Will the Economic Crisis in the USA Effect Argentina?

[soulskier]

Oh, I fogot to mention the capital growth on the apartment was about 12% per year.

 

[perry]

This is an interesting link that best describes the reality of Argentina today. Outstanding mortgages are only 2% of the Argentine GDP. There is absolutely no bubble here and demand is steady . Tell me where is all that money that is being sent to Argentina from overseas Argentines going to end up ? In banks, Stock Market. under the mattress.

How Argentina Survived Its Banking Collapse -- GuruFocus.com

In the U.S. mortgages add up to $13 trillion, about 95% of the GDP. This I believe will cause the collapse of American Real Estate prices.

 

[Fishface]

Oh, I fogot to mention the capital growth on the apartment was about 12% per year.

yes, that appears to be good but what was your NET result after all expenses, sales commisions, gestor/escribano fees, bank fees, maintainence, ABL and taxes - and if you wanted to repatriate your money?...

I doubt your return would be anywhere near that.


>>FF, you don't rank BA's fun factor and architecture high on the list? Why do you live in BA?

not bothered either way - its just another city ...here out of duty - don't get me wrong its good but not great

 

[soulskier]

FF, buying a property is more expensive and selling a property is less expensive, as the buyer and seller pays a commision. The 36% return over 3 years includes the fees. Chau

 

[Stanexpat]

I think saavy investors will shift their paper assets into hard assets, aka real estate. Why not invest in a country where real estate prices are so reasonably priced? An comparable apartment in London, NYC, Paris, or any other comparable city to BA would be at least 5 times the price. THere are lakefronts around Bariloche for under 500K, a fraction of what they would be in a place like Lake Tahoe, the closest thing besides Switzerland I can think of.

I have always been an OPM (Other People's Money) guy, and I know of few other places in the world where purchase prices to rental income ratios are as favorable, both in BA and in the Bariloche area, where I live.

I have been surprised by the amount of inquires I have received for rentals in the last 2 weeks. I would have thought the s t hitting the fan would make people not want to travel, but summer bookings have been en fuego.

A vacant lot in Argentina for $500k, sorry but I think I'll look elsewhere for a bargain. I could show you nice houses on the Pacific in Peru for under $200k. If you want to see a nice house in the states on a lake and very reasonable check the link below.

Single Family Home - 380 Millstone Circle, Athens, GA, 30605 - Realtor.com

 

[DA]

A vacant lot in Argentina for $500k, sorry but I think I'll look elsewhere for a bargain. I could show you nice houses on the Pacific in Peru for under $200k. If you want to see a nice house in the states on a lake and very reasonable check the link below.

Single Family Home - 380 Millstone Circle, Athens, GA, 30605 - Realtor.com

That is a great deal, I am sure a lot of Argentinians would love to go there and live for a year until they relized how boring it is compared to Argentina.
I do agree the house and location is beautiful and very cheap.

 

[Stanexpat]

That is a great deal, I am sure a lot of Argentinians would love to go there and live for a year until they relized how boring it is compared to Argentina.
I do agree the house and location is beautiful and very cheap.

Well it all depends on what you are looking for. The house is in Athens Georgia, with the University of Georgia. Athens was picked as one of the top 10 places to retire to in the states and is 70 miles from Atlanta which an Yahoo article today listed as one of the top 10 places to live in the U.S. My guess is you could do anything there you can do in Argentina and a whole lot more. You can also live in the house without having bars on the windows or armed security guards patrolling the neighborhood. I bet that is something the Argentines would like as well.

 

[DA]

Yes you do have a point there, maybe in 5 or 10 years i would consider retirement there

 

[soulskier]

Stan, my example is a property on .75 acres, with a gorgeous main house of almost 3000 square feet, plus a guest house, on Lago Moreno, not a vacant lot. Here is the link for reference.
CV 12561 CASA LAGO MORENO - Propiedades en Bariloche :: Arismendi Consulting Group

This same property in my old home of Lake Tahoe would be at least 3 million, if not more.

I am not trying to be a salesman, I have no connection to this property, I am just pointing out hard assets such as premium real estate in Patagonia is a trend some investors are starting to look out.

For you to compare it to some brick home in Georgia is simply ridiculous.

 

[Stanexpat]

Stan, my example is a property on .75 acres, with a gorgeous main house of almost 3000 square feet, plus a guest house, on Lago Moreno, not a vacant lot. Here is the link for reference.
CV 12561 CASA LAGO MORENO - Propiedades en Bariloche :: Arismendi Consulting Group

This same property in my old home of Lake Tahoe would be at least 3 million, if not more.

I am not trying to be a salesman, I have no connection to this property, I am just pointing out hard assets such as premium real estate in Patagonia is a trend some investors are starting to look out.

For you to compare it to some brick home in Georgia is simply ridiculous.

The only comparison I'm trying to make is relative value. Trying to compare real estate in Argentina with very expensive markets in other parts of the world doesn't make much sense either.