Who buys up all these expensive properties?

[Fiscal]

Argentinians are usually all-cash buyers?

 

[nikad]

Argentinians are usually all-cash buyers?

Yes

 

[London2Baires]

Consider that there is NO functional banking system in Argentina. While it's improved quite a bit since the last crash, no one really trusts it. The ONLY safe things to invest in Argentina is land and "bricks". That probably won't change until the end of time. Further consider that most wealthy locals don't have anything else safe to put their money in besides apartments/properties. And if they are going to invest they'd rather do it in the Capital. Same goes for many other wealthy people I know that live in other cities in Argentina. They aren't buying in Bariloche, Salta, Mendoza, etc. They ALL bought in the Capital. (Mostly Recoleta and Palermo).

Just look at a HOA bill and you will see many, many same families that own many units in the same building. I'm certainly not saying prices are cheap in BA now. Quite the opposite. But you had over $100 BILLION come back into Argentina with the tax amnesty and most of it went into real estate which artificially drove up the prices.

The one lesson that can be learned from the various recessions/depressions Argentina has had is if property prices fall drastically in the Capital in good areas, buy it up.

At these prices, it's not a good investment because ROI on rentals is far lower than you can get in other places. But many people that brought back money with the amnesty didn't have a choice to put it into anything else safe.

Prices DEFINITELY will fall as the recession gets worse. But rest assured there will be investors that are ready to pick it up.

Some excellent and nuanced analysis here!

Thanks for sharing

 

[bobsnowpuppy]

Argentinians are usually all-cash buyers?

Except for the last couple years when there were a limited number of mortgages available, all purchases are made in 100% cash.

 

[Bajo_cero2]

Hmm. It might be a way to "wash money" as you say but these days they are much more stringent. The last few properties I've bought and sold I had to fill out a lot of paperwork and they even took fingerprints. Years ago when I first started buying there wasn't too much to it.

Not at BA Province.

 

[earlyretirement]

Not at BA Province.

Ah, I'm not sure about the provincia. I've only purchased properties in the Capital and not the provinces so I don't know what the reporting is like there. But as mentioned, the past few purchases as well as the last few sales, I had to fill out detailed paperwork as well as they took my fingerprint.

 

[sergio]

Ah, I'm not sure about the provincia. I've only purchased properties in the Capital and not the provinces so I don't know what the reporting is like there. But as mentioned, the past few purchases as well as the last few sales, I had to fill out detailed paperwork as well as they took my fingerprint.

Finger prints? Who did that? And you are a Permanent Resident or citizen?

The finger printing procedure must be a very recent thing.

 

[earlyretirement]

Finger prints? Who did that? And you are a Permanent Resident or citizen?

The finger printing procedure must be a very recent thing.

No, it's not TOO recent. As long as 2 years ago they have been doing this. It's the Escribano that does this during the Escritura signing. There is a long paper (8.5 X 14) paper with a bunch of information to answer including name of spouse, occupation, CUIT/CUIL, DNI, address, employer, etc. Then at the end the Escribano brings out an ink pad and takes your finger print on it.

I'm a Permanent Resident. I could get my citizenship but haven't figured out if there is a good enough reason to get this.

 

[Aztangogirl]

No, it's not TOO recent. As long as 2 years ago they have been doing this. It's the Escribano that does this during the Escritura signing. There is a long paper (8.5 X 14) paper with a bunch of information to answer including name of spouse, occupation, CUIT/CUIL, DNI, address, employer, etc. Then at the end the Escribano brings out an ink pad and takes your finger print on it.

I'm a Permanent Resident. I could get my citizenship but haven't figured out if there is a good enough reason to get this.

I just bought an apartment. I didn't give fingerprints at the final signing. And I am still waiting for my DNI.

 

[Ceviche]

Is it good to buy apartments under costruction from know builders and hope that price will increase when the aprtment is ready or its better to buy ready made apartment.