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Overseas Property – Argentina - Sunday Express
By Richard Webber | November 01 2006
Although sunny stalwarts like Italy, France and Spain remain popular destinations when splashing out on a foreign retreat, increasingly adventurous investors are starting to broaden their horizons.
One country attracting interest is Argentina, the second largest country in South America. Real estate agents report an influx of enquiries from Brits wanting their slice of a diverse country whose 2400-mile length stretches from the sub-tropical north to sub-antarctic south, and boasts myriad landscapes, from the rugged Andes and immense eastern plains to the lakes and forests of Patagonia.
One of the world’s wealthiest countries at the turn of the century, such financial standing reflects in its strong infrastructure. Together with many European influences and properties selling for a song, Argentina has become an attractive proposition for would-be investors, says Dan Hathway, 36, who’s lived in San Rafael, in the western province of Mendoza, with his Argentinean wife, Laura, 33, and two young daughters, since 2004.
Dan’s company, Andino Properties, helps foreigners invest in Mendoza by sharing the knowledge gained buying three properties of his own, including an 84-acre farm, which he’s converting into a vineyard and olive grove, and a four-bed city house, costing £25,000 and now worth £65,000.
“Prices are cheap to the British, but for locals, with an average monthly wage of £150, they’re not, particularly as house sales are conducted in cash,” explains Dan. Although mortgages aren’t available for foreign buyers, they’re appearing for the indigenous population, but prohibitive terms, including interest rates up to 14 per cent, mean most people deal in cash. “Argentines view property like bank accounts, often substituting them due to the perceived lack of security of the banking system.”
Such absence of faith stems from a monumental currency collapse in 2001, when GDP fell nearly 11 per cent. Now, the economy is thriving again, despite climbing inflation and a need to curb corruption, thanks to a revival in exports and domestic demand.
Dan extols the country’s virtues, including spectacular scenery, a relaxed lifestyle and low cost of living. “£350 a month is sufficient for good living,” he says. But it’s the affordable property prices that attract most investors, with land available from as little as £400 an acre and properties from £10,000 in San Rafael.
Thanks to Andino Properties, Billy Buxton, 37, and his 28-year-old partner, Jenny Lowe, have secured a 20-acre plot near San Rafael for around £18,000. Taking a sabbatical from his UK job with a mental health charity, Billy and Jenny have just finished travelling the world.
Stopping off in Argentina, they were soon enamoured of San Rafael’s tree-lined avenues and friendly locals. “I was blown away by how friendly and welcoming the people were,” explains Billy, who admits the close proximity of the Andes and the feeling of spaciousness were also pluses. “We can reach the ski slopes within two hours. And wherever you are, you’re never far from such vast wilderness, which beats the crowdedness of the UK.”
They knew it was a country they could call home, and within five years intend to do just that. “We plan to build a farmhouse, plant a thousand trees and grow olives and other fruit organically.”
For those investors using their property as a holiday home, a growing tourism market and domestic demand is ensuring healthy rental yields. Six hundred miles away in the cosmopolitan capital, Buenos Aires, K.J. Molina’s luxury three-bed apartment in the Recoleta district is on target to earn nearly £15,000 in rental income in just ten months.
K.J., 36, a United Nations’ political affairs officer based in Afghanistan, uses her apartment, which cost £97,000 in 2005, three times a year. “Buenos Aires is enormously rich in culture, comparable to Paris or Rome.” Says Kara, who advises potential investors to gain assistance from a reputable company, such as ApartmentsBA, who not only sourced her apartment but renovated it and manages its rental.
The company’s American president, Michael Koh, 33, who’s purchased more real estate in the capital during the last two years than anyone else in the world, says: “There’s good potential for renting out to corporate visitors and tourists, creating a solid income stream. Most of my clients netted about 10 per cent last year on rentals alone, together with a 30 per cent capital appreciation on the value of their property.”
Michael adores Buenos Aires. “It’s a city with much energy and life. There are great restaurants, beautiful architecture, an excellent transport network, it’s safe and one of the cheapest cities in the world to live in.”
