In this section I am including interesting and informative articles about real estate in Buenos Aires, Argentina.  Most of the authors of the articles are only now discovering the potential of real estate in Buenos Aires that I saw beginning in 2002. When everyone was moving their money out of Argentina, I started moving it in and recommending to others that they also purchase real estate here in Argentina.  History has proven that I was correct.  I continue to recommend real estate as a strong investment in Argentina. 

I accurately forecasted real estate trends, the tremendous increase in tourism and the exchange rate several years ago when so called "experts" were predicting other things.  I continue to be one of the largest purchasers in the entire world of residential real estate in Buenos Aires the past several years and I am stepping up our purchasing of apartments, houses, land, buildings and hotels.

mike@apartmentsba.com

International Homes Magazine December 2007 Edition  - Volume 14 # 10 Argentina – Why Cash and land are both still king in this vast country     "Few economic revivals have been quite as stirring as Argentina’s. Little over five years ago the country’s massive external debts brought on a full-scale depression, the peso became virtually worthless and millions of Argentines saw their banked savings disintegrate. Much has changed since – Argentina’s economy has rebounded strongly with annual GDP growth of around 5%, and it has been given the all clear from the IMF for the next decade – but general mistrust of banks remains. This has served to back up by an age-old Argentine conviction that true wealth lies in a tangible asset such as land, not money. In Latin America’s second largest country you truly are what you own. By this measure Michael Koh of ApartmentsBA.com is one of Buenos Aires’ major players. Originally from the US, he has been at the forefront of the capital’s property market for the last five years, securing properties in BA’s emerging locations, renovating and reselling them for excellent profit as small-scale rental businesses. “Back in 2002 when I started looking at bringing money into Argentina people told me I was crazy,” says Mr Koh, “but I saw the potential of the economy, the real estate market, the exchange rate and tourism. All my forecasts have been spot on.” He cites as an example an apartment he purchased for $90,000 (£44,200) in 2004, which recently sold for $200,000 (£98,300). Since late 2006, property values have continued to rise across the city. “While rates are plummeting in the USA due to sub-prime mortgage problems, prices in Argentina are soaring,” explains Mr Koh. “Just about everyone buying real estate is paying with 100% cash over the table so interest rates aren’t a concern.” Fast-growing areas include Recoleta, known as BA’s Mayfair, and Palermo Soho, Viejo and Hollywood. “These neighbourhoods continue to see strong demand and price growth as well as growing numbers of boutiques, restaurants and cafes,” says Mr Koh. “They’re trendy areas that attract tourists and locals alike and are a developer's dream. You can buy property for under $2,000 (£980) per m2 and I believe a ‘double’ could happen in Palermo within five to six years. Recoleta, meanwhile, will always be the safest and most affluent part of the city.” Apartments in the latter can cost in excess of $200,000 (£98,000) but see high rental demand. The renovated docklands of Puerto Madero are a former hotspot and one of the most expensive places in the city. With an average property price of $4,000 (£1,960) per m2, Mr Koh thinks the area is unlikely to match its past growth rates."

