Prices Properties Are Finally Falling: The Right To Buy?

mariano-BCN

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http://www.lanacion.com.ar/1704341-por-primera-vez-admiten-las-inmobiliarias-una-caida-en-los-precios-de-las-propiedades
 

Joe

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Since I've been coming here five years ago, I've stayed in many apartments in many barrios of BA. In that five years rental prices have gone down and sale prices have gone up. I would estimate that rental prices have gone down about 15% in dollar terms in that time period. Property prices have gone up far more and there will be a reset.

You always get asset bubbles when a central bank prints a lot and you have few alternatives for investment. The reset will be painful for owners.

Property prices are ultimately determined by rental values and incomes. Property prices can outstrip these for years due to artificial asset price inflation due to massive central bank printing but eventually prices will fall into line with rents and personal incomes.

Is this is the right time to buy ? Only if you like to buy near the peak.
 

mariano-BCN

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mmh, the problem for me is that I've a good deal for renting a great studio with everything in San Telmo for 360 dollars plus expensas of 624 pesos but coming years I've to be here in BsArs so buying could be a good option too.
 

Ries

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I am dubious of city wide, or industry wide, graphs.
You need to look at the prices of the actual apartments you would be interested in buying, in the barrios and buildings you would want to live in.
Are they really coming down?
How much?

I am confident that high quality apartments and houses in good neighborhoods will have a long term appreciation in value- yes, there will be ups and downs in the market, but apartments in Recoleta in 100 year old buildings that are now $250,000 US are not going to "reset" to fifty grand- they might fall to $200,000, before they start climbing again.

The really good properties in Buenos Aires are still very cheap by world standards, and the locals who can afford to pay cash, and the foreigners who also can afford to pay cash, dont look at the prices based on local minimum wages- they look at how its still ten percent of the cost in most european or north american cities, for beautiful old apartments.

cheap new buildings in Flores? they might come down, but most all the new buildings are total crap, and will fall apart in ten years.
 

Joe

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You're always going to get the real estate people saying that "there has never been a better time to buy". Certainly the market for high end properties are not going to be effected by average wages (who said anything about minimum wage?). But assets around the world have been bid up by asset bubbles in developed markets powered by QE in the USA, UK and Japan, etc.. A major reset will occur regardless of what realtors tell you.
 

Vbkk

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I have been looking to buy something in San Telmo and Monserrat ( old PH and recycled Loft) for the past 3 months and what I learned is the price per square meter is between 1500 to 1900 usd. Both of the places felt through because the owners do not have accounts overseas and transfer money to the cueva is cost 5% according to the real estate agent. Also does the buyer has to pay 21% IVA tax on commission or this could be negotiate. I was able to reduced the sale commission from 4% down to 2 and 1/2%
 

GS_Dirtboy

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An educated real estate agent will know the price per m2 for each neighborhood and sub-neighborhood. I don't know if it's the right time to buy as there are many variables to this answer. But, if you are a foreign owner there won't be a better time to sell than now in the next 3 to 4 years.

If you think you can't sell now for a good price or get your Dollars out then you are listening to the wrong people.
 

Matiasba

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Agree with GS, the prices are going down, and the situation is not going to change in the short or mid term.

It is a better time to buy now than 2 years ago, but the economic situation will certainly get worst so prices will continue falling. Dont know how worse will get, though. Dont think we re going to have another 2001 when prices went down like 80%, but surely recession will come, and the dollar will increase its value. Prices will get better, the rest of the K government and even better when the next president comes. The next government will have a recessive cycle, that lasts at least 3 years!!

So, I repeat what I always said in this forum, is it a good time to buy? yes. Is it the best time? I d wait.
 

ajoknoblauch

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Agree with GS, the prices are going down, and the situation is not going to change in the short or mid term.

It is a better time to buy now than 2 years ago, but the economic situation will certainly get worst so prices will continue falling. Dont know how worse will get, though. Dont think we re going to have another 2001 when prices went down like 80%, but surely recession will come, and the dollar will increase its value. Prices will get better, the rest of the K government and even better when the next president comes. The next government will have a recessive cycle, that lasts at least 3 years!!

So, I repeat what I always said in this forum, is it a good time to buy? yes. Is it the best time? I d wait.

We bought our apartment in 2002, and now regret that we only bought one.
 
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