BA real estate boom or bust

[perry]

The average price of a 2 bedroom apartment in Capital Federal is US $ 130000 . Now there are many variants of this depending on the area with Recoleta and Puerto Madero being over US $ 200000 and in some cases close to half a million.

Smirkypants I have never sold a property in Puerto Madero as I believe to be a bubble and overpriced for what you get. There are many great neighbourhoods in the city where for less than half the price you can get much more metrage in a more solid building and with excellent amenities nearby.

Now apartments and houses are priced according to metres location, condition etc etc and to quote your price of US$72000 to US $ 74000 being the average price of a property in Capital Federal is plain ridiculuos. The link posted of my property shows a 26 metre studio .If this is an average apartment in Buenos Aires im Monica Casan. For that price you may get a one bedroom apartment or a nice studio in the better neighbourhoods . In San Cristobal, Boedo , Liniers, Flores and Bajo Flores you can get a better property but you have to be aware that it not with the same ambience.

To give the members a point of property appreciation here just in one neighbourhood Palermo Viejo . In the year 2000 the average price of a house here was less than US $ 60000 . Now that same property is worth over US $ 350000. In anyones eyes that is a good investment and there are many more cases like this in San Telmo, Almagro, Abasto etc etc.

 

[steveinbsas]

In the late 1970's the US increased its money supply by 13%. I remember well the double-digit inflation that followed. In the past year the money supply has increased by 120% and the federal debt has increased dramatically. A massive devaluation (if not collapse) if the dollar is possible (if not likely) in the next few years.

Argentines with (hundreds of millions) dollars are aware of this. There certainly hasn't been any panic real estate buying, but I am sure the day will come in the not so distant future that many who are holding dollars now will regret not buying at today's prices.

When that "cirsis" hits I wonder how fast the dollar price of real estate in BA will rise...and how high it will go.

 

[perry]

I believe that in a few years all of those members who are holding on to their dollars will live to regret waiting to buy anywhere as the risk of holding them is way way higher than buying carefully in Buenos Aires or Argentina or Uruguay.

The other day I recieved an interesting link from one of the worlds most accurate investor saying that Uruguay will become very expensive as the hordes escape Europe and North America. Argentina would be as highly recommended if our government was stable with the support that our neighbour has. I believe that Argentina can only go up and mark my words a new exodus of expatriates will flood our shores soon. http://www.dailywealth.com/archive/2009/oct/2009_oct_26.asp

An investment is for seven years and in 7 years from now the prices of today will seem low.

 

[iStar]

Quick everyone... The sky is falling! The sky is falling!

 

[steveinbsas]

Quick everyone... The sky is falling! The sky is falling!

Perhaps not yet, but just remember, cause and effect never stops.

You won't be able to say you weren't warned when the inevitable happens.

 

[iStar]

Perhaps not yet, but just remember, cause and effect never stops.

You won't be able to say you weren't warned when the inevitable happens.

A property is only worth what someone will actually pay. With that type of fear-mongering I'm sure you'll be able to scare up some fools who will pay more than a property is worth.

Oh I forgot you are a property owner here and pericles is your real-estate agent. Talk about two in cahoots!

In REAL news... CIT Group has declared bankruptcy.

http://money.cnn.com/2009/11/01/news/companies/cit_group/index.htm?postversion=2009110116

 

[Hockey_Nut]

I believe that in a few years all of those members who are holding on to their dollars will live to regret waiting to buy anywhere as the risk of holding them is way way higher than buying carefully in Buenos Aires or Argentina or Uruguay.

The other day I recieved an interesting link from one of the worlds most accurate investor saying that Uruguay will become very expensive as the hordes escape Europe and North America. Argentina would be as highly recommended if our government was stable with the support that our neighbour has. I believe that Argentina can only go up and mark my words a new exodus of expatriates will flood our shores soon. http://www.dailywealth.com/archive/2009/oct/2009_oct_26.asp

An investment is for seven years and in 7 years from now the prices of today will seem low.

It's also one of the last countries in the world where you can own property anonymously. Finally, there's no tax on foreign earnings. So Europeans and South Americans move here to avoid income taxes.

The reason why Uruguay attracts loads of rich foreigners and Argentina does not. If the European and American goverment are placing the tab of the economic crisis on the wealthy people(increase in income tax mainly)Many more 40´ 50´ers from the first world will follow

 

[Hockey_Nut]

In todays La Nacion

1,5 room, Luis M Campos, 335USD
Studio, Goyens, 296 dollar
Studio, Honduras, 232 dollar
2 room, Callao, 283 dollar

This is for a 2 year rent and this are asking prices, so they can be negociated a bit lower as well. Extra cost are probally around 70 dollar(Gas, Water, Electricity, Telefon, Cable, expenses). La Nacion is not known for the cheap rents, Clarin has many many more

All the Argentine people I know and have signed a new contract within the last 6 months for 1 bedroom appartement in one of the better areas are paying 1200-1300 peso a month all inn, the same appartement 2 years ago costed atleast 1500 to 1800 peso

P.S. 1600 peso in november 2007 was 500 dollar, 1200 peso in november 2009 is 300 dollar. That´s rougly 40% loss of ROI

 

[Hockey_Nut]

Everybody knows there's been rampant speculation in Buenos Aires. An apartment in Recoleta costs as much as an apartment in Washington, DC. An apartment in Puerto Madero is WAY more expensive than an apartment in Miami. It's preposterous. By the way, you can hear a pin drop in Puerto Madero in the evening during the winter. I was having a frank conversation with a real estate agent over there and she told me that everyone was just PRAYING that the foreigners would come back. There are huge uninhabited buildings. When the tipping point hits, the floor will collapse.

And don't tell me Puerto Madero is unrelated to where you work, P. As soon as people sniff crisis, Katie bar the door!

I think that many people in Puerto Madero rather have there appartment empty then rent it out at low profits, either for 2 year rent or short term. If you check newspapers, websites etc you will rarely see a PM appartement. There are some appartements who sit with real estate agents but they are just waiting to get lucky with a fool who pays a high price.

 

[steveinbsas]

Only a madman can still maintain that rents are not declining

Who said rents aren't declining?

Pericles repeatedly has said that well priced properties in the best area continue to sell. So what if volume is down? Those who ask outrageously high prices by the meter might have to lower the price in order to sell, but I have a friend here from the States (third trip this year) who has not been able to find any apartments offered at "bargain" prices in Palermo or Recoleta.