Real estate crisis: article in English

[chris]

You are right Earlyretirement but I suggest you take a close look at Manhattan prices these days. Go to Zillow. New York is New York and I am not going to get into a battle here about which city has the greater role in the world. Most earthlings would agree that New York is at the very top, if not THE most important city in the world today. If you can get a 1 BR property in the 700 sq ft range in the best part of town for $400,000 but have to pay nearly as much or the same (Puerto Madero, for example) in BA, I'd say that New York is now a good deal and can only go up. As everyone knows, there are three rules that apply to real estate: neighborhood, neighborhood, neighborhood. Well in this case we are talking about a super important international city and the best areas within that city now being affordable. And of course you don't need cash to buy.

 

[Mitch]

That part of the theory sounds correct to me, but you are omitting that you can also safely put your money in the bank in NYC.

 

[ItsyBits]

Correct me if im wrong, but with the current high inflation, if the real estate prices stay at their current level or at least have an increase lower than the inflation that would be a price reduction? Especially now that people will have to start buying/selling with pesos.

 

[earlyretirement]

That part of the theory sounds correct to me, but you are omitting that you can also safely put your money in the bank in NYC.

This is part of my point. Locals don't really have the option to keep their life savings in the local banks in Argentina. NO ONE trusts them. Sure, people put enough to pay bills and such but I don't know ANYONE that is putting their life savings in the local banks.

The USA has it's fair share of problems but the banking system is totally safe protected by the FDIC. It's one of the reasons why real estate in Argentina will always be valuable. The locals use it as a sort of bank account for their savings.

I don't think anyone is saying real estate prices might take a dip. I think more people are saying it's not going to drastically crash anytime soon.

 

[solerboy]

Although people are putting off selling at the moment because if the shortage of dollars, this cannot continue forever. Eventually because of death, growing families etc the normal buying and selling patterns will have to return and prices will find their own level.