earlyretirement
Moderator
There are several expats that are married to Argentines and moved to Buenos Aires. Tons of them. I think after Covid this picked up afterI am curious. Are there many foreigners or Americans out in the gated communities? I am just wondering why they would want to live all the way out there? As I understand it during COVID there was a big push towards big open spaces but is there still demand or interest out there?
the brutal multi-year lockdown there. My company has been retained by several of this type of client that has kids and want a bigger place. I wouldn't say there are a ton of foreigners out there but there are a lot of wealthy Argentines that own a house out there just to use on the weekend.
i suspect the government numbers and "official" earnings/savings/wealth is so far from reality after almost a century of communism/fascism. i think Argentines have way more money overall than it appears (and the people i see in many neighborhoods paying $2 USD for a can of crappy Heineken beer show me that there is a significant population of regular people who aren't hurting as much as the news media makes it seem)
and if there are almost no costs to hold a property, might be better to just sit and wait for a full offer (if it's paid-off with very cheap utilities/etc.) as @RinderHerts says
whereas in the USA with mortgage monthly costs and non-subsidized utilities, i was in a hurry to sell because the market was dropping and it was costing me money (and a risk of something breaking, etc.) daily.
Totally correct. Don't get me wrong. There are a lot of poor in Argentina. Tons. But there is a good % of the population there that is wealthy beyond your wildest dreams. They put my wealthy American friends to shame. There was so much wealth accumulated in Argentina over the past 100 years. Remember when Argentina's GDP was ahead of France and Germany. Many families built up generational wealth and it seems like this is passed down generation to generation. I know a lot of Argentines that live in Buenos Aires but they own a place out in the suburbs and they may or may not use it on the weekends.
@StatusNomadicus is correct that the carrying costs of owning a property as of now as very low. All the properties are paid with cash so no mortgages and the houses and many locals don't even pay property taxes. Utilities are dirt cheap compared to other major metropolitan cities around the world.
With low carrying costs, some of these owners will just sit on the house for years. One of my clients bought a $1 million USD+ house a few months ago and the house was for sale for 4 years. The owner apparently got several offers according to the realtor but they just turned down all offers until they got their price. This is common to see here. We did negotiate down about 7% down from asking but several properties they were looking at the owner wouldn't come down at all.