Vince
Well-known member
Correct. Argentina is a total hike from anywhere!
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What happens if Argentina gets too expensive? What are alternative cities/countries to move to when it's overpriced in Argentina?
- Thread starter Larry
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James Bond
Well-known member
I moved from BA to Malaga last year with my girlfriend. To be honest I do miss Buenos Aires. So does my girlfriend. All her family is here but the insane increases were getting to us. Monthly condo fees kept going up and they are still going up. Stabilizing but the toughest thing was the unpredictability. Even rents are tough because most owners want to do inflation adjustments every 3 months! It used to be owners would do USD contracts and not adjust but now it's whatever the owner wants to do. The rental restrictions ended and it was a good thing as it added more properties on the market but it is tough for renters.
My girlfriend has a child and you have to send your kids in BA to private schools and the tuition amounts keep jumping up! Every 2 months they keep going up. It is to the point where it is $600 USD per month which is quite a bit for people. Other friends have 2 kids and it is $1,500 USD per month. With no idea when prices will stop going up. That is really impossible for people with kids that need to plan and live within a budget.
Rents are more in Spain for the most part but groceries, dining out, medical insurance are all much lower than BA now. But most people moving there are for predictability. As crazy as the government in Spain is inflation is not like Argentina.
James Bond
Well-known member
Everything for the most part works in Spain. You go to an ATM machine and you can pull out as many Euros as you want. There is 1 exchange rate. Argentina is a mess.
earlyretirement
Moderator
Very true. People here are just used to spending as much as they can before the peso gets worthless. Now with the peso stable it is different and a part of why the approval ratings are still high. Predictability and stability can't be understated. Most of my friends here are used to dining out quite a bit but even they are cutting back.
People have a new reality now. Currency is stable, inflation has fallen, and people have faith in the peso. I never thought I'd see the day where more people prefer to do a peso contract vs. USD contract. Obviously they have a peso adjustment but no one had faith in the peso before.
New reality of utility costs increasing is people have to watch what they consume. Before someone else was paying for it (government) so they just blasted the AC on and left all their doors open even. Or in the winter it will be very hot and stores will have their furnace blasting. There is a new reality in Argentina and people have to watch consumption and their bottom line because THEY are paying now.
I have many, many, many friends that moved to Spain and all of them are very happy. Most do miss Buenos Aires but I ask if they will move back and they said probably not because it's too expensive in Argentina now. There was a tremendous brain drain and most likely these people won't come back until salary levels are higher and cost of living is lower. In Spain, rentals are more but I think everything else is lower.
I just had dinner with a very good friend of mine that just did his MBA in Barcelona and he said he would move there if he didn't have kids. He is going through a divorce with one of my best friends. He said cost of living is a fraction of what it is in BA now. He gave specific examples with medical coverage, dining out, groceries, He said how he could easily travel within Europe very cheaply and easily on discount airlines. Argentina lacks that.
He is paying $1,600 USD per month for his 2 kids to go to private schools and as you all mentioned, its going up monthly or every 2 months and nothing he can do but pay it.
Yes, Argentina is very far from everywhere. I was just with some new clients of mine that was from Portugal. He brought his girlfriend's parents from Brazil to come and apartment shop with him. @CraigM, you can appreciate this. He was in the offices of GyD and we were meeting and his father in law was saying how he NEVER been to Buenos Aires. I asked him why?? I told him how it was so cheap last year. He then commented that airline flights are crazy expensive. He said that he can fly to Portugal to visit his daughter for the same price as a flight to BA.
Things are improving here in Argentina. Whether people want to admit it or not they are improving but a lot of things to fix still.
Could have been my friends! They are Americans and getting ready to move out. They had it easy last year and trying to convince me to come down. Luckily from one disaster to another. First mosquitos and then people telling me winter was not a good time. I kept delaying my trip.
I have not been to BA before but just seeing some of the menu prices people are posting and hearing about people complaining on X I have the feeling it's much more than Spain. Food here is very affordable. Some of those menu prices in BA scare me!
I hear and read over and over from people all over, especially Australia that post how expensive BA is. I saw this on X. Tuition sounds very expensive. Was it cheap before??
That is nuts!
Betsy Ross
Well-known member
There are a lot of taxes on flights to and from Argentina. I didn't know flights from Brazil to Portugal were so cheap. I will have to look into flying there. I heard great things about it.
Blockchain
Well-known member
It sounds like the whining about Argentina getting so expensive are exaggerated. It sounds like you can still live a high quality life for much cheaper than here in the USA.
Wow, good for him.
Vero
Well-known member
What people don't realize is that these cheap and expensive cycles are cyclical. Every time they go through these cycles we get a lot of complaining but the same thing happens each time. And during these cycles, it is still always much cheaper to live in Argentina vs. the USA or most other places.
Some things get more expensive than other countries but other things will come no where near the cost that those of you pay in the USA on.
daveholman
Well-known member
I think it's safe to say, at least for people earning in USD or other foreign currency, the ARS will eventually go back down. Either gradually through a managed float, or suddenly through a complete removal of the cepo.
At which time, buying power will increase again. It seems about 100% of people think the ARS is overvalued right now.
The only question is whether it kicks off another round of crazy inflation.
LyellLanatone
Active member
I would gladly pay $400 a month for a private chef in BA. I don't even want anything special just the type of food you get at "comida por peso" places but without the massive sanitary and freshness issues
Betsy Ross
Well-known member
Yes this happens every single time this happens. Argentina was expensive in previous cycles too and then crashed again. Ironically it is mostly expats that complain when locals are the ones that have the right to complain. Most of the expats leave when it gets expensive and then when it gets cheap a new round of expats follow and the cycle repeats.
Correct. I have been in Argentina for a long time and while the peso might have its moments, most people will always save in dollars. Peso is crazy high now and I do not know anyone that believes this will be long term. I would think the cepo must end later this year probably after the elections and once it does I think that the blue dollar will get stronger again.
You are right Dave that no one knows if inflation will rear its ugly head again but my guess is it will go up again. Maybe not as much as before but peso has to devalue.
daveholman
Well-known member
I might hit you up for a job when I get there...an extra $400/mo is always welcome. 🙂
LyellLanatone
Active member
If you could literally just make seasoned chicken breast with nice tasting vegetables and a carb I would pay it
Uncle Wong
Well-known member
I read that a lot of the locals are switching from beef to chicken and pork. I thought the chicken dishes I had were very bland. They don't use many spices in Argentina at all besides spice from what I could tell. I thought many places had meh food. Even many of the vegetables at the super market did not look good at all. I went to Jumbo and were surprised at how bad some of the vegetables looked.
Mother Russia Argentina
Active member
@LyellLanatone what is you favorite comics por peso place? Is there good one in BA? What name?
Spain is a great choice for expats. Look at the top spots and they are all in Spain for expats.
James Bond
Well-known member
Actually not everyone. I just read something that Milei said that the peso is not overvalued and has room to go to 600 to $1 USD. I never found a source for that so not sure if that is made up or not. But I did see an article where he is trying to claim the peso is not overvalued. I am a fan but when I read comments like that I am starting to get vibes he is not being realistic.
Are there any prepared healthy meals that are delivered like is common in the USA and other places around the world? Food can't compare to freshness in most places I sent to. Supermarket greens section is kind of pathetic in BA.
Maybe because everyone goes to a verduleria?
Milei and Caputo seem to be the only ones that believe that prices aren't expensive and that the peso is not overvalued. My friends from London came to visit and were shocked at the prices at cafes and restaurants.
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