Buying a House

[gouchobob]

My philosophy (when I bought my apt): I didn't approach it like an investment; it's not obvious or clear in any way that a real estate investment in Argentina will be profitable for you.

However, when I bought my (awesome!) apt, I took into account to a significant degree the non-financial factors: I can never be kicked out, I never need to hunt for another place to live, I can paint or knock down walls or anything reasonable I want to at all and no one will ever tell me not to (I just did knock down a wall a few weeks ago btw!), I can finally, after years of searching, have a place I call "home".... now, lets say I value all of these things at $X,000 (fill in "X" with whatever value you would place on all of those, and any other psychological/emotional factor) -- therefore, even if the value I paid decreases by $X,000, I still come out ahead!

Economics isn't about money; it's about happiness. (Or "utility", which is basically the economist's way of technically talking about something that approaches the fluffiness of happiness.)

Depends, if at some time you decide to leave and can't because you can't sell your property or have to sell it at a loss, then your going to think renting would have been a much better option. My guess is that a very high percentage of expats buy in Argentina then after a couple of years decide Argentina isn't for them and are unhappy because they have to wait for the property to sell(sometimes at a loss), sometimes literally for many months or years. If you are a renter and decide to leave you just go to the airport.

 

[syngirl]

I think we all remember HotYoga's story (you can search the board) -- they invested in a penthouse apartment in an iffy area of town a few years ago, decided they wanted out of Argentina, and as far as I know are still trying to sell years later.

 

[syngirl]

Also -- jb5 -- how long have you been here? In my experience most expats don't make it past the 18mos - 2 year mark before they are desperate to get out. those of us who are 5 years+ are rather few and far between.

 

[citygirl]

I don't believe jb5 is here yet. And Syngirl has a very valid point. I know you've visited a few times but living here full-time (and starting a business here) is a different proposition. I might strongly advocate waiting until you've been here at least a year before committing to buying.

Of the expats I know - there are 3 besides myself that have lasted 4 years. That was out of a group of probably 50 or so that I hung out with regularly when I arrived here.

And the numbers I mentioned are pretty current. Do keep in mind that 5K assumes you have a guarantia. It also doesn't include ANYTHING - all bills, expenses, etc would be separate.

I assume you know how expensive furniture and appliances are correct? Especially for good quality?

 

[gouchobob]

Also -- jb5 -- how long have you been here? In my experience most expats don't make it past the 18mos - 2 year mark before they are desperate to get out. those of us who are 5 years+ are rather few and far between.

I think this is very true and I'll bet many of the people that bought property later regretted it as they had to wait to sell it or sold it at a loss.

 

[MorganF]

Depends, if at some time you decide to leave and can't because you can't sell your property or have to sell it at a loss, then your going to think renting would have been a much better option. My guess is that a very high percentage of expats buy in Argentina then after a couple of years decide Argentina isn't for them and are unhappy because they have to wait for the property to sell(sometimes at a loss), sometimes literally for many months or years. If you are a renter and decide to leave you just go to the airport.

Right, exactly -- Therefore, if you're in that situation, you clearly shouldn't buy. It's just too risky to take buy property in a country (especially one as idiosyncratic as Argentina is) that you're not yet sure is for you, that you're not necessarily committed to, with very serious risk factors like Argentina...

 

[MorganF]

I think this is very true and I'll bet many of the people that bought property later regretted it as they had to wait to sell it or sold it at a loss.

True dat. I've been here on-and-off for 11 years. Only bought my apt 3.5 years ago! And I lived through the last crisis....!

 

[steveinbsas]

Here's a great selection of homes for sale in Belgrano:

http://propiedades.zonaprop.com.ar/...belgrano/ncZ2_opZtipo-operacion-venta_lnZ3652

And this one is much closer to $400,000 than most:

http://aviso.zonaprop.com.ar/608131-virrey-del-pino-3000-belgrano-capital-federal

But it needs a lot of work: (Estado del inmueble: A refaccionar).

This is all you get for $379,000:

http://aviso.zonaprop.com.ar/673688-cramer-1500-belgrano-capital-federal

And it's not really in Belgrano R.

This one is targeted at the embassy crowd:

http://aviso.zonaprop.com.ar/124691-virrey-loreto-2000-belgrano-capital-federal

And it isn't in Belgrano R, either.

 

[jb5]

Thanks for the tips, we do understand many of the realities. Wile we will be getting a division of our business up and running here, we will be back and forth between here and the States. Perhaps that will help with longevity?

We are here in BA and have spent the last week actively looking at real estate, so we do have a good idea what's out there. What we don't know is where prices are going and where the attitude towards multinational business is going. The economy shows cleas signs of slowing down.

We thought renting for the first year was most probably our best option and most of you seem to confirm that. The beauty of some of the homes (and the small kitchens making me long for my own place to build a bigger one) and the high rent prices made us reconsider for a minute, but the original plan seems on target.

 

[citygirl]

Well if you have chosen to start a business while we're in a time of 30% inflation, expected annual raises of 25-30%, corp income tax of 35%, onerous employment laws and a slowing economy - you are either incredibly brave or foolish.

Let's put it this way - if I were ranking risky/difficult things in Buenos Aires on a scale of 1-25 (with 1 being the worst), I'd put buying a house or apt at around 20.. Starting and running a business - #1.

So if you're willing to start a business, why not buy a house? It will be a lot less of a headache in the long run and you even have a chance to make money on your house.