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Investments: The 6 BA Neighborhoods to buy and rent - La Nación Propiedades
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www.lanacion.com.ar
August 11, 2023
Investments: The 6 Buenos Aires neighborhoods that are convenient to buy a property to rent because it leaves more profit.
By: Lucila Barreiro
In July, the annual gross profitability for second-hand apartments with 1 to 4 rooms reached 4.76%.
In July 2022, the return was below 3%, exactly 2.98%
Although the outlook for the real estate market still presents uncertainty, it is undeniable that a sustained recovery is being observed with price readjustments. This current dynamic configures a propitious environment for the acquisition of properties . Negotiations with aggressive counteroffers have decreased in frequency and investment in projects under development continues to be attractive . Likewise, the trend towards dollarization of assets through real estate stands out .
As for the rental market, it continues to be a scene of great turmoil. Although the main victims of the drama are the tenants, the owners also suffer from the low profitability they obtain from their properties , mainly the result of one of the most controversial articles of the rental law: the annual update of the value , which makes the increases have to be made once a year, a variable that determines that the contracts always run after inflation.
However, in the last month, a slight increase in rental profitability was observed . According to data from the Real Estate Report, in July the annual gross profitability for used apartments with one to four rooms reached 4.76%, compared to the 4.44% registered in June . This figure represents an increase of almost two percentage points, precisely 1.78%, in relation to the same previous period. It is important to note that in July 2022, profitability was below 3%, exactly 2.98%.
Un alquiler con un valor más alto no siempre se traduce en una mayor rentabilidad.
This can be seen when comparing the average prices of some 686 units available for formal three-year rental in pesos , which can be found on internet search engines, with the prices of similar units available for sale in each neighborhood of the city.
According to German Gomez Picasso, founder of Real Estate Report, comments: " It is very likely that in 2024 rents will continue to rise hand in hand with the constant increases in rents, the lack of supply and the possible stability in sales values."
As for the average rental yield at the beginning of a traditional three-year rental contract for used units, studio apartments are the ones that give the highest rent, 5.48%, followed by two rooms with 5.02 % and the three environments with 4.4 %. The largest three-bedroom units are those that provide the lowest profitability with 4.19% in July 2023.
The best neighborhoods to invest
Almagro is the neighborhood with the highest profitability, where a studio apartment costs an average of US$63,000.
A key fact is that a higher rental value does not always translate into higher profitability . For those looking to make a solid investment, it is essential to keep in mind that there are areas where renting offers maximum profit margins. These zones are determined by the number of rooms in the property and its geographical location.
The neighborhoods that offer the highest profit margins in the case of studio apartments are:
Almagro : with an annual return of 7.02% and contracts that are around $192,500 per month, a studio apartment in this neighborhood costs an average of $63,000 and ranks as the most profitable within this type.
Chacaritas : with a 6.77% return, it is positioned as the second most profitable neighborhood in the case of studio apartments, with an average rent of $209,000 and an apartment priced at US$71,000.
San Nicolás : in third place is this neighborhood in downtown Buenos Aires, where profitability reaches 6.69% with an average rental value of around $160,000 per month.
Villa Crespo : the neighborhood that currently arouses the most interest due to its proximity to Palermo, has a profitability of 5.91%. The monthly rental price is around $180,000.
Villa Urquiza : with the average rent at $192,500, buying and renting a studio apartment in this area has an annual return of 5.6%.
Saavedra : this neighborhood increased its popularity after the pandemic and today investing in an apartment in this area yields a return of 5.21%, with the average rental of a studio apartment at $170,000.
Which neighborhoods leave a return below 5%
Despite being the most coveted neighborhood to live in, Palermo does not exceed 5% profitability.
On the other hand, these are the areas of the city in which acquiring a studio apartment to allocate it to a contract does not manage to exceed 5% profitability:
Palermo : despite being the most coveted neighborhood to live in, buying a one-room apartment in this area costs US$93,450, and with a monthly rent of $200,000, the return is 4.92%.
Barrio Norte : something similar happens in the case of Palermo, since the value of a studio apartment is US$69,950, while the monthly rent is US$145,000. This means that investing in this area would leave a return of 4.77%.
Caballito : with a return of 4.66%, the average rent is $140,000 per month.
San Telmo : it is the neighborhood where a studio apartment leaves the lowest profitability (3.63%), with the average monthly rent at $102,500.
