When are apartment prices finally going to fall??

[steveinbsas]

Argentina's prices are still good, but they have to lower these apt. prices to really make it very attractive to long-term expats.quote]

Long term expats don't rent temporary apartments unless they are either stupid or are on someone else's tab.

 

[ElQueso]

I can see why they'd do it. Rent to tourists, keep your property in good condition for longer and make about the same as a long term rental.

The biggest reason is because temporary contracts don't fall under the same laws that long-term contracts do and owners can kick people out of their apartments when they don't pay (or stay past the time they paid for), don't require garantias as a result, etc. Much less problems. A bit more headaches though.

There is a good amount of cost in maintaining tourist apartments - at least successful ones. With long term leases, the tenant is responsible for just about everything related to maintaining the apartment. Short term leases, it's all on the owner. The owner also splits commissions and fees with those who manage the property unless they do all the work themselves, and I can almost guarantee those apartments won't be as successful as if they have an agency managing. Of course, as stated, the owner also pays all the services - and short term renters who are not paying the bills don't think about making sure that all the lights are turned out before leaving the apartment, maybe - usually much higher electric and gas bills when someone is occupying their apartment.

You're right in saying the profit comes out about the same - maybe a bit higher with the short term leases though.

The guys I know rent their apartments all year at about 50% occupancy or better. They are managing the apartments for the owners, they advertise, they make sure there are good towels, kitchen utensils, the furniture isn't bashed up, etc, and they have to push the owners to buy these things for the apartments and repair stuff all the time to make sure that the apartment stays in good condition.

There's nothing like tourists who come down to party to make a mess of an apartment real quick...

 

[wandererbird]

Argentina's prices are still good, but they have to lower these apt. prices to really make it very attractive to long-term expats.quote]


Long term expats simply dont rent temporary apartments at the prices you are talking about.

Some of us don't have a choice. I get bored and move around a lot...what am I supposed to do? And it's very hard to get a 2 yr apt. even if you wanted it. The point is apts. in Buenos Aires used to be much cheaper in 2005 or so from what I hear. I doubt the prices have risen so much to keep up with the costs...you don't get a 50% increase in one year because of costs, it's because the owner has a glint in his eye and wants to take advantage.

 

[sesamosinsal]

...and it's in BUENOS AIRES. The whole point of being here is it's supposed to be cheap.

Really? That's your whole point of being here?

You're not going to find anything cheaper in Brazil. Even in Porto Alegre, Brazil --a non-tourist city if there ever was one -- rent in a shared apartment is around $400 USD. I shutter to think how much it would be in São Paulo or Rio de Janeiro.

 

[ElQueso]

If you've noticed that apartment prices have risen - have you not noticed also that food prices have risen even higher? Inflation in general has risen significantly over the last 2 years and it's not just apartment prices. You can't believe INDEC's 8-9% per year inflation - it's more like 30% + per year.

Those who make their living (or supplement it) from renting out their apartments have higher costs now. There is no doubt about it.

Hell, almost all long term contracts have a 20% per year increase in their contract. They do it not because they are trying to take advantage of things, but because Argentina (particularly Buenos Aires) has had a lot of inflation/rising costs, particularly over the last few years. And BTW - every time I have jokingly said to an owner that INDEC says inflation is a lot lower he or she laughs and says 20% is probably not enough to cover the real inflation. That's why they start with higher prices than last year's when they start a new contract...

Going to Brasil just because the prices have risen here seems to me like shooting yourself in the foot. The prices in Brasil are higher and the exchange rate is not as good - things are more expensive, at least in Rio, than they are here.

 

[steveinbsas]

Some of us don't have a choice. I get bored and move around a lot...what am I supposed to do? And it's very hard to get a 2 yr apt. even if you wanted it. The point is apts. in Buenos Aires used to be much cheaper in 2005 or so from what I hear. I doubt the prices have risen so much to keep up with the costs...you don't get a 50% increase in one year because of costs, it's because the owner has a glint in his eye and wants to take advantage.

Whaddayamean you don't have a choice?

Check your calendar. It isn't 2005 anymore.

 

[marksoc]

it's more like 30% + per year.

No, it is not. It is something between 15% and 20%, I would say 17%

 

[StevePalermo]

I have noticed, in many cases, that Argentinos seem to want to do the opposite of what a free market would nomally have them do when business falls off. I.e., they tend to raise prices to get more money from fewer customers instead of lowering prices in order to attract more people to their business.

Agree completely. It amazed me once I realized this attitude, but it was part of the learning curve on how things work here.

 

[ElQueso]

No, it is not. It is something between 15% and 20%, I would say 17%

I saw numbers from an association of merchants in Argentina more than a year ago who were saying they were seeing 22%, disputing INDEC's claims of 8-9%.

Particularly when just recently meat itself went up almost 50% within a week or two. Over two years, my expenses have tripled, my gas, electric and water and have doubled. Food costs have doubled for many items.

http://www.meattradenewsdaily.co.uk/news/190210/argentina___beef_prices_rise_.aspx

This says beef prices went up 140%! I didn't realize it was quite that bad...

Here's an article that in 2008 was talking about private sources estimating inflation at 25-30%:

http://ipsnews.net/news.asp?idnews=43943

Maybe I exaggerated a bit with saying 30% +, but 25-30% I don't think is an exaggeration.

 

[NYKate]

My apartment was US$1096 in Brooklyn (full one bedroom, eat in kitchen, walk in closet - water included) and my fiance was renting a studio in the Upper West Side of Manhattan for US$1300 - his apt could fit in my bedroom. Most of the time, the issue is location in NY.
It looks like prices are high throughout BsAs. We are looking to rent in Flores and hope that they will be a bit more reasonable there!!