Country Article / Postcards

BEST BUY IN THE NEW WORLD

Date: 04/15/2003

Dear IL Reader,

More on the current investment opportunity in Buenos Aires:

Bottom line, as we've been reporting, if you've ever had any interest in owning one of this city's Old World-style apartments...the window for action is closing.

These are places with enduring value. You find apartments like these in only a handful of cities around the world--Paris, Barcelona, Brussels...

Inventory in Buenos Aires is limited. There are only so many of the style of apartment we were in the market for, and we weren't the first to recognize the buying opportunity. These apartments have been changing hands, for cash, with North American and European buyers, since mid-last summer.

We saw about 20 apartments...found two we liked...and made offers.

One is located in Retiro, on the corner of Avenida 9 de Julio and Arroyo.

Ninth of July Street is the widest boulevard in the world. A high-rent district. Across the street is the French Embassy. The river is within walking distance. And from the apartment's front door, you can hop in a taxi and be at the theater in a few minutes.

The apartment in question has three bedrooms, plus two more for the maids. It's 2,500 square feet, on the top floor of a five-story building. More important (to us), it has high ceilings and nice plasterwork, a grand front room with three windows overlooking the 9th of July, parquet floors, and a small library.

Asking price was $200,000. We offered $180,000--and are paying $200,000. A few months ago, we may have been able to buy for $180,000, or maybe a bit less. As I said, though, the market is firming up, and some of these apartments are now selling over their asking prices. A good rule of thumb is that you should be able to buy a Grade A apartment (in Retiro or Recoleta) for $1,000 a square meter. Resist spending more. We're paying $826.

Closing is within 30 days of an offer being accepted. As I've reported, our attorney from the States flew down to B.A. to close for us last week. Yes, we bought title insurance (through First American ).

We held the apartment with a deposit of $10,000. The remainder of the payment, in cash, was made at the time of closing. No local financing (even for Argentinians--there is no such thing as credit in this country right now). If you want to borrow to buy, you'll need to do it at home, and bring the money with you.

The owners of the apartment have asked if they can stay on for a few months after closing. They need our cash and the 3-month window to make their next buy. This practice is referred to as "comodato" and is not uncommon in this country. We've agreed.

Kathleen Peddicord
Publisher, International Living

P.S. My husband, Lief Simon, has reported in much greater detail on why, how, and where to buy in Argentina right now for members of his Global Real Estate Investor group. For more details, click here.