Real Estate Cash Out Help

[gouchobob]

Argentina has had this kind of government for the past sixty years and real estate has remained a good investment. Sometimes prices plunge for a while, but always recover and climb higher.

I know for a fact that homes in Colegiales went from US$140,000 in 2001, down to US$80,000 in 2003, and up to US$310,000 now. A rollercoster ride, but a great investment for those with steady nerves.

Perhaps, but you are really answering the question as well, $80k to $310k in a few years. How would you justify an increase of that magnitude? Was the property at $80k under priced and did the seller take a bath, at $310k is it now overvalued? I doubt over the last 60 years you would see steady appreciation. What you would probably see is period where people made some money followed by periods where people lost their shirts. Real estate as an investment generally just tracks inflation, is illiquid, and has high transaction costs.

But the point I am making here is that there is today some difficulty today in getting money out of the country. The government could if they wished make this even more so. Just because this hasn't happened before there is no guarantee it couldn't happen at some point in the future. Remember expats that owned real estate in Cuba in 1959 are still waiting to get their money back. The money transfer problem is a risk I think people underestimate.

 

[redrum]

Sorry my friend if your American you won't be able to open an account in Uruguay, that's for sure.

which uruguayan bank did you attempt to open account?

unless things have changed in the past several months, any american citizen with only a passport should have no problem opening an account with Banco Republica(dollars, euros or uruguayan pesos).

http://www.bancorepublica.com.uy/web/guest/home

 

[French jurist]

Remember expats that owned real estate in Cuba in 1959 are still waiting to get their money back.

Comparing 2010 Argentina and 1959 Cuba might be a bit excessive (just a bit ?)

 

[gouchobob]

Comparing 2010 Argentina and 1959 Cuba might be a bit excessive (just a bit ?)

Of course its excessive but why is it unreasonable to caution people in country where a few years ago people had their life savings force-ably translated from dollars to pesos at unfavorable rates or had their pension savings grabbed by the government to at least recognize the risk that government could do the same type of thing when they sell their properties, to do otherwise seems naive.

 

[SaraSara]

Perhaps, but you are really answering the question as well, $80k to $310k in a few years. How would you justify an increase of that magnitude? Was the property at $80k under priced and did the seller take a bath, at $310k is it now overvalued? I doubt over the last 60 years you would see steady appreciation. What you would probably see is period where people made some money followed by periods where people lost their shirts.Real estate as an investment generally just tracks inflation, is illiquid, and has high transaction costs.

But the point I am making here is that there is today some difficulty today in getting money out of the country. The government could if they wished make this even more so. Just because this hasn't happened before there is no guarantee it couldn't happen at some point in the future. Remember expats that owned real estate in Cuba in 1959 are still waiting to get their money back. The money transfer problem is a risk I think people underestimate.

At this point, I'd thank the gods on bended knee for an investment that just tracks inflation. But real estate can also provide an income stream: for the past eight years nice rental apartments in BA have yielded a 6% net return.

You are right that the government may make getting money out of the country difficult - in fact, it tried to prevent it altogether about fourteen years ago. The locals quickly developed "ways" to bypass government regulations, like buying foreign bank checks from trusted friends and their friends, or other ways I'd rather not mention, and life went on.

 

[perry]

Once again Gouchobob has hijacked a thread to turn it into anti Anti Argentina rant . The comments I have read from this person have been complete misinformation designed to deceive others and create dissent within the forum.

Its ironic but you are the same person who accuses other of discrimination etc etc but your posts over the many years have been without facts, misinformation, and gross racism .

 

[French jurist]

back to the OP and on a funny note : in one of the "plans" (running from the casa de cambio with all the cash hidden on the body), I can imagine what would happen in calle Sarmiento if a guy was exiting a casa, running, sweating from the stress, zigzaguing, obviously hiding something beneath his clothes... Funny

 

[citygirl]

I hardly think someone is going to decide to buy/not buy apts in Argentina based on the advice and postings (positive or negative) by anonymous posters on an internet forum. At least I hope that to be true.

People have certainly done well on real estate here. There are also complications and risks to buying here. I don't think either side is entirely incorrect in what they post, it's just that the truth lies somewhere in the middle.

 

[SaraSara]

back to the OP and on a funny note : in one of the "plans" (running from the casa de cambio with all the cash hidden on the body), I can imagine what would happen in calle Sarmiento if a guy was exiting a casa, running, sweating from the stress, zigzaguing, obviously hiding something beneath his clothes... Funny

Life in Argentina keeps one stressed out but nimble, and leads to some funny doings.

I once walked down Calle Sarmiento with my four year-old niece carrying the down payment for our house in her pink play purse. Figured my purse might be stolen, but no one would bother with hers.

Other people recruit a group of friends and relatives to carry wads of dollars in socks and underwear - they march out of the bank in formation like a phalanx or Roman soldiers.

 

[gouchobob]

I hardly think someone is going to decide to buy/not buy apts in Argentina based on the advice and postings (positive or negative) by anonymous posters on an internet forum. At least I hope that to be true.

People have certainly done well on real estate here. There are also complications and risks to buying here. I don't think either side is entirely incorrect in what they post, it's just that the truth lies somewhere in the middle.

I think you are correct, my only point is that there are risks associated with investing in real estate or anything else in Argentina. Getting your money back at the end of the investment should certainly be a major consideration. SaraSara and others are correct that people have done well in real estate in Argentina in recent years. However I don't think any of these people have gone through a full economic cycle in Argentina. Buying back in 01 to 03 surely got some people good deals, buying today however could be a different story, depends on when or if you think the economy will crash again.

Despite the more hysterical postings from some members I don't think
I have engaged in an Anti-Argentina rant, posted disinformation, or tried to create dissent on the forum.

I don't think its a good time to in general to invest in real estate anywhere including Argentina. In most parts of the world it's had a big run up in prices and is generally overvalued by any historical measure. It's in the process of correcting in the U.S. and other places, with more corrections to come. I think real estate will prove the worst investment you can make over the next 10 years.

Also I agree with your point that nobody is going to make a decision to buy or not to buy real estate based on what I or anybody else says on this forum.