What to expect with inflation? Apartment rental prices.

[Justing]

I'm looking at making the move to AR. I'm wondering what I can expect in terms of inflation, peso, and the rental market? What do people expect to happen in the next 1-3 years?

I have a steady income from my US business.

I also realize how things have been changing in BA over the years. I'm been reading the forum for years off and on.

Digital Nomad

 

[French jurist]

You'll get different opinions.

Mine : inflation is less for rents than it is for food/services/products.
Unlike food/services/products rent is negotiable also (to some extent).

Expect yearly raises of 10/15%

There also are many unknowns (presidential elections here in a few months, global crisis starting again and maybe going for the big plunge this time, etc.).

Peso for the next 1/3 years : impossible to answer with certainty. USD might keep gaining around 10% yearly facing the peso. USD could get devaluated also (it's a possibility now) but the Peso might get devaluated before that.

You'll need a security margin regarding your income to absorb any major & sudden change (likely 2.000/2.500 USD if you're alone and 3.000/4.000 USD with a family).

If the crisis starts again for the big plunge : better spend that time in Argentina than in the US or Europe imho

 

[Californian_Oh]

A big issue is landlords exploiting foreigners and increasing the rent -- in dollars -- by 10-25% a year. And that is on top of already charging 30-50% more than a local would pay.

Such price gouging is common because the normal process of renting an apartment requires the renter to put up property as a guarantee (and often a 2-year lease). Most foreigners lack property to put up, so they try to find someone who will accept a cash deposit. Unfortunately, it's common for such landlords to gouge the foreign tenants because they will have a difficult time finding alternatives.

There are, of course, exceptions to this. But I've been here for 3 years and have seen 20-30 other foreigners getting screwed just like I have been. (I'm finally going to buy property in the next few months.)

 

[deeve007]

I don't know if I'd call a free market economy "getting screwed". If I owned an apartment here, furnished it and had all the bills in my name, I'd charge what the market would bare too. If you don't want to pay the amount asked don't, no one's forcing you, and if more people looked outside the main tourist "centres" the prices would soon drop.

Supply and demand, it's not as if prices are fixed or similar, then you might justify the "screwed" comment. And as someone said to me once, you don't like the prices, go live in Bolivia.

 

[sergio]

For the owner there is risk in renting apartments. The tenant may not pay and refuse to leave. The guarantor system gives the owner protection. Foreigners usually can't get guarantors so they are charged more in rent. I don't think that is unfair.

 

[va2ba]

For the owner there is risk in renting apartments. The tenant may not pay and refuse to leave. The guarantor system gives the owner protection. Foreigners usually can't get guarantors so they are charged more in rent. I don't think that is unfair.

Not to mention that it is much easier to evict someone from a temporary rental than it is to get the two year rental.

In all honesty, the best thing would be to rent your own place for 2 years and pay everything up front if you can. That way, it won't matter what happens with inflation and you don't need a garentee, so I've been told.

 

[Californian_Oh]

If a taxi tries to charge you +50% more because (A.) you're a foreigner and (B.) it's raining and there are few available taxis (i.e. few alternatives), then you are dealing with more than simple "free-market pricing."

Most cities in the U.S. have stringent renter protection laws, including limits on how much landlords can raise rent annually (usually like 2-5%, not 15-25%). Argentina likewise provides some excellent protection for renters. The problem: I've found many of us foreigners have a difficult time securing a rental situation that falls comfortably under the umbrella of protection. And then there's the issue of enforceability, with Argentine litigation being prohibitively slow and messy.

If people can share tips on how foreign renters, particularly non-residents, can rent under good, protected circumstances, then I'm sure many of us would love to hear them. But I don't really see how telling us "to love it or leave it" and that it's "fair game" helps the discussion.

 

[eschal]

A lot of the landlords that are screwing foreigners are also foreigners but most them are Argies. Not sure who's more of a greedy fuck.

 

[citygirl]

There's also a big difference/risk to owner btwn renting a completely unfurnished apt with nothing in it and a fully furnished apt. In the former, you have a guarnator and there is no investment in furnishings, keeping utilities turned out, etc. In the latter, the owner has invested in not only the property itself but also has to cover the costs of furnishing it, turning on and keeping the utilities and there is not a guarantor. I never thought the system was unfair personally.

 

[sergio]

There's also a big difference/risk to owner btwn renting a completely unfurnished apt with nothing in it and a fully furnished apt. In the former, you have a guarnator and there is no investment in furnishings, keeping utilities turned out, etc. In the latter, the owner has invested in not only the property itself but also has to cover the costs of furnishing it, turning on and keeping the utilities and there is not a guarantor. I never thought the system was unfair personally.

I agree. I've often read here that if you live in BA you must accept local conditions. Bottom line: the system requires guarantors. If you don't have guarantors (who assume enormous responsibility) you can not expect the same terms as those who have guarantors and rent for two years. Also I don't think short term rentals make the renter pay "expensas" , taxes, gas, water, cable TV, phone and all other services. Normal renters with guarantors usually pay all of these.