Who are buying houses?

[nikad]

Some of those houses are up for sale for years, literally it can be 4 or 5 yrs....

 

[Neirobiologist]

There is no exact logic on how people afford it but many can and do find a way. Just looking at a statistic like average salaries in a country like Argentina tells you very little.

This is a great investigation! of real estate I just got read a real exciting plot, aha. Thank you , antipodean ! ))))

 

[Aztangogirl]

My wife and I decided to buy a plot of land in the province and build a house rather than buy an already built house, the prices even in certain parts of the province are not connected with reality and what our budget could afford wasn't what we were looking for.


From the Argentinian people I know that have bought houses they have either sold an inherited house in order to purchase an apartment or house for themselves, or they saved USD like mad during the years of a far better exchange rate.

Some older people I know were able to buy during the Menem years of a 1 : 1 exchange rate before the wheels came off that train.

I would say it's a huge source of frustration for young Argentinians now however as owning their own home or apartment here without an inherited house or cash rich parents to fall back on is nothing but a pipe dream given that putting away 100 or 200 dollars a month is almost a dream itself..

Same story in most countries these days. Especially in places people want to live.

 

[carride]

There are mortgages. 240 months is typical. Example: https://www.bbva.com.ar/personas/productos/creditos-hipotecarios.html

And there is the ProCrear government program which gives first time young buyers 5% in assistance. My understanding when I knew people who received is that it can be a bit of a lottery. https://www.argentina.gob.ar/habitat/procrear

 

[Lex]

I don't think a lot has changed in the (over)pricing of real estate here for many years. We bought our place in Palermo nearly 11 years ago for 30% less than the asking price. Market value is what buyers are prepared to pay, not what sellers are asking.

To add to what has been said, the real estate market here, being USD denominated, is largely at the mercy of access to dollars. Just like back then, now is undoubtedly a good time to buy given the restrictions on dollars for locals has once again taken the ass out of the Argentine real estate market. So if you've got dollars, you're in an advantageous position. If you find a motivated seller, try to find one with an offshore bank account to effect the transaction...but that's for another chat (and has been covered). Good luck!

 

[mageesa]

The locals I know who bought either scrimped and bought tiny dark places, got a "deal" from a family member, got a loan from family which they pay back like a mortgage, or.... Work for a big multinational bank. Oh but the landlord of my place had a bunch of apartments, he just saved up the rent money. The rich get richer!

 

[antipodean]

Some insights from buying “off the plan” for new apartments in the city/ ZN which may be an option if you’re not in a rush to move into your new place and want a property with a better chance of value appreciation.

Usually you will need to put down a deposit in USD billete of 20-30%. As for the remaining balance some developers will put anywhere from 24-60ish fixed cuotas in USD, others will put those cuotas in ARS which are periodically adjusted by the Cámara of Constructions rates.
To qualify for a purchase of a $350k apartment (for example) in this way and be considered “credit worthy” you’ll usually need around US$6000 per month income in your pocket - regardless if the cuotas are in ARS or USD. As already stated it’s a risk if you ultimately end up paying more or less than the agreed price in USD thanks to currency distortions, however given this financing doesn’t incur interest it can be a “cheap” way of financing especially if you already have the cash to have been able to buy in full.

What’s more, and something uniquely Argentine, is that many of these projects (especially the flashy high-end ones in Puerto Madero etc….) qualify for “apto para blanqueo” - meaning they are state sanctioned and legal forms of money laundering to turn that income “en negro” into an asset “en blanco”.

Given many projects at this price level or higher have absolutely no problem in selling the majority of their units long before the project is complete, especially the more expensive ones, you can see that it’s not all struggle and suffer for all buyers here…

 

[dsp27]

Some insights from buying “off the plan” for new apartments in the city/ ZN which may be an option if you’re not in a rush to move into your new place and want a property with a better chance of value appreciation.

Usually you will need to put down a deposit in USD billete of 20-30%. As for the remaining balance some developers will put anywhere from 24-60ish fixed cuotas in USD, others will put those cuotas in ARS which are periodically adjusted by the Cámara of Constructions rates.
To qualify for a purchase of a $350k apartment (for example) in this way and be considered “credit worthy” you’ll usually need around US$6000 per month income in your pocket - regardless if the cuotas are in ARS or USD. As already stated it’s a risk if you ultimately end up paying more or less than the agreed price in USD thanks to currency distortions, however given this financing doesn’t incur interest it can be a “cheap” way of financing especially if you already have the cash to have been able to buy in full.

What’s more, and something uniquely Argentine, is that many of these projects (especially the flashy high-end ones in Puerto Madero etc….) qualify for “apto para blanqueo” - meaning they are state sanctioned and legal forms of money laundering to turn that income “en negro” into an asset “en blanco”.

Given many projects at this price level or higher have absolutely no problem in selling the majority of their units long before the project is complete, especially the more expensive ones, you can see that it’s not all struggle and suffer for all buyers here…

can you elaborate a bit more on this? is this done thru a bank? Is this "en poso""

 

[Neirobiologist]

please can you give an advice. Are there situations in Argentina when, after signing of Escritura by a Notary, the right of posession and ownership of real estate - could not be registered in the state register? I guess that the Notary's signature on the escritura is the most important evidence of the legitimacy for the transfering of ownership. Thank you

 

[lunar]

I guess that the Notary's signature on the escritura is the most important evidence of the legitimacy for the transfering of ownership.

I believe the signatures of the owner and the buyer are at least equally important

Typically, in most operations, it is assumed that the process will progress without any issues along the "happy" path. I suppose it's a different mindset from where you came from. If something goes wrong, you always have an option to take a legal action.