Building HOA expenses in Buenos Aires rose 88% from January to June 2024

[Johnny]

That's good perspective, even if half of the 24 owners were late it would just mean your HOA goes to $200 a month for awhile and you'd get it all back eventually. Not ideal but not the end of the world.

The HOA bills are very reasonable in Buenos Aires. I looked at a few properties and I decided to go with a new construction. This way I don't have to worry about a deficit. I haven't closed on my apartment yet but I bought a penthouse apartment in Palermo. They told me that all the owners have to pay into a reserve fund when we close to cover some future expenses but I was told in new construction people defaulting isn't as common.

My building won't have 24/7 security guard which I'm told can get expensive. It's going to have one of those cameras with screens in the lobby and it will be monitored 24/7. More and more buildings have that system now.

I am glad I bought last year and prices have gone up. I am looking for my second apartment in Buenos Aires later this year. Prices are still very cheap there.

 

[Digital Nomad]

The monthly condo fees might be reasonable but wow are they going up. I'm renting my apartment but I see the bills keep going up every month. This article says they are up over 101.6% in 2024 alone and 266% YoY. And sounds like they are going to keep going up not come back down.

2024 Expenses Soar by 101.6%, Straining Owner and Tenant Budgets

August 11, 2024

buysellba.com

 

[Digital Nomad]

@BetsyRoss is correct. In 22 years of buying and owning real estate and purchasing for hundreds of foreigners, I've never seen any owners get kicked out of a building. In one apartment I own in Recoleta when I first bought it, a woman was years late paying. And my lawyer told me most likely all the owners in the building would need to pay her share until she get foreclosed on or she died (whichever came first) as they already had a lien on her property but with the laws it is difficult to get people kicked out of their properties.

I was ok with that risk as her HOA bill was only around $100 USD per month and there were 24 owners in the building. I still own that property. About 5 years after I purchased it, true to what the lawyer told me, she did die and after that eventually her estate had to pay all the back payments, penalties and interest. All the owners got their pro-rata refund.

It's wise to see the status of HOA payments before you purchase a property so you can see the general health of the owners. You can see each month how far behind people are.

This just happened on my girlfriend's building. They had an old woman that hasn't been paying for a decade. She died last year and her kids just sold her apartment. Everyone in the building is happy. Thousands of dollars have been finally paid to the home owner's administration. Apparently they charge a high interest amount each month so there was quite a bit due in interest. No one has to pay their expense for a few months now.

 

[PerryP]

In October, HOA fees reached a new record. What can we expect for this final stretch of the year? The increases are excessive...

Las expensas subieron 133% en el año y crece la morosidad en los edificios: las mejores alternativas para reducir costos

Cuáles son las razones detrás de los fuertes incrementos que afectan tanto a propietarios como a inquilinos. En octubre, el pago promedio de expensas alcanzó un nuevo récord. Qué se espera para el último trimestre del año

www.infobae.com

 

[Betsy Ross]

In October, HOA fees reached a new record. What can we expect for this final stretch of the year? The increases are excessive...

Las expensas subieron 133% en el año y crece la morosidad en los edificios: las mejores alternativas para reducir costos

Cuáles son las razones detrás de los fuertes incrementos que afectan tanto a propietarios como a inquilinos. En octubre, el pago promedio de expensas alcanzó un nuevo récord. Qué se espera para el último trimestre del año

www.infobae.com

The increases have been painful. I only remember one other time when it was as expensive and that was during Macri's term. I can't remember the exact amount but it felt like they were similarly expensive. This last month it slowed down a little but just keeps going up.

 

[Uncle Wong]

Any helpful tips of buildings to avoid? I am coming to BA next month and looking at some properties to purchase. One thing that scares me is that some of the properties that I am looking at throughout this year the monthly condo administration fees keep skyrocketing. One I looked at was under 98,000 pesos earlier this year. Now I asked what it was and I was shocked to hear it is over 425,000 pesos! I don't understand how they can jump up so much % in a short time.

I keep hearing inflation is going down but how do people afford these brutal increases?

 

[Johnny]

Any helpful tips of buildings to avoid? I am coming to BA next month and looking at some properties to purchase. One thing that scares me is that some of the properties that I am looking at throughout this year the monthly condo administration fees keep skyrocketing. One I looked at was under 98,000 pesos earlier this year. Now I asked what it was and I was shocked to hear it is over 425,000 pesos! I don't understand how they can jump up so much % in a short time.

I keep hearing inflation is going down but how do people afford these brutal increases?

That was one thing I was worried about as I bought a new apartment but from what I am told the newer buildings mostly try not to hire so many employees. I purposely didn't buy in a building with pool, sauna, gym. They have big expenses in those newer buildings with a lot of amenities. Some buildings I saw with 24/7 security guard had a lot of employees. My HOA bills are going to be reasonable under $200 dollars a month.