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Inversiones: los seis barrios porteños en los que conviene comprar una propiedad para alquilar porque deja más ganancia
En el último mes se experimentó una mejora en la rentabilidad que dejan los contratos de alquiler de los departamentos usados, aunque es importante destacar que un alquiler con un valor más alto no siempre se traduce en una mayor ganancia sino que la ecuación surge de cuánto se invirtió y el...
www.lanacion.com.ar
August 11, 2023
Investments: The 6 Buenos Aires neighborhoods that are convenient to buy a property to rent because it leaves more profit.
By: Lucila Barreiro
In July, the annual gross profitability for second-hand apartments with 1 to 4 rooms reached 4.76%.
In the last month, there was an improvement in the profitability of the rental contracts of the second-hand apartments, although it is important to note that a rent with a higher value does not always translate into a higher profit, but rather the equation arises from how much is invested and the time it takes to get it back
In July 2022, the return was below 3%, exactly 2.98%
Although the outlook for the real estate market still presents uncertainty, it is undeniable that a sustained recovery is being observed with price readjustments. This current dynamic configures a propitious environment for the acquisition of properties . Negotiations with aggressive counteroffers have decreased in frequency and investment in projects under development continues to be attractive . Likewise, the trend towards dollarization of assets through real estate stands out .
As for the rental market, it continues to be a scene of great turmoil. Although the main victims of the drama are the tenants, the owners also suffer from the low profitability they obtain from their properties , mainly the result of one of the most controversial articles of the rental law: the annual update of the value , which makes the increases have to be made once a year, a variable that determines that the contracts always run after inflation.
However, in the last month, a slight increase in rental profitability was observed . According to data from the Real Estate Report, in July the annual gross profitability for used apartments with one to four rooms reached 4.76%, compared to the 4.44% registered in June . This figure represents an increase of almost two percentage points, precisely 1.78%, in relation to the same previous period. It is important to note that in July 2022, profitability was below 3%, exactly 2.98%.
Un alquiler con un valor más alto no siempre se traduce en una mayor rentabilidad.
This can be seen when comparing the average prices of some 686 units available for formal three-year rental in pesos , which can be found on internet search engines, with the prices of similar units available for sale in each neighborhood of the city.
According to German Gomez Picasso, founder of Real Estate Report, comments: " It is very likely that in 2024 rents will continue to rise hand in hand with the constant increases in rents, the lack of supply and the possible stability in sales values."
As for the average rental yield at the beginning of a traditional three-year rental contract for used units, studio apartments are the ones that give the highest rent, 5.48%, followed by two rooms with 5.02 % and the three environments with 4.4 %. The largest three-bedroom units are those that provide the lowest profitability with 4.19% in July 2023.
The best neighborhoods to invest
Almagro is the neighborhood with the highest profitability, where a studio apartment costs an average of US$63,000.
A key fact is that a higher rental value does not always translate into higher profitability . For those looking to make a solid investment, it is essential to keep in mind that there are areas where renting offers maximum profit margins. These zones are determined by the number of rooms in the property and its geographical location.
The neighborhoods that offer the highest profit margins in the case of studio apartments are:
Almagro : with an annual return of 7.02% and contracts that are around $192,500 per month, a studio apartment in this neighborhood costs an average of $63,000 and ranks as the most profitable within this type.
Chacaritas : with a 6.77% return, it is positioned as the second most profitable neighborhood in the case of studio apartments, with an average rent of $209,000 and an apartment priced at US$71,000.
San Nicolás : in third place is this neighborhood in downtown Buenos Aires, where profitability reaches 6.69% with an average rental value of around $160,000 per month.
Villa Crespo : the neighborhood that currently arouses the most interest due to its proximity to Palermo, has a profitability of 5.91%. The monthly rental price is around $180,000.
Villa Urquiza : with the average rent at $192,500, buying and renting a studio apartment in this area has an annual return of 5.6%.
Saavedra : this neighborhood increased its popularity after the pandemic and today investing in an apartment in this area yields a return of 5.21%, with the average rental of a studio apartment at $170,000.
Which neighborhoods leave a return below 5%
Despite being the most coveted neighborhood to live in, Palermo does not exceed 5% profitability.
On the other hand, these are the areas of the city in which acquiring a studio apartment to allocate it to a contract does not manage to exceed 5% profitability:
Palermo : despite being the most coveted neighborhood to live in, buying a one-room apartment in this area costs US$93,450, and with a monthly rent of $200,000, the return is 4.92%.
Barrio Norte : something similar happens in the case of Palermo, since the value of a studio apartment is US$69,950, while the monthly rent is US$145,000. This means that investing in this area would leave a return of 4.77%.
Caballito : with a return of 4.66%, the average rent is $140,000 per month.
San Telmo : it is the neighborhood where a studio apartment leaves the lowest profitability (3.63%), with the average monthly rent at $102,500.
www.buysellba.com
