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Newcomer Buying a property in Argentina
- Thread starter PerryP
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TWB
New member
If you're thinking of buying a home to live in long-term, this could be an excellent time. Prices bottomed out last year, and now we’re seeing a lot of new investment flowing into Argentina. Barring any major changes, property values will likely continue to rise. I’ve noticed an increase in buyer interest recently, which usually signals an upward trend in prices.
Betsy Ross
Well-known member
Property prices were falling for several years in a row. I read that last year was the bottom. If you plan on living in BA for the long-term than buying is a no brainer if you have the money. I bought many years ago when I knew I would stay here long term and I am glad that I did. Friends that are renting have to go through the hassles of moving every year or 2 and they are stuck in inflation adjusted contracts that keep going up every 3 months. They are also having to already pay monthly expensas on long term rentals.
Buying can make sense. Prices will most likely keep going up.
We’re actually thinking of moving to Buenos Aires with my family, so we’re also considering buying a property. At first, we’ll rent an apartment, but we plan to buy one later. I just read this news today on the forum with information about the most affordable neighborhoods. Thanks for the helpful info!
www.expatsba.com
Real Estate Sales - Which are the cheapest neighborhoods to buy a home in CABA: what makes them attractive and what is their profitability for investors? - Infobae
Which are the cheapest neighborhoods to buy a home in CABA: what makes them attractive and what is their profitability for investors? - Infobae Source...
www.expatsba.com
Melibaires
Well-known member
I get how you’re feeling, and you’re not alone. The real estate market in Argentina has changed a lot, especially after Milei’s measures. With the peso devaluation and changes in taxes and currency controls, many people are seeing property as a safer place to protect their savings. The downside is that this has caused prices to go up, especially in the more sought-after areas, as people are trying to secure their money in something more stable.
Renting is also tricky right now, with frequent hikes due to inflation and rising costs for things like HOA fees and utilities. If you’re thinking about buying, there are still opportunities, especially in neighborhoods that haven’t seen huge price jumps yet, but it’s important to carefully consider where and what type of property you buy.
For long-term buyers, some see this as a good time to invest, especially if they can access financing or buy in pesos at a favorable exchange rate, since property tends to be a solid option to protect against inflation. That said, it’s really important to do thorough research and consult local experts before making any decisions.
Uncle Wong
Well-known member
Hindsight is 20/20. It sounds like if the economy keeps improving, prices will keep going up. I'm heading down next month to look at properties. A realtor just told me it's dead then and many owners pull their properties from the market or don't allow showings. Is this true? They said from Christmas to the end of January. Seems weird.
earlyretirement
Moderator
Being a perpetual renter in Buenos Aires is just horrible. For people that know that they will be in Argentina for the long haul buying can make sense. However, if you're not sure you will stay in Argentina then renting still can make sense. It is not convenient to move around or negotiate every few months. Now, owners are getting inflation adjusted increases every few months.
I was adamant last year that prices hit rock bottom around July 2023 and that was exactly correct. Land and construction costs are soaring. That will get reflected into property prices. Look at new construction projects with reputable developers and costs are going up every few weeks and they don't even want to sell in US dollars anymore without paying a big up front deposit.
A large chunk of these billions of amnesty funds will go into the real estate market which will further push up properties. Mortgages have started as well which will put more pressure on prices. Everything my company, @BuySellBA forecasted last year is all playing out right now.
Vince
Well-known member
Good call. I have been reading your posts here and also on your X and your company has totally nailed it with your predictions. I remember reading you posting even before Milei started there would be a big amnesty with billions coming into Argentina. That was correct. I agree with you that most locals like to keep their money into real estate or would just rather keep it under their mattress vs. risking losing it.
I have been trying to push my in-laws into buying Argentine stocks and they did not and missed out on over 100% increases in a short amount of time while Milei has been in office. I continue to think that stocks are discounted and have a big move up.
I think buying makes sense if you know you will be in Argentina for the mid term or longer term.
If your goal is long-term, you might find good opportunities in the current Argentine market. However, if you're looking for immediate financial stability, you may want to think it over carefully before committing. The economy here is very unstable, although experts say this could be the right time. If you decide to go ahead, I recommend finding a good real estate agent to guide you through the process.
Starfish
Well-known member
The tough thing here is all cash and no financing for foreigners.
From what I've read in this forum G&D developers accept US$ transfers to a US bank account. @BuySellBA knows more....
earlyretirement
Moderator
Yes, I have assisted G&D Developers set up a process for investors/buyers to pay for the units outside of Argentina in USD. However, most developers aren't wanting to take USD without an inflation CAC adjustment. The only way to bypass this and pay in cash is paying much of the cash upfront which may not be possible for many people that want to finance over many years. However, they will still allow you to wire those funds outside of Argentina. Instead of every month they might do it every quarter but if you're paying over 36 months they will consider the CAC adjustment.
Johnny
Well-known member
Yes this is correct. I purchased one property last year from GyD Developers and I just purchased another unit in a new building they are just starting now and will be done in December 2027. In both properties I didn't have to worry about dealing with cash. I simply wired to a bank account that was all in US dollars. It couldn't have been easier.
I am not making monthly payments. I could have done that but there would have been an inflation clause in the contract each month and I am glad I listened to @BuySellBA. They warned me on what could happen with inflation drastically raising the costs and that is what happened. I could not be happier with my experience working with GyD.
Betsy Ross
Well-known member
My friend bought in a pozo last year. She got a low price but her payments are much higher now with the inflation adjustments each month which she said are averaging about 6% a month. She was counting on a stronger blue dollar but it has fallen making it even worse for her. She did not really understand the process too well and her realtor did not explain it. Now she is paying much more than she had planned on. People need to understand these inflation adjusted plans.
Ouch. People doing UVA mortgages also need to be careful as it can end up costing them a lot more over their mortgage too. I don't think people understand too much how these work. I think @GlasgowJohn posted in his experiences with these UVA products but they can be toxic.
Uncle Wong
Well-known member
Interesting. I looked at a few new developments and it had a down payment and then monthly payments. They quoted the monthly payments in USD. I just assumed it was in dollars. Is that not the case? How do you know what the monthly inflation amount is?
BuySellBA
Administrator
You can see the monthly inflation here. It is updated each month. You can see from January until September below. As you can see some months have been very brutal. They use the Costo de Construcción.
Vince
Well-known member
They have a solid reputation in Buenos Aires. My brother in law lives in a tower in Soho that they built. He is very happy with his apartment.
There is usually some clause in the contract where it says the amount will be converted to pesos at the exchange rate on the reservation date and adjusted with the latest known CAC base index at the time of the reservation. Unless you specifically negotiate some USD rate but most builders will not allow that in this kind of environment. You can see from that chart above at least the inflation is stabilizing.
Uncle Wong
Well-known member
Thank you for posting this! I am just seeing this. Wait! So does this mean that if someone agreed to buy a pozo construction and made monthly payments the price could jump up each month??? That is crazy. So in January the price on the property would go up 14.2%! Looking at this if I am understanding it February is 8.7%, March 3.9%, April 4.7%, May 4.3% June 4.3% July 2.1% August 2.5% more?!
I guess if the blue dollar is going up it wasn't so bad but in this kind of situation where the dollar is getting weaker then your payments keep increasing each month and you have to pay more! I did not know the new constructions were like this. No wonder the property prices keep moving up so much.
This is correct! I didn't know it was like this either. I almost bought a property earlier this year and my realtor told me that the blue dollar always goes up so it doesn't matter. A friend bought an apartment in November of last year and she is getting killed. I just read a post on X from a popular poster that said he is going through this.
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