Impact of currency collapse

[Pierre Smith]

American here. I visited with my father and some other family just recently and we loved the place. My father had been looking to retire to Mexico City, but the trip to Buenos Aires made him think twice.

Can I ask, what effect do we anticipate the currency issues to have on real estate in central BA? If he rents, will it have any effect? If he buys, will it make people less likely to sell? Overall, will it make things cheaper or costlier? For food and day to day, will the US dollar get stronger? Overall, we were surprised at how expensive Buenos Aires and Uruguay were, considering we're from California and most of the US is cheaper than here in San Francisco. Could it get even more expensive? Or will it be a situation where it suddenly gets a lot more affordable?

Also, we don't know about the last time Argentina went over the cliff, I heard down there from people at bars that it was terrible, and I saw on reddit that people frequently joke about eating cats and zoo animals. But surely this can't be so, right? My father is 68, very fit and active (more than me, even and I'm 30ish) and he has a tidy savings to pull from but, obviously, a giant spike in crime and/or general economic instability are something to avoid, given that it would be a voluntary move. So what do people project on this front?

Finally, is imported food and drink dropping off? I didn't pay much attention to it while I was there, but I realize that living there longer term without access to imports could really make things very difficult for my father, who is a vegetarian and has been for 35 years. BA was surprisingly accommodating, but I think if imports got cut off, it would be a lot less so. The rest of us were only to happy to eat 3x the chimichurri that everyone local did, but my pops I think would genuinely be in a spot if vegetables and things started to become unavailable. Thoughts?

 

[camel]

Have you or your dad visited Mexico City?

 

[Pierre Smith]

Yeah, he met my former step-mother there 20 years ago, and has been back a lot. His Spanish is very good (and we're all, including my stepmother, non-Hispanic, so it's all learned) and he knows all about developing countries. It's not really that sort of stuff that's the problem, he's an adventurous guy who was raving about setting up in Argentina/South America, but the thing is that we know so little about what the day to day of these currency fluctuations actually means. So any first hand knowledge, particularly from experienced folk, you know, it would be really helpful just to start to get a sense of things.

 

[sergio]

The two major retirement communities in Mexico are Ajijic near Guadalajara and San Miguel d'Allende. I think these are much nicer than the capital of Mexico. San Miguel is lovely with a very supportive and large expat community. There isn't that sort of tight knit group in Buenos Aires. Few foreigners without family connections here choose to retire in Argentina. It's unstable and unpredictable. There is a lot on this website about renting flats (prices will be in dollars for non-locals who cannot provide a guarantor) and medical insurance. Given the current crisis, your father can expect a great deal of economic volatility, constantly changing prices, constant demonstrations, protests and strikes and an increase in crime. It was very unpleasant during the 2001 economic crisis and default. He can come down and rent for awhile and see for himself. Argentina produces most of its own food. I expect vegetables to be available at all times.

 

[nikad]

If I was American I would not retire to Argentina ( I am Argentine married to a US Citizen ). I think Portugal would be a much better choice.

 

[sergio]

If I was American I would not retire to Argentina ( I am Argentine married to a US Citizen ). I think Portugal would be a much better choice.

I agree, also possibly Spain. For a person who enjoys stress and instability, Buenos Aires is ideal. Only Venezuela could be better or possibly Yemen.

 

[nikad]

I agree, also possibly Spain. For a person who enjoys stress and instability, Buenos Aires is ideal. Only Venezuela could be better or possibly Yemen.

Hehehe right now it is especially bad.In general terms: PAMI for people over 65 is deficient and mediocre ( being generous here ) private insurance companies will charge higher based on age ( the few ones that will take you ). Owning property is not a problem, but if you have to rent as a tenant you have few rights and a lot of obligations, pay top money for mediocre maintenance, etc. Imported goods are scarce. Unless you are very much into tango, or have relatives living here, I don't think it is worth it. There are places that run smoothly in Europe, are about the same in $ terms and you are even closer to your home country if you are American. I can understand young people liking it here as people are friendly and open, there is a lot of cultural stuff going on, it is a vibrant city and everything is unpredictable, so they enjoy the adrenaline. I don't think it is a good place to retire to be honest.

 

[wrangler]

I would not say, don't retire in Argentina. Maybe Buenos Aires is not the ideal place, however, there are lots of other options, that are beautiful and tranquility abounds.

 

[nikad]

I would not say, don't retire in Argentina. Maybe Buenos Aires is not the ideal place, however, there are lots of other options, that are beautiful and tranquility abounds.

Sure, there are beautiful and gorgeous places: with no roads, hospitals that lack equipment, poor internet and lack of basics: not the ideal place to be when you retire and need assistance and have no family around. Not to mention the difficulties you could face if you earn foreign income and need to take money out.

 

[Bajo_cero2]

For buying real State, after the crash it is going to be a lot cheaper.
There is not going to be shortage on vegetables, we produce them not like Venezuela that has to import almost everything.
The cost of health service is in pesos, so, not big deal.
The cost of living here is going to be a lot cheaper. Having a pention in usd he is not going to have issues besides how to get the money. Perhaps he will have to travel to Uruguay to get usd cash.
Imported food and drinks are going to be banned for sure.