I looked at a few older properties too but they needed a lot of work. And I read now that many people are behind on their monthly expenses in older buildings. Some of these older buildings don't have any money to fix them because no one is paying the monthly expenses. This is why I was only looking at new buildings and also why they are so much more than used properties.

 

[Gus UK]

Any helpful tips of buildings to avoid? I am coming to BA next month and looking at some properties to purchase. One thing that scares me is that some of the properties that I am looking at throughout this year the monthly condo administration fees keep skyrocketing. One I looked at was under 98,000 pesos earlier this year. Now I asked what it was and I was shocked to hear it is over 425,000 pesos! I don't understand how they can jump up so much % in a short time.

I keep hearing inflation is going down but how do people afford these brutal increases?

Have these HOA bills stabilized at all? Or is inflation still continuing on them? I keep hearing horror stories from friends that tell me about crazy jumps up in monthly condo fees. Has this slowed down at all lately?

 

[earlyretirement]

Have these HOA bills stabilized at all? Or is inflation still continuing on them? I keep hearing horror stories from friends that tell me about crazy jumps up in monthly condo fees. Has this slowed down at all lately?

They are stabilizing now with increases not as bad as in previous months. I have yet to get my December statement for my apartment in Palermo Hollywood. That building has a lot of amenities like rooftop pool, gym, sauna, 24/7 security and doorman around the clock. From November 2023 to November 2024 it went up 265%. But in October to November 2024 was the first time there wasn't a huge jump up. Less than 1% increase which is great because it was jumping up tremendously. In another apartment in Recoleta that is older and only has one employee the increase was only around 100% but the doorwoman that lives in the building cleans the building too. Having less employees keeps the costs down.

You will always have inflation for a while. Salaries are going to continue to go up and there is no way around increases in HOA fees if you have a lot of employees in the building. Things like utilities were skyrocketing but are stabilizing a bit. Same with insurance and other expenses. These are all very positive trends.

 

[Betsy Ross]

They are stabilizing now with increases not as bad as in previous months. I have yet to get my December statement for my apartment in Palermo Hollywood. That building has a lot of amenities like rooftop pool, gym, sauna, 24/7 security and doorman around the clock. From November 2023 to November 2024 it went up 265%. But in October to November 2024 was the first time there wasn't a huge jump up. Less than 1% increase which is great because it was jumping up tremendously. In another apartment in Recoleta that is older and only has one employee the increase was only around 100% but the doorwoman that lives in the building cleans the building too. Having less employees keeps the costs down.

You will always have inflation for a while. Salaries are going to continue to go up and there is no way around increases in HOA fees if you have a lot of employees in the building. Things like utilities were skyrocketing but are stabilizing a bit. Same with insurance and other expenses. These are all very positive trends.

Mine also didn't jump up for the first time last month. Mine went up 2%. Keep in mind 2% is still a big jump from one month to the next but here everything is relative.

The good thing about the HOA fees jumping up was that a few units in my building were Airbnbs but since the expensas jumped up the owners converted them to a long-term rental and it is nice seeing the same families. Most people are very friendly but occasionally they would have parties and being loud so it is nice not to have to deal with that. Many owners got out of the STR market.

 

[Wally]

What is the inflation like for people that just bought in newer buildings? Johnny it sounds like you haven't gotten an hoa bill yet. @FuturoBA I recall you said you bought a new apartment a few months ago. What has the inflation been like in your apartment? Has it jumped up a lot? I always wondered if new buildings experience these big jumps up just starting out.

 

[FuturoBA]

What is the inflation like for people that just bought in newer buildings? Johnny it sounds like you haven't gotten an hoa bill yet. @FuturoBA I recall you said you bought a new apartment a few months ago. What has the inflation been like in your apartment? Has it jumped up a lot? I always wondered if new buildings experience these big jumps up just starting out.

When I bought last year, expensas were so low it barely registered - but I think it was around $35. The last time I looked I believe it jumped to around $100.

 

[Wally]

When I bought last year, expensas were so low it barely registered - but I think it was around $35. The last time I looked I believe it jumped to around $100.

Thanks. Wow! $35!? That is crazy low. Ok so 200% increase just like everyone else. I was wondering on new buildings with staff that hasn't been around too long. Mine have gone up 235% in the past year.

 

[Blockchain]

They are stabilizing now with increases not as bad as in previous months. I have yet to get my December statement for my apartment in Palermo Hollywood. That building has a lot of amenities like rooftop pool, gym, sauna, 24/7 security and doorman around the clock. From November 2023 to November 2024 it went up 265%. But in October to November 2024 was the first time there wasn't a huge jump up. Less than 1% increase which is great because it was jumping up tremendously. In another apartment in Recoleta that is older and only has one employee the increase was only around 100% but the doorwoman that lives in the building cleans the building too. Having less employees keeps the costs down.

