Written by Jamie
I had a nice conversation yesterday with a person who was interested in Bariloche real estate. They asked me why I thought investing in Bariloche now was a good idea. For that reason, I have decided to make a list of the reasons why. So, here they are, in no particular order;
- Property values have continued to rise at least 10% per year, a larger increase with lakefront and lakeview properties.
- Tourism in Bariloche is booming. Many properties could be bought and put on a rental program for positive cash flow when the owner is not occupying the property.
- 93% percent of properties in Argentina are owned out right. Only 7% have mortgages. This means that the prices are real, not like the current housing situation in the US where all the properties were bought on credit.
- This area is in Nahuel Huapi National Park and is protected from massive development and clear cutting of the forests, etc.
- There is an international airport with many flights daily to Buenos Aires and the rest of the world.
- The cost of living is a fraction of what it is in other countries.
- The US Dollar is still very strong against the Argentine Peso. There are not many currencies like that these days.
- Home to the biggest ski resort in South America, Cerro Catedral. They have been investing millions of dollars in new lifts and infrastructure the last few years.
- No capital gains tax on personal property when selling in Argentina.
- Diversification of one’s Real Estate portfolio. If you owned stocks, you wouldn’t have them all in one sector. Why would a savy real estate investor have all his holdings in one country?
UPDATE APRIL 8, 2010