Politics Nestor Kirchner has just passed

[earlyretirement]

Your input is valuable, and I completely agree, especially considering the prevalent overpricing of real estate globally. I firmly reject the notion of engaging in speculative real estate transactions, and I am committed to representing only those sales that align with market value.

Buenos Aires stands out as a unique market globally, primarily driven by cash transactions. Consequently, the supply of available properties for sale is notably lower compared to equivalent markets, especially in the USA and Europe. Presently, I'm handling a list of 56 prospective buyers urgently seeking 2-bedroom apartments with specific features in Barrio Norte. However, the challenge lies in finding commendable properties that meet their criteria.

Real estate inherently involves risks, necessitating careful consideration before making a purchase. My belief is that individuals should refrain from buying property in Argentina unless they have decided to live here and pursue residency. For those considering real estate purely for speculation, I would advise exploring alternative investments.

Milton I totally agree with you on this point. The ALL CASH market here is really important to keep in mind and something that totally separates Buenos Aires from other places around the world that are in a speculative bubble.

You are also right there isn't many great properties on the market in good areas. There is a lot of "junk" on the market but really great properties are hard to find. I own a whole lot of real estate here in Buenos Aires and always looking to add more but as you mentioned there isn't a lot of great properties on the market. Most locals aren't motivated to sell because as I mentioned before...there is nothing else to put your money into here in Argentina. The only safe investment locally for the Portenos are bricks and land. I had a friend that recently sold a $800,000 US property in Palermo Soho. I thought it would take them many months or a year to sell. It sold in 3 weeks! All cash to a local Porteno....

Add into the mix that safe investments around the world are paying almost nothing now. CDs and bonds at 1.5% which I consider almost nothing. Even on apartments here you can do a long term lease and net 5%-6%.

And I agree with you that most people aren't good candidates to buy in Buenos Aires. Heck, the vast majority of people out there aren't in a position to pay 100% cash for a property. The vast majority of real estate investors out there leverage with finance and that simply isn't possible here in Buenos Aires. One of the favorite things about the real estate market I've always loved was that there aren't really any Pikers in the market here. You can't afford to buy a property here unless you have the cash. It's one of the most beautiful things about the market here for intrinsic investors here that value the fact that you can't really "speculate" here.

I'd much rather own a property here in Recoleta or Palermo vs. Miami Beach, New York City, London, Madrid, or most places in the USA that are still with inflated prices. You have one bad hurricane and property prices will fall another 20% in Miami.

 

[DeweinCesa]

Argentine real estate has done well. This outfit been around the block few times.
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=IRS:US

 

[earlyretirement]

Argentine real estate has done well. This outfit been around the block few times.
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=IRS:US

Doc I wasn't referring to you in my post.

Dennisr - IRS has been a great performer over the past 2 years. I got in a little over a year ago for a pretty sizable position and it's been a great performer! Just keep in mind it's not a heavily traded stock so volume is REALLY thin. But it's been a great performer.