Buy-to-rent Profits in the Paris of South America
Date: 06/29/2004On a recent return trip from overseas, the immigration line for foreigners entering Argentina was much longer than the line for Argentines--something I've not seen in the past 10 years. Argentina used to have a two-month tourist season; now, it's year-round.
What do tourists buy in Buenos Aires? Clothing, souvenirs, handicrafts, leather goods, visits to tango shows and museums…and accommodation.
More and more tourists prefer to stay in apartments during their stays rather than hotels.
If you're buying an apartment in Buenos Aires to rent to tourists, the best areas to invest are Recoleta and Plaza San Martin. A good location for tango enthusiasts is San Telmo, and the lower-priced end of the quality areas is Palermo, still close to all the best sites and shops.
Recoleta studios rent from $100/week, two-bedroom apartments from $350/week. The best apartments enjoy 80% occupancy.
A two-bedroom, 1,000-square-foot French-style apartment in Plaza San Martin, which would rent for $350/week, costs between $140,000 and $155,000. I know a foreign investor who owns a similar apartment, and he has had 85% occupancy since August 2003.
You don't have to spend that much--you can still buy an apartment in one of the city's Grade A neighborhoods for as little as $70,000.
Maria Reynolds
For International Living in Argentina
E-mail: argentina@internationalliving.com
Rate this Postcard:
Rating: 2.5/5 (21 votes cast)