Your number 1 partner when buying property abroad
Argentina is situated in South America, bordering the South Atlantic Ocean with Chile and Uruguay either side and Bolivia, Paraguay and Brazil in the north. Truly a country of scenic contrasts, the rich plains of the Pampas in the north and the Yunga rainforests, to the arid and rugged Andes, beyond to the Perito Moreno Glacier. With a land area of 2,766,890km2 and a population of over 40 million, Argentina is the eighth largest country in the world and the second largest in South America.
From being a very rich country, Argentina’s wealth plummeted in 2001,
after years of political unrest and the country became vulnerable and
was hit hard by continuous external financial crises. However, new leadership
enabled Argentina to fight back, restructure and clear all debt with focus
on maintaining a stable environment and sustain growth. The capital Buenos
Aires, is now among the world’s fastest growing cities, in one of the
world’s fastest growing economies and is proving to be a hotspot for clever
property investors.
The currency is the Argentine Peso and is kept low against the US dollar, to keep export prices competitive, so the Sterling and Euro provide an excellent investment platform. The discovery of hydrocarbons has made the country rich from exporting almost 90% of the country’s bio diesel fuel to the US with 100million barrels of the oil equivalent.
TOP 10 REASONS TO INVEST IN ARGENTINA
The capital city of Buenos Aires often referred to as “The Paris of South America” is one of the most cosmopolitan and friendly cities you will find, with a fantastic selection of restaurants and bars, all of which are extremely good value for money. Currently one of the most undervalued capital cities in the world with reference to price per square metre, making it an excellent area for investment with house prices in the wealthier districts increasing as much as 25% last year.
The property and tourism boom is being driven by the local people, with many rushing to buy second homes in the new country clubs, golf and polo clubs, or taking weekend breaks to the ski resorts and beaches. The foundations for the real estate boom are solid, with most of the locals purchasing property outright in cash. Further property investors from around the world are turning their attention to Argentina and its affordable, high quality property market, with top Architects like Sir Norman Foster leading the way.
Post crash, people have tended not to save their money in banks, and the Argentineans have instead turned their spare cash into investment within the construction sector, where there is a high demand for new build property. Include this with the relatively low prices for real estate along with the balance between construction costs and sales prices, which in turn generate lucrative returns for real estate developers, and you have a booming construction sector.
With Millionaires flocking to buy up land in what is one of the world's last, great, untouched frontiers, it is making a large percentage of Argentineans very wealthy people, who can not only afford to buy property, but they splash out on good hotels and resorts throughout the country. The local rental market for resort and country retreats is already very strong and the increase in external tourism guarantees investors excellent rental yields and exit strategies. The growing middle classes now make up more than 40% of the country, double the number that it was in 2003.Increasing tourism figures of over 4 million now provide 7% of economic output with South Americans and foreigners flocking to a country seen as affordable, safe, and incredibly diverse with the cosmopolitan Buenos Aires and Rosario, incomparable to Iguazu Falls and colonial Salta, the indigenous South American Jujuy Province to fun filled Córdoba, the popular wineries of Mendoza; skiing in beautiful Bariloche to the beaches of Pinamar, and Perito Moreno Glacier to legendary Tierra del Fuego.
The quality of life in Argentina is incredibly high and they are enjoying a period of high economic growth and increased political stability. This growth is mainly established on fiscal surplus, a higher amount of exports, tax collection and an increase in the central bank reserves with GDP growth of 8-9%, which they have sustained for five consecutive years.
British Airways fly direct from London Heathrow (stopping in Sao Paolo) to Buenos Aires’ Ministro Pistarini (Ezeiza) International Airport. Along with the millions being spent on improved infrastructure within the country, there is also a new100,000m2 terminal due to open late 2008.There was a housing deficit in 2006 of almost of two million properties in Argentina, with Buenos Aires suffering a 35% shortage equating to 700,000 new homes required to meet demand. This situation is excellent for property investment, as lack of supply keeps demand for quality housing high, signifying potential for very strong capital growth and securing the exit strategy with yields up to around 10%.
Foreigners are free to purchase property without restrictions, only a CDI (tax registration number) needs to be obtained from the Government, which your solicitor can arrange for you.
Argentina’s climate ranges from subtropical in the northeast, moderate in the central regions to arid and cold in the south and along the mountain ranges. Summer falls over our winter months, with Buenos Aires averaging about 28°Cwhich makes this area a great winter getaway.
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