How To Get Into The Argentine Rental Market?

[Montauk_Project]

Just to let you know, most tenants ALSO pay ABL as well as expensas and the servicios that you mentioned.

Wow! when I rented I never had to pay that. Then my calculation is off, ABL can be a lot in certain neighborhoods.

 

[Rich One]

A good deal for YOu ! a fixed rent for 2 years? most contracts consider a 25 to 30 % Adjustment after the first year. With the projected devaluation of the peso and Blue value, Your rent plus expensa in dollars in 2015 will be less than USD$500?

However you must shell close to USD 7000 to get in! No deposit ?

 

[NoVegetables]

Annual adjustment of 30%. Deposit is one months rent. Still works out to be less than paying in dollars. And you have furniture of your own at the end.

My advice is if you plan to stay 2 years, its worth getting a place priced in pesos, buying the seguro de causion, paying the inmobilaria commission and furnishing the whole place yourself. It is cheaper than paying for the short term rentals.

I did my calculations using the current blue rate. And since I don't know how much the blue rate is going to change in the future, (politics and economy here is too weird), i did it a as constant value of 12 over the next two years, and still came out saving money.

 

[garryl]

true, buying is a ever more difficult proposition for the majority. Creates a lot of demand in the rental market.

Just like in US now, the rental market is crazy hot, in SF Bay area, rental price went up 50% compared 4 years ago.

 

[garryl]

Hi,

I'm transitioning from a short term rental to a long term rental. I don't have a garantia but i was able to get 'seguro de causion' from this company http://finaersa.com.ar. They asked for proof of local income which i don't have but if you have friends here with local income, they can sign for you and have the policy in your name.

The cost of renting an apartment over 2 years is definitely worth it paying in pesos if you have income in dollars. I did the math and my 1 bedroom now costs me USD$1200. I was able to find a 2 bedroom in the same neighbored hood for $6000 + $1350 expensas.

Rent and Expenses $7500
Cost of the insurance $13000
Commission : $12000
Furnishing the place $50,000

over two years comes out less than $1200 * 24. Definitely worth it. I found a few land lords that didn't accept the 'seguro de causion' but most of them said sure. They problem is you need a job here or someone with a job here willing to sign for you.

Finishing the place for $5000 pesos ? What is the cost of a LG washer/dryer combo ? You have to factor into the hassle to take care of all the above, it's not worth it if you only rent for one year.

 

[AmigoArtistico]

Right now there is a lot of demand for apartments, so people can literally pick what type of renter they want or demand two garantias, etc.

Just remember that in the possible case of a default next week, the recession would be expected to deepen considerably, and this could change things in favor of renters. Hopefully we won't have that situation, but it's something to consider.

 

[French jurist]

Indeed, let's imagine you keep renting for 4*6 months starting in Sept. 2014: new contracts in March 2015, Sept. 2015, March 2016

At least for the March 2016 contract, we can expect a very difficult situation: hence in favor of long time renters who can prove their income, and in favor of Landlords on the short term market since the devalued peso will attract many foreigners like in 2002/2003.

Tricky choice in both cases. True you'd feel more at home with a 2 years contract (easier to move furnitures/deco around, put your own Art on the walls, etc.).

You may consider also living in the northern suburbs if money is a factor & you don't go out much in the city (I pay around 100 pesos of municipal taxes for a house with a pool).

 

[Dublin2BuenosAires]

Finishing the place for $5000 pesos ? What is the cost of a LG washer/dryer combo ? You have to factor into the hassle to take care of all the above, it's not worth it if you only rent for one year.

Think it was 50k, but still. Prices below are for the lower end of the mid range products.

Washing machine : 6k
Microwave (if needed) 1.5k
Sofa: Anything that wont break your back will be north of 10k
Bed: Similar, I would imagine (10k)
TV: 6 - 10k (dependent on size etc)
Chairs and table (4chairs and a table will be 4k plus)

It's doable I reckon, but not if you are looking for high end products and will spend a lot on decorations. One thing to think about (I have no idea) is whether it comes with air con or not? You'll need it! Air con will cost you about 6k for a small cheap unit and another 2k (ish) to install. You might want one for the bedroom and one for the living room. Soom racks up the costs.

 

[Montauk_Project]

If the big thing is your own furniture it might be easier to negotiate to repaint and take out some objects then get a rental contract without garantia.

 

[Noruega]

Thanks so much, all of you, for the good advice and for the calculations! It is good to get some general ideas on what costs have to be added on top of a long term rental - I was of course aware of the furniture etc. but hadn't necessarily thought about washer, fridge, guarantee insurance etc. Then again, I also factor in the non-monetary value of having a place that is just like I want it, the comfort of knowing I can stay longer etc. That has value too, for me, at this point.

Like I mentioned earlier, it seems like at this point it would make sense for me to go for another temporary rental, but one that is not all decked out and where the owner would be OK with taking some things out.

Gracias chicos!!