Should I Rent or Buy?

#1
Trying to decide whether to rent or buy an apartment for the next 2 years.
However, has the market reached a precipice? Saying that, there appears to be a huge amount of construction going on, lots of investment in construction, hotels etc., which is showing no signs of slowing.
Can anyone give any qualified indicators (not negative rants please!) on the state of the property market over the next 2-3 years.
 

ghost

Registered
#2
Yes there is allot of construction going on. Some has stopped and some continues. However much of what you see is empty or only half utilized. Prices are currently highly inflated and there is little to sustain or justify the current price ranges. If you are going to be here for 2 years only, then you will encounter a net loss on the turn around and losses on the incomming and out going money. Rent.
 
#3
"ghost" said:
much of what you see is empty or only half utilized. Prices are currently highly inflated and there is little to sustain or justify the current price ranges. If you are going to be here for 2 years only, then you will encounter a net loss on the turn around and losses on the incomming and out going money. Rent.
Thanks Ghost, have you got any details to justify your comments? As I cannot see too much evidence of this ... all new apartment blocks in Palermo and Las Canitas that I have looked at are full and being sold out quickly (some before being finished)
 
#5
Buying property is always a gamble and in Buenos Aires you must choose very carefully the properties to buy. There are still great areas to invest in that are not Palermo or San Telmo. I do know this that the demand for buying properties is extremely strong from Argentines rich from the agricultural boom. They are the ones fueling this boom and not foreign investors who make up a small percentage of sales in Capital Federal.
 
#6
If you are only going to be here for two years and are not considering becoming a permanent resident in the future, I strongly suggest that you rent. After two years here you will probably be very ready (and happy) to leave. Having to sell a property could make your exodus far more difficult. Besides, if you don't follow all of the rules regarding bringing the money in the country, including depositing 30% for one year without interest at the Banco Nacion of any amount over the "declared" price of the property, you could face a 30% tax rate plus penalties and interest! You might spend $20,000 renting a nice place for the next two years, but you could lose a lot more when you sell. I have lived in Buenos Aires for two years and I did buy an apartment after living here six months...with the intention of staying here for at least five years.