Still Time in the Land of the Tango

Prices are going up as recovery comes to Argentina--but it's not too late to profit.

When I wrote to you on this last year, the bottom had fallen out of the Argentine real estate market. Prices were down as much as 70% from their pre-crisis highs. Today, we're a year along in the recovery. Which means that, had you bought last year, your investment would be up 25% already.

But it's not too late for you to get in on the bargains and the profits that Argentina offers investors.

Yes, it's true...prices are up and rising. Real estate in this country is not as cheap as it was last year. But it is also a far less risky proposition than before. In fact, the Argentine "road to recovery" seems smoother than anybody expected.

Tuesday, March 9, 2004, a deal was struck that should be vital to Argentina's recovery. Argentina made a $3.15 billion loan repayment to the IMF. That's great news for those who have already invested, but it's good news for you, too, if you would like to explore the opportunities this country offers.

According to Reuters News Service, "Argentina has been locked in a high-stakes brinkmanship with the IMF for weeks, with the main sticking point being whether Buenos Aires is negotiating in good faith with creditors scrambling to recoup investments hammered when the country defaulted in Jan. 2002."

So this deal is good news. International loans and assistance will continue to flow to Argentina as its recovery moves ahead.

If you remember, on Jan. 7, 2002, Argentine President Eduardo Duhalde announced default on the country's $141-billion debt and ended the peso's peg to the U.S. dollar. That drove the economy into a tailspin. And made Argentina the best bargain in the world.

There is no competition. In my opinion, for the past year-and-a-half, Argentina has offered the best values and the greatest opportunities for fast profits in real estate anywhere in the world.

The crisis devastated the local real estate market. Many Argentines with money left the country. Inflation was 41% last year. The credit industry has disappeared. Imagine what would happen to U.S. property prices if no mortgages were available. Prices would collapse. That is exactly what has happened there. There is still no local market for real estate. The only buyers are international investors. And they are coming in from all over the world to scoop up the best bargains.

You can buy ranch land for as little as $13 an acre...a 16-hectare vineyard with two houses for workers for $185,000...or an apartment in the most prestigious neighborhood in Buenos Aires for as little as $45,000 for a 1-bedroom or $95,000 for a 3-bedroom.

For a decade, the Argentine peso was pegged 1 to 1 with the U.S. dollar. But the government inflated the currency and defaulted on debts, and the peso crashed to about 4 to 1 with the dollar. Now it's just under 3 to 1.

Not only real estate, but everything in this country is a screaming bargain. Dinner out, a night at the theater, art, jewelry antiques...you name it...these things are priced in pesos at what you would expect to pay in U.S. dollars. It's like the entire country is on sale...two-thirds off!

Argentina is a great place for Americans to vacation right now. Unlike in Europe, your dollar goes far here. And Argentina offers much of the charm, history, and architecture that you'd find in Europe.

The values are so irresistible that, in the last 18 months, friends and I have invested in three apartments in Buenos Aires. I'm serious about this opportunity. I haven't seen values anywhere in the world better than what Argentina offers.

We're not the only ones who think so. Ted Turner, George Soros, Sylvester Stallone, and Arnold Schwarzenegger have purchased properties here. And not just because they are rich and can buy whatever they want, but because they are smart investors. Argentina is gorgeous...sophisticated...and right now cheap...but not for long.

For the full story, see Your Guide to the Buying Opportunity of the Decade.

Kathleen Peddicord
Publisher, International Living

P.S. Robert Duvall made his new movie "Assassination Tango" in Argentina. He loves the country...the tango...the culture. He filmed here so he could spend time with the family and friends of his Argentine wife Luciana Pedraza. He's a property owner, too, of a 190-acre ranch.

In an April 2003 Knight Ridder interview, Duvall said:

"I've been there [Argentina] about 38 times. You get good vibes down there. We rented an apartment for six months on this movie, and I still miss the apartment in Buenos Aires. It was right in the middle of everything. In the middle of the night, hundreds of people are on the streets, going to coffee shops, eating meals outdoors. In the morning everybody kisses each other. By the time they stop kissing, it's lunch time."

I must admit, I agree. Argentina is a fantastic place to spend time. That's one of the best reasons to consider investing in property there. It's such a great place...with prices so low now. No kidding...this is a once-in-a-lifetime opportunity. Get the full details here: Your Guide to the Buying Opportunity of the Decade.