Who buys up all these expensive properties?

[Bajo_cero2]

The Argentines have limited places to invest for the long term, especially in an inflationary economy, and Real Estate is one of the few. Another is investing in USDs.

But USDs keeps the value, real estate almost always goes up.

 

[Ries]

Actually, USD's go down every year in value, due to inflation. Whereas property in Buenos Aires, when averaged out over 10 year or so increments, keeps going up.
Really, the best time to buy is different for every person.

 

[Bajo_cero2]

Actually, USD's go down every year in value, due to inflation. Whereas property in Buenos Aires, when averaged out over 10 year or so increments, keeps going up.
Really, the best time to buy is different for every person.

Usd keeps value in the local economy where from time to time is skyrocket 100%.

 

[MichonnesSamurai]

We bought land about 12yrs ago and have been building a house very very slowly. It would be impossible for us to pay cash upfront/get a mortgage.

 

[on the brink]

The Argentines have limited places to invest for the long term, especially in an inflationary economy, and Real Estate is one of the few. Another is investing in USDs.

Almost no one here invests in foreign mutual funds, either US, European or Asian. They know nothing about the stock market, and are sitting ducks for the likes of Merrill Lynch. A close friend lost about US$800,000 in a year thanks to the services of a "friendly" investment advisor (her daughter's friend) who mercilessly churned her portfolio to generate fees for himself. What remains of the portfolio is now invested in Province of Chaco bonds.

Another friend went to Montevideo's Merrill Lynch to open an account there, as she was leery of investing in Argentina. She clearly stated her preferences and a year later she was fully invested.... in Argentine government bonds.

Both could have put their money safely into Vanguard Index funds online, or with a simple phone call, but the siren call of their "personal advisors" was too strong.
There are many stories like those - people here blindly trust their savings to friends, relatives' friends, or anyone they have met in person.

So, ladrillos - bricks - remains the preferred way to protect savings here.