estebandepraga
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- Nov 20, 2009
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The situation as I see it is the following:
First of all, there are 2 worlds here - those who live in the USD or other foreign currency world and those who earn in AR$.
Renting for a normal Argentine is prohibitve now! rents are very high in pesos in relation what is earned IN MOST CASES of course there are always exceptions.
On top of the the rent, the tenant must pay the "expensas" and often the ABL which can make a greater than 50% chunk out of his or her wages.
To buy, dream on.....
If one can save $200USD a month, WE ARE TALKING ABOUT some 2500AR$, how will it ever be possible to even get the equivilent of $50,000usd together to buy a studio flat and not in Recoleta, Barrio Norte or Palermo.
I agree that to buy a property now to make money off it is not the best idea. Yet that being said, as an investment if you can find a place for $50,000 USD and rent it for $5000ARS you'll get some 7% on your investment, which is much better than banks will give you but there are also so many headaches and risks as a landlord, I know, trust me
. When all is great with the tenant and they pay on time and there are no special assesments which YOU the owner must pay, its a day for a kid in a candy shop but often the candy shop is closed and its raining outside with you waiting to get in!
When you are a buying a place for yourself to live in it is a different story! Then you pay what you can or want because hopefully the place is where and what you want. I reside in both BA and Prague and when I took the grand decision to come back to BA, I knew I would have 6 mths of paying for services, i.e. expensas, ultilities, taxes, etc. in one of the above-mentioned cities which I don't use all year round but I knew the rules of the game when I decided to play.
First of all, there are 2 worlds here - those who live in the USD or other foreign currency world and those who earn in AR$.
Renting for a normal Argentine is prohibitve now! rents are very high in pesos in relation what is earned IN MOST CASES of course there are always exceptions.
On top of the the rent, the tenant must pay the "expensas" and often the ABL which can make a greater than 50% chunk out of his or her wages.
To buy, dream on.....
If one can save $200USD a month, WE ARE TALKING ABOUT some 2500AR$, how will it ever be possible to even get the equivilent of $50,000usd together to buy a studio flat and not in Recoleta, Barrio Norte or Palermo.
I agree that to buy a property now to make money off it is not the best idea. Yet that being said, as an investment if you can find a place for $50,000 USD and rent it for $5000ARS you'll get some 7% on your investment, which is much better than banks will give you but there are also so many headaches and risks as a landlord, I know, trust me
. When all is great with the tenant and they pay on time and there are no special assesments which YOU the owner must pay, its a day for a kid in a candy shop but often the candy shop is closed and its raining outside with you waiting to get in!
When you are a buying a place for yourself to live in it is a different story! Then you pay what you can or want because hopefully the place is where and what you want. I reside in both BA and Prague and when I took the grand decision to come back to BA, I knew I would have 6 mths of paying for services, i.e. expensas, ultilities, taxes, etc. in one of the above-mentioned cities which I don't use all year round but I knew the rules of the game when I decided to play.
