Find out what’s happening in the property investment arena both in the UK and internationally
Don’t Shy Away From Argentina Property
January 16, 2009Article by Ray Withers
Anyone looking for a cheap and attractive place to live should consider Argentina property. Rated as a ‘stunning haven for those who love fabulous properties’ by independent tax and lifestyle web site Shelter Offshore, Argentina luxury resort real estate plots are available from just £10 a square metre. Add to that low building costs of £250 – £400 per square metre and an even lower cost of living, and then buying property in Argentina should show as a blip on any investor’s radar.
Estancia Catalina, an hour from Argentina’s second city of Cordoba, is a great example of Argentina investment property. Just 120 plots are for sale in the grounds of an established resort popular with locals looking for a break outside the cities and foreign tourists.The development sits in over 5,500 acres of beautiful rolling hills; rivers and lakes, giving a perfect location to relax and get away from it all while giant condors fly overhead. The resort has fantastic horse riding, nearby golf courses, trekking and fishing so guests can benefit from the secluded location. Although this development will have solid long term potential, agents Property Frontiers recommend a minimum investment period of 2 years.They forecast re-sale price of £100,000 giving a 33% return on investment over the period, simply by holding, and reselling the below market value land.
According to government figures, annual inflation for Argentina was 7.2% last year – but experts claiming the government are massaging figures to keep interest on index-linked bonds down dispute this. The true figure is nearer 20%, they argue and is likely to fall to 15% next year. As many UK property investors know, some of the greatest capital gains were made here during times of high property inflation. Those that made the biggest profits bought and sold, held and sold before the recession began to bite.
The keystone hotel on the site anchoring the development has 78% annual occupancy at $500 a night and has built a loyal customer base over the past eight years. Argentina is South America’s second most popular tourist destination behind Brazil, with tourist revenue up 21% in 2006. Argentina’s peso is currently Latin America’s worst performing currency – sitting at about 3.5 pesos to a US dollar. Property in Argentina is among the cheapest found anywhere, and the Estancia Catalina site is undervalued, according to Property Frontiers.