When will property be cheap in Buenos Aires?

garryl

Registered
#22
Garryl post: 359738, member: 14042"]The building expense is ridiculous in Buenos Aires. About 3x of Paris, 4,5x of Athens Greece, 4x of Beijing.
I would buy again if the price goes way down.
Interesting statistics Garryl. The costs to run a apartment are very high and many people pay 30 percent of their income just on expenses. The consorcios have tremendous power and there is little one can do against them. In Buenos Aires 25% of all property owners are at least 3 months behind on expenses. This is a very worrying statistic and clearly shows that the real estate market is in decline. Many of these properties are repossed and the admins sell them below market value to recoup their expenses and costs.

https://www.clarin.com/ciudades/aum...postergan-arreglos-edificios_0_SJS8Q9QBm.html[/QUOTE]

Each month I received a monthly statement when I was an owner. You can see how many home owners are behind there bills, their names are all in red. There are always 5,6 or more out 32 owners. And this is a building in the center of Recoleta, is in a better part of Recoleta, most owners are professionals, lawyers and doctors and white collars working people. I bought and sold both to young lawyers who have wealthy parents. The interest on the late payment is accruing, and they do not care. I guess they just do not have the money to pay on that month. My building admin people are quite humble. The home owners just screw with them. Consorcios in US are much more powerful. But in Argentina, it's pretty hard to lose your apartment. It's not an easy job to be running and looking after apartment buildings in Argentina.
 

garryl

Registered
#23
The way in Europe is that, they eliminated their doormen after 60s and 70s when human labor became expensive. Each building in Europe just hire a cleaning person, she/he comes a few times a week and clean, and distribute the bills and report problems to the building president, when there is a need to fix something, there will be a special assessment. Thus, in Athens, 30-50- euro a month is standard, property tax is low, about 8 euro per sq meter a year, so if your apt is 100 meter, you pay 800 euro a year. In Paris, many places have the monthly fee under 100 euros. Only the super high end buildings have real doorman. 1-2 million euro apartment in Paris is considered middle class or higher, hardly considered high end. In China, the HOA (home owner association ) is big and professional, they manage to keep the fees low. If the home owners are pissed off, they just do not pay the monthly fee and there is no much you can do about it.

Argentina adopted the doorman system from Europe (many old buildings in Europe still have the doormen desk, living in apartment and telephone switch board, that the doorman can connect to any flat, like an old company phone switch board). But when things got difficult, Argentine home owners were never able to get rid of the living in doorman, which turned into a disaster. Not sure if it was due to the union or other reasons, the doorman system in Argentina is a cancer to home ownership. It makes it much harder for older people to hang on their homes when they stopped having good incomes coming in. US have high real estate tax, but it goes up slowly for long time home owner. Poor argies, when they are retired, the monthly is going with the current inflation ..
 
#24
Interesting statistics Garryl. The costs to run a apartment are very high and many people pay 30 percent of their income just on expenses. The consorcios have tremendous power and there is little one can do against them. In Buenos Aires 25% of all property owners are at least 3 months behind on expenses. This is a very worrying statistic and clearly shows that the real estate market is in decline. Many of these properties are repossed and the admins sell them below market value to recoup their expenses and costs.


https://www.clarin.com/ciudades/aum...postergan-arreglos-edificios_0_SJS8Q9QBm.html
Each month I received a monthly statement when I was an owner. You can see how many home owners are behind there bills, their names are all in red. There are always 5,6 or more out 32 owners. And this is a building in the center of Recoleta, is in a better part of Recoleta, most owners are professionals, lawyers and doctors and white collars working people. I bought and sold both to young lawyers who have wealthy parents. The interest on the late payment is accruing, and they do not care. I guess they just do not have the money to pay on that month. My building admin people are quite humble. The home owners just screw with them. Consorcios in US are much more powerful. But in Argentina, it's pretty hard to lose your apartment. It's not an easy job to be running and looking after apartment buildings in Argentina.[/QUOTE]

There are some good consorcios and others that are very mean . I know of a cases of properties being repossesed for non payment of expenses Normally it takes two years . In Recoleta people live on past glories lots of older woman who have savings which are shrinking month by month . There is little new money there and this is apparent when you walk the streets there The shops and restaurants are empty and the vacancy rate for locales is very high .
 
#25
Perry, I have a question.

How come consorcios have so much power. I have experienced it in my building. They are like bullies.
Ceviche the Suter union who control consoricos are a very powerful mafia . Some consorcios are terrible who enjoy making rules and if you have a problem you need to send them a carta documento before they will react . In the case you are not happy with your consorcio if you can get a group majority in your building to vote them out you can then elect a new consorcio . This can be a great option but always be sure that the new consorcio is well vetted beforehand.
 
#26
Ceviche the Suter union who control consoricos are a very powerful mafia . Some consorcios are terrible who enjoy making rules and if you have a problem you need to send them a carta documento before they will react . In the case you are not happy with your consorcio if you can get a group majority in your building to vote them out you can then elect a new consorcio . This can be a great option but always be sure that the new consorcio is well vetted beforehand.
The problem is that the crime under administration consorcios has a penalty that is a joke, so, administratiors are almost always criminals that simple robs all the money.
 
#27
Prices in PESOS of properties have gone up over 100 % in the last year......

The devaluation hit the real estate market, which already shows falling numbers in the buying and selling operations in the city of Buenos Aires. A survey of the Properati platform, specializing in the purchase, sale and rental of real estate, indicated that the price in pesos of the properties accumulates an increase of more than 100% so far this year, which resulted in the taking of indexed loans. "The dream of the house ownership, for the time being, has become more distant," they indicated from Properati.



https://www.infobae.com/economia/20...una-suba-de-mas-del-100-en-lo-que-va-del-ano/
 
#29
Prices will NEVER fall to the levels they did after the Correlito. That was a once in a lifetime chance to buy premium real estate so cheap. People really learned from that lesson that the ONLY thing safe to invest in Argentina is land and bricks. It's the one true investment in Argentina.

I wouldn't buy at these prices. Even 25% fall still would be expensive. There are boom and bust cycles during their recession. The one thing I'm 100% sure is if there is a huge crash in prices, you'll have investors scooping up the real estate there.