Real estate has always been a secure investment for those with enough disposable income and looking to find healthy returns. However, the traditional, reliable and most importantly, available investment strategies that we once knew and looked towards have been thrown off kilter following the COVID-19 pandemic, leaving a necessity for new real estate investment incentives in order to attract investors back to the sector. This may sound easy, but the lack of expendable capital in our pockets has certainly changed the market landscape, however, in Argentina, certain schemes and developments have allowed an insight into the potential that exists in Latin America for real estate investment and will become the focus of today’s article.
Let us first start with why Argentina is such a good choice for real estate investment. To summarise the general landscape, opportunity comes to mind. Some have said the market is volatile and not overwhelmingly stable following the pandemic, however, for investors this could be a sign for potential returns in the future. Unlike Europe and North America, there is not such a presence of mortgage buyers, this is to say, people buy their homes outright and allow for the value of their property to steadily appreciate before moving home. This idea means that there are not often many drastic changes to the pricing trends of homes, and therefore makes the country a relatively safe bet in comparison with others in the region, and on a wider scale, globally. In line with development across the world in terms of investment trends, the Argentine real estate market has also evolved. New areas and regions are becoming honeypots for investment with the future in mind, creating the gaps we were talking about before in a sector that has been closed off in most countries, hit in varying degrees economically down to the pandemic.
One interesting thing to note is the relative lack of real estate investment visa. On our blog, we like to talk about citizenship by investment schemes all over the world, however, there are some instances where the value of the investment exceeds the visa rewards that can be gained elsewhere. This is because not all of you will be looking to relocate or obtain a second passport, and so Argentina stands out from the crowd as a profitable option for this type of investor. If this describes you, a further benefit of investing in real estate in the Latin American nation is that the process of purchasing property does not require you to hold a residency or citizenship there, minimising the external costs involved outside of the acquisition of the real estate and so further reinforces the lack of citizenship by investment scheme not necessarily being a dealbreaker.
If you are now interested, we can get into the specific requirements, namely, your need for a tax number in Argentina and an ability to prove the integrity of your investment and whether it will benefit the community you are intending to invest in. It has to be said, in respect to the previous point, building your own property in Argentina is a viable process as it is much more cost effective than elsewhere in the world and could permit the opportunity to develop a property to sub-let and seek out healthy returns. It has been said that by 2027 Argentina will be seeing an average of 12.5 million visitors as tourists per year, widening the market for holiday rental properties, and perhaps providing an extra incentive to integrate Argentine real estate into your investment portfolio.
Now we have this established, it is worth sharing the other benefits to be found from investing in property overseas. Please find below a list of such advantages:
· Second source of income that is able to double-up as a home abroad when you travel
· When compared to other forms of investment, real estate is the least volatile in terms of price changes
· Looking beyond the pandemic, the number of people looking to relocate will increase, making potential gains higher
So, if you are interested in finding out more, get in touch with us today! At Creimerman, we are a team of global citizens, working with each client and providing a tailor-made service in order to help make their cross-border ventures a success, and we would love you to be the next.