Finding the "right" property takes time. When you do find the "right" property the price is usually higher than one expected. Again, it comes to the areas of location. Nikad "the rest are waiting for prices to drop +/-30%, especially if the peso is devalued" is correct for some people. Most people investing are foreigners, which I think could continue to keep some prices in certain locations higher even if the dollar drops. This will again depend on the exchange rate with the Euro. I guess it is the risk you take with real estse. Could be worest you could have own a home in Las Vegas and lost 30% of the value from last year.
Is BA real estate selling? If so, where and how much?
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tangobob
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I thought long and hard before I bought, after all I am just a working class lad, who had saved hard.
I could have gone out and bought a lovely Merc for what I paid for my apartment, but what would that be worth now?
Instead I have a permanent place to stay in a city I love, and a nest egg for my daughter that hopefully the british tax man will not get his hands on.
I could have gone out and bought a lovely Merc for what I paid for my apartment, but what would that be worth now?
Instead I have a permanent place to stay in a city I love, and a nest egg for my daughter that hopefully the british tax man will not get his hands on.
Talked to friends in Recoleta last night. According to the real estate people they talked nobody is buying in B.A. and prices are starting to fall. The pension grab last week also scared a lot of people who are now moving their money out of Argentina. Is anyone else hearing similar reports, any comments.
steveinbsas
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nikad said:
Well, the peso HAS already BEEN devalued by over 10% recently (3% in the past week alone). This morning I read that it would "stabilize" at 3.5 by December, but who knows where it will be then...or in six months? Even so, as real estate prices are quoted in dollars, I doubt if there will be anything like a 30% reduction in prices, even if there is a 30% reduction in the value of the peso. Anyone waiting for that to happen is likely to be disappointed.
With double digit inflation (as high as 30%) and no mortgages, why would there be a massive reduction in prices of real estate? Money in the brick beats money in the bank in Argentina, and real estate prices have not even kept up with the rate of inflation as compared to the price increases of many other goods in the past year...or even the past six months. Currency (in dollars or pesos) can lose a lot of value in a short time. It usually takes longer for property prices to decline, and even if there is an economic downturn in Argentina, inflation alone might keep the real estate prices where they are now well into the future.
What some might consider "sky high" prices in BA are no doubt still attractive to foreign investors when they compare apartments in Recoleta to those in Paris or London. No, Buenos Aires isn't Paris, but its still a low cost alternative for expats like me. Nevertheless, as Pericles has pointed out, most of the buyers in the better areas here are Argentinos who are moving (at least some of) their wealth (cash) into real estate. Salaried individuals may not be able to buy in theses areas, but entrepreneurs and those with "family money" can, have, and will continue to do so, especially if they are buying a place to live as well as looking for a "secure" place for their wealth.
For a dramatic reduction in prices, there would have to be a massive "sell off" here, and that could happen if the market is suddenly flooded with properties by desperate sellers needing cash. Then prices probably WOULD drop as supply exceeds demand. This happened briefly in 2002, but in far lower numbers than many today realize. Business owners needing cash to meet short term financial obligations made up the bulk of those sellers, and some lost their businesses anyway, as the vast number of Argentinos with money in banks (or pesos in the mattress) lost most of that wealth overnight. They were not left in any position to buy property, either.
The best website I've found to see available Argentine real estate is: http://www.zonaprop.com.ar. If you use the filters you can narrow the search. For example: zonaprop.com > Venta > Departamentos > Capital Federal > Capital Federal > Palermo
It's possible to search other neighborhoods by changing the filter.
There still are apartments available in Capital Federal for $1000 per square meter. They just aren't in as desirable areas as Recoleta or Palermo.
In my opinion, the idea that private apartments might be seized by the government is pretty far fetched; about as likely as another military coup. In that case, all bets are off. Even during the military rule of the 70's and 80's there was never a massive abrogation of property rights and confiscation of private apartments, was there?
