Rising dollar prices

[wrangler]

I will admit, today's devaluation was unexpected. The dollar was expected to continue to rise against the peso, but I did not expect this. The Peso devalued about 15% today.

 

[garryl]

The landlords are laughing all the way to the bank. Those that collect rentals in dollars such as Airbnb etc. their revenues have gone up almost 70 % since January 2018...
Its worthwhile to rent in pesos, outside of CABA or in hotels that receive pesos from Argentinians and residents....!
Good luck

Why are the landlords happy ? Many rents are in pesos. There was a big jump in rent 1.5 year ago, and the dollar peso rate was 15.
Landlords were happy to take pesos, now they are screwed. Airbnb should still have the same income, not more ?

 

[wrangler]

Why are the landlords happy ? Many rents are in pesos. There was a big jump in rent 1.5 year ago, and the dollar peso rate was 15.
Landlords were happy to take pesos, now they are screwed. Airbnb should still have the same income, not more ?

A friend's landlord told him today, that his rent will be going up 50%. He told her that he will not be renewing. I won't either, If they don't honor the increases that they told me they would honor, come November when I am up for renewal.

 

[garryl]

solution?

Devaluation is the solution. MM is calling for expedite delivery of the dollars. Argentina needs to have new currency and stop printing, everyone should tighten the belt. If MM sells the dollars from IMF fast, it just gets Argentina deeper in debt. What's the point. Money from IMF goes to the pockets of Argentines who have a lot of pesos. That's stealing.

 

[garryl]

A friend's landlord told him today, that his rent will be going up 50%. He told her that he will not be renewing. I won't either, If they don't honor the increases that they told me they would honor, come November when I am up for renewal.

Gone up 50% due to inflation, maybe not much more.

 

[wrangler]

Gone up 50% due to inflation, maybe not much more.

Not my problem. If my salary didn't go up 50% due to inflation, then I won't be paying you anywhere close to those increases.

 

[perry]

Why are the landlords happy ? Many rents are in pesos. There was a big jump in rent 1.5 year ago, and the dollar peso rate was 15.
Landlords were happy to take pesos, now they are screwed. Airbnb should still have the same income, not more ?

Most landlords who rent in dollars have had their tenants calling to negotiate their contracts. Happened to a close friend of mine she was renting for 1700 dollars per month and the peso hit 25 and the temporary renters renogiated a contract of 37000 pesos now worth a little over 900 dollars. Peoples dollar incomes have been slashed by this massive devaluation and in the end there is nothing positive about it as it creates misery and financial ruin for many

 

[Rich One]

Why are the landlords happy ? Many rents are in pesos. There was a big jump in rent 1.5 year ago, and the dollar peso rate was 15.
Landlords were happy to take pesos, now they are screwed. Airbnb should still have the same income, not more ?

My comment referred to those landlords that collect in dollars...!!
Correct me if wrong, Airbnb has the same income BUT they must give the rental amount to the Owner in pesos at the Days Exchange RATE, So its 70% increase Or MORE this year...!!!

 

[Rich One]

Most landlords who rent in dollars have had their tenants calling to negotiate their contracts. Happened to a close friend of mine she was renting for 1700 dollars per month and the peso hit 25 and the temporary renters renogiated a contract of 37000 pesos now worth a little over 900 dollars. Peoples dollar incomes have been slashed by this massive devaluation and in the end there is nothing positive about it as it creates misery and financial ruin for many

The Devils advocate... The tenant was ok paying a contracted rental of US $1700. So if the dollar had come down /devalued 50% would the tenant have accepted a similar increase..!! What is good for the Goose.... If you sign up in dollars you are subject to the Exchange Risk....

 

[nikad]

Whether you are a local, expat or come from Mars: Never sign a contract in usd in Argentina, unless your income is in usd ( and you want to give it away ).