Michael rates Recoleta as the most upscale neighbourhood, but cites Palermo Solo, Viejo and Hollywood as up-and-coming districts. Prices have risen sharply in recent time and Michaelexpects the trend to continue, forecasting prices will double within six years. For bargain hunters, he suggests San Telmo. “The area isn’t as developed and you can pick up properties between £480-£640 per squared metre. Recently, I saw a lovely 90-year-old, 133 squared metre apartment for £67,000.”
Argentina, arguably the most advanced South American country, boasts more than its fair share of stunning scenery, typified by Bariloche, a principal Andean all-year resort in the Lake District region of Patagonia. With skiing in winter, sailing and trekking in summer, Maria Reynolds of Reynolds Propiedades compares it, geographically, to the lakes of northern Italy but “even more spectacular at a fraction of the price”. She enthuses: “It has incredible scenery, four full seasons, European architectural and culinary sensibility and every outdoor sport imaginable – it’s one of the last great places on the planet.”
For “luxury at a bargain price”, Maria refers to the Arelauquen Golf and Polo resort, a gated exclusive community just 15 minutes from downtown Bariloche, where a round of golf costs just £2 and homes start around £170,000. “Lakefront properties on Lake Nahuel Huapi, Guiterrez and Moreno start at around £100,000. They’re not easy to find but worth the effort because there is only so much lakefront like this in the world.”
Maria has noticed an increase in Brits buying second homes or uprooting permanently, to enjoy a high quality of life; and with property prices expected to grow, albeit at a slower pace than recent years, she expects more people to invest in the country’s real estate market. “With most people paying cash, it’s a stable market, more so than investments in the UK and US where people are heavily leveraged and prices and subject to variations in interest rates.”
Foreigners are, however, only permitted to buy property in this region in the border zones, which operate within approximately 65 miles from neighbouring countries, if it’s proved it will benefit the local community. “Usually, showing that one is going to invest money in building a house, using local labour and supplies, is sufficient,” explains Maria, who admits the drawn-out process can take up to a year.
But she’s convinced it’s worth the wait. “Many Brits are moving to Patagonia because it has a long history of immigration from Europe. They want to enjoy a high quality life at a fraction of the price of the UK.”
www.buysellba.com
By Richard Webber | November 01 2006
Although sunny stalwarts like Italy, France and Spain remain popular destinations when splashing out on a foreign retreat, increasingly adventurous investors are starting to broaden their horizons.
One country attracting interest is Argentina, the second largest country in South America. Real estate agents report an influx of enquiries from Brits wanting their slice of a diverse country whose 2400-mile length stretches from the sub-tropical north to sub-antarctic south, and boasts myriad landscapes, from the rugged Andes and immense eastern plains to the lakes and forests of Patagonia.
One of the world’s wealthiest countries at the turn of the century, such financial standing reflects in its strong infrastructure. Together with many European influences and properties selling for a song, Argentina has become an attractive proposition for would-be investors, says Dan Hathway, 36, who’s lived in San Rafael, in the western province of Mendoza, with his Argentinean wife, Laura, 33, and two young daughters, since 2004.
Dan’s company, Andino Properties, helps foreigners invest in Mendoza by sharing the knowledge gained buying three properties of his own, including an 84-acre farm, which he’s converting into a vineyard and olive grove, and a four-bed city house, costing £25,000 and now worth £65,000.
“Prices are cheap to the British, but for locals, with an average monthly wage of £150, they’re not, particularly as house sales are conducted in cash,” explains Dan. Although mortgages aren’t available for foreign buyers, they’re appearing for the indigenous population, but prohibitive terms, including interest rates up to 14 per cent, mean most people deal in cash. “Argentines view property like bank accounts, often substituting them due to the perceived lack of security of the banking system.”
Such absence of faith stems from a monumental currency collapse in 2001, when GDP fell nearly 11 per cent. Now, the economy is thriving again, despite climbing inflation and a need to curb corruption, thanks to a revival in exports and domestic demand.
Dan extols the country’s virtues, including spectacular scenery, a relaxed lifestyle and low cost of living. “£350 a month is sufficient for good living,” he says. But it’s the affordable property prices that attract most investors, with land available from as little as £400 an acre and properties from £10,000 in San Rafael.
