Why Careful and Selective Real Estate Investment in Argentina Makes Absolute Sense for Long-Term Financial Success
Upon reading the title of this report was your response to it: “isn’t Argentina a very risky place for investment of any kind?” If it was you are not alone in holding this misconceived idea. The fact of the matter is, the truth about the opportunities that currently abound in the Argentine real estate sector have not been widely publicized for a number of very clear reasons.
I am here today to explain fully why the opportunity is right – right now – for a careful and selective approach to real estate investment in this stunning South American country. What’s more, I will outline how such an investment into land and property is far lower risk than many conventional approaches to investment that have brought economies around the world to their knees in recent years.
In this report I will show you how you can access the opportunities available in Argentina with the help of my company, Mainline Security Estate Management, which is one of the fastest growing property consultancy businesses based in Buenos Aires, Argentina. We buy more property for our astute client base than any other real estate consultancy in the marketplace today – and we can bring our wealth of experience to bear to directly assist you.
‘Conventional’ Approaches to Investing Your Money Just Don’t Work Anymore!
What I term ‘consumer investors’, i.e., people like me who relied on professionals to invest their money into the markets in the years gone by, were blinded by a decade of overly positive, (if not criminal), ‘spin’ by financial institutions.
More worryingly, even our governments were at best ‘confused’ by the complexities of the money markets and taken in by an army of ‘expert’ lobbyists dispatched by the financial institutions.
However, it seems that the financial institutions and their lobbyists started to believe their own spin, or they simply chose to ignore the warning signs, or even worse, some are guilty of fraud perhaps. Governments and regulatory bodies allowed the market makers to lead the way with impunity – it became a brave new world where speculators ruled.
Then came the crash – the worst in over 75 years – and now comes the inevitable round of papering the cracks with regulation. Already, the lobbyists are back attempting to ‘water-down’ regulation, but with allegations of fraud against once respected institution, let us hope regulation has some very large teeth.
What Now for Investors Who Only Understand the ‘Conventional?’
With monstrous debt crippling most economies, pundits predict many short-term market adjustments as countries struggle to meet their debts, but I am concerned that an even a deeper global recession is quite likely somewhere just down the road. The euro, without clear direction and member unity, causes me the greatest concern in the short-term, but the significant worldwide debt burden both in our homes and in our nations is even more worrying in the medium-term.
Today, more regulation for banking and hedge funds.
And tomorrow? Well, who knows?
As markets evolve and consumer investors become better informed with a renewed appetite for risk, financial products will emerge to indulge their appetites and new and complicated financial services will dumbfound me and blind others by greed.
What Now for People Like You and Me Who Want Long-Term Financial Success Instead?
Predicting the next local or global crash and getting out in time has not been my preoccupation since 2006. My concentration has turned to focus on lower risk, longer-term property projects that can deliver the same returns in the medium to long-term as the so-called high risk, high reward investments in more volatile markets.
In other words, I am no longer the hare of the long told Aesop’s fable, madly running around and chasing investment success wherever I am told it may exist. Rather I have become a happy and profitable tortoise who has found a way to make steady long-term financial success a reality.
Would you like to join me?
Why My Approach Works…
In terms of investment market crashes I remember best the 1980s, because many people I knew suffered badly in the UK property crash at the end of Thatcher’s decade when interest rates moved from 7% in 1988 to 15% in 1990. Also, in 1988 we got the Financial Services Act in the United Kingdom after many unsophisticated investors lost a packet from the mis-selling of all sorts of new financial services products, not least index linked endowment and savings plans sold by unqualified ‘brokers’.
The removal and relaxation of controls on credit and interest rates in the 1980s and the growing emphasis on prudential controls were to blame for fall-out that time around that hurt my family and neighbors until the mid-nineties.
Be sure, there is only one certain bet – whatever the economic model, whatever the growth rate, what goes up will always come down in the short-term – and sometimes with devastating effects.
Those countries, (yes countries), institutions and people who fail to plan for their ride down the ‘inevitability-slide,’ (well documented in ever decreasing cycles during the 20th and now the 21st century), are unfortunately fair game.
Our clients on the other hand, invest in real estate and land in Argentina; and please note, our clients did not lose money during the last 18-months. What’s more, they feel safe and continue to make healthy returns on their real estate investments, and I can provide you with direct testimonials to that effect.
Long ago I realized that property was by far the best and safest investment and I also liked the look of South America. So in 2006 I decided to ‘put my money where my mouth was’ and now here I am, in South America deeply involved in the property industry.
Why ‘Bet’ on The Real Estate Industry for Long-Term Success?