Moving to BA the easy(ish) way   Time Out Guidebook   Summer/Autumn 2007     Germán Peterson steers you through the minefield of buying property in BA       Argentina has great real estate to offer.  Whether you fancy a stunning penthouse apartment overlooking Buenos Aires, a chalet in Patagonia, a winery in Mendoza or just a nice pied á terre, price are still a fraction of what you would pay in the UK or in the US.  And the quality of what is offered is amazing:  all properties are in freehold, tiresome co-operative boards are unknown and maintenance fees and taxes are very low.   Buying property in Argentina seems quite easy at first glance, but after getting stuck in the Argentinean bureaucracy, or getting to know some of the local business practices, you will realize that in order to get your deal done smoothly you need to bear in mind some rules:   One – There are hardly any private offers in the market and nearly everything in the market and nearly everything is offered via real estate agents.  But unlike in the US or in the UK, realtors are not responsible for the accuracy of their offer, so it is always best to double check.   Two – Never agree immediately on the offered price.  If you do so, the seller will think he placed the offered price too low and will ask for at least 10% more.  No matter what you feel about the price, always place a lower offer – at least five per cent below the asking price.   Three – Cash is king: real estate deals in Argentina are nearly always done in cash.  Even if you are paying millions, when the deed is signed the buyer and the seller meet together in a bank to count bundles of greenbacks.   Four – Black is beautiful.  Sadly, it is common practice to pay a part of the purchasing price in ‘black’, that is, beneath the radar of the tax man.  But to avoid problems later on, if the amount that figures in the deed is at least 70% of the actual price paid or better, you should do the whole deal in ‘white’.   Five – All deals are in US Dollars, but getting them into the country is not that easy.  To avoid speculation on the peso, Argentina introduced a law in 2005 stating that all transfers by non-resident foreigners are subject to a 30% withheld retention for one year unless the purpose of the transfer is a direct investment in real estate, production, and so on – and proving that is a bureaucratic hassle.   Six – Make a good choice when selecting your notary public (escribano).  He or she is the person who prepares the deed, checks all the papers and documents and makes sure that all bills and duties are paid.  He or she is the one who finds out if there are any legal encumbrances, liens or defects in the title, and if there are, how they can be solved.   Seven – Argentineans are not well known for their taxpaying discipline – but you should be.  Non-resident foreigners have to request prior approval from the AFIP (the local version of the IRS), before selling their property.  And be prepared; these guys are much smarter than you probably think.  Not only will they check if you have paid the municipality duties, property and wealth taxes, but they will also look into your utility bills, to find out if you have rented out your apartment while not resident in Argentina.   Keep in mind these few suggestions and you will be able to enjoy the apartment/house/estancia of your dream for many, many years, as have done many celebrities such as Ted Turner, Michael Douglas, George Soros, Luciano Benetton, Maia Sworowski, and Sylvester Stallone.  Happy Hunting!   Some recommended agencies   ApartmentsBA www.apartmentsba.com

From Times Online   February 23, 2007   By Mary Gold   A stake in Argentina Flats designed by Norman Foster may lure investors to Buenos Aires   ARGENTINA is famous for cattle, Eva Perón, its red wine — and a series of devastating economic crises. Despite this financial instability, or perhaps because of it, the country offers many advantages to British property buyers. So is this really a sensible time to invest in Argentina?   One source of encouragement is its economic growth — up last year by an estimated 8.5 per cent. Another is that tourism is booming: according to Argentina’s La Nación newspaper, it has been practically impossible to beg, borrow or steal plane tickets to the capital recently. Economy fares to Buenos Aires are hard to come by, and the city’s five-star hotels are said to be running at 95 per cent occupancy. Last year, 3,000 new jobs were created by tourism and it is anticipated that 12 per cent of the workforce will be employed in the sector by 2010.   