I am new TODAY to this forum! I am trying to find some property in between Mendoza and BA. I do not need any vineyard, or resort type "investment" ... what I need is a small plot about up to 5 acres, CHEAP, that is fronting a road of good year round quality. All the websites are already chock full of the expensive stuff bought to "market" to foreigners .... or it appears so; can anyone give me some insights or direct contact leads without the developer/investor/broker "arranging" the deal [after all the "good scotch" has been drunk]? Many thanks and I look forward to learning more from all of you! Always all the best to each of you.
Hi Herbbman,
Well, the area you describe is very large, there are 600 miles between those two cities. Could you be a little more specific? The best part of the pampas region (some 200miles from BA) is about 5000usd per hectare (2acres). But then in the region of southern Cordoba province and San Luis it gets cheaper. The problem here is that people do not tend to put many things online, so you should just try to look up local "inmobiliarias" in those areas and give them a call (or make someone do it for you if you don't speak Spanish). Again, the area is very large and there is a lot of variation in price. But with the current slowdown that is also hitting real state you might get something at a reasonable price if what you want is just land (no construction).
Hope it helps
Well, the area you describe is very large, there are 600 miles between those two cities. Could you be a little more specific? The best part of the pampas region (some 200miles from BA) is about 5000usd per hectare (2acres). But then in the region of southern Cordoba province and San Luis it gets cheaper. The problem here is that people do not tend to put many things online, so you should just try to look up local "inmobiliarias" in those areas and give them a call (or make someone do it for you if you don't speak Spanish). Again, the area is very large and there is a lot of variation in price. But with the current slowdown that is also hitting real state you might get something at a reasonable price if what you want is just land (no construction).
Hope it helps
perry
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As all of you are aware I work in real estate and these are my honest opinions about the market. I am associated with Remax Argentina who are the best litmus test of current market conditions.
Properties are selling well below 150000 dollars and up to 200000 dollars if in Recoleta, Barrio Norte, Las Canitas, Belgrano. These areas are the most stable with high demand from middle to upper class argentines.
I have noted in the last three months a dropping off of enquiries from foreign investors meaning that areas Like Palermo Hollywood, Palermo Soho, San Telmo and other bubbles are more affected.
Prices have come down but not like people imagine as the argentine market is a difficult one and people are not in any great urgency to sell. Other points that help the real estate market here is that banks are notoriously distrusted in Argentina meaning that bricks and mortar is the only investment. Safety deposit boxes are also losing their appeal due to the governments checking on contents policy recently implemented. And another huge point is that the Argentine wealthy class has been much less affected by the world wide economic crash due to their limited exposure to it. The stock market in Buenos Aires is one of the worlds smallest and people here in general have little personal debt. The wealthy of Argentina are cash rich creating a more viable real estate market.
Saying all the above it is still vastly preferable to have a property in Buenos Aires than have american dollars sitting in an account somewhere . There is more risk that the american dollar will devalue than a well situated property in the Capital. Great located Property over the long term is many times safer than fiat currencies.
Rental returns in Buenos Aires are attractive and average between 5 to 10 percent per annum where in many countries this is rare.
Properties are selling well below 150000 dollars and up to 200000 dollars if in Recoleta, Barrio Norte, Las Canitas, Belgrano. These areas are the most stable with high demand from middle to upper class argentines.
I have noted in the last three months a dropping off of enquiries from foreign investors meaning that areas Like Palermo Hollywood, Palermo Soho, San Telmo and other bubbles are more affected.
Prices have come down but not like people imagine as the argentine market is a difficult one and people are not in any great urgency to sell. Other points that help the real estate market here is that banks are notoriously distrusted in Argentina meaning that bricks and mortar is the only investment. Safety deposit boxes are also losing their appeal due to the governments checking on contents policy recently implemented. And another huge point is that the Argentine wealthy class has been much less affected by the world wide economic crash due to their limited exposure to it. The stock market in Buenos Aires is one of the worlds smallest and people here in general have little personal debt. The wealthy of Argentina are cash rich creating a more viable real estate market.
Saying all the above it is still vastly preferable to have a property in Buenos Aires than have american dollars sitting in an account somewhere . There is more risk that the american dollar will devalue than a well situated property in the Capital. Great located Property over the long term is many times safer than fiat currencies.
Rental returns in Buenos Aires are attractive and average between 5 to 10 percent per annum where in many countries this is rare.
