Buenos Aires Real Estate Investment

UPDATE: This article was originally written about our Nicaragua 5865 project which has since sold out. Our newest project, 4955 Charcas is now available. That project features 43 and 45 square meter units.

29 square meters. 312 square feet.
Small. Stylish. Functional.
Less is more.

Our apartments were designed from the ground up to be small, manageable and very livable.  So, why would you buy a 29 square meter apartment in Palermo Hollywood?  There’s a number of potential reasons:

1. Low cost of entry.
2. High income potential.
3. Vacation property or part-time residence.
4. You do not want to pay rent in Buenos Aires.

Let’s take a minute to look at some of these reasons.

Low Cost of Entry
For one of the lowest prices of any major metropolitan city, you can own a brand new, high-end condominium in one of the hottest neighborhoods of Buenos Aires, with all the amenities. There is not any other major city in the world where this opportunity is possible.

High Income Potential
The fact that the units are small means that there is a lower capital outlay which maximizes the return on investment and internal rate of return on the unit. We studied the market and numbers and the average one-night rental price for a well-run place is US $150.  You can view our pro-forma for some potential revenue numbers. A larger unit would cost more and not produce the same return on your investment.

In addition, the neighborhood, proximity to the new Live Hotel, subway and everything else make it a prime location. We anticipate real estate in this area appreciating rapidly. You will always be able to resell or keep it as an investment property.

Vacation Property or Part-Time Residence
Do you travel or want to only spend part of the year in Buenos Aires? This property is perfect for that.  You can choose to rent it out when you’re not here (and store your belongings in the external hallway storage unit) or keep it for your exclusive use.  Once again, the space is very livable and the cost gives you a lot of flexibility.

You Do Not Want to Pay Rent in Buenos Aires
Not sure how long you’ll be in Buenos Aires?  Coming down to try life as an expat?

To test drive the city, a $75,000 investment would save you roughly anywhere from $7200-$12,000 a year in rent. At the low end, you could make almost 10% on your money by not spending it on rent.  Stay 2 years and resell at what you paid and you come out ahead.  If you sell for more, you obviously make money.  Why waste your money on rent when you can have equity in a property?