All of which should be good signs for the local property market. Alan Faena, a fashion designer-turned-hotelier-turned-property developer, would certainly hope so. He was responsible for regenerating Puerto Madero in east Buenos Aires, an area comparable with London’s Docklands. When he opened his luxurious boutique hotel, modestly called the Faena Hotel and Universe, there were only run-down warehouses and a deserted transport canal to be found there. Now, Hilton and Sofitel have opened hotels in the area; boutique shops and restaurants have followed.   It is in Puerto Madero that Faena launched his latest housing development, called El Aleph (“The A”). Designed by Norman Foster, the development will have 180 homes, starting at £146,000 for a one-bedroom flat, £305,000 for a two-bedroom flat and between £1 million and £3.5 million for a penthouse. El Aleph consists of two buildings overlooking the canal and park, and will include a pool, spa, restaurant, theatre, shops and a five-star hotel. The hotel will manage the rental of the flat, should you want to let it out.   It is, by some way, the most expensive development in Buenos Aires, a fact that Faena is quick to acknowledge. “With the apartments you are getting a respect for design and architecture,” he says. “That keeps prices up, though you will be getting a Foster apartment for a tenth of the price you would pay in London.”   Indeed, the relative strength of the pound is just one of Argentina’s many appealing factors. It would be difficult to spend more than £10 on a meal, for example. Similarly, a Faena flat has the finish you might expect of a million-pound City penthouse.   El Aleph is the fourth development undertaken by Faena in Puerto Madero. All have opulent interiors, with plenty of red and dark woods, harking back to Argentina’s belle époque, when it was one of the wealthiest countries in the world. Some Argentinians are doing very well for themselves today, with more local buyers able to afford the Faena price tag than you might assume: local buyers make up 60 per cent of sales, with the other 40 per cent including Britons, Americans and Spaniards.   One significant reason why Argentina will not suit all investors, however, is — inevitably — a question of finance: one side-effect of its recurrent economic problems is the extreme difficulty of getting a bank loan. “Argentina doesn’t understand mortgage debt,” confirms Andrew Langton, of Aylesford International in London, who is in charge of handling UK sales. “Everything tends to be cash, and purchases tend to be outright.”   LATIN AMERICAN HOT SPOTS   IF IT’S Latin American bargains you’re after, the best destination is Brazil, according to Charlie Prichard, of the property company Churchill Overseas. “Five years ago properties were five times the price they are now, but then there was a huge property crash,” he says. “Prices slumped by 65 per cent, almost overnight and they haven’t recovered. You can pick up a villa on the beach for £14,000.”   A particularly beautiful place to buy, he says, is Itamaracá, an island near Recife. “There are white sand beaches and it’s very undeveloped. Of course, everyone knows that Rio is something of a troublespot, but the northeast coast of Natal, from Recife to Fortaleza, is very attractive and you can pick up a good-quality property in a new development for as little as £20,000.”   James Price, head of Knight Frank’s international developments, says there is a growing appetite for Latin America as a whole, but particularly for Bahia in Brazil. He says: “Developers there are increasingly targeting European audiences. Argentina and Uruguay have established markets among European buyers but until now Brazil has lagged behind. We expect that will change dramatically in the next few years as the emerging market picks up momentum.”

