Is this the right time to buy a property in Argentina?

[mariano-BCN]

I'm half argentinean and thinking about living 5 or 6 months in there and the rest in Holland.
I've many doubts and questions (where shall I have my health insurance, in Arg of in NL?) but the most important question is if this is the right time to buy a flat in Buenos Aires. Although I don't really like the city, 'cause of it's pollution, filth etc I have no alternative than to live in the capital 'cause of my work.
Or maybe Cordoba or Rosario.
But anyway: I've seen prices of flats, PH's etc raised last few years, does anybody know if there's something like a bubble in this sector? Is it better to wait?
I'm going now to rent -I'll start looking the first week when I arrive- and then maybe buy.

 

[HenryNisental]

Prices are way high now here. I would wait a few month after the disgraceful coming elections due in two weeks. After that, there will be a general adjustment of prices, dolar-peso exchange ratio, etc., then flat prices will tend to go down. This has been the story in this country for decades, you have to be patient and wait for the right time, otherwise you will pay high prices (thru the nose, as the americans say).Property prices went up 150%(measured in USD) in the last 10 years or so. This has to change and the bubble will burst.
Good luck

 

[Sleuth]

I do not see a bubble here. Prices have gone up, but they are based on the US dollar and paying in cash. The speculation that caused the bubble in the US simply does not exist here.

While it is true that real estate sales usually slow in the run up to a presidential election, this one has been different in that people already know Cristina is going to win. There have been several news reports of ever increasing sales. The peso will probably fall, but since real estate is priced in USD, that would not be affected.

 

[mariano-BCN]

thanks for the info.
And how about negotiating the price. Is it common in BsArs to offer at least 10% less than the price if you've the cash?
cheers

 

[perry]

I know people will say that I am biased since I work in real estate but buying a carefully selected property in Buenos Aires is a great investment for various reasons.

It is true that foreign investors have dried up and most of the sales are to locals . This is not due to less foreign interest in Argentina but due to money supply drying up for the USA and European markets .

I would suggest only investing in a few neighbourhoods that include Barrio Norte , Recoleta, Belgrano, Palermo, Congreso.

The most desired sector of Recoleta is from Quintana down to Libertador. I love Posadas Streets, Quintana streets, Montevideo and Rodriguez Peña close to Liberdator are highly attractive , Arenales and Juncal near Plaza Vincente Lopez is also desirable.

I would not recommend buying near the Cemetary on Azcuenaga or Las Heras as its an unattractive avenue.

Belgrano and Palermo not all sectors . The best section to buy in Palermo is from Scalabrini Ortiz to Borges from Cabrera to Santa Fe. The section of Palermo Viejo around Plaza Guadelupe is very attractive . I love Boulevard Charcas and properties sell like hotcakes there. Another sector is Palermo Nuevo from Las Heras to Libertador including the beautiful streets of Cabello, Cervino, Urgateche, Sinclair . These streets are in very high demand and surpass Recoleta for local investors.

Congreso is a great investment as prices are around US $ 1500 per square metre and the stock of excellent buildings higher. I would recommend buying on Avenida del Mayo near Plaza Congreso, Hipilito Irigoyen, Avenida Rivadavia are safe investments.

I would be very cautious though buying in Buenos Aires as most sales are especulative with prices that are not correct for the market . For US 2,500 per metre you can find a beautiful apartment with lots of light in a well maintaned building . Properties that are priced correctly sell fast and the demand is high .

With inflation of close to 20% in US dollar terms it does not take rocket science to work out that its a good investment!

 

[Sleuth]

thanks for the info.
And how about negotiating the price. Is it common in BsArs to offer at least 10% less than the price if you've the cash?
cheers

I have found that offering 10-15% less is a good starting point. You will quickly find out if the owner is willing to move at all. We have had real estate agents who refused to present our initial offer as it was "too low."

For new construction in Palermo Hollywood (being sold by the builder after completion), we were able to negotiate about 4% off the purchase price. As you start to look at real estate, you'll quickly realize what things are worth and what you want to pay.

 

[Gringoboy]

We're selling on solodueños.com, commission free. We are also buying a house we saw on that site.
If I'm right, both the buyer and the seller pay commission when you use an agent. If you can drive the purchase/sale yourself, you'll save a lot of $$$.
Unless of course you can do a deal with the agent.

 

[AlfajorEfi]

If you are not in a rush you can look around and make low offers. Remember that a value of a property is the price on is willing to pay.
Only in Argentina they raise the price if it hasn't sold. The clients think their property is worth X but it's worth Y. Some are stuborn but if you are in no rush to buy with a deadline you can hussle and negotiate and if it doesn't work out try with another property.
If I were you this is what I would do.
Also negotiate the realtor comission, and the escritura. Here they charge 4% for title transfer we refused to pay it and demanded a flat fee that is much much less even than half a precentage. You need to also negotiate that with an escribano ahead of time, most are greedy but you can always find an exception to the rule...

 

[mariano-BCN]

that's indeed my plan: look around and decide where in BsArs to buy, make a offer and see if they bite. I'm not in a hurry, i can wait and go further.
And didn't know about the costs for the escritura. Is there also a tax for buying a house like we have here in Holland?
thanks for all ideas

 

[arlean]

Victor gave you good advice about areas, etc., and I will give my opinion about other stuff. I rent in BA. I could buy if I want to. In fact, I have considered it. I talked with my friend here, a property owner who is an attorney, and her response was, "I think now is the time to sell, not buy."

That is my feeling as well though no one has a crystal ball. Rents in BA do not reflect the purchase price. If I went by the rule of thumb for rentals I would be paying $1,500 a month for my apartment. I pay about a third of that. That usually indicates purchase prices are too high. Montevideo, across the river, has much more reasonable real estate if you want to buy. It is a European type town, nothing is wrong with it, prices are much more reasonable--in fact, Argentines are keeping lawyers busy over there--buying and pushing up prices! But some of us just like Argentina, and you might be one of those. I personally prefer Buenos Aires. But plenty of people prefer Montevideo! It's a personal matter.

If you decide to buy here, checking out the newspaper and looking for private sellers is probably best and by all means offer less. The best way to buy here (and perhaps anywhere) is to move to the area, don't be in a hurry (as someone else wisely advised) and take your time. Make offers (if you still want to) and eventually you'll find what you want. Or so I think anyway.