Argentine Real Estate market to go down 50%
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soulskier said:
Well I'm glad you are still happy, but what are your thoughts on the situation? Clearly there is a slowdown from what I've read and discussed with other folks in Argentina. How bad do you think it will get?
People shouldn't worry about this if they are there for the long haul. If you are there and wanted to sell and get out it's probably too late, you'll just have to stick around until things get better or rent it out now and try to sell later.
As you know I'm renting here at least until towards the end of the year. I may buy then if I can get a very good deal, there's no rush as I don't think there going to be any big recovery in real estate prices for several years to come.
perry
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As many know I work in Real estate here and these are the unbiased facts. Enquiries from overseas investors have dropped significantly and from the local market around 20 percent. Prices of properties have stagnated and some neighbouhoods have seen a 20 percent decrease of late.
While enquiries have dropped significantly there are still good sales as reported by Remax Argentina at higher prices than 2007 . The areas of Barrio Norte Recoleta and the better parts of Palermo have sustained their prices and good quality properties are high in demand achieving the owners final price.
In Buenos Aires there are very few mortgages and and very few owners who are desperate to sell. The local demand is strong due to a cash economy with very little investment in the stock markets and investment funds . Most wealthy Porteños have many properties and are cash rich something rare in many developed societies.
I believe that property gives people the best chance to protect your money in the long term. Many people around the world are seeing huge devaluations of their fiat currencies .
Tangible assets of physical gold and bricks and mortar are the safest investment. Always choose location and quality and you will make a good return over a 5 to 7 year period.
While enquiries have dropped significantly there are still good sales as reported by Remax Argentina at higher prices than 2007 . The areas of Barrio Norte Recoleta and the better parts of Palermo have sustained their prices and good quality properties are high in demand achieving the owners final price.
In Buenos Aires there are very few mortgages and and very few owners who are desperate to sell. The local demand is strong due to a cash economy with very little investment in the stock markets and investment funds . Most wealthy Porteños have many properties and are cash rich something rare in many developed societies.
I believe that property gives people the best chance to protect your money in the long term. Many people around the world are seeing huge devaluations of their fiat currencies .
Tangible assets of physical gold and bricks and mortar are the safest investment. Always choose location and quality and you will make a good return over a 5 to 7 year period.
Stanexpat said:
My thoughts are the whole world economy is slowing down, including real estate, not just in Argentina. We have had a house for sale in California for well over a year, have several price reductions, but no luck as of yet.
On a local front (I am in Bariloche), I see absolutely no sign of tourism slowing down. All of our properties are almost booked for the summer, and the area is jumping with people.
Our short term rentals could be switched into longer term rentals (there is a major demand) if the tourism market does slow.
In short, given the global financial crisis unfolding, I am very pleased with our position. And since the peso is getting close to 3.5 to 1 dollar, the cost of living has actually gone down for those of us earning dollars and living on pesos.
There will be fewer UK investors in the short term, considering the considerable drop in sterling to dollar and peso exchange rates....in UK they are talking about a 5 year recession, so who knows how things will pan out. It's not a great feeling in terms of confidence for those stuck here and living on pounds!
soulskier said:
Thanks for your views. My guess is that real estate in Bariloche has seen fairly modest price rises in recent years versus B.A. In the states those areas that saw only modest increases in prices are having only modestly impacted by the downturn. Those areas that had the biggest increases are the ones getting pounded now.
Wonder if this will be true of Argentina as well. Also areas that people said it couldn't happen to because of location like Manhattan, San Francisco are getting hit now as well.
tangobob
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Celia said:
A chance for me to gloat here: I bought property Eighteen moths ago when the pound was strong (all be it, I did not complete until September) so for most of my money I got a very good rate, and am recieving rent in pesos.
Nobody has a crystal ball, but I believe that there is never a bad time to buy property, almost invariably though, yesterday was better.
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