"There are few profitable investments left in Argentina...." - New York Times

[earlyretirement]

..."and all conditions of the sale are met"...

Precisely!!!

Huh? I just meant something like after the inspection you notice that something needs to be fixed. In my situation, I didn't have to do an inspection but I would always recommend one. The house just had some leaky faucets so I asked that condition be fixed.

You are making it sound like buying in the USA is more complicated than it is which isn't true.

Have you even purchased anything here in the USA before? Because it sure doesn't sound like it.

You are trying to make it sound more complicated than it is.

 

[earlyretirement]

No problem folks, I understand its all good. This is an abundant world of opportunities. In the best interest of people I would suggest US only when its economy is fixed and the ones in power dont seem all too focus unfortunately:

http://www.newsmax.com/Headline/shilling-housing-prices-falling/2012/04/27/id/437343

http://money.msn.com/investing/will-home-prices-fall-20-percent-more-mirhaydari.aspx

I mean to inform about other good investment regions as I can speak of my experience and advice others as well. Global info sources in other languages support my thoughts on US but this is an english forum...will keep it in english! Southamerica is growing...I feel bad for the ARG only looking north because a different approach worked for me and the growing expat group here looking for an alternative US$ investment, healthier lifestyle, low taxes, low inflation, expanding economy, growing international trading and beautiful scenery....I wish everybody the best!

But Argentinos aren't just investing in the USA. Absolutely by all means share your information about Ecuador as I'm sure people will find it interesting.

I'm sure there are many opportunities within the region. Many shrewd Argentinos already invested in other places when prices weren't so crazy. All of my neighbors in Punta del Este are all Argentineans and they own quite a bit of that town. But prices have already deflated there and most are looking to dump properties there.

I also own in Rio de Janeiro. But I bought there back in 2002 when prices were quite reasonable. Not so anymore. They are obscenely high there as well as Sao Paulo. As you mentioned, prices already hit prime there. Unless you buy in some remote island or small town in the middle of nowhere, prices are expensive in Brazil.

In Lima prices have already doubled in the last few years. While still reasonable, let's be honest...it's Peru and most don't have any desire to go to Lima.

Yeah, there are probably lots of opportunities out there and if you want to share by all means share about other places. But don't try to say there is tons of paperwork and other non sense about buying in the USA when comparing trying to get a mortgage and buying vs. cash in Ecuador.

Because it's like night and day.

 

[HGQ2112]

Look, if you are using a mortgage, buying in the USA is not ultra simple. Lot of hoops to jump through, especially in today's tighter lending environment. If you are buying all cash, then it gets easier. Still, not like there aren't plenty of other places in the world, many with better valuations and more positive future economic trends, which also have equal, if not an easier cash buying process. No one should be buying based on "ease of purchase" alone, or even primarily. Many factors such as focus on macro market fundamentals, local market trends and the specific property valuations, relative to the target market and global options, all should play a better role. I think many make valid points in this thread. I think investors from Argentina should consider global options and weigh those against their desired portfolio outcome. Ultimately, it may be a case of "portfolio" diversification being the best option. To focus on two regions mentioned in this thread, maybe it wouldn't be such a bad idea to make a long-term market growth play in New York CIty, while also looking at a medium to long-term value play in Ecuador. Whatever decision, doing one's homework before buying is critical.

 

[Caliexpat]

Ok so here's my take:

1) All real estate markets are local so know your market.

2) The US banks have many foreclosures that are still sitting on the books. They release them slowly in order to not flood the market and drop prices even further. It is said they have enough foreclosures to last a few more years at least.

3) The federal reserve is and has been creating massive amounts of inflation, which should in theory cause hard assets such as housing to rise - again know your market.

4) The US economy will have it's day of reckoning at some point. We simply do not have enough money to pay for our wars, growing welfare state, social security, medicare and medicaid.

However, the fed's solution will be to print more and more money, which will continue to destroy the dollar. At some point, our creditors will say "basta" and the dollar will cease to be the world's reserve currency. All the while, the average standard of living for Americans will decrease as costs for basic necessities increase and unemployment remains high. This scenario could take 10 years to occur however it could also happen much sooner.

5) If you don't have enough money to buy a property then gold/silver is another great inflation hedge.

