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

[steveinbsas]

Others have been predicting a decline in prices in real estate in BA for the past few years. That hasn't happened. In other threads I predicted that prices increases in the future will probably not match inflation, but that doesn't mean they will decline. It certainly means the possibility of less new construction until things equalize.

Right now I'd rather have productive land in a safe environment instead of a pile of dollars in any bank.

I also have a year's supply of (Elete) toilet paper. It's increased in price 20% since I bought early this year it and is much softer than dollars.

Anyone who is waiting for a decline in real estate prices as opposed to finding a safe haven to live is taking a bigger risk than I would ever dream of taking.

Where I live now the local police are trusted and just about everyone has a gun, including 80 year old ladies.

There are no stories of accidental shootings, either.

 

[jb5]

Steve, every indicator points towards a decline in AR real estate prices. Those predicting the drop 3 years ago were premature certainly, but they stayed out of the market to not get caught in the mess they knew would eventually come. And it has.

We all have our own investment strategies. Personally I'd rather have dollars in the bank, outside AR of course, ready to buy when prices reflect the current realities in the country.

 

[steveinbsas]

As I suggested in another thread, "Buy property when it fulfills your need, not your greed."

 

[French jurist]

Has anyone tried to negotiate to buy in "cuotas" a house (mostly using a private/personalized agreement)? I wonder about contract aspects, traps & such.

 

[jb5]

I wasn't responding to your deal, just to whether this is overall a good time to buy. I think for most of us, whether we plan to live in a place long term or not, we'd like to buy at a good time.

I just heard about the end of subsidies to higher end homes. The 30% hike to 25% of Argentine homes will also impact prices.

 

[perry]

Steve, every indicator points towards a decline in AR real estate prices. Those predicting the drop 3 years ago were premature certainly, but they stayed out of the market to not get caught in the mess they knew would eventually come. And it has.

We all have our own investment strategies. Personally I'd rather have dollars in the bank, outside AR of course, ready to buy when prices reflect the current realities in the country.

Every indicator shows that the Euro first and then the USA dollar will collapse in the New Year . Tell me then what will you do with your worthless banknotes?

Inflation is at world wide highs in most developed countries and this is accelerating of late . The printing of trillions of USA banknotes to bail out banks has caused inflation to reach very high levels in the USA . With the Euro crisis about to reach a dramatic head the printing of more monies will create hyperinflation not seen since Weimar republic of Germany

 

[cruizes]

I also have a year's supply of (Elete) toilet paper. It's increased in price 20% since I bought early this year it and is much softer than dollars.

Why don't you buy a Zoe from Toto. Great invention! No toilet paper again.........

http://www.homeportfolio.com/catalog/Product.jhtml?prodId=7119

 

[steveinbsas]

Steve, every indicator points towards a decline in AR real estate prices. Those predicting the drop 3 years ago were premature certainly, but they stayed out of the market to not get caught in the mess they knew would eventually come. And it has.

We all have our own investment strategies. Personally I'd rather have dollars in the bank, outside AR of course, ready to buy when prices reflect the current realities in the country.

I don't have an investment strategy: I have a survival strategy.

I'd rather have land that produces food and neighbors with guns (as well as bars on all their windows) than all the dollars in the world when the real mess comes.

It will happen with lightening speed when it does.

I would bet all the gold in Fort Knox that it will happen in the next 18 months...but I'm not sure there really is any gold there now.

Even if there is, it no longer gives value to the dollars you are clinging to.

Nothing but faith (aka HOPE) is supporting the dollar at this point.

When faith CHANGES to fear (on a global level) you may wish you owned some (productive) land...and probably a gun as well.

 

[steveinbsas]

I wasn't responding to your deal, just to whether this is overall a good time to buy. I think for most of us, whether we plan to live in a place long term or not, we'd like to buy at a good time.

Of course we all want to buy at a good time.

I bought when I had the funds to buy. If I had waited for a price correction (aka a "good time" to buy), I would have blown at least $30,000 in rent because in the past five years there was NO downward price correction.

Then I wouldn't have been able to buy anything worth living in compared to what I have now.

I realize you weren't responding to my deal. You were generalizing about all property in Argentina when you wrote this:

Sorry Steve, I'd have to disagree that this is a good time to buy. It will take some time until the reality of the current situation is fully reflected in prices. Owners don't get realistic over night. Add to that the slowdown in LAM economies and weakened commodity prices and you understand real estate has nowhere to go but down.

 

[marksoc]

With the Euro crisis about to reach a dramatic head the printing of more monies will create hyperinflation not seen since Weimar republic of Germany

I do not agree. With the restrictive policies on social spending I think that we will witness deflation. There was a big transference of wealth from workers to bankers. Think Argentina 1990-2001. Now, this means that Europe will become cheaper for tourists (Greece will probably do in a couple of years).