Investing in Argentina Real Estate

[Gringo80]

Yahoo Finance, July 16, has an article on the best places in the world to invest in real estate. The first country is the UK, the second is Argentina based on the idea that prices are at rock bottom since there are no mortgages available and buyers must have dollars. As far as Argentina's economic instability, “Buenos Aires is my favorite city in South America,” said Davis. “A beautiful, vibrant city that people often call the Paris of South America. Eventually, Argentina will get its economic house in order, and when mortgages become available again, real estate values will skyrocket. In the meantime, you can enjoy excellent cash flow.”
I've seen ads for investment-type condos near universities and medical centers in B.A. and I'm wondering if this is something that I should consider.

 

[Rich One]

Famous key words, eventually, when and meantime.

Eventually, Argentina will get its economic house in order, and when mortgages become available again, real estate values will skyrocket. In the meantime, you can enjoy excellent cash flow.”

The excellent cash flow is 3 0r 4 % net interest or perhaps optimistically 5 to 7 % on airbnb

 

[Ronnie Hotdogs]

As an Argentine I know said.
The future for Argentina is always bright, but the present is always a disaster.

 

[Rich One]

As an Argentine I know said.
The future for Argentina is always bright, but the present is always a disaster.

A famous Brazilian Politician once said: Argentina is and will always be the country with the most potential

 

[Ries]

Prices are hardly at rock bottom. Good homes and apartments are commanding prices within 10% or 20% of all time highs. There were deals in 2002, thats for sure. But most argentines buy and hold, when it comes to real estate. I have friends who live in places the family bought before WW2, and who are not making much money, but would never sell. "Desperate for Dollars" would be a good name for a punk band, though.

 

[Quilombo]

Prices are hardly at rock bottom. Good homes and apartments are commanding prices within 10% or 20% of all time highs. There were deals in 2002, thats for sure. But most argentines buy and hold, when it comes to real estate. I have friends who live in places the family bought before WW2, and who are not making much money, but would never sell. "Desperate for Dollars" would be a good name for a punk band, though.

Yeah, I gotta agree with Ries on this one, they're cheaper than the US or Canada where my fellow 30 somethings have all more or less given up on homeownership, but when looking here there's still prices that don't make any sense: teardowns outside of CABA for 10s of thousands of dollars, lots on dirt roads for 40K, and shoebox apartments that look like they're from the 60s, never having been renoed with expensas more than a barrio privado for 80K+

I think someone posted here previously asking if the listed prices were accurate or it was meant to be an opening offer, and I'm inclined to believe the later still because nobody has that kind of money and there's no access to financing.

I want to buy a lot to build a cottage or cabin in Patagonia and that's the only place that hasn't been too insane price wise, but that's because it's off the grid figuratively and literally, anything within an hour of CABA is just delusional.

 

[FrankPintor]

I want to buy a lot to build a cottage or cabin in Patagonia and that's the only place that hasn't been too insane price wise, but that's because it's off the grid figuratively and literally, anything within an hour of CABA is just delusional.

I don't think it's delusional, just two years ago you could get 700-1000sqm lots within an hour of BA (e.g. Ing. Maschwitz, Escobar, Campana) for USD 20-25k, in barrios cerrados, in barrios abiertos it was cheaper. Today the prices are around USD 35k I believe for lots in barrios cerrados, still not out of this world, and with all the utilities connected (and access not via dirt roads either, though they're not always in good condition with the growth in traffic).

 

[Ries]

Inflation is global, and driven by forces beyond Argentina's control- climate, war, international commodity prices, international economics, and exchange rates. Hence, again, I dont think Argentine real estate prices, which are in dollars, are diving deeply. Certainly there are deals, but finding them takes work.

 

[Musicman]

Hi, how are the yields (% usd) these days in rental property and is it possible to transfer the USD rental income out of the country? I am selling one of my rental villas here in Marbella and was thinking of investing in Baires again

 

[Alby]

I am selling one of my rental villas here in Marbella and was thinking of investing in Baires again

Is that you Insaurralde?