Buying appartements for temporary rental

[steveinbsas]

I want to start my own business in BA because I plan to stay indefinitly and have dual citizenship so there is not really a tax issue.

I want to buy 5 appartements in 2 or 3 different buildings and rent out 4. With the calculatings I have made I will earn enough in today's market if I can rent out atleast 2,5 appartments at the same time

I am planning to live in one appartment, have my office there and rent out the other 4. I probally try to start my business early 2010.

I have the following questions

1: Do the expats who own a property for temporary rental get a ROI of 5% from purchase-price(including all buyers-cost) after paying all expenses in 2009?

2: So far untill may 2009 the foreign arrivals at Ezeiza are down around 15%. What do you expect for the rest of 2009 and 2010? How big will the impact of Swine flu be?

3: What's the best area to buy? It should be easy to rent out

4: What do you suggest to buy if money is not important, a small studio for at most 2 persons, 2 room appartment with the posibility to be used by 3 to 5 people. 4 bedroom appartement and renting it out to 2,3 different persons(room)

5: Can you give an estimation of the total occupation rate of the first 6 months of 2009 for all appartmens for temporary rental?

6: What is the ROI you can get if you rent out to a local and buy early 2010?

7: Something to add?

Thanks for your help

07-13-2009, 09:19 PM
BlahBlah
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I was talking about the 33 months.

On every succesfull real estate transaction in BA there is an unsuccesfull one. I bet the expamples of JP and RC don't count as succesfull. Even if you bought in 2004-2005 and sold in 2008 very few did well. If you were looking to sell now there is different picture as well

And there are ways to get around 5% with government backed deposits at AAA rated banks.

 

[flyfreely]

I have a question? WHat does having dual citizenship have to do with taxes? The US and Argentina do not have a tax treaty. You are supposed to pay taxes on your worldwide ASSETS in Argentina if you are a resident here (spend more than 6 months/year here). You are supposed to pay taxes on your worldwide INCOME in the US if you have american residency. Having or not having citizenship doesn't change those laws based on all the legal advice I have gotten. Does anyone know different?

 

[steveinbsas]

I have a question? WHat does having dual citizenship have to do with taxes? The US and Argentina do not have a tax treaty. You are supposed to pay taxes on your worldwide ASSETS in Argentina if you are a resident here (spend more than 6 months/year here). You are supposed to pay taxes on your worldwide INCOME in the US if you have american residency. Having or not having citizenship doesn't change those laws based on all the legal advice I have gotten. Does anyone know different?

You're right about the tax liability, at least concerning the facts you stated. There is an individual income tax exemption for US citizens earning up to $84K a year outside of the US, but it does NOT apply to rental income derived from foreign properties.

BlahBlah never said he/she was also a US citizen. If that were the case, the spelling should be much better, but public education isn't what it used to be...If BlahBlah has enough money to buy four apartments decent enough to rent to foreigners (plus one to live in), that would entail an investment of 400-500K (of not a great deal more). If the funds are not in Argentina I imagine BlahBlah has a way to get them here, but I would like to hear from any Argentine citizen who would seriously consider doing so at this time...especially en blanco.

 

[BlahBlah]

I have a question? WHat does having dual citizenship have to do with taxes? The US and Argentina do not have a tax treaty. You are supposed to pay taxes on your worldwide ASSETS in Argentina if you are a resident here (spend more than 6 months/year here). You are supposed to pay taxes on your worldwide INCOME in the US if you have american residency. Having or not having citizenship doesn't change those laws based on all the legal advice I have gotten. Does anyone know different?

I am not an American citizen

 

[steveinbsas]

I am not an American citizen

"Most" Argentines I know that have dual citizenship either have it with Spain or Italy. It doesn't really matter, though one of his/her previous identities here was granadaiscool. Given BlahBlah's recent negative posts regarding the BA real estate market and tourism, I seriously doubt that the questions posed in this thread were based on a real desire to invest in BA real estate in the next six months. It's just Playtime for BlahBlah (sung to the tune of "Springtime for Hitler" from The Producers).

 

[RWS]

. . . . Given BlahBlah's recent negative posts regarding the BA real estate market and tourism, I seriously dobut that the questions posed in this thread were based on a real desire to invest in BA . . . .

Mightn't it be possible, Steve, that your postings in opposition to BB's critique of real-estate investment in Bs.As. succeeded in dissuading him from his chariness?

 

[steveinbsas]

Mightn't it be possible, Steve, that your postings in opposition to BB's critique of real-estate investment in Bs.As. succeeded in dissuading him from his chariness?

Not for a nanosecond.

 

[RWS]

Not for a nanosecond.

Well, then, you've less confidence in your persuasive powers than I have!

 

[mini]

Thanks again

If you decide for Colegiales, Villa Urquiza or Villa Crespo, would that be harder to rent out? Even if it's close to a subte?

Well, I'll give you my opinion. I don't really care if you are really going to buy the apartments or not. It's an interesting topic of conversation either way.

If I were going to buy these 4/5 apartments as a business, I would buy them in the same building. In fact, I might actually buy a small building.

I would probably buy in Palermo. If you buy in the barrios that you mention IMO the monthly price you can ask is much less & these places will be the first that loss tourist traffic when tourist numbers drop.

 

[BlahBlah]

Thanks

I was thinking about buying in 2 appartmentsblocks because that way you are more protected for fast raising expenses. The places I have checked out all have different levels of expenses, there seems to be little or no common sense in that. If you buy in 2 blocks maybe only 1 raises it's expenses fast and that should help your rentability.

I have been thinking about buying everything in the same barrio because it's easier to manage if you live close. I don't know yet if you can promote different barrios different and maybe attract different kinds of crowds.

I also have been thinking about buying close(within 2-3 blocks) of some major university campus and to contact them but I have no experience with that

I am watching the prices now and they are dropping fast now, especially from expats who want to get out of the country. I think if you have cash it's probally not a bad time to buy in about 6 months. Tourism should rebound some day(once the global recession ends) and if you are already in the country it gives you an edge.

I would also like to hear opinions about what type of appartment you should buy and if you should buy different types of appartments