The New York Times   February 4, 2007 Cultured Traveler | Buenos Aires Making the Most of Those Long Argentine Nights   By MATT GROSS   VERY late one Wednesday night in November, Calle Balcarce was deserted. By day this street in San Telmo — the quintessential “old Buenos Aires” neighborhood — would have hummed with pedestrians enjoying the warmth of late spring, but now the stone and concrete buildings glowed lonely yellow under the street lamps. Even my destination, a club called X Vos, looked abandoned; only a pair of smokers killing time on the sidewalk hinted that anything might be happening inside.   Within the club's brick and black-painted walls, however, a free-for-all was getting under way. The D.J., Villa Diamante, was spinning hip-hop and reggaetón, video graphics swirled faintly on a wall (I caught images from “2001: A Space Odyssey”), and a hundred or so clubgoers in jeans, T-shirts and hoodies were downing cheap beers and whiskey nacional in preparation for the evening's “cumbia experimental,” an electronicized version of a type of folk music popular in the city's villas, or slums.   Soon, the real party — the weekly performance known as Zizek — began. A corn-rowed guy took the stage and, over the cumbia's ch-ch-ch rhythms, began spouting dancehall lyrics in Spanish, while behind him a boy of about 10 carefully strummed chords on a guitar about as long as he was tall. Suddenly a big dude grabbed the microphone and — how do I put this? — squawk-squealed into it for several minutes. The crowd surged every time a singer chanted the refrain “Cumbia-a-a!” No wonder Clarín, Argentina's largest newspaper, had nominated Zizek as one of the best parties of the year — it was awesome. But Zizek — named for the Slovenian philosopher Slavoj Zizek, who is married to a young Argentine model and once taught at the University of Buenos Aires — was only the finale of a phenomenally busy but typical Wednesday in Argentina's capital.   At midnight, I'd been eating dinner — rich morcilla gnocchi flecked with crunchy Granny Smith apple — with fashion designers and artists at Casa Cruz, an ultrachic restaurant paneled in gleaming mahogany. A few hours earlier, there were cocktails poolside at the Faena Hotel + Universe, designed by Philippe Starck. I'd spent the afternoon gallery hopping, had an espresso at the contemporary Latin American art museum and met the writer Washington Cucurto, Argentina's answer to Dave Eggers, at the workshop where he transforms used cardboard into hand-painted book covers for his independent publishing house, Eloísa Cartonera. And somewhere in there, I'd found time for a quick nap at the enormous bilevel loft I'd rented in the fashionable Recoleta neighborhood.   If this sounds exhausting, it was. But it was also exhilarating, affordable (thanks to the lingering effects of Argentina's economic crisis five years ago) and accessible. In fact, the only difficulty I'd faced in all of this was deciding which of the night's dozens of events to forgo — in the end, I couldn't make it to a friend's party at El Diamante, a Mexican-kitsch tapas restaurant designed by the artist Sergio de Loof.   Such are the challenges vexing any visitor to today's Buenos Aires: electrotango or art opening, design festival or indie theater, a chichi martini and exquisite cut of grilled meat or a simple beer at a grimy bar (followed by an exquisite cut of grilled meat). But since the average Argentine evening extends into the dawn, there's often time — if you have the stamina — to do it all.   Still, any decision process must begin with a fundamental choice — where do you establish home base? For visitors in search of the next cool thing, two options present themselves, Puerto Madero and Palermo.   Puerto Madero, connected to downtown by a quartet of bridges, was once the city's cargo terminal, where trains from the countryside would arrive bearing grain, beef and wine for export. But for more than 20 years, the forces of urban renewal have been at work. Today the long, broad avenues of Puerto Madero bear only a few traces of the neighborhood's industrial past. The gantry cranes that once lifted containers onto ships now stand guard over antiseptic plazas like anime robots; residential skyscrapers front the boardwalk where street venders grill steak sandwiches (and sell them for 4 pesos, about $1.30 at 3.1 pesos to the U.S. dollar); the sign over one construction site boasts Cesar Pelli as its architect; and Los Molinos, a former granary, is expected to anchor a future arts district.   Puerto Madero is also home to many of the city's high-end hotels: a Hilton, a Sofitel and the Faena Hotel + Universe. (Alan Faena is behind much of the multimillion-dollar development in Puerto Madero, and has engaged Norman Foster to do another building.) Once a red-brick warehouse, the Faena is now one of the city's most opulent lodgings, with buttoned-leather sofas, gilt touches, drooping chandeliers and lots and lots of red: carpets, curtains, lampshades, wineglasses — even the crisp bangs fringing the forehead of the Faena's creative director, Ximena Caminos, were tinted crimson. About the only non-red object in sight was the white cowboy hat on the head of Mr. Faena himself. And yet Puerto Madero, for all its ambitions and big-name architects, remains a bit underpopulated. There is little foot traffic and none of the sense of neighborhood that elsewhere produces great boutiques, funky cafes and top restaurants. Perhaps when all the construction — including a major revamping of the downtown area across the Puente de la Mujer— is complete, Puerto Madero will come into its own. Till then, Faena devotees will probably be taking a lot of 20-peso cab rides to Palermo.   