You will always have inflation for a while. Salaries are going to continue to go up and there is no way around increases in HOA fees if you have a lot of employees in the building. Things like utilities were skyrocketing but are stabilizing a bit. Same with insurance and other expenses. These are all very positive trends.

265% inflation on dues is just surreal to me. Can't imagine my expenses jumping up 250% in a year for my apartment. Everyone would probably be selling their places. Then again our prices are already super high compared to BA.

When I bought last year, expensas were so low it barely registered - but I think it was around $35. The last time I looked I believe it jumped to around $100.

That is good it is so low. $100 a month sounds like a great deal for a new property. Probably no amenities in the building for that price? Does your place rent well? What are occupancy rates like on short-term rentals? Is it easy to rent a place when you're not there? If I bought a place my concern would be finding a good property manager.

 

[JonJLA]

265% inflation on dues is just surreal to me. Can't imagine my expenses jumping up 250% in a year for my apartment. Everyone would probably be selling their places. Then again our prices are already super high compared to BA.


That is good it is so low. $100 a month sounds like a great deal for a new property. Probably no amenities in the building for that price? Does your place rent well? What are occupancy rates like on short-term rentals? Is it easy to rent a place when you're not there? If I bought a place my concern would be finding a good property manager.

I think condo fees have jumped across the board on most buildings new or old. Mine have also gone up over 200% year over year. I bought mine a long time ago and it has rented out very well. I have a good property manager. I got lucky. I have had good management since I bought it with the exception of a few years when I switched managers. What I would recommend @Blockchain is you can put a video doorbell and a smart lock on your door.

I got very lucky because Argentina got totally locked down and my property manager still found me long-term tenants all during covid. There were a lot of expats stuck in BA. Prices went way down over the years. My first years were insanely good. There wasn't as much competition then and I was getting $150 a night and now getting about $100/night. My apartment has already paid for itself 2 times over since I bought it.

 

[FuturoBA]

265% inflation on dues is just surreal to me. Can't imagine my expenses jumping up 250% in a year for my apartment. Everyone would probably be selling their places. Then again our prices are already super high compared to BA.


That is good it is so low. $100 a month sounds like a great deal for a new property. Probably no amenities in the building for that price? Does your place rent well? What are occupancy rates like on short-term rentals? Is it easy to rent a place when you're not there? If I bought a place my concern would be finding a good property manager.

It's a small studio so that helps, and it is rented until when I plan to make the move down around April but at the rates of beginning of the year before utilities and expensas went up. If you have a good property manager it helps and even in the beginning I think I listed it lower than what I could've gotten and now it's probably a great deal for who's there now. But I wasn't looking to maximize profits so much as something until I come down. TBF expensas may have jumped up some more as my property manager is better at telling me good news and not so much with the bad.

 

[pennyless]

It's a small studio so that helps, and it is rented until when I plan to make the move down around April but at the rates of beginning of the year before utilities and expensas went up. If you have a good property manager it helps and even in the beginning I think I listed it lower than what I could've gotten and now it's probably a great deal for who's there now. But I wasn't looking to maximize profits so much as something until I come down. TBF expensas may have jumped up some more as my property manager is better at telling me good news and not so much with the bad.

I noticed there are a LOT less Airbnbs this year vs. last year. I think I heard that many locals switched from short term to long term so that might help.

 

[JonJLA]

It's a small studio so that helps, and it is rented until when I plan to make the move down around April but at the rates of beginning of the year before utilities and expensas went up. If you have a good property manager it helps and even in the beginning I think I listed it lower than what I could've gotten and now it's probably a great deal for who's there now. But I wasn't looking to maximize profits so much as something until I come down. TBF expensas may have jumped up some more as my property manager is better at telling me good news and not so much with the bad.

Initially I just wanted to cover the carrying costs and was ok to break even but it has actually been a great investment over the years. My place has paid itself off 2 times since buying it. Same as you @FuturoBA. I wasn't looking to maximize profits but now it is fun to make money with it. I plan to retire down there someday.

 

[Betsy Ross]

I noticed there are a LOT less Airbnbs this year vs. last year. I think I heard that many locals switched from short term to long term so that might help.

Yes I think that must be the case. I mentioned yesterday that 2 Airbnb units in my building have switched from short term to long-term 1 and 2 year leases. The owners got tired of paying monthly condo bills and utility bills which kept going up. Now the new tenants pay those things and it is guaranteed income for the owners. One owner told me that it has been very slow so far this year in a normally busy time. I believe tourism is down quite a lot. Some estimates say 40%.