Buenos Aires Real Estate

The whole idea of savings in Argentina is a pretty different from the way it works in other countries. The economic turbulence and widespread distrust of banks and the government has resulted in the rejection of the traditional method of putting money in a savings bank account. The way it works in Argentina is a bit more, shall we say, ‘old school.’ Families stash their savings away in their mattresses at home, smuggle it across to Uruguay to deposit in a tax friendly account or lock it away in safes.

A myriad of factors make Argentines steer clear of saving with banks in this way. It’s not just the banks and governments that are distrusted, but the lack of faith in lawyers and solicitors, the frequency of bank robberies and the Argentine economic crisis of 2001 have all made people store their money in a new way: property. Houses, apartments, plots of land, holiday homes, you name it, they are all being used as a way to store capital.

However, purchasing a property in Buenos Aires is not just a way to squirrel away money for a rainy day; it is also an investment, a means by which buyers also have the chance to earn money. Being able to own a property, store capital and make money appears to be a-dream-come-true, but there are risks involved. Buyers have to make sure they make the right decision when buying so that they don’t lose out in the future. There is also, of course, the risk of the property bubble bursting, which would leave many out of pocket. This is unlikely though, as the Buenos Aires real estate market is dominated by buyers who take their savings out of the mattress and purchase entire properties in cash, thus retaining the stable nature of the market. Mortgages and credit are unattainable dreams for the majority of Argentines who long to stop renting. Banks have not had the funds or the desire to offer mortgages to the masses unlike in Europe and the United States. This limits the markets growth but also prevents any instability from creeping in.

The steady nature of the Argentine property market has also greatly benefited the construction industry. New properties are always in demand and this has boosted the Argentine economy and, rather ironically, provided thousands of jobs for workers who will probably never manage to appreciate the joy of owning their own home.

The construction industry is booming, property prices are raising steadily and the Argentine economy is feeling the benefits as more and more people stop stuffing money in their mattresses and invest in real estate. The dream is that one day this growth will eventually allow everyone to own their own home.