BA real estate boom or bust

[iStar]

The bottom line is... It's a renters and buyers market right now.

Anyone that says otherwise is not fooling anyone but themselves!

 

[Hockey_Nut]

Rent or buy?

 

[steveinbsas]

The bottom line is... It's a renters and buyers market right now.

Anyone that says otherwise is not fooling anyone but themselves!

Please share the links to any properties for sale that support your statements (if you have actually been researching the market).

It may truly be a "buyer's market" in some areas, but you won't find big price drops in the more desirable areas unless the property was seriously "overpriced" (by comparison) in the first place.

My friend from the Sates made an offer on an apartment in Palermo that was accepted by the seller who then backed out and then accepted and backed out again.

Not exactly symptomatic of panic selling, is it?

 

[perry]

This is a no brainer its better to buy than rent in Buenos Aires . I will reiterate this more clearly for those who do not understand .

An investment is a 7 year proposition and maybe in that time there will be troughs but at the end of 7 to 10 years you certainly would have made a hefty profit as well as have free rent for all that time.

All those who did not buy in 2002 in Buenos Aires and kept the american dollars would have seen a 30 percent depreciation of their currency as well as a minimum 130 percent increase in prices in dollars of the same currency in 2009. This is not to mention the 7 years of rent they had to pay.

In regards to the escritura price I would hazard to guess how many deeds are recording the real selling price meaning that prices are not being officially recorded .

 

[perry]

Istar you have posted the same link many times and your point is that there are less sales this year than last year . Its true and? The other point you state which has been refuted by me and many members is the average price per properties of US $ 72000 . And I work for Remax and what has that got to do with price of fish in China?

And regarding Steve he was not my client and he was not told to post today by me .He never listed his property with me and just by luck I found him a buyer after he tried another agency for a extended time. I showed his property 9 times.

Also I have not spoken to Steve for over 6 weeks and the last email contact I had with him was last week. So if you are also implying that he is being cooerced by me to write his own thoughts you are very mistaken!!!!

Most members who know Steve will say this about the guy he cannot be cooerced by others and he is a opiniated guy who likes to express his opinion.

And Istar you have said enough against me and your immaturity is apparent when you cannot debate a point without attacking someone through their job . You do not like me fine move on and roll a ball down another bowling alley . I do not need your approval.

Anyways Moving on to the case in point.

Prices of real estate are determined by many factors but in Buenos Aires more so than other markets they are not determined by credit meaning that prices are resilient. When a bank reposesses your property and floods the market with stock prices are very affected . I cannot see at all any oversupply of properties for sale in areas like Palermo Nuevo, Recoleta, Barrio Norte, Belgrano, Colegiales. Almagro etc etc. As stated before I have a problem of undersupply for the genuine enquiries.

There are bubbles though like Puerto Madero and Palermo Hollywood that were built with the investor in mind and of course that market has diminished in the last year. Most new apartments in those neighbourhoods are bought by argentine investors just to keep their monies safe with no thought given to rental. For these investors this is their bank account for the future . Many newcomers do not know or realise the amounts of american dollars that argentines hold which are second per capita in the world after the USA .

Capital Federal is built out in many areas and places like Recoleta , Barrio Norte, parts of Palermo there is very little new construction that can be done and the natural demand of the inhabitants will not supply the stock needed in the future.
For example in the area I live Palermo Soho there is a three story limit and very few apartment stock . You will see outrageous prices for some PHs in this neighbourhood to take advantage of a foriegner . Last week I saw a PH advertised on Craigslist for US $ 250000 stating it had 140 metres covered . When I arrived and pulled myself out of the shock of the building passageway as well as the lie of the metres which were not as stated but were an entrepiso built in claiming to be real metrage. At most I valued it at US $ 140000 due to only having 70 real metres covered . The fact is that PH ( Townhouses) in Palermo are hard to find and good ones priced right sell very fast.

As much as I sympathise with people who cannot afford to buy here in BA I also understand that the natural demand and projected demand will definetly increase meaning that there cannot be decrease in prices in the neighbourhoods mentioned above.

Lets make sure we do not compare apples to oranges as in all markets there are good properties to buy as well as shockers and the key is to shop around and use caution and care when choosing the investment you will make.

 

[iStar]

This is a no brainer its better to buy than rent in Buenos Aires . I will reiterate this more clearly for those who do not understand .

An investment is a 7 year proposition and maybe in that time there will be troughs but at the end of 7 to 10 years you certainly would have made a hefty profit as well as have free rent for all that time.

All those who did not buy in 2002 in Buenos Aires and kept the american dollars would have seen a 30 percent depreciation of their currency as well as a minimum 130 percent increase in prices in dollars of the same currency in 2009. This is not to mention the 7 years of rent they had to pay.

In regards to the escritura price I would hazard to guess how many deeds are recording the real selling price meaning that prices are not being officially recorded .

This post sponsored and brought to you by your local REMAX sales agent.

