Buying an apartment verses renting in Buenos Aires

hi dear, of course renting and buying are very very different stuff.
As being a tourist the real state will ask you for more than the real value, just because they know that you can pay, but as there is not such an offer to buy because is too expensive for argetinean pple, maybe you can get a discount.
you can check here http://www.buscainmueble.com/ or www.buscadorprop.com.ar/ as an example, but please try to contact any real state before coming here called INMOBILIARIA so you can check all the things you will need and if the prices fit in your budget.
The prices will depend on the area and the "ambientes" which is not as an eglish the we call for rooms, for example, ambiente means spaces, so, if you want a kitchen with living room together and a room, it will be 2 ambientes.
I hope this could be usefull for you. I donŽt work in real state here but I did it overseas..
Hope to hear from you soon. Noe

Hi Noe,thank you so much for providing the useful information and links.  I am very grateful.  I had an idea that when a tourist is the buyer instantly prices become double, triple, etc. The locals that rent apartments, do they look for an apartment with a kitchen?   Do the locals who rent in the city cook at home do you think, or do they eat out as food is cheap to buy?  If a kitchen is not used when living in the city, perhaps I should just look for a one bedroom apartment and it has to have a balcony.  I would die if I could not step out for some fresh air from a room.   I met a few locals who could barter for me so that I am not identified as a tourist when I rent, but before I can decide whether to get my Argentinian friends or myself to negotiate a price, what would be an acceptable price for a one bedroom? It would help me a great deal to identify what is a bargain apposed to being ripped off.  I need to understand the local rental market first to be able to start hunting for an apartment.   My hunting will be over the internet to make matters even harder for me.   Once I move, renting for a few months, I can then start studying the market for a while to know how to recognise a good deal from a bad deal.  I have emailed the embassy a few times and they have not replied about the visa types availalbe.  I am unsure if to come as a tourist on a tourist Visa for a year or go straight in with a working Visa.   I need to know the cost involved with a working Visa to help me determine the best options available to me on arrival.   I am excited and scarred at the same time.  Maybe other members know a little about Visas for new people like me.  Thank you again for your time, God bless. Warm Regards
Rita

Please, see below..I can not understand why I've been moderated

Rita,

I don't know much about working visas, but regarding purchasing an apartment, I would think very seriously about it before you do. Live here for a while, and rent. If you sink hard currency into a property here and later decide to sell it, you may find it difficult to get dollars back out of the country. No doubt this government and the currency controls will eventually pass, but this is a country that has a tragic recent history of lurching from crisis to crisis. I love living here, and I'm sure you will too, but take I would really recommend you don't get too enthused about investing here until you've spent some time.

BTW, I'm renting a studio apartment in Palermo for 1,400 pesos a month. Unfurnished. My understanding is that's not a bad price for the location. Have a poke around on zonaprop.com.ar to get an idea of what's available.

As for work visas, I believe you need a pre-contract from a company who would like to hire you before you can begin applying for this visa, but I'm interning (for free!) on a tourist visa so don't quote me on that.

Best of luck with everything!
Cam

Rita, there are NO apartments without kitchen. at least as far as i know, everybody cooks at home because first we love homemade food and also dinner out is expensive, i mean some pple that works in office for example can eat out at lunch, a cheap menu maybe some others like i am taking my food on a tupperwaer otherwise my salary wouldnŽt be enough. About the visa i have no idea, here is we are an open country for turist so is not going to be an issue if u come as a tourist and you want to get the residence, just bring that paper from the police that you dnt have any issue in your country so u dnt have to return to sidney to request it. also is not common to get working visas for coming here as we have many offer of pple (national) looking for a job.. so i recomend you to come, enjoy ur time and as u make a tourist life check on a job.
about renting prices for 1 bd apt also i dnt know,as i live in a house 1.30 from the capital. you should check on the links i gave u.
good luck and warm regards for u 2.
Noe

Sorry, I've misplaced my crystal ball, so I can't tell you what will happen to the prices of real estate will be in the future. I bought my Recoleta apartment in June, 2003. After a  renovation, the price was about US$150,000. It's now probably worth US$350,000. It might be worth US$50,000, next month. No one knows. An expat, I know, rented an apartment 4 years ago in Belgrano for US$350.00 a month. He is moving, because the rent has gone to US$900.00 a month. My utility bills have recently TRIPLED !!!! I had lunch, today, with a friend who told me that her basic cell phone bill, here, is $60.00 (pesos) a month; about double what she paid recently in Calif. I won't even mention grocery prices. Yes, make sure that you have a good kitchen; restaurant prices are insane. I'd suggest that you do a lot more research. Me? I'm thinking seriously of moving to Santiago, Chile. First World & Cheap real estate.

