Foreigners with property in BA

[sergio]

Dionquixote, It is not easy to give you an objective answer about retiring in BA on $24,000 dollars a year. It depends on your expectations. First of all, you would need to buy a property. What do you need? Could you live in an efficiency apartment? If so, $70,000 would get you a nice new one in Palermo Hollywood, for example. If you want a larger apartment in a good neighborhood you'll have to spend much more. In a very nice part of Recoleta, for example, you would probably need all of your $150,000 savings to buy a one or two bedroom apartment, pay all the related fees and then furnish it. The apartment would probably need some renovations which might/might not be included in the $150,000. Again, it's hard to give you an exact figure but calculating $1,500 to $2,000 a meter, it's safe to say that you will spend all of your savings for an apartment that approximates a US standard. As for cost of living, I think that you will generally do better here than in the US though that too is hard to predict as we have no idea where the economy is going to take us. Already food costs have soared. Even basic items are up. Taking into consideration all of the discounts you have in supermarkets (these just don't exist here) the cost of food here is no longer very cheap and in manmy cases as much or more than in the US. Restaurants are still a good deal cheaper than big cities on the East or West coasts of the US but average restaurants may not be such a bargain compared to places in small towns in the US. You will have to take into consideration the cost of private health care which would be largely covered by Medicare in the US. I suspect there are parts of the US - places like West Virginia where you can buy a very nice house and land cheaper than in Argentina and live very comfortably - probably better - on $2,000 than you can in Argentina (and without the anxiety about what will happen to the economy based on changes of government etc.) however in the end it is probably a question of lifestyle. If you like the somewhat European urban lifestyle here it could be a good deal. If you are just thinking about a comfortable and inexpensive place to live, I'd say look for the right place in the US.

 

[VMSmith]

First, you should differentiate between 'investing' and 'speculating'.In general, for a foreigner to buy property in Buenos Aires for the purpose of making money is speculating, pure and simple. The results could, in fact, be very good. But it would be a mistake to think that that would be an indication of much more than blind luck on his or her part.If you want to 'invest' your money, you should stick to something you know about and understand.

 

[donquixote]

Thanks for the info, it has been very helpful. It seems that inflation has taken a huge toll on Porteños. Someone mentioned that the average salary for a professional ie engineer, lawyer is about 1500 pesos a month. How do Argentines servive? I was in BA in 2005 and the resturants and cafes were alway full, even in San Telmo. I was able to eat at a modest resturant, have a steak dinner and a glass of vino for about $5.00 US. My has two years changed things.
Gracias, Carl

 

[Granadaiscool]

They dont....
But really you to cosider that kids normally live untill there late 20´s with there parents. That allows them to work and go to university. Normally it does take a bit longer though because there are no part-time jobs and travelling is time-consuming
Further you have to consider that most Argentines just like in any other country need to live together to buy property otherwise you are normally forced to rent.
To buy a 200.000 peso appartment, you need an income of around 5000 peso a month. If both are college graduates with some experience it´s within reach.
You also have to consider that for example an engineer(high demand job, they can earn more probally) with 5 years of experience can make around 1000 to 1500 dollar. If your wife then also nets 2000 to 2500 peso you can live a very decent life

 

[Granadaiscool]

Dionquixote, It is not easy to give you an objective answer about retiring in BA on $24,000 dollars a year. It depends on your expectations. First of all, you would need to buy a property. What do you need? Could you live in an efficiency apartment? If so, $70,000 would get you a nice new one in Palermo Hollywood, for example. If you want a larger apartment in a good neighborhood you'll have to spend much more. In a very nice part of Recoleta, for example, you would probably need all of your $150,000 savings to buy a one or two bedroom apartment, pay all the related fees and then furnish it. The apartment would probably need some renovations which might/might not be included in the $150,000. Again, it's hard to give you an exact figure but calculating $1,500 to $2,000 a meter, it's safe to say that you will spend all of your savings for an apartment that approximates a US standard. As for cost of living, I think that you will generally do better here than in the US though that too is hard to predict as we have no idea where the economy is going to take us. Already food costs have soared. Even basic items are up. Taking into consideration all of the discounts you have in supermarkets (these just don't exist here) the cost of food here is no longer very cheap and in manmy cases as much or more than in the US. Restaurants are still a good deal cheaper than big cities on the East or West coasts of the US but average restaurants may not be such a bargain compared to places in small towns in the US. You will have to take into consideration the cost of private health care which would be largely covered by Medicare in the US. I suspect there are parts of the US - places like West Virginia where you can buy a very nice house and land cheaper than in Argentina and live very comfortably - probably better - on $2,000 than you can in Argentina (and without the anxiety about what will happen to the economy based on changes of government etc.) however in the end it is probably a question of lifestyle. If you like the somewhat European urban lifestyle here it could be a good deal. If you are just thinking about a comfortable and inexpensive place to live, I'd say look for the right place in the US.

