Whatever happened to the real estate crash? (When are prices goin to fall?)

With inflation at 20% and properties prices flat I would say that prices have in reality fallen in absolute terms. Dollar prices may be more or less steady(I really don't know). People buying with Euros or other stronger currencies have seen the value of their dollar based property investment fall over the last few years. The problem now is the economy is stagnating with high inflation, not a favorable environment for property or any other type of investment.
 
The trouble with comparing prices is you are not comparing like for like. Buenos Aires is a Capitol city, I own an appartment eight stops on the subway from the very centre. To own anything similar in a european capitol I would have to be a milionare. I don't know about Washington, but I suspect it will be marginally dearer than Fort Lauderdale.
In less than three years I have seen my property value increase by more than 50% they are always priced in Dollars so the value of the peso has little if any relavence. The falling pound however has meant my investment has in fact nearly doudled.
Still I bought it as a home abroad, the true value is what it saves me when I am in Argentina, the resale value is just a figure.
 
Washington has become expensive. Apartments eight metro stops from downtown start at around half a million dollars. Checkn DC listings on Wisconsin and Massachusetts avenues to the North, and Arlington and Alexandria to the West and South.
 
tangobob said:
I own an appartment eight stops on the subway from the very centre. To own anything similar in a european capitol I would have to be a milionare.

How much of an exaggeration is this?
 
No exaggeration. Check Rome and Paris real estate prices. Really good flats in Madrid start at 1.2 million - EUROS, that is.
 
SaraSara said:
No exaggeration. Check Rome and Paris real estate prices. Really good flats in Madrid start at 1.2 million - EUROS, that is.

I'm sorry but tangobob's apartment in Almagro can not be compared to the a really good flat in Rome, Madrid or Paris that sells for 1.2 million euros.
You can buy places here for 1.2 million if you want.
 
gouchobob said:
With inflation at 20% and properties prices flat I would say that prices have in reality fallen in absolute terms. Dollar prices may be more or less steady(I really don't know). People buying with Euros or other stronger currencies have seen the value of their dollar based property investment fall over the last few years. The problem now is the economy is stagnating with high inflation, not a favorable environment for property or any other type of investment.


The dollar (actual sales) price of my apartment increased 27.5% in the past year. I did pay 4.5% buyer's commission and stamp tax (combined) and an additional 6% on improvements and seller's commission, making the return on investment about 17% for the year. I also lived in the apartment (PH) rent free for 12 months (without "espensas de consorcio" as well).

Thanks go to Pericles, again.
 
steveinbsas said:
The dollar (actual sales) price of my apartment increased 27.5% in the past year. I did pay 4.5% buyer's commission and stamp tax (combined) and an additional 6% on improvements and seller's commission, making the return on investment about 17% for the year. I also lived in the apartment (PH) rent free for 12 months (without "espensas de consorcio" as well).

Thanks go to Pericles, again.

If this is such a red hot investment why did you sell it?

Here is analysis of the potential risks in investing here.
http://www.glgroup.com/News/Argentina-Real-Estate--Caveat-Emptor-44785.html
 
gouchobob said:
If this is such a red hot investment why did you sell it?

Last June I sold my apartment in Recoleta and bought the PH in Belgrano. It was a time when sales were very, very slow, but I wanted to get out of Recoleta and out from under ever increasing consorcio expenses (from $450 to $850 per month in less than three years).

Shortly after Pericles posted my Recoleta apartment on the ReMax website (and before he showed it to more than a half dozen clients), another ReMax agent brought the buyer to the table...but it was obviously Pericles who closed the sale. I was siting at the table as Pericles did the talking...just like a week ago when he closed the sale of the PH.

My prime motive for buying the PH in Belgrano was having a place to live without consorcio expenses and it was priced "low for the meters" for a quick sale (the owner was dying). I bought it the day after seeing it for the first time. All I did was paint it, replace the toilet seats and termotanque, add an a/c in the living room and a marble fireplace in the galleria (all bought on mercadolibre except the toilet seats).

The PH in Belgrano was the ideal apartment for me to live in the city and I really love it, but I no longer want to live in the city. I prefer to live in a house with land, trees, a swimming pool, and no neighbors. I found even more than I was looking for near Punta Alta. I posted photos in page 4 of this thread: Where is home to an expat?

The best aspect of all of this is that the purchase price of the 5 bedroom house (with almost 6000 M2 of land) is 66% of the sale price of the Belgrano PH.

I am not buying it as an investment, however, but rather a place to live (if not survive).

I'm not buying gold as investment, either...just guns and seeds.:D
 
Back
Top