Hi Rita

Please go and live in Baires for at least 6 months before buying there. Renting for that time would be an investment.

It is timeconsuming, risky and expensive getting your money into Argentina. Getting it out is worse, and getting worse.

You need a tax number to buy. If you do not have residency you will get a large tax bill when you sell. Up to 2005 property was underpriced, now anything could happen. Add to this a minefield of unfourseen problems.

If you want to stay there for ever it is worth buying, otherwise not.

Chaz

Hi Rita,

Regarding your enquiry to buy a property in Buenos Aires, I believe the decision is very dependent on the individual's case ie how big your purse is. You always need an exit strategy also for when shit hits the fan, and I don't believe the exit strategy from a property in Buenos Aires would be a quick one either as properties don't move so fast.

The banks in Argentina don't give finance and if they do the interest rates will be through the roof. I believe they may give finance to bank employees and of course there would be other cases but the majority of purchases are done in cash.

Argentina has a very different property/ banking system to Australia I believe, and yes, The prices of properties you're looking at are the actual prices. If you want to confirm this you can also look at - zonaprop.com.ar.

There are inflation problems in Argentina and I believe the inflation rate has been around 18% every year for the last four years. I don't believe now is a good time to purchase in Argentina, but it could be in the future, after another economic crisis hits possibly soon. This is the prediction of many locals I speak with and many have economic qualifications.

The rent situation in Argentina will allow you to experience Argentina before purchasing. As you may know there are furnished options for around US$1,000 a month in Palermo. My suggestion is while your living there, do little business deals, very little ones, to see how the Argentinian business mind is. Also watch a movie based in Buenos Aires called "Nueve Reinas" or Nine Queens in English and remember there's no love in Business.

Good Luck!
Gaston.

Hi Rita,
The question you asked is very personal. But if you ask me I wouldnt buy. House prices are through the sky right now in Buenos Aires and a big recession is coming. Inflation is rampant and fiscal deficit is getting deeper every year. This might as well end as US 2008 crisis or somewhat similar to Argentina 2001. Just rent a flat and keep your money safe abroad for the time being. You can decide in a year or two.
Good luck with your travel agency here! I do think that will work
Juampi

You need to think how to get your money out of Argentina, if you ever think to sale your place in Buenos Aires! I am an argentinean expat living in Europe for more than 11 years, got my european citizenship already and would like to sale my place I own in Buenos Aires, but for the time being,it is not possible to take the money out of the country! so that the only possibility I have is to rent it out...it is also a nightmare to get someone that can take care of your flat while living abroad...in that case, I agree with juanpiorlando.
Atico

Rita, you do not want to buy now. Argentina has a crash (they call it a crises) about every 10 years. We all can tell that we are getting very near. You want to buy in the crises, not now.

Plus, there is an advantage to renting. If you decide you want to go elsewhere, you just pack up and go. No problem as long as you don't accumulate too much "stuff." And yet I'm not saying don't invest here, but the person who told you to rent first gave you good advice in my opinion. But if you are going to buy--be smart about it!

Thank you Arlean.   I have definitely decided to rent only.  Everyone has advised the same and thank you so much for your care.  I have been watching tn.com.ar for about 5 months now while trying to learn spanish I have learn so much about the local events of every day.  My spanish is becoming good too, so I am proud at my efforts to learn quick.   Are you a Argentinian and living there now?   Tell me alittle about what you do, that is if renting what part of the city are you in and what type of rent are you paying.  What type of apartment do you have etc.  Sorry for all the questions, they are away of researching alot about everything.   No one can fool me as I don't trust that easily but having said that I would like to be able to tell a truthful person from a shonky person when I am there.   I joined this forum because the people are sincere and honest giving advise and their opinion which matters so much but it is the general public one must always be weary off.   I want to learn about what makes locals tick.   I am very excited about visiting all of Argentina because I think it is so beautiful in every way.  This will help me bring many tourists to Argentina and extend to other countries from their.  My experience is vital to my business.  It is so lovely to hear from you and thank you for your time to give very good advise.   God bless you. Warm Regards Rita

Rita, one more comment. I see someone told you you could rent in Palermo furnished for $1k per month. I pay half that in a neighborhood in Palermo that I love--for one bedroom but it isn't fancy at all though it's in a fancy and secure neighborhood. Depends on what you require. If a studio apartment will work for you, you probably can do much better. I have seen studio apartments that I like (where friends and even one neighbor lives) with separate kitchen and even laundry area, which I do not have.

