Actually my wife and I have just a month ago agreed on buying a beautiful old house in Caballito, very nicely renovated. We know the owners very well, long time friends with the family and very nice people. I won't say we get a bargain, but this is not about return on investment. It's about living in a house we love, in a neighbourhood we like very much, and in a street we also like. It will lock a substantial part of our assets in 'stones', but actually i don't care what the value will be in about 10 years. We plan to have wonderful times in that house.I know several argentines who bought apartments with their own money. Generally they bought their first one for $30k or so, then traded up on equity over time- Exactly the way I did it in the USA.
But its absolutely true that many argentines inherit apartments.
In my small building, 2 apartments sold in the last few years, both to professional single women who go to work every single day. Hard to say where people get there money, and if its inherited, but plenty of argentines start small and work up.
current price for the average home in the USA - the ENTIRE USA- is $400,000 plus.
Which doesnt make argentina seem so overpriced to me.
My opinion, based on owning a home in BA, is that the desirable apartments and homes will hold their value- but, to me, that means two things- a good neighborhood, and an older, well built home. The new apartments are terribly built, and will not last 20 years before needing major work. But my 120 year apartment has original, quality, windows, doors, floors, tile, and hardware. Good older buildings hold their value, as they are irreplaceable at any cost these days.