Property appreciation in most parts of the world is constant with short-term adjustments, but gambling on property appreciation is the surest bet in the medium and long-terms if you’re seeking ‘guaranteed’ financial success.
Now I don’t deny that we have all seen recent turbulence caused by property bubbles bursting in real estate sectors all over the world. Colleagues tell me that property prices fell 20-30% in some parts of Greater London for example, the Spanish property market is on its knees and there are many bargains to be bagged in the North American real estate sector. However, we all know and understand about property related bubbles, we have seen them before, we ignore them, and we will continue to ignore them…
Because the overall long-term trend for real estate is positive, and property prices always bounce back.
Why ‘Bet’ on The Argentine Real Estate Industry for Your Long-Term Success?
During this great world recession that we’re living through, Argentine property prices remain stable and thus reaffirm my view that property holds its value in Argentina, even during a massive financial collapse or a world recession.
You see, property is the Argentine people’s bricks-and-mortar-piggy-bank, their method of saving and avoiding banks or the possibility of a needy government seizing their hard earned cash. Property is the surest investment for Argentines who just recently saw their private pensions ‘nationalized.’
When I think about Argentina today, I find some similarities to the United Kingdom (UK) at the end of the 1970s. The UK was teetering on the verge of collapse with huge amounts of debt and an economy that was crumbling, (maybe there are some similarities to the UK of today in there too!)
Ineffective governments cowered from overly powerful unions. The public were kind of swinging somewhere between socialism and conservatism knowing neither doctrine had worked in their favor for quite some time. The UK economy suffered too much government interference, ineffective regulation and protectionism that worked against the worker and a growing poverty class.
Nevertheless, the rich kept getting richer.
However, in my opinion the UK did not have the huge success potential that Argentina had then or today.
Look at my graph above that shows property appreciation on small numbers property investment in Argentina over the last ten years. Remember that during this decade we also witnessed the total crash of the Argentine economy and Argentina’s default – the biggest in history so far – and a recent world recession that hit property prices throughout the world – but not in Argentina.
Canny property and land investors made a lot of money in Argentina over the last 10 years. The market has slowed and things are still a little quiet, but property prices in Argentina hold their ground for good reasons that will not change in my opinion over the medium and long-term.
Argentina, once one of the largest economies in the world, will continue to bounce in my opinion, but there are so many positive factors that make me believe that Argentina will finally find some stability.
Not least, you cannot ignore the fact that a region once described as the USA’s backyard is fast becoming a flourishing and better-kept garden. Argentina feels stirred by its burgeoning neighbors. Argentina will also benefit from the overall growth predicted for the region.
Why are Real Estate Prices in Argentina Stable?
Why is the Property Market a Good Prospect?
In Other Words – Why Argentina?
- Think what you like, even with weak governments and poor institutions, Argentina is the third largest and a key emerging economy in this region with great success potential. The next ten years are going to be very interesting. Would I invest in Argentina outside property, land, farming and tourist related industries – no – I stick to what I know works.
- Land prices and property can only go one way in the long-term and that is up – both population growth, population movement into the main conurbations, and our need to feed people at home and abroad equals growth in certain regions.
- The facts speak for themselves – and look at property appreciation in my graph above that charts the last ten years and consider that growth against the backdrop of one of the most spectacular crashes in history, staggering currency devaluation, civil disobedience, and professionals eating in soup kitchens – but did it affect property prices – barely.
- Expensive credit does not fuel the market and nor does outlandish lending. There is no bubble because in the main, Argentines transact property in cash and that makes for an orderly market.
- You buy and sell property in dollars in Argentina, which at least protects property from the unstable peso.
- Argentines, like anyone these days, dig deep to get on the property ladder, when you fund a property purchase with hard cash you never sell short.
Where Should You Buy Real Estate in Argentina for Investment Success?
Property investment specifically in Buenos Aires provides respectable returns of between around 7-8% per annum net. Yes, there are those that claim 10% and even 15%, but those investors must avail themselves of the black economy and their advisors are at best negligent. The secret to good property investment in Buenos Aires is keeping it small, keeping it simple and keeping it legal.
Choosing the right geography and the right type of property is very important too if you want to turn your property investment into a cash making business. There are many factors to consider and I am very happy to discuss them with you.
To be assured of investment confidence I would like to invite you to contact me. Through my company Mainline Security Estate Management I, together with other real estate experts, buy more real estate for our client-base than any other property consultancy in Argentina. We understand the market, we understand the fundamentals driving the market forward towards long-term success – what’s more, we understand your desire to find a way in to secure, stable and tangible investment success.