Prices Properties Are Finally Falling: The Right To Buy?

[estebandepraga]

2002 and 2003 were the years! I think it will get cheaer but never like then!
I would wait, myself, unless you find such a great deal
Bought then and got unbelievable deals about 85% of the "true"value. I felt badly as I knew many had to sell ; my cases were so dramatic
They sold cheaplp and also bought cheaply!
If it ever gets back to 40-50%, then I'd consider to buy again otherwise I dont want too many eggs in one basket!

 

[steveinbsas]

"saved money on rent" That's a first for me, I've never heard that before when talking about buying a house. What about the opportunity cost?

I saved money by not paying rent.

If I had kept the money in the bank, I would not have received enough of a return on it to pay the rent. If I had invested the money I spent to buy the apartment in the US stock market, I could have lost half of it in 2008.

That would have been a very high cost for the opportunity of owning stocks.

I didn't come to Argentina to work or run a business. US real estate took a big hit in 2007. US stocks stocks took a big hit in 2008. My real estate in Argentina did not and has not. The Dow Jones average has rebounded and hit all time highs (for "artificial" reasons), and the income they produce is far from attractive to a small investor like me. The risk is not worth the reward.

I have lived in the apartments and my house in Argentina without paying rent for eight years. If I hadn't bought property in Argentina in 2006 I would have paid about $50,000 USD since then for the privilege of living in someone else's and I would not have the opportunity to do what I am now doing: enjoying every minute of my life in Argentina.

 

[Ries]

Every year since I bought (2007) I hear people here claiming that prices will fall, any day now. And yet, my place is worth more than I paid.

I still say- go look at places for sale, NOW, in neighborhoods that you like, in buildings you like.
And see what the prices are, and if they have fallen in the last two years.

Obviously, if they have not fallen, then this is probably not the time to buy that particular place, unless you really can see owning it for ten to twenty years.
If they have fallen, then you have to decide if you are willing to wait, and take the advice of the gloom and doom crowd, for a lower price.

Only you can make that decision.

I just know that, over the long run, ten years or so from now, most likely my place will still be worth more than I paid, and, most likely, more than now.

Bubbles in other countries usually take place in situations different from Argentina- places with relatively easy to get mortgages, where many homeowners are quite leveraged.
Here, since almost everyone pays cash, owners are not likely to lose their apartments, or be as desperate to sell.

I think that buying in Argentina as a speculation is dangerous, especially now. If you are buying to live in, and you can see keeping it at least five years, and better, ten, then now might be good for some units, and not for others.

But I sure dont see some huge, citywide drop in housing prices right now- things seem a bit cheaper than 2 years ago, but the really good places have held their value pretty well.

 

[PhilipDT]

I saved money by not paying rent.

If I had kept the money in the bank, I would not have received enough of a return on it to pay the rent. If I had invested the money I spent to buy the apartment in the US stock market, I could have lost half of it in 2008.

That would have been a very high cost for the opportunity of owning stocks.

I didn't come to Argentina to work or run a business. US real estate took a big hit in 2007. US stocks stocks took a big hit in 2008. My real estate in Argentina did not and has not. The Dow Jones average has rebounded and hit all time highs (for "artificial" reasons), and the income they produce is far from attractive to a small investor like me. The risk is not worth the reward.

I have lived in the apartments and my house in Argentina without paying rent for eight years. If I hadn't bought property in Argentina in 2006 I would have paid about $50,000 USD since then for the privilege of living in someone else's and I would not have the opportunity to do what I am now doing: enjoying every minute of my life in Argentina.

2008-2009 was a tough time pretty much everywhere, Argentina had one of the best economies in that time, you probably made a good call if you really were able to sell for everything you paid to buy.

Maybe.

Today it's not even close to the same situation.

You can rent for $1100 dollars at the blue rate an apartment that sells for half a million dollars. Thats 500k + 8-10% in closing costs That's half a million dollars of which you'll be able to finance maybe a million pesos worth at 30% for 10-15 years. MAYBE, and you better have a lot of en blanco income here if you want even that.

For me it's a real head scratcher.

 

[mariano-BCN]

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%

I started looking in the hood where I live, San Telmo, but for several reasons is this not a hood where I feels good to invest: crime is increasing here more than elsewhere AND good shops, banks and medical centres are NOT neither will be here. So I started looking in Almagro, Caballito, Centro, parts of Recoleta and Palermo.

 

[Vbkk]

I was looking at Humberto 600 and the street was quiet and the buses do not run...Also at Mexico 700 there are some new loft. I don't think the asking price is high.

 

[mariano-BCN]

I don't understand buying here at all. Not now, and not anytime that wasn't directly after the crisis.

the reason is simple: I've to be in Argentina coming years, and although I've a low rent (360 dollars for a studio in San Telmo) I prefer to buy 'cause it's then mine and I can do what I want where I live.

 

[PhilipDT]

the reason is simple: I've to be in Argentina coming years, and although I've a low rent (360 dollars for a studio in San Telmo) I prefer to buy 'cause it's then mine and I can do what I want where I live.

If you want to own for the pleasure of doing so I think that's a great reason. Although I'm not sure what "doing what I want with it" has to do with rent vs buy.

It seems like there is an almost fanatical attraction to owning here that I've never seen justified. I repeatedly argue with my girlfriend over this, I even went into maple to make some pretty graphs to illustrate my point and she just responded with "but if you rent you're paying the money to someone else" *facepalm*.

 

[ajoknoblauch]

the reason is simple: I've to be in Argentina coming years, and although I've a low rent (360 dollars for a studio in San Telmo) I prefer to buy 'cause it's then mine and I can do what I want where I live.

I presume that means remodeling to your own taste, and that's one of the best reasons for owning rather than renting. The decision whether to own or rent depends on each individual's circumstances.

 

[PhilipDT]

I presume that means remodeling to your own taste, and that's one of the best reasons for owning rather than renting. The decision whether to own or rent depends on each individual's circumstances.

I'm currently looking for a new place. I have found that most of the owners I've talked to have no problems with me making modifications and even giving me discounts on the rent to take into account improvements. I've also found that most are willing to include clauses relating to options for renewal and right of first refusal in case of a sale.