I think you hit the nail on the head with your points but I think that for DonQ it´s also a option to rent an appartment for 2 years. If you like to take your own stuff you should rent unfurnished and buy your stuff here. My guess would be it cost around 5000 to 8000 dollar to furbish a appartment.
I think 600 dollar a month can get you a nice appartment on a 2 year lease.
That atleast gives you the option to see how K. handles his second term and if you still like it after 2 years.
DonQ, would still have around 1400 dollar to spend(without interest of his savings) and not commiting his savings to Argentina. I think it´s safe to say that you with 1400 dollar a month for the next 2 years you can live an high-quality life
I am sure you can also take an option on the appartment once the 2 years run out.

 

[sergio]

Donquixote will not be able to get a guarantor to sign for a normal 2 year lease, so he will have to pay for short term rentals ... between $600-$1,000 for anythibg decent. The lower end will probably get him an efficiency. I agree that he should rent for at least six months - probably a year or more to get a feel for the place before committing

 

[Granadaiscool]

I dont think that any houselord would prefer a guarantor over a 2 year lease of 600 dollar with 6 months or 12 months in advance.
If you want to commit 2 years and are willing to pay 600 to 700 dollar I am sure you can rent almost any appartment you like.

 

[sheridan725]

Donquixote will not be able to get a guarantor to sign for a normal 2 year lease, so he will have to pay for short term rentals ... between $600-$1,000 for anythibg decent. The lower end will probably get him an efficiency. I agree that he should rent for at least six months - probably a year or more to get a feel for the place before committing

There also exists the option of buying a co-signer, or as we're referring to it- a guarantor/garantia. These garantias are sold out of some real estate agencies/ rental agents offices. Here in Buenos Aires, you need a co-signer for most apartment leases. Sometimes it just doesn't matter that you have money saved up in a bank account or a full time job. It's a formality. This person (co-signer) should already own a property in his or her name....they're basically saying that you're good for the rent - and if not - they're to blame.
Of course, buying a co-signer is not exactly legal, but it is an alternative to spending a load of money on a short term tourist apartment. With this garantia you can get an apartment in Buenos Aires for 2 years paying local prices.

 

[bigbadwolf]

It seems that inflation has taken a huge toll on Porteños. Someone mentioned that the average salary for a professional ie engineer, lawyer is about 1500 pesos a month. How do Argentines servive? I was in BA in 2005 and the resturants and cafes were alway full, even in San Telmo. I was able to eat at a modest resturant, have a steak dinner and a glass of vino for about $5.00 US. My has two years changed things.

Inflation is the bane of Argentina. Prices are catching up with those of other leading world cities. Argentina has been recovering from the crash of a few years ago. And every time a price-conscious tourist or intending expat moves to Argentina, he contributes to the very phenomenon he dreads -- increase of prices.
With regard to overflowing restaurants and night spots, it's important not to be taken in by surface glitter: most Argentinians live lives whose austerity is far removed from the nightly spectacle one sees in the central parts of BsAs.

 

[sergio]

Sheridan, I know Argentines who have bought guarantors. Is it so easy for foreigners? I have my doubts. I also doubt that the owner of a good aparrtment in a good part of town would be willing to take ANY guarantor. I had to find TWO guarantors once for a nice aparrtment.