Investment Property in Buenos Aires

Investment Real Estate in Buenos Aires

Investment Property in Buenos Aires
Investment Property in Buenos Aires

Buenos Aires property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Buenos Aires and LATAM .

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Searchable Map of Buenos Aires Investment Real Estate

Buenos Aires ( or /-ˈaɪrɪs/; Spanish pronunciation: [ˈbwenos ˈajɾes]), officially Autonomous City of Buenos Aires, is the capital and largest city of Argentina. The city is located on the western shore of the Río de la Plata, on South America’s southeastern coast. “Buenos Aires” can be translated as “fair winds” or “good airs”, but the former was the meaning intended by the founders in the 16th century, by the use of the original name “Real de Nuestra Señora Santa María del Buen Ayre”, named after the Madonna of Bonaria in Sardinia, Italy.

The city of Buenos Aires is neither part of Buenos Aires Province nor the Province’s capital; rather, it is an autonomous district. In 1880, after decades of political infighting, Buenos Aires was federalized and removed from Buenos Aires Province. The city limits were enlarged to include the towns of Belgrano and Flores; both are now neighborhoods of the city. The 1994 constitutional amendment granted the city autonomy, hence its formal name of Autonomous City of Buenos Aires (Ciudad Autónoma de Buenos Aires). Its citizens first elected a Chief of Government in 1996; previously, the Mayor was directly appointed by the President of Argentina.

The Greater Buenos Aires conurbation, which also includes several Buenos Aires Province districts, constitutes the fourth-most populous metropolitan area in the Americas, with a population of around 15.6 million.

Buenos Aires’ quality of life was ranked 91st in the world in 2018, being one of the best in Latin America. In 2012, it was the most visited city in South America, and the second-most visited city of Latin America.

It is known for its preserved eclectic European architecture and rich cultural life. Buenos Aires held the 1st Pan American Games in 1951 and was the site of two venues in the 1978 FIFA World Cup. Most recently, Buenos Aires hosted the 2018 Summer Youth Olympics and the 2018 G20 summit.

Buenos Aires is a multicultural city that is home to multiple ethnic and religious groups. Several languages are spoken in the city in addition to Spanish,[clarification needed] contributing to its culture as well as to the dialect spoken in the city and in some other parts of the country. This is because since the 19th century, the city, and the country in general, has been a major recipient of millions of immigrants from all over the world, making it a melting pot where several ethnic groups live together. Thus, Buenos Aires is considered one of the most diverse cities of the Americas.

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The increasing financial and political stability of Buenos Aires has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Buenos Aires

Renting out your Buenos Aires buy-to-rent out investment property can grow wealth and income.

Whatever your goals with investment property in Buenos Aires are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Buenos Aires and be prepared to change your initial outlook.
  • Thoroughly research the Buenos Aires location with a special emphasis on fringe areas outside the main Buenos Aires metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Buenos Aires.
  • Ensure that your target investment property in Buenos Aires appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Buenos Aires properties yourself is an easy option, but are these savings justifiable when you run into Buenos Aires red tape? Physis Realty Buenos Aires office in downtown Buenos Aires provides you with peace-of-mind and leaves you time to plan your next move in the growing Buenos Aires buy-to-rent sector.

With our expert guidance, investing in Buenos Airesprovides the secure knowledge that your money is working harder than it would in a local Buenos Aires bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Buenos Aires, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Buenos Aires property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Buenos Aires

Flipping property in Buenos Aires

Flipping property is when we advise clients to buy a Buenos Aires property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Buenos Aires market has a time to react to the renovation.

The Flipping Strategy in Buenos Aires

Investment property flipping in Buenos Aires is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Buenos Aires real estate investments are sometimes referred to by professionals as ‘distressed’ Buenos Aires real estate.

What is distressed Buenos Aires property:

  • Buenos Aires property in need of renovation
  • Buenos Aires real estate with a change of purpose and use
  • Oversold Buenos Aires property
  • Bank repossessions in Buenos Aires

Put simply, long term investors in Buenos Aires purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Buenos Aires investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Buenos Aires property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Buenos Aires use a minimum profit value of 22% when looking at potential Buenos Aires projects. The reason for this is because there are lots that can go wrong in Buenos Aires property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Buenos Aires

For luxury property investors hoping to add a superb property in Buenos Aires to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Buenos Aires, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Buenos Aires should be entrusted to only the highest-quality agency.

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