Palermo is without doubt the hippest part of Buenos Aires. Once it was a quiet residential neighborhood whose narrow cobblestone streets were lined with trees and low Spanish-style homes. But in the mid-1990s, artists, designers, architects and film producers took advantage of its affordability to set up shop — a movement that has dramatically accelerated since the 2002 economic crisis. Today, it feels like every boutique is a former bakery, every hotel a former town house and every gallery a former garage. No writer is allowed to describe Palermo without comparing it to SoHo in Manhattan or deploying the adjective “trendy.” (There's even a blog, trendypalermoviejo.blogspot.com.)   Palermo boasts the city's highest concentration of boutique hotels, with what seems like one opening every month, including the Home Hotel, whose Scandinavian furniture and iPod connections enticed George W. Bush's twin daughters to check in to one of its 14 rooms and three suites in November.   But I didn't stay at any of these places. Instead, I turned to Apartmentsba.com, a rental agency with hundreds of apartments across Buenos Aires, and found an 11th-floor loft in Recoleta, a tony neighborhood midway between Palermo and Puerto Madero. For $600 a week, I had windows that stretched 16 feet to the ceiling, a big soft bed, glitch-free wireless Internet and even concierge services. Outside, glorious belle époque apartment buildings glittered in the warm sun, and jacaranda trees spread over the avenues, their fractal branches ending in inky lavender blooms.   Not too shabby — but still, I spent little time in Recoleta. Soon after my breakfast of medialunas (a type of Argentine croissant) and a cortado (espresso with a little milk) at the sunny cafe across the street, I'd catch a cab to Palermo, where I'd meet a friend for chocolate brioche at Mark's, then go strolling the neighborhood in search of architectural treasures, like an 1877 mansion with stained-glass windows hidden down an alley and supposedly owned by a telenovela star. In between, I could pop into galleries like El Borde, where the mysterious narrow-gauge rail tracks running through the big white space almost distracted me from Arturo Aguiar's lush photos of his artist friends (very much in the style of the Hong Kong filmmaker Wong Kar-wai, but maybe I'm just thinking of his Buenos Aires movie, “Happy Together”).   Though Palermo may sound very commercialized — “SoHo-ized” is the term preferred by some — it is at the same time fascinating to see how the neighborhood had reinvented itself in the five years since the crisis. Those rail tracks in El Borde, the word panaderia (bakery) carved in the stone above the window of the fashion boutique Emme, even the warm, clubby atmosphere inside the Nike store's crumbly edifice — all hinted at a past not too far removed, and suggested that Palermo had undergone a relatively organic transformation.   Still, this metamorphosis has had consequences. Real estate is no longer cheap, so artier denizens have moved elsewhere. Belleza y Felicidad, an eclectic art gallery that sells the hand-painted books of Eloísa Cartonera, is in Almagro, a middle-class neighborhood south of Palermo whose cachet increases as it blends at its edges with other neighborhoods like Boedo — home of the up-and-coming neorealist theater scene — and Once, where the Ciudad Cultural Konex theater plays host to modern dance epics.   To find Appetite, an avant-garde gallery that everyone I met recommended, I had to return to one of San Telmo's less atmospheric blocks. Pop-punk exuberance is Appetite's stock in trade, its walls (and floors) are covered in a profusion of styles, from Ariel Cusnir's paintings of idealized tropical islands and Anabella Papa's witty paintings of beautiful, casual violence (schoolboys brawling, a man attacked by a wolf) to a row of blue plastic shopping bags and a paint can frozen in mid-spill atop a table.   