 pcm and the exchange rate I am getting is 4.9. I questioned my Landlord about this and he said that this is the exchange rate at which he gets.

My questions really surrounds: could I get a better deal if I paid in Dollars? which would involve going to the [Exchange places / Blackmarket] and getting dollars. I have never done this before.

Any advice would be helpful.

Please excuse my ignorance on this topic!!!

Neil

 

[GS_Dirtboy]

Neil, it doesn't really matter if you pay in Pesos from, say a debit card, or change Pesos to Dollars as you pay (lose) a percentage of the value of your money by changing Dollars to/from Pesos. I assume from your post that you've made your money you are living on in Dollars, yes? In that case, you either pay in Dollars that you brought with you in your jacket - The value of your Dollars stays the same vs. Dollars / the value of your Dollars increases vs. Pesos, or you change your Dollars for Pesos in which the value of your Dollars vs Pesos increases but you lose a portion on the exchange. This may sound confusing, sorry.

If, on the other hand you make your money in Pesos and pay in Pesos then the "amount" you are paying in rent stays the same, except when you corrrect for inflation in which case the value of your money (Pesos) is constantly going down - ie you cannot purchase now as much as you could have in the past. In that case it's better to take the Pesos you have under your mattress and pay in Pesos - eg you pay $2000ARS per month, every month and the value of your payment is going down, eg the landlord is not getting as much "value" in those $2000ARS as they did last month. A good deal for you.

The key to your question is moving your money through the exchange rate. That's where you lose.

Others on here can expand on the value of holding Dollars over time and then exchanging them for more Pesos in the future. In this market, I want to hold onto my Dollars (that I have under my mattress) as long as possible as I get more Pesos per Dollar the longer I wait.

Someone please correct me if I'm wrong. These Dollars are making my mattress very lumpy!

 

[irina]

I've been under the impression that landlords legally must accept the daily exchange rate of the Banco de la Nacion and not the Black Market rate (of 4.9 or 5 pesos to the dollar as you said above). Unless he spelled out that exchange rate in the contract and you signed in agreement, I believe he must accept the daily rate, not the black market rate. The fact that he buys on the black market at a rate of 4.9 is irrelevant and an excuse to get more out of you, I would stand my ground and pay the daily rate.

 

[Napoleon]

No way does he "buy" at 4.9.

It's almost definitely 5.1 or worse.