Buying your own home
Want to own your own home? You’re only 100 salaries away.
Home buyers in Argentina have to face a difficult and challenging task when they save for their own property. It is estimated that these days families have to save 105 salaries before they can purchase their own home, which is not an easy task in the current climate of inflation and rising prices. However, these prices that are unreachable for many Argentines are not even in Buenos Aires city, but in urban areas in the interior of Argentina as well.
Argentine real estate expert now calculate that a two or three bedroom in towns in the interior of Argentina and in Buenos Aires city cost around $ 100,000 US dollars. This works out at costing home buyers in Argentina 105 monthly salaries of $ 4,000 pesos. The average salary in Argentina stands at around $ 3,500 and this can vary greatly in Buenos Aires, with some people earning extremely well whereas other struggle to cover food and expenses, let alone save for a property. A new minimum salary was introduced this year of $ 2,000 pesos, which many people in the informal sector still don’t receive, leaving them very far from even considering buying their own home.
The imbalance of property ownership came about after the economic crisis of 2001/02. This catastrophic economic event has become etched painfully into the memories of Argentines. Thousands of people lost their homes, their savings and jobs as the peso (that had been pegged to the dollar) was devalued and the country defaulted on a record debt to the World Bank. Ten years on and property prices still match the pre-crisis dollar valuation. People are earning pesos yet still have to pay for properties that are valued in dollars and thanks to the conversion rate of around 4.2 dollars to the peso Buenos Aires real estate is out of people’s reach.
Before the 2001/02 economic crisis the average monthly salary could purchase one meter squared, meaning that within 50 to 60 months home buyers in Argentina could purchase a decent sized property in a nice area. Unfortunately now that is no longer the case.
For Argentines who work illegally in the informal sector the situation is even worse. On top of this those who cannot buy their own property have to rent and today the average rent will take up half of a worker’s salary. Let’s not forget that as well as rent, families have to pay for food, bills and other expenses which are all areas where prices are going up.
Go back to Argentina Real Estate News:
Argentina Real Estate Investing: Property and rent the best option
Property Prices are predicted to increase by 20% in 2011
BUENOS AIRES HABITAT a pioneer of the extended stay hotel-style apartment concept in Buenos Aires. Offers luxurious furnished apartments in Buenos Aires for temporary rent as an alternative to high-class hotels. Whether your visit is for a few days or a few months, for vacation or business trip, we will make your Buenos Aires experience memorable. All of our Buenos Aires apartments offer high-speed internet access, cable TV and housekeeping service.
Home buyers in Argentina have to face a difficult and challenging task when they save for their own property. It is estimated that these days families have to save 105 salaries before they can purchase their own home, which is not an easy task in the current climate of inflation and rising prices. However, these prices that are unreachable for many Argentines are not even in Buenos Aires city, but in urban areas in the interior of Argentina as well.
Argentine real estate expert now calculate that a two or three bedroom in towns in the interior of Argentina and in Buenos Aires city cost around $ 100,000 US dollars. This works out at costing home buyers in Argentina 105 monthly salaries of $ 4,000 pesos. The average salary in Argentina stands at around $ 3,500 and this can vary greatly in Buenos Aires, with some people earning extremely well whereas other struggle to cover food and expenses, let alone save for a property. A new minimum salary was introduced this year of $ 2,000 pesos, which many people in the informal sector still don’t receive, leaving them very far from even considering buying their own home.
The imbalance of property ownership came about after the economic crisis of 2001/02. This catastrophic economic event has become etched painfully into the memories of Argentines. Thousands of people lost their homes, their savings and jobs as the peso (that had been pegged to the dollar) was devalued and the country defaulted on a record debt to the World Bank. Ten years on and property prices still match the pre-crisis dollar valuation. People are earning pesos yet still have to pay for properties that are valued in dollars and thanks to the conversion rate of around 4.2 dollars to the peso Buenos Aires real estate is out of people’s reach.
Before the 2001/02 economic crisis the average monthly salary could purchase one meter squared, meaning that within 50 to 60 months home buyers in Argentina could purchase a decent sized property in a nice area. Unfortunately now that is no longer the case.
For Argentines who work illegally in the informal sector the situation is even worse. On top of this those who cannot buy their own property have to rent and today the average rent will take up half of a worker’s salary. Let’s not forget that as well as rent, families have to pay for food, bills and other expenses which are all areas where prices are going up.
Go back to Argentina Real Estate News:
Argentina Real Estate Investing: Property and rent the best option
Property Prices are predicted to increase by 20% in 2011
BUENOS AIRES HABITAT a pioneer of the extended stay hotel-style apartment concept in Buenos Aires. Offers luxurious furnished apartments in Buenos Aires for temporary rent as an alternative to high-class hotels. Whether your visit is for a few days or a few months, for vacation or business trip, we will make your Buenos Aires experience memorable. All of our Buenos Aires apartments offer high-speed internet access, cable TV and housekeeping service.
