by Rick Ballester
For investors who want to explore foreign real estate, some of the best opportunities are just south of the border in vibrant Latin America. The market appears especially ripe for picking as Latin American governments implement programs to attract foreign investment and improve their economic growth potential. Investors can also take advantage of the growing number of resources available for locating and purchasing real estate in Latin American countries, with Argentina being one of the top destinations. According to an Argentine real estate trade group, Camara Inmobiliaria Argentina, housing prices have increased 50% since 2002. Even though real estate prices have soared, they still look surprisingly cheap.

Apartment Rental yields in Buenos Aires are extremely good! You can expect to buy an apartment in Buenos Aires and achieve a 7 % to 8% net return annually. Better than low bank interest rates, which will make life tough for those forced to live on 0% to 3% interest from ’safe’ cash investments whilst the world spins anti-clockwise-out-of-control.

Even when our property sectors at home are on their knees, it is strange how it still feels very close to saturation and our aspirations to buy cheap property, refurbish, and rent property is hampered by both cost and of course competition. Even in a buyers’ market, our colleagues in Europe and the United States of America who are cash rich and property investment specialists only find one or three projects each year. Buenos Aires is still the ‘new world’ for property investment and remains one of the most desirable and affordable cities to purchase real estate, even in the most exclusive neighborhoods of Recoleta and Palermo.

Real estate transactions are mainly in cash. That means meeting someplace secure and counting out piles of notes before pushing them across a table to the seller. Then, the other side recounts the money. Therefore, easy credit and excessive leverage do not make up the foundations of the Argentine real estate boom. In other words, it’s almost bubble-proof. The country as a whole operates without credit (national average 10%). Residential property investment is largely cash, mortgages as we know them do not exist, and funding is never more than 50% of the property value supported by assets and over terms as short as 3 to 15 years.

Tourism in Argentina has grown over 52% from 2003-2007. Government agencies estimate a 47% growth over the next 6 years. With the financial stability of the market and prospects for future growth of this country, investing in real estate in Argentina can be a great opportunity now.

To view some prime locations in Buenos Aires, visit http://www.myargentinaplace.com

http://www.myargentinaplace.com

Article Source: Real Estate in Argentina