During exchange rate wobble, investors are targeting Miami and Spain

25 Aug '19

During times of financial instability and political uncertainty in the country, investments in real estate abroad gain relevance among the options sought by Argentinians as a way to protect their capital, with the possibility of earning some income in US dollars if the property is rented.

Experts on this topic participated in the Expo Real Estate event held this week in Buenos Aires and they said to Perfil newspaper that after the devaluation of the year 2018 Argentinians showed more interest in investing in properties abroad, pointing out that after the results of the primary elections, the number of queries doubled.

Mariano Capellino, from INMSA Real Estate Investment Company informed that “from the moment Argentina started to devalue its currency, investors become more interested, increasing at least 30% in the last year.” The favorite destinations “in terms of number of investors and units are Detroit, Miami and Spain.”

Job Carrera, from Global Real Estate, estimated that “the number of queries increased between 40% and 50% in the last months”. As an example of this he said “by the end of August we started a project for touristic rental in Sevilla, Spain, totally funded by Argentinians” and he added: “after the results of the primary elections, the number of requests for information about ongoing projects and their possible returns have increased significantly.”

Alex Rakover, from QUM Real Estate Advisors, with investments in Florida and other cities of USA indicated that “in the last six months, there has been an important increase in the average number of queries to invest in Miami but, after the primary elections, queries doubled. If we had five daily requests, now we have ten”, he said. He also recalled that “another moment with more requests for information was during the elections of 2015, before the second round between Macri and Scioli.

Capellino expressed that the key to invest in a property abroad and earn net returns higher than 10% annually is “to know the right moment to enter and exit the market, identify the markets that faced a strong crisis, reached rock bottom, and there is evidence that their values are starting to rise, showing the possibility of recovering their historic values.”

The expert said: “Detroit is one of the markets we are operating today” because, after the bankruptcy suffered in 2013, it is now undergoing a phase of recovery. It is possible to buy a property at u$s50 thousand. He also said that there are good opportunities in Spain, in peripheral areas of Madrid, in cities such as Valencia, Málaga, Sevilla or Alicante.”

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Source: Iprofesional 

 

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