 

[Hockey_Nut]

This is a no brainer its better to buy than rent in Buenos Aires . I will reiterate this more clearly for those who do not understand .

An investment is a 7 year proposition and maybe in that time there will be troughs but at the end of 7 to 10 years you certainly would have made a hefty profit as well as have free rent for all that time.

All those who did not buy in 2002 in Buenos Aires and kept the american dollars would have seen a 30 percent depreciation of their currency as well as a minimum 130 percent increase in prices in dollars of the same currency in 2009. This is not to mention the 7 years of rent they had to pay.

In regards to the escritura price I would hazard to guess how many deeds are recording the real selling price meaning that prices are not being officially recorded .

Did you also calculate with?

1: Insurance
2: Taxes
3: Expenses
4: Utilities
5: Bogus lawsuits
6: Maintance
7: Hours spend on maintaining your home, filling taxes, going through immigration
8: The risk of getting robbed
9: The risk of the posibility you cant get your cash out of the country
10: The risk the state naturalising your property
11: The increase risk of getting kidnapped
12: The risk of a default
13: The risk of a devaluation
14: The risk of you getting blackmailed by the maid
15: The fact the money you have invested can´t be used in an another investment


Etc, etc?

P.S. Can you give me the same ROI guarantee for the next 7 years?

P.S2: 2002 was radomly chosen not? Not because there was a huge crisis?

 

[iStar]

Did you also calculate with?

1: Insurance
2: Taxes
3: Expenses
4: Utilities
5: Bogus lawsuits
6: Maintance
7: Hours spend on maintaining your home, filling taxes, going through immigration
8: The risk of getting robbed
9: The risk of the posibility you cant get your cash out of the country
10: The risk the state naturalising your property
11: The increase risk of getting kidnapped
12: The risk of a default
13: The risk of a devaluation
14: The risk of you getting blackmailed by the maid
15: The fact the money you have invested can´t be used in an another investment


Etc, etc?

P.S. Can you give me the same ROI guarantee for the next 7 years?

P.S2: 2002 was radomly chosen not? Not because there was a huge crisis?

Good points.

etc. etc....

Let's not forget the 3%-5% commissions.

VAT of 21% for the closing amount and the relevant charges including the lawyer or real estate agent commission.

The 2%-2.5% cost of transferring money into the country as 95% of sales are in CASH ONLY.

A stamp duty on the purchase. In Capital Federal, the duty is 2.5 % of the purchase value.

 

[perry]

Good points.

etc. etc....

Let's not forget the 3%-5% commissions.

VAT of 21% for the closing amount and the relevant charges including the lawyer or real estate agent commission.

The 2%-2.5% cost of transferring money into the country as 95% of sales are in CASH ONLY.

A stamp duty on the purchase. In Capital Federal, the duty is 2.5 % of the purchase value.

Once again your stats are wrong on all accounts.

Real estate commissions are 3 to 4 percent
Vat ( 21 percent ) on the commission meaning a extra fee of less than 0.5 percent real .
There is no vat on the purchase price of a property as implied by the above post.
Transfer of monies to Argentina does not exceed 0.75 percent through our company . I understand that many charge much more due to commissions and overcharging of clients.
Stamp Duty is only 1.25 percent for the buyer and not 2.5 percent as stated by the false post above . And if first property purchase in the Capital federal the first 360000 Argentine Pesos are tax free.

Selling property is relatively easy and taxes for selling are low . Please note that there are wide discrepacies in the truth between realtors and a trusted person must be used.

 

[iStar]

Once again your stats are wrong on all accounts.

Real estate commissions are 3 to 4 percent
Vat ( 21 percent ) on the commission meaning a extra fee of less than 0.5 percent real .
There is no vat on the purchase price of a property as implied by the above post.
Transfer of monies to Argentina does not exceed 0.75 percent through our company . I understand that many charge much more due to commissioions and overcharging of clients.
Stamp Duty is only 1.25 percent for the buyer and not 2.5 percent as stated by the false post above . And if first property purchase in the Capital federal the first 360000 Argentine Pesos are tax free.

Selling property is relatively easy and taxes for selling are low . Please note that there are wide discrepacies in the truth between realtors and a trusted person must be used.

Commissions vary depending on the area. I know agents who charge 5% so please don't say it doesn't exist.

21% VAT is HIGH no matter how you slice it.

The buyer will be required to pay a value added tax (VAT) of 21 % for the closing amount and the relevant charges including the lawyer or real estate agent commission. For a new apartment purchased directly from the developer or builder an additional VAT of 10.50%, however, this amount is usually included in the final price offered by the property developer or the real estate agent. No additional VAT is required on the property price for older buildings.

http://www.easyexpat.com/en/buenos-aires/accommodation/buy-house-flat.htm

Transferring money via your company is cheaper? Sorry, I was referring to actual financial institutions which your company is NOT.

The stamp duty is usually split 50-50 but that's no guarantee, you know that.