Interesting. So how do normal upper middle class people (doctors, engineers, etc) buy houses here if you can't get a mortgage? It seems like it would be impossible to save $150k in USD on a normal salary here.Fiscal,
RE prices are RIDICULOUSLY over valued in Argentina. (Ronnie nailed the reason, RE is a safe place to park your money.)
I marvel at the silliness that makes for the Argentine RE marketplace.
Among other things:
No mortgage market (mercado hipotecario) to speak of. All cash transactions in USD or Euros. But anything except for pesos. Buying and selling is a silly process as well. Cash, barter, other assets introduced into the transaction. It makes me dizzy thinking about it all.
RE agents that do not much to help their client and the prospective buyer. They are simply in it for themselves. And their honesty is very suspect.
Rents that do not come close to what the property changed hands at or is valued at. The monthly rent on a place to live is out of proportion to the renters advantage, IN A BIG WAY!
If the Argentine government ever got it's act together, stabilized the financial system, built trust in the people's minds etc ... Banks started being banks, lending money at reasonable interest rates etc ... The RE market would reset and wipe out values in a big way.
Bottom line: RENT instead of buy - I wouldn't want to take it on the chine when this rug gets pulled some day.