BA Real Estate market to take a dive before the end of the year.

[D.B. Cooper]

A while back somebody wanted to know when it would be a good time to buy RE in BA.
I hink this Coronavirus plus the collapse of the oil market is going to result in a rush to sell RE for people who are going to need Cold Cash.
Some of the news outlets are comparing this moment to the Great Depression. I’m starting to see VENDE signs around the city.
i was here in 2002 after 9/11 and couldn’t believe the number of For Sale signs all over the city.
A lot of the small PYME type companies won’t survive this disaster.

 

[Ries]

And yet, my wife and I are completely without regret that we bought a local (not an apartment) in December. I have always lived my life based on doing what I needed to do, and what felt right, at the moment, and not looking back. I couldnt be happier, and, if prices come down, I will still be happy with my purchase. But I didnt buy it for appreciation, although, I am confident that, over, say, ten years, it will appreciate.

 

[Jeremias]

Here in Buenos Aires, I don't see how prices of Real Estate (private apartments of a reasonable quality) could fall a lot. Probably some prices will fall by five to ten percent max after the coronavirus crisis is over, but, that's it. Now, the prices of commercial locals, it's another story. But good luck making money with them after the quarantine, the customers having no cash left to buy your products or services.

 

[Rich One]

Here in Buenos Aires, I don't see how prices of Real Estate (private apartments of a reasonable quality) could fall a lot. Probably some prices will fall by five to ten percent max after the coronavirus crisis is over, but, that's it. Now, the prices of commercial locals, it's another story. But good luck making money with them after the quarantine, the customers having no cash left to buy your products or services.

Five or ten percent only ? as ï hear NOW sellers are willing to drop 20 % for a serious offer..!

 

[Ceviche]

ï hear NOW sellers are willing to drop 20 % for a serious offer..!

what are your sources?

 

[Jeremias]

OK, if you have the money (all of it) available without delay, in dollars, you might negotiate a 15 or even 20% rebate, If the owner needs the cash, urgently... It's not as interesting (for buyers) as the Corralito times. In any case, you better be extra careful with the property titles.

 

[EL_TIGRE_de_Tigre]

And yet, my wife and I are completely without regret that we bought a local (not an apartment) in December. I have always lived my life based on doing what I needed to do, and what felt right, at the moment, and not looking back. I couldnt be happier, and, if prices come down, I will still be happy with my purchase. But I didnt buy it for appreciation, although, I am confident that, over, say, ten years, it will appreciate.

Ries,

I could not agree more. The principal place you own ... IS A HOME ... not an investment. It is where you live, where you take refuge, where you eat, sleep and love. It's where you create memories and share. YOU HAVE THE CORRECT POINT OF VIEW.

Now if the property is a second or third ... then it is an investment. And the cold hard counting of money comes into play, but not it does not apply to a home!

 

[Ries]

Well, in my case, I already have a home in Buenos Aires- in December we bought a studio, as both my wife and I are artists, and we need a place to work. But for an artist, a studio is also exactly what you describe, and often you spend more time there than a home. The same principles apply.

plus, in BA, I think you are safest (obviously, the Bugs could still hit us with an asteroid, just like in the movies, so safety is never assured) if you buy quality, which, to me, means a building built long enough ago to be made from real materials, with crafted details, beauty, and style, in a good location. And there are still a LOT of those in Buenos Aires.

 

[milanesas]

A good friend just purchased a home in San Isidro and told me that almost all owners of homes in Zona Norte that they viewed were completely willing to sell for 20-30% less than the listed price and in general more flexible than normal with conditions. I know a lot of Argentines save money in the form of real estate during difficult times, but like others commented, there will also be people that need to sell in the current conditions for different reasons.

 

[Rich One]

Particularly if you own and rent a small shop for business..!! Some Tenants are not paying rent on shops that are closed..! Some will not reopen.

Con los locales cerrados, los comerciantes buscan cómo renegociar sus contratos de alquiler

Existe un convenio no escrito por el cual las partes hacen un esfuerzo por acordar un valor transitorio del 50% del previo a la cuarentena obligatoria

www.infobae.com

With closed Shops merchants seek to renegotiate their rental contracts

"With most of the shops closed, with shutters low and without activity since the beginning of the quarantine measures, on March 20, merchants started April by renegotiating with the owners some type of reduction or postponement in the payment of commercial rents. A situation that, due to its duration and extension - to almost all the businesses, except the essential ones - is unprecedented in relation to other moments of collapse of retail sales, even when compared to the crisis of 2001 and 2002.

According to data from the Single College of Real Estate Brokers of the city of Buenos Aires (Cucicba), in April 46% of the tenants of commercial premises could not pay the rent. In 94% of the cases due to economic problems derived from the closing of the businesses and the rest due to difficulties in the payment channel."