Thanks to Andino Properties, Billy Buxton, 37, and his 28-year-old partner, Jenny Lowe, have secured a 20-acre plot near San Rafael for around £18,000. Taking a sabbatical from his UK job with a mental health charity, Billy and Jenny have just finished travelling the world.
Stopping off in Argentina, they were soon enamoured of San Rafael’s tree-lined avenues and friendly locals. “I was blown away by how friendly and welcoming the people were,” explains Billy, who admits the close proximity of the Andes and the feeling of spaciousness were also pluses. “We can reach the ski slopes within two hours. And wherever you are, you’re never far from such vast wilderness, which beats the crowdedness of the UK.”
They knew it was a country they could call home, and within five years intend to do just that. “We plan to build a farmhouse, plant a thousand trees and grow olives and other fruit organically.”
For those investors using their property as a holiday home, a growing tourism market and domestic demand is ensuring healthy rental yields. Six hundred miles away in the cosmopolitan capital, Buenos Aires, K.J. Molina’s luxury three-bed apartment in the Recoleta district is on target to earn nearly £15,000 in rental income in just ten months.
K.J., 36, a United Nations’ political affairs officer based in Afghanistan, uses her apartment, which cost £97,000 in 2005, three times a year. “Buenos Aires is enormously rich in culture, comparable to Paris or Rome.” Says Kara, who advises potential investors to gain assistance from a reputable company, such as ApartmentsBA, who not only sourced her apartment but renovated it and manages its rental.
The company’s American president, Michael Koh, 33, who’s purchased more real estate in the capital during the last two years than anyone else in the world, says: “There’s good potential for renting out to corporate visitors and tourists, creating a solid income stream. Most of my clients netted about 10 per cent last year on rentals alone, together with a 30 per cent capital appreciation on the value of their property.”
Michael adores Buenos Aires. “It’s a city with much energy and life. There are great restaurants, beautiful architecture, an excellent transport network, it’s safe and one of the cheapest cities in the world to live in.”
Michael rates Recoleta as the most upscale neighbourhood, but cites Palermo Solo, Viejo and Hollywood as up-and-coming districts. Prices have risen sharply in recent time and Michaelexpects the trend to continue, forecasting prices will double within six years. For bargain hunters, he suggests San Telmo. “The area isn’t as developed and you can pick up properties between £480-£640 per squared metre. Recently, I saw a lovely 90-year-old, 133 squared metre apartment for £67,000.”
Argentina, arguably the most advanced South American country, boasts more than its fair share of stunning scenery, typified by Bariloche, a principal Andean all-year resort in the Lake District region of Patagonia. With skiing in winter, sailing and trekking in summer, Maria Reynolds of Reynolds Propiedades compares it, geographically, to the lakes of northern Italy but “even more spectacular at a fraction of the price”. She enthuses: “It has incredible scenery, four full seasons, European architectural and culinary sensibility and every outdoor sport imaginable – it’s one of the last great places on the planet.”
For “luxury at a bargain price”, Maria refers to the Arelauquen Golf and Polo resort, a gated exclusive community just 15 minutes from downtown Bariloche, where a round of golf costs just £2 and homes start around £170,000. “Lakefront properties on Lake Nahuel Huapi, Guiterrez and Moreno start at around £100,000. They’re not easy to find but worth the effort because there is only so much lakefront like this in the world.”
Maria has noticed an increase in Brits buying second homes or uprooting permanently, to enjoy a high quality of life; and with property prices expected to grow, albeit at a slower pace than recent years, she expects more people to invest in the country’s real estate market. “With most people paying cash, it’s a stable market, more so than investments in the UK and US where people are heavily leveraged and prices and subject to variations in interest rates.”
Foreigners are, however, only permitted to buy property in this region in the border zones, which operate within approximately 65 miles from neighbouring countries, if it’s proved it will benefit the local community. “Usually, showing that one is going to invest money in building a house, using local labour and supplies, is sufficient,” explains Maria, who admits the drawn-out process can take up to a year.
But she’s convinced it’s worth the wait. “Many Brits are moving to Patagonia because it has a long history of immigration from Europe. They want to enjoy a high quality life at a fraction of the price of the UK.”
www.buysellba.com
