How has the high end luxury property market been affected by Black Monday?

garryl

Registered
But how many of those countries ever had a 40% (if not higher) inflation rate of their national currency while real estate was sold in another currency which held its value ?

As Perry has pointed out, due to inflation, the value of a property in pesos could increase dramatically in just a couple years, but not in dollars.

As a result, when selling a property for the same price as buying it (in dollars), there will be a capital gains tax on the selling price without any capital gain!!!!



In my opinion, anyone who buys property in Argentina now should do so with no intention of selling it in the future.

PS: As I wrote said about ten years ago, "Buy property to satisfy your need, not your greed."

PS2: And as I also wrote about ten years ago (quoting Glenn Beck). "Buy land where you can grow your own food."
Too bad for Argentina real estate market, this only hurts people.
 

ben

Active Member
Too bad for Argentina real estate market, this only hurts people.
This is a country built on gimmicks.
Robbing people with a bullshit capital gains tax, when prices are widely advertised in USD? Yep.
Suspending IVA as a transparent electoral ploy? Check.
These people assume everyone is morons, then are surprised when things go wrong.
This country is well and truly - pardon my French - fucked.
 

Musicman

Newcomer
Hey Dudes - I sold my last 6 luxury apartments earlier this year for a 300% gain over the buying price + 15 years or so of USD rental income. It was a good investment hence my interest in emerging opportunities you guys may know of. I have some friends in private equity in London who may come onboard for the right project. Cap gains tax is not a problem for the right property, in the right location at the right price.
 

FallenAngel

Registered
My understanding of the capital gains tax is that it is inflation linked. Therefore, no one will be paying the full taxes due to the peso dropping. Of course inflation and USD:ARS may not always follow the exact same curve, but in general they will be much closer to each other than not.
 

Ries

Registered
The idea of "investing" in property is not in my wheelhouse. I have, all my life, bought property because I wanted to live in it or use it. And, this has always worked out for me both financially and lifestyle wise. When I bought my home in Buenos Aires, I bought it to live in, and I still do, for part of every year. Luckily for me, it has probably tripled in value, but that was never my goal. I think you would be pretty crazy to speculate on the Argentine property market. But if you buy quality in Buenos Aires, and have a long term view, I think you can come out alright even at today's prices. I am actually looking at commercial property this year, to use, and I hope it comes down in the next few months before I make a final decision, but even at current prices, its pretty likely that long term gains, plus fitting my needs and being usable, will work out fine in the long term.
I cant see why anyone would buy for profit now, though, especially if your window of ownership is less than ten years.

(and, Steve- I already own 32 acres I can, and do, grow food on. But I must admit, I grow less these days, as there are so many farmers near me who are so much better at it than I am. I trade with them.)
 

perry

Veteran
Hey Dudes - I sold my last 6 luxury apartments earlier this year for a 300% gain over the buying price + 15 years or so of USD rental income. It was a good investment hence my interest in emerging opportunities you guys may know of. I have some friends in private equity in London who may come onboard for the right project. Cap gains tax is not a problem for the right property, in the right location at the right price.
Great result for you . Like to know the neighbourhood and property style that you invested in . This would be helpful for our members
 

garryl

Registered
The idea of "investing" in property is not in my wheelhouse. I have, all my life, bought property because I wanted to live in it or use it. And, this has always worked out for me both financially and lifestyle wise. When I bought my home in Buenos Aires, I bought it to live in, and I still do, for part of every year. Luckily for me, it has probably tripled in value, but that was never my goal. I think you would be pretty crazy to speculate on the Argentine property market. But if you buy quality in Buenos Aires, and have a long term view, I think you can come out alright even at today's prices. I am actually looking at commercial property this year, to use, and I hope it comes down in the next few months before I make a final decision, but even at current prices, its pretty likely that long term gains, plus fitting my needs and being usable, will work out fine in the long term.
I cant see why anyone would buy for profit now, though, especially if your window of ownership is less than ten years.
As an expat who wants spend part time or a few years in Argentina, the best way is still renting and park you money where things are easier. For the 7 years I had my apt in Recoleta, I only paid ABL not other taxes for as foreigner owner, each year I owe more taxes and the expense is going higher, and the property value is going up marginally, the idea to own an apt here is very unsettling. When Macri gave a tax break, I took the opportunity and sold. 90% of the BA expats sold theirs earlier, I should have acted earlier too.
If you permanently plan to stay, it's fine to own yours. Otherwise too much headache. Most expats who came after crash bailed out fast, and they were correct. Now I do not missing owning an apt in BsAs at all, nothing but headache.
 
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