Troubling signs in the property market

[jbeas176]

perry, apreciate the response. gotta say a 6.5 million property went to auction recently with no reserve. it sold at 4.5 million. either they did not care about a 2 million loss or they needed the money. real estate is driven by different conditions and sometimes hard to understand. timing on the sale??? the auctions on the courthouse steps, because of the volumn, and purchased site unseen with sometimes a 4 hour window to inspect before purchase, was crazy. money boys wanted control and volumn consumption. the houses could not have been lower in price over the long hall. whats more interesting to me is when the process repeats itself, and it will, how much new product can they absorb and get the increased rents they are getting today. or do they exaserbated the problem of too much product on the allready stressed market. my guess is the rents remain the same and they consume more. i read something the other day that 57% of mortgages are from private sources, the rest from the banks. just want to try to figure out how to play the next down turn.

 

[jbeas176]

paulbee. think the big money boys buy what appeals to them. always thought argentine money went into real estate as protection. dont trust the banks and hard to get it out of the country with out paying taxes. still learning and want to know more

 

[jbeas176]

i still have a dream of building a container home project, outside of buenos aires, close the the railroad, 3 bedroom, 2 bath, approx 1000 sq ft for 90,000. came close 2 years ago.

 

[jbeas176]

had the land for the right price but made the mistake of asking a local architect if he could do it and wanted to know if the local goverment would approve it. he and his builder friend bought the property within the week. lesson learned

 

[camel]

had the land for the right price but made the mistake of asking a local architect if he could do it and wanted to know if the local goverment would approve it. he and his builder friend bought the property within the week. lesson learned

What was the lesson? What should you have done instead? Bought an option to buy the property? Signed an agreement with the architect where he agrees not to buy your property within X months? (which seems pretty unenforceable anyway)

 

[jbeas176]

you are correct. tie the property up contractually before talking to an architect. its done in the US with a refundable deposit for a due diligence period. i let my guard down in argentina. call me lazy. have not been on the development side for a long time. i am used to developing a team of trustworthy people that want to make money together. a common goal.

 

[jbeas176]

i was doing my due dilligence, sewer, electrical, gas, drainage, zoning, eye open to cooperation from the locals. that the arch would appreciate the work. he had other ideas. oh well

 

[jbeas176]

whats really a shame, i could cost it out. entry level homes, really nice inside including a/c, washer dryer with reasonable finishes. exterior had a rustic look. i take you eye away from the containers with balconies and stair railings. i like rustic. close to the rail line meant they could travel to the city for work in necessary.

 

[jbeas176]

that property had a wall around it. it was 2 soccer fields. asked if it would hurt the locals and was told they better field in town. 5 minutes away.

 

[Bajo_cero2]

It is a good time for sale and an awkful time for buying.