Financing a Place in Argentina

[Fiscal]

Wow thanks for the links. Rents in BA seem crazy high! A lot of places there are $6K plus! For perspective, I live in a 2 bed/2 bath brand new luxury building with doorperson in a major US city, and pay $4000. The "second home" I rented for my wife in her hometown in Argentina is only 12,500 pesos.

 

[earlyretirement]

Wow thanks for the links. Rents in BA seem crazy high! A lot of places there are $6K plus! For perspective, I live in a 2 bed/2 bath brand new luxury building with doorperson in a major US city, and pay $4000. The "second home" I rented for my wife in her hometown in Argentina is only 12,500 pesos.

You're certainly welcome. It's all about the sharing of good information. Yes, definitely rents can be insane there especially if you're making pesos. It can be obscene. But that's also why you also see people that like to own properties here.

That's not to say that you can find good deals. For example, I have lots of local friends that own several properties and they take a lower rent or give a special deal to people that they personally know or friends of friends vs. renting it for more to a perfect stranger. Also, furnished rentals you can typically make a much greater ROI (even accounting for the furniture/electronics expenses) vs. owning an empty apartment. A similar property like you rent in the USA furnished can fetch as much as $2,000 US per month in Buenos Aires. I have several friends that own in luxury newer buildings with doorman and it's furnished and they are getting $2,000 US per month but I do believe they are paying monthly HOA dues which might be $200 per month, ABL fees and water (which is included in their HOA dues). This is on a two year lease.

There are many large corporations that will rent out nice places in newer buildings that are furnished. I mostly do long term leases to corporations that works out well. The only thing is to make sure they are in US dollars for the rent. One long term client I was dealing with pesos. And I put in a 25% a year inflation adjustment but with this latest major devaluation they are getting an amazing deal now in US dollar terms.

That website link I gave you, as you can see you can also look up rentals so you can get a real sense of what places are going for. There might be some negotiation but typically not more than 10% lower and many owners will hold firm on their asking prices. It just depends how motivated they are. And I'm not sure where your wife is but prices drastically fall once you get outside of the nice areas of Buenos Aires wealthier areas.

 

[Fiscal]

Between Palermo, Recoleta and Puerto Madero, is one neighborhood considered nicer than the others? Or are they all roughly the same (other than Puerto Madero is newer buildings and highrises)?

 

[earlyretirement]

Between Palermo, Recoleta and Puerto Madero, is one neighborhood considered nicer than the others? Or are they all roughly the same (other than Puerto Madero is newer buildings and highrises)?

Well Puerto Madero is easily the most expensive area. It's a newer area and mostly high-rises that are modern. It's also the safest area as they have their own police force there. The locals might argue that it's the "nicest area" but I personally find it has no real soul and too sterile. It doesn't feel like Buenos Aires to me. Also, monthly HOA fees are insane here! I have some friends that own really high end apartments here and some of them are paying over $1,000 US per month in condo fees alone! A few with 2 bedroom apartments are paying $600 US per months in HOA fees.

Recoleta doesn't have too many newer high rises. Older properties for the most part. Palermo Soho has a few high-rises but not as many as Palermo Hollywood. Soho is zoned so no more more high rises there for the most part. I really enjoy both Recoleta and Palermo. Recoleta is nicer and less gritty vs. Palermo Soho/Hollywood. In those areas you will see more graffiti vs. Recoleta which is a shame. I have a friend that owns a beautiful house in the heart of Soho and she has to repaint it every few months from vandals just spray painting. You don't see that problem in Recoleta in the nice areas.

A really creme of the crop area for me in Recoleta is the quadrant of Libertador/Libertad/Ayacucho/Quintana if you look on Google Maps. Really upscale and posh high end area. But all older more prestigious properties there. No newer high-rises but quality of life is super high.

In Soho I really love quadrant of Armenia/Honduras/Malabia/Guatemala or a few blocks outside that area. In Hollywood I like Guatemala/Bonpland/El Salvador/Juan B. Justo. I own properties in all of these areas and they are awesome areas and rentals do well in them.

Nice high-rises in Soho are really great as there is so many restaurants, cafes and shops in the area. Palermo Hollywood as well has TONS of restaurants. I guess it just depends on what is important for you. I wouldn't live in Puerto Madero because it's too far away and traffic can be a nightmare getting to/from there as they are working on construction in the area. I like how central Recoleta is but I don't think you can go wrong anywhere in Recoleta or Palermo. Palermo Chico (Barrio Parque) is also a really high end area. Not cheap but they have some newer high rises there as well. I actually personally prefer over near Soho or Hollywood just because I like a livelier area where I can walk out my door day or night and tons of places to eat and drink, etc.

Me personally I don't like San Telmo to live. Nice to visit but too gritty for me. I read a few posts where people said they live there and enjoy it but there is a reason it never really got as popular as Palermo or Recoleta. Still seedy at night in many areas. It's not to say you couldn't have a good life there but I just prefer more upscale areas vs. San Telmo.