Buying to rent in BA

elcomandante

Registered
Has anyone had experience in buying to let an apartment/apartments?

Wouldnt mind in a few years buying an apartment in BA (as ill never be able to afford my own in the UK!) but trying to rent it out, and try and get it to start paying for itself renting it out, while I continue working..

My concern would be that there is so many apartments in BA surely it must be hard to find someone to rent long term! ?

Also what kind of prices in $USD are we looking at say a one bedroom apartment in Recoleta/Palermo/Las Cañitas?

anyone info or advice or opinions would be greatly appreciated!

Saludos!
 

RobW

Registered
Not a bad idea. If its furnished and ready to roll for the short term stay then you can get good USD rental fees. The only problem is who to leave in charge of it while you're living abroad if that's what you are planning on doing. If you're staying here then you connect up with a bunch of different apartment rental agencies and they take care of the rest. You check up on it from time to time and hand off the keys and deal with agents on occasions.
 

BlahBlah

Registered
elcomandante said:
Has anyone had experience in buying to let an apartment/apartments?

Wouldnt mind in a few years buying an apartment in BA (as ill never be able to afford my own in the UK!) but trying to rent it out, and try and get it to start paying for itself renting it out, while I continue working..

My concern would be that there is so many apartments in BA surely it must be hard to find someone to rent long term! ?

Also what kind of prices in $USD are we looking at say a one bedroom apartment in Recoleta/Palermo/Las Cañitas?

anyone info or advice or opinions would be greatly appreciated!

Saludos!
The last few years 2005-2008 you would have had a decent ROI and a place to live when you are in BA. 2009 depends on luck I guess, but the people who have lowered there asking price have probally fared better. For 2010-2011 it's hard to say but if you buy a small place you can probally earn some money below the dotted line if you rent it out 3-4 months a year. Even with a big global recession it should be possible

The main problem is, like other have said, is finding someone to do your business
 

perry

Registered
The rental market in Buenos Aires in the last few years has been excellent with returns of 6 to 10 percent in premium areas. The last six months there has been a downturn due to the worldwide crash and of course the swine flu . The biggest loss of tourists have been Brazilians who make up 50 percent of all our tourists in Argentina.

In July 2009 the Brazilian government advised its citizens to defer travel here due to the swine flu causing cancellations to be very high and rental apartments to go empty in Buenos Aires.

The last few weeks I have noticed a bounce back in Palermo Soho from Brazilian tourists and Europeans who find Argentina very appealing due to the exchange rate and incredible variety that Buenos Aires offers.

The Brazilian Real is the best performing currency of 2009 and has increased in value 22percent against the US dollar making Buenos Aires much cheaper for them for shopping and eating out. They will return in bigger numbers in the next years and they are big spenders . Typically they rent luxury apartments with amenities or old antique apartments with a mix of modern and classic.

If you choose the right apartment that is modern high quality construction with excellent amenities or antique apartment in well appointed location you will have excellent rental returns. Remember buying an apartment for a business in like buying a shop .
The top three considerations are
Location
Quality of apartment and Building
Tranquility of apartment super important in this noisy city.

Hope this helps.
 

BlahBlah

Registered
And how many % of those weekend hopping Brazilians rent an appartment and don't buy a organised trip with ticket, transfer and hotel?
 

RWS

Registered
BlahBlah said:
. . . Brazilians . . . organised . . . .
Many an Argentine of my acquaintance would say that these two words don't belong together. If they're correct, the answer to BB's question might be, "most".
 

jimdepalermo

Registered
Long-term rental is also not a bad option to consider. Since most renters here are accustomed to providing most appliances and paying all of the expenses on an apartment, including the local ABL tax, you have no operating costs other than personal property taxes and wear-and-tear on the apartment. You can expect returns of 6 - 8% gross, plus any appreciation over the long term.

The long-term option has been less lucrative during busy tourist periods in recent years, but it eliminates most operating costs and avoids reliance on agents for a lot of services and ongoing maintenance. With tourism way down, a lot of short-term properties aren't experiencing much return right now.
 

BlahBlah

Registered
So a 3 room, 120.000 dollar appartment in Palermo rents for 700-800 dollar a month for long term rental without expenses?
 

steveinbsas

Registered
BlahBlah said:
So a 3 room, 120.000 dollar appartment in Palermo rents for 700-800 dollar a month for long term rental without expenses?

If the proposed rental laws (change in rental laws?) are passed, the maximum legal long term monthly rent for a $120,000 apartment would be $800, but as property values that are declared on the escrituras are often considerably less than the actual purchase price, the legal long term rate would be reduced by the same percentage.

The OP said he was considering buying in a few years. That allows lots of time for research as as well waiting to see how the "current crisis" plays out.

I would not suggest anyone buy an apartment in BA as an investment right now. If someone is already committed to living here for three to five years and has the money, buying might be a good idea as opposed to paying rent. Even if that is the case, there is no need to rush to buy anything.

Neil had a great idea:

"Browse a site like http://www.bytargentina.com/to see some sample rents in different barrio's. Search through this forum for threads on rentals and you will find good advice."

Look at their calendar to see the advance bookings.

Remember, if you own an apartment here but are not living in it, the tax man will assume you are renting it unless the utility bills are near zero. If you don't pay the appropriate taxes (annually) you will (eventually) pay exorbitant fines...as well as the taxes.
 
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