What to expect with inflation? Apartment rental prices.

[Justing]

I have no issue with paying extra as a foreigner for a rental ready to go. They're providing a service and assuming risk. That is the normal whether you are in the US, Costa Rica, or any place.

I'm just trying to get a handle on what to expect with rental increases.

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

Have to agree with that!

 

[mini]

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.

All that adds up! When you are looking at prices for two year rentals, none of those things are listed nor is the cost of buying furniture & a fridge! I'm not sure tourists are really get that screwed. Sure, you pay a premium, but don't underestimate the total costs of a two year rental.

 

[steveinbsas]

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.

bear

It's still a bull market for owners who rent to foreigners.

Sorry I had to punish you.

 

[citygirl]

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?

The long and short answer - who the hell knows?! Really, it's impossible to predict. I expect the peso to devalue some against the dollar after the elections but I don't see inflation coming under control anytime soon. So while your dollar may go further, the costs are sky-rocketing and owners have to continue increasing their prices to cover the costs. So yeah..again, no idea!

 

[sergio]

Inflation is around 25-30%.

 

[steveinbsas]

All that adds up! When you are looking at prices for two year rentals, none of those things are listed nor is the cost of buying furniture & a fridge! I'm not sure tourists are really get that screwed. Sure, you pay a premium, but don't underestimate the total costs of a two year rental.

Unless you shop on mercadolibre (sometimes risky if buying used items*) or an outlet store be prepared to spend about $3500 pesos each for a no frost fridge, air conditioners (2 required for a one bedroom apartment), decent sofa, and quality mattress and box spring. I strongly advise avoiding the cheapest brands of everything.

While it is possible to get a discount when using a credit card, often the discount is specific to a card issued by an Argentine bank. Mattress shops offer 20-30% discounts several time a year. It is often possible to get a 10% discount just by asking.

Almost everything I bought five years ago is twice the price today (20% annual inflation). Flat screen TVs are still higher here than the US, but they are cheaper and better now than they were five years ago.

Gabarino does have an outlet store which features very attractive prices on washing machines: http://www.garbarino.com/productos/outlet.php

 

[LostinBA]

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.

Discrimination is not the hallmark of a free-market economy.

 

[steveinbsas]

Discrimination is not the hallmark of a free-market economy.

Actually, it is.

It is also known as being "free to choose" (i.e. who you rent to or from and how much you charge/accept or pay).

 

[deeve007]

Discrimination is not the hallmark of a free-market economy.

Why is it discrimination? Do you know what a local pays for renting an apartment that is:
- without a guarantor;
- for just a short term (2 weeks to 3 months, in many cases);
- fully furnished, including electricals;
- including all bills and utilities, in the owner's name not the renter's?

I know in Australia you pay a hell of a lot more for what is basically a "serviced apartment" than you do for a standard longer term rental of an empty apartment. At home they often ask for references from your previous landlord and/or employer. Here it's the guarantor system.

So again, how is that discrimination?

 

[deeve007]

Discrimination is not the hallmark of a free-market economy.

Why is it discrimination? Do you know what a local pays for renting an apartment that is:
- without a guarantor;
- for just a short term (2 weeks to 3 months, in many cases);
- fully furnished, including electricals;
- including all bills and utilities, in the owner's name not the renter's?

I know in Australia you pay a hell of a lot more for what is basically a "serviced apartment" than you do for a standard longer term rental of an empty apartment. At home they often ask for references from your previous landlord and/or employer. Here it's the guarantor system.

So again, how is that discrimination?