Are Recoleta property values really up to $2,000 a meter?
Regarding the original question, no US lender is going to finance a property in Argentina. You could, however, get a home equity loan and use it to buy property in BA. I would not tell the lender why you are borowing the money.
Rentals? If the property is a good one, in good condition and very well set up, it may have good rental potential. I agree with the previous writer that you can not count on the rental income as Argentina is unstable. Inflation is a serious problem and if it goes on as it is, tourism will fall off in time and the rental dollar-based rental market will follow.
I am interested, by the way, in the views of expats on inflation. When will it start to influence your decision to stay here?
This is what estate agents are telling me (e.g. Reynolds). This applies to some choice properties -- but these same properties were going for $1400 a sq.m. a year ago. If you look around, you can still get properties at $1500 a sq.m. in Recoleta, but it may not be choice property. Bloody foreigners.;-)
I'm staying in Recoleta, in a choice 1-bedroom apartment opposite the Alvear Palace Hotel. I'm paying US $600 for the month. I can see the rental schedule online, and I can see that it's rented only sporadically.
There are simply too many ifs and question marks too reliably calculate return on investment, whether in equity or in rental income.
If inflation continues, then sooner or later the Argentinian peso will have to realign itself against a basket of the leading currencies (US dollar, euro, yen). Kirchner needs to keep the peso weak and inflation down (which I think he's trying to do): this will ensure healthy economic growth for as long as he can sustain a weak peso amd low inflation. The problem is workers clamoring for pay increases, and a populist government that by its very nature is ill-equipped to resist such pressure. To be fair, workers are ill-paid or not paid on time, and they're seeing they're seeing the purchasing power of their meagre pay packets being eroded every month.