 

[Noelle]

Good point early retirement, prices had been getting higher in other southamerican countries since 2004. Ecuador is still a virgin market, definitely worth sharing the info. Owners dont need property insurance, another point I liked about buying in EC!
Moody's just upgraded Ecuadors credit rating today, this just days Egan-Jones downgraded US's...it continues to trend better than many other places in the world...numbers speak by themselves.
Just as Caliexpat mentions wars, growing welfare, ss, medicare, medicaid, endless dolar printing are hurting US and there are no sign of anybody seriously addressing the issue.

 

[earlyretirement]

Good point early retirement, prices had been getting higher in other southamerican countries since 2004. Ecuador is still a virgin market, definitely worth sharing the info.

Absolutely from what you posted, Ecuador sounds like it is still a virgin market and I agree that that can often be the best time to buy. I don't know much at all about Ecuador so it's helpful to read your posts on it and I'm glad you like your property so much. That's always great to hear.

Absolutely the growth in many countries in South America has been amazing. I look at the prices in Rio and Sao Paulo now and I just shake my head. I wish I bought more back in 2002. The dollar was much stronger against the Real then as well. Prices are sky high.

But there are many Argentines that own in Brazil. I know many people. Also, just go to a town like Buzios and Argentines own most of that town from the restaurants to the hotels to the stores. You will hear more Spanish there than Portuguese.

Thanks for sharing the info Noelle. What are the best cities you'd recommend there? What city did you end up buying in?

 

[Noelle]

Sure, thanks early retirement and great point on Brazil. Great investments there not only in tourism property rental but in big city office space and bussiness management. Definitely a better opcion to Argies since Brazil's economy continues to expand...one of the world's more beautiful places though prices as you confirm are high. I wanted something new, undiscovered, smaller but resourceful with a rising economy and real expanding projection based in actual numbers. None of the caribbean countries are as resourceful and they tend to be linked to European and American economies. I like to capture value in a place with great potential. Ecuador's coast are naturally beautiful. I mixed with ecuadorians, they are warm, friendly and kind people. I live a healthy lifestyle, got to local organic markets and get fresh cought fish. I got a home in the beachtown of La Libertad -which is more commercial- in the border with the prime resort city of Salinas. Retired expats prefer oceanfront/oceanview properties which you can still get at amazing prices. I recommend La Libertad, Salinas, Punta Blanca, Manglaralto, Ayangue, San Jose, Olon...just to name a view within an 1.5 hs drive from Salinas.

 

[Floppy]

I think its better to hold on and wait a bit to see how things evolve here... Not a good idea to rush into investments in desperation

 

[el_expatriado]

This article is bogus. If you are Repsol or some other huge international firm looking to get in bed with the government, then perhaps it is difficult to make money now and things aren't as easy as it was before. If you are trying to sell real estate in dollars, same deal.

I know real estate developers who are selling their properties in pesos and they are making bank. Costantini keeps launching new megabarrios in zona norte (e.g. Puertos del Lago in Escobar) and is still making millions.

Anyone who has shrugged off the negativity and invested in Argie bonds has made huge money these last few years. A friend of mine sold everything he owned to invest in bonds and is now a millionaire, and best yet, Argie bonds are 100% tax free.

I'm personally making 20% a year (in dollars) investing in taxis here in Buenos Aires. I started with 3 cars and I'm up to about 20 now. So don't tell me there aren't any good investments here. You just need to shrug off the negativity, open your eyes, start making some good contacts, etc.

When I first got here back in 2005 the first thing I did was integrate myself with a good group of Argentines and with other expat entrepreneurs who were doing well in business and with their investments. If you need to be pointed in the right direction, send me a PM. I'm happy to help.

Right now is an amazing time to invest because you can get an extra 30-40% for your USD, so Argentine assets are ON SALE right now.

 

[earlyretirement]

Right now is an amazing time to invest because you can get an extra 30-40% for your USD, so Argentine assets are ON SALE right now.

Buy when there is "blood in the streets". Things might be on sale now but things will definitely get worse and the things on sale will even be on more of a discounted sale once things deteriorate further.

I'd agree there are always going to be opportunities, especially in down cycles but I don't think anyone needs to be rushing in to invest in Argentina now. Things will get worse before they get better and stuff should be even more discounted.