Home vs. Investment

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Home vs. Investment

The first thing to decide when thinking about investing in property in Argentina is whether the property is intended as a personal home or as an investment, and if the property is purchased as an investment, if it is intended for short term rental / long term rental or as an investment property. After this decision has been made there are various aspects to take into consideration before making an offer, such as what type of property one is going to search for and in what neighborhoods of the city this property should be located.

Home

When buying a property that you are planning on living in personally, considering what neighborhood you want to live in is crucial. Is it one that is popular and full of nightlife, etc., or one that is residential and more family oriented where you can live with your family in peace and quiet? Looking at the most popular tourist neighborhoods like Recoleta, Barrio Norte, or Palermo might not be a first choice since properties there are more expensive and you would have to buy a smaller property with the same amount of money as in a less transited neighborhood you might purchase a nice sized house, apartment, or town house (PH) where the entire family can live more comfortably with some extra space.
If you have children, living in a quiet neighborhood is positive since there are less cars, and possibly more green areas for the children to play in. There will also be other families with children living in the same neighborhood, whom they can then play with.

A home is usually..
.. A larger property with space for a family.
.. Located in a quieter, family oriented neighborhood.
.. A house, apartment, or town house with a garden, patio, or terrace with space for a grill where to make the famous Argentinean asado or to keep a dog.

Investment

Many persons that purchase property in Buenos Aires do so as an investment since the prices per square meter in Argentina are much lower than most European or North American cities. The country's capital, the City of Buenos Aires, though, is considered a city much like many of the most famous metropolitans of the world, such as Paris or New York.

Rental

The most common investment made by foreigners in the City of Buenos Aires is buying a property that they then refurbish and let temporarily to other tourists that come to visit the country or long term to the locals looking for a home for an extended rental period.

Short Term Rental
This is the type of rental that most investors have in mind when they purchase a property in Buenos Aires, and it can therefore some times be difficult to find a property that you like and that fits the purpose since they get purchased rather quickly after they appear on the market. The size of this type of property is much smaller than what you would consider a comfortable home, and is often smaller one- or two room apartments only slightly larger than an hotel room, offering similar comforts but at a more accessible price. Many persons that come to Buenos Aires looking for short term rentals want them to have higher standards than their home, and therefore look for apartments in quiet buildings with great views, and sometimes even buildings that provide access to a pool and gym area available to the tenant.

Short term rental properties are usually..
.. Slightly larger than a nice sized hotel room for extra comfort.
.. Located in a neighborhood that is centric and safe with easy access to nightlife and tourist attractions.
.. In an apartment building with a nice view, and possibly access to swimming pool / gym.

Long Term Rental
These refer to 24 month rental contracts. The properties are slightly larger than short term rental properties since the persons renting them intend to live there for at least two years (24 months). If investing in properties for long term rental, a centric neighborhood is convenient, but not mandatory. Centric neighborhood will offer the possibility of charging a higher monthly rent, but remember that the price of the property will also be higher at the time of purchase. Although a long term rental will bring in less monthly rent, something that needs to taken into consideration is the fact that when renting a property for long term rental, the landlord is not responsible for paying the monthly expenses such as light, water, gas, and any other maintenance that the proprietors of the building share the cost of, this all falls on the tenant.

Long term rental properties are usually..
.. in a quieter neighborhood, this is where a person will be living for a longer period.
.. larger than short term rental properties.

Investment

Purchasing a property as an investment is something that many people have made large amounts of money on in Buenos Aires. The trick here is knowing in what neighborhood to look for your property. Many neighborhoods that are today some of the most sought after for investments like short term rental projects, for example Palermo, was a few years ago a neighborhood where properties could be purchased very cheaply. In order to make a successful property investment, make sure to do some research about which are the neighborhood that are up and coming.

Investment properties are usually..
.. in a neighborhood that is becoming popular - the property will rise in value.
.. worth around 80 000 U$S, this is the price range that is most looked for by investors, and will therefore make it easier to sell the property.

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