Everyone in the real estate industry in Buenos Aires agrees. Real estate agents, brokers, developers and construction companies all point out that the best properties to buy right now are small apartments in good locations priced between US$ 50,000 to US$ 150,000.
The current global financial situation creates uncertainty, even in Argentina where the full effects of the crisis have not been felt as strongly as in the United States and Europe. The financial markets are unstable and the uncertainty of world economies makes it unadvisable to transfer funds abroad. The best option for investors in Buenos Aires at the moment is real estate investment. Property always proves to be a secure investment, at least on a medium and long term basis. In the short term, it can provide rental income which can yield an annual return of six percent.
Mortgage loans in Argentina have virtually disappeared. The Cámara Inmobiliaria Argentina has requested that the government reinstate mortgage loans for the middle class. Such loans accounted for seven percent of real estate sales, but in today’s economy they have disappeared. In addition to producing a slight drop in sales, this lack of financing forces many people, especially singles and young couples, to rent.
Currently the smartest real estate investment is the purchase or construction of smaller units, one room studios to two bedroom apartments. Smaller units in good locations are always in high demand as rentals. A studio apartment is now renting for $900 to $1,100 pesos per month. Smaller units have lower maintenance costs and in many cases these costs are passed on to the renter. Apartments in Buenos Aires can be rented with a two year lease or on a temporary basis, usually to foreigners and in US dollars.
Industry experts believe that property values will remain stable, though negotiations will be somewhat more difficult. Those who are selling already constructed property and are not in need of immediate cash, are unlikely to lower their selling price because they know they will need to pay as much or more for another property. Premium properties are also retaining their value.
Real estate agents and brokers believe that recent government legislation will help maintain or even stimulate their industry. The legislation encourages Argentine citizens to legally declare assets held within the country or abroad by taxing them only one percent, as long as that capital is invested in purchasing or constructing real estate property in Argentina. The new law gives realtors a good leverage point to use when dealing with investors that fall within the parameters of the legislation.
The proven Buenos Aires – Argentina lawyer professionals at the Kier Joffe law firm have experience working with foreign clients involved in all kind of cases in Argentina. Buenos Aires Argentina attorney professionals are knowledgeable in almost all the practice areas of law, to service its international cases in Buenos Aires Argentina. International clients will have the confidence of knowing that the case is being handled by an experienced and knowledgeable Buenos Aires lawyer in Argentina.