Visiting these lesser-known corners takes a bit of effort. Taxis, which at first blush seem so fast and cheap, get caught in unexpected waves of traffic, and the Subte, or subway, so efficient at whisking people to and from the city center, is worthless if you need to go across town. Walking, while a great way to take in the architecture and vibrant street life, can tire you out, making late-night festivities a literal yawn. And if, like me, you don't speak Spanish well, it can seem pointlessly strenuous to wander outside the comfort zone of Palermo.   The rewards, however, are worth the fatigue. At Appetite, I was led around the corner to a warehouse where Mr. Cusnir and the fashion label Maison Trash were rehearsing a production of Mr. Cusnir's art — complete with sand, palm tree and big model helicopter. And in the Pan y Arte restaurant in Boedo, I ate sublime Mendoza-style cuisine — sweet-corn empanadas, lush calabaza casserole and excellent Mendoza malbec wine — in a room full of actors and directors. In each case, I felt as if I'd begun to penetrate that tricky tourist-local barrier.   What's more, I got a sense of the city's size and interconnectedness — it was more than just a few neighborhoods I'd seen in glossy magazines and coffee table books. Soon, it was unsurprising to learn, for example, that the choreographer with the lauded aerial-tango show at Konex was married to the architect who was transforming the downtown post office into a theater.   But whomever I met, wherever I went, I would always return — without much regret — to Palermo, where I would find a whiskey nacional waiting for me at Mundo Bizarro, a Los Angeles-style diner/bar, or a warm ceviche at the quasi-Japanese Dominga. And my new friends would be there, too, sipping Pink Panther cocktails under the arcing wood ceiling of Bar 6 or eating French-ish salads at the pink-painted picnic tables of Oui Oui. Even Zizek made it to Palermo; in December, the party took up residence at Niceto, one of the city's slickest clubs.   Always, though, there would come a time in those Palermo nights when I would suddenly catch myself with the realization that I'd missed Juana Chang's indie rock show or Codigo Pais, a festival of “creative tendencies” that included D.J. sets, art films, experimental technology and a tantalizing “espacio erótico.” But then I would remember: There was always tomorrow night.   VISITOR INFORMATION   GALLERIES AND MUSEUMS El Borde, Uriarte 1356; (54-11) 4777-4573; www.sitearte.com. Belleza y Felicidad, Acuña de Figueroa 900; (54-11) 4867-0073; www.bellezayfelicidad.com.ar. Appetite, Chacabuco 551; (54-9-11) 6112-9975; www.appetite.com.ar. Museo de Arte Latinoamericano de Buenos Aires, Avenida Figueroa Alcorta 3415; (54-11) 4808-6500; www.malba.org.ar.   RESTAURANTS AND BARS Casa Cruz, Uriarte 1658; (54-11) 4833-1112; www.casa-cruz.com. Dinner for two with wine, 200 pesos (about $65 at 3.1 pesos to the dollar). Mundo Bizarro, Serrano 1222; (54-11) 4773-1967. Dominga, Honduras 5618; (54-11) 4771-4443. Dinner for two with wine, 120 pesos. Bar 6, Armenia 1676; (54-11) 4833-6807. Oui Oui, Nicaragua 6068; (54-11) 4778-9614; www.ouioui.com.ar. Brunch for two, 40 pesos. Pan y Arte, Boedo 878; (54-11) 4957-6702. Dinner for two with wine, 100 pesos. El Diamante, Malabia 1688; (54-11) 4831-5735. Dinner for two with wine, 100 pesos.   CLUBS Niceto, Coronel Niceto Vega 5510; (54-11) 4779-9396; www.nicetoclub.com. Cover charge: free to 25 pesos (Zizek is 10). X Vos, Balcarce 563; (54-11) 4342-0703; www.xvosbsas.com.ar. Cover charge: 35 to 50 pesos.

The Real Estate Boom in Argentina   Wharton School of Business   In every neighborhood in Buenos Aires, Argentina, dozens of buildings that are under construction stand out against the horizon. This phenomenon began shortly after the economic crisis started four years ago. According to a report by UADE, the Argentine management school, Argentina has enjoyed 14 consecutive quarters of continuous and meaningful growth in construction activity. During the first of 2006, growth reached 21.2%.   “The macroeconomic crisis of 2002 released pent-up demand for construction, after the fact,” says Ricardo Theller, a researcher and professor at UADE’s Center for Advanced Studies (CEAV). Theller adds, “Some of the factors that led to the current resurgence are low interest rates, [high] liquidity, exchange-rate stability from 2004 to 2006, the turnaround in public-sector investment and the strong pace of macroeconomic growth.”   When the government of Argentina defaulted on its debt payments in the summer of 2002, it not only