Who are buying houses?

[Ries]

I have never met an argentine who had a mortgage. I know some architects who have gotten short bridge loans to fix up and then sell a building- 1 or 2 years. But the average person pays cash.
I have found that the quality apartments sell very close to asking, and pretty quickly.
I have seen several apartments in barrio norte lately sell within a month if priced right- and that doesnt mean they are cheap. a friend was interested in one last fall, which sold right away for right around $200k.
There is an upper middle class here, which does buy and sell homes. The economy here contains a fair amount of people with money, and the really nice older places sell. But like everything else in argentina, the real estate market has its own rules, and takes a while to figure out.
A lot of my argentine friends did well with the inflation of the last 15 to 20 years- I know people who had tiny places they bought for $20 k or so, but after 10 or 15 years, they appreciated enough to flip them and move up market. I know when we bought our place, in 2007, there were casa chorizos for sale in Palermo Hollywood for $150k, and those are all upwards of $500k now.

 

[antipodean]

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

You do it directly with the developers, no banks involved. If you see a new project advertised that looks interesting contact the developer and ask them about what financing they are offering, and of course the current state of the project and timeline (For example, you may feel more comfortable with a project once work on site has actually began since everything you pay before it is delivered, plus the ongoing liability, is essentially at risk if they don’t have the stuff together).

 

[Girino]

I am eyeing some properties. There are plain old places that are priced the same or more than new properties with amenities. From an investment point of view, it makes no sense.

There is an old nice apartment in a great location that has been on the market for years with a price tag that ranged from over 230k in 2019 to 160k in 2022. After pressing the real estate agent, we found out that besides needing substantial renovation works, the HOA expenses are about 200 USD/month because a full time encargado they can't get rid of. The hallways are impeccable, but there is no added value in that vs. a new building with amenities and likely less monthly expenses.

Some considerations applied abroad when buying real estate are not really applicable here, such as contingencies (do not exist here), cash vs. financing (everybody buys cash), properties sitting longer on the market or listed with multiple agents are a good fit for aggressive offers (no way to put pressure on some sellers, it seems they just keep their property on sale "just in case" and not because they want actually sell it).

 

[Ries]

Part of deciding whether or not to buy an apartment here is definitely researching the consorcio, and the administrator, the encargado situation, and the expensas. If you dont know what all these things are, you need to learn before signing anything.
Are there new electric meters, and a recent electrical service? What about the gas- if its ancient, its gonna break, and sometimes that means six months of no hot water or heat.

Smaller buildings are usually better and easier to deal with than big ones. If you have 50 or 200 apartments, the administration is always a quilombo, and you just have to accept whatever they tell you.
With 5, or 7 apartments, you have a chance of actually understanding and influencing what goes on.
And age and condition of the building definitely affects price. There are thousands of properties for sale- you cant be afraid to walk away from signs of trouble before purchasing.

The really good apartments have 100 year old buildings, with wonderful thick walls, big windows, wood and tile floors, AND have had the kitchens and baths redone in the last five years, and new fria/calors. (air conditioners)
Otherwise, you have to factor in the cost of remodelling the kitchen and baths. Easy 10 grand US each. And usually a couple of new airconditioners, at a minimum of $1000usd each.
Check the electrical service. Do you know the difference between a fuse and a circuit breaker? Does it have three prong outlets, or the ancient double round ones? Check for Ground. Again, if you don know how, you have to hire somebody who does, and there are not housing inspection services here like in some other countries.
When I buy used cars in the US, I always just assume that part of the price will be new tires, new battery, and likely a timing belt.
Its the same here with kitchens and baths- when people sell, they have usually foregone repairs or maintenance for years.
There are good deals out there, and really good apartments, but it takes more education to buy well here than in many other places.
Location is important, but its far from the only thing.