Plus building expenses are at about $140.00 for me. (You pay expensas here--the landlord gets out of some expense by passing it to the renter--even some of the taxes). Then other expenses (internet, phone, etc) come to about $70., if that helps any.

Just reread this and think I should clarify. I have a separate kitchen but one thing I wish I had is a laundry area. Some apartments (even studios) have almost like a closet (but well done) with washing machine. As it is, I wash dark things by hand (which I don't mind--there is a folding rack in the bathroom for hanging wet items) and I take the white clothes a half block to the laundry and let them do it. I am from the US, now living in BA. I started out in Bariloche 6 years ago.

Hi Arlean,

Just to clarify your price for everybody:

$500 plus expenses ($150 + 70) = $710.

Is this apartment furnished? Also offered as a short-term lease? If not short-term, is short-term an option at this price ( short-term = 1 month)?

Also what part of Palermo? Viejo, Soho, Hollywood or other?

I totally agree it's possible to get an apartment cheaper than the $1,000 estimate I mentioned, but generally if it's a short-term rental, furnished with all expenses included the prices are slightly elevated. I have friends paying similar prices to yours and actually I paid $850 (3,500 pesos), exp included, in Palermo Hollywood. If the negotiation skills are there and the time to shop, well it's possible. A connection may help to save time, also. I think once I'd pulled my pesos out of the ATM there may have been additional cost by my bank (close to $30).

$710 is a good deal and very possible. Things can also get a little cheaper down on Avenida Cordoda, which can still be classed as "Palermo" at different points. Almagro can be cheaper again, and some Entrepreneurial landlords will advertise their apartment as "Palermo", if it's on the Almagro/ Palermo border for the tourist appeal. Although, for somebody new to the Buenos Aires life, I don't recommend living outside Recoleta, Barrio Norte, Palermo, Belgrano, Las Cañitas or Puerta Madera. The last two option are for those that have a lot of cash in their back pocket. Belgrano is the cheaper option. Like I said, I live in Palermo. There are many more options though and other excellent places to live, that I may have not mentioned, but you've got to simplify the move a little when your trying to narrow things down.

Cheers,
Gaston
www.gastoncavalleri.com

I didn't mean to find fault with the price you gave. A person could pay wayyyyy more than you said as well. Yes my apartment is furnished, but as I stated, far from fancy. In fact, the furniture in the living room (couch and chairs) really should be replaced. The rest is fine (bedroom, etc). My point is . . . it all depends. But the apartment is in pretty good condition, except the porcelain is worn off the bottom of the bathtub. In other words, it's old and it needs remodel. There are people for whom it would not be acceptable, but for me, it is passable. The A/C unit does not work and they told me when I moved here if I wanted it fixed it would be up to me to fix it. It looks more to me like it should be replaced.

I live about a block from Alto Palermo, not far from the Bulness station of Linea D. It's a great area in my opinion. I do have to pay 6 months in advance and it is short term. I think they like me well enough now that I could get it by the month if I insisted. I've been here two years, I pay everything on time and I don't damage things. They seem very anxious, any more, for me to be happy.

Thank you arlean for that clear picture about your experience in renting your studio. Just got one more question: how much do you pay for ABL, energy, wather and gas? does it face front or rear? and how much do you pay for your cleaning and washing?
Thanks,
Atico.

Hi, everyone. I wanted to know how the renting system works in ARG: if you rent from the owner, how many months for security deposit, if through the agency, what is their fee. In general, is it difficult, easy?
Thanks!

It's an easy process if you've got money. There is a specific market focusing on properties that are furnished and provide for people short-term (one week, two, or a month). You generally need to pay a month in advance if you're taking it for a month. You'll pay less if you're taking it for less. Generally the price of the term you're taking it for if less than a month

Be sure to establish exactly what your commitments are regarding: water, light, internet and so on. If it's not established from the start, I can assure in most they'll hit you with some imaginary fee when the time comes to return your deposit.

You'll need a little Spanish to organize the process, although there are agencies that have English. Normally if they speak English and they're targeting the English speaking market they'll charge a little more.

Regarding an agency fee: It's better is you can find the landlord directly to avoid the agency fee, but sometimes there are other risks involved in this, and you'll need Spanish in most cases. Off the top of my head, I think an agency fee of around 15 percent would be normal. Personally I look for landlord direct to avoid this.

Good luck!
Gaston http://wp.me/2tk0C

Thanks, Gaston!
So, how much is out of pocket, if you rent long term (12 months or more) from the owner? Is it 1 month rent + 1 month security dep.? And while we're at it, how long it takes to connect an Internet?
Appreciate it.
Cheers.

What sort of apartments are for rent for short-term (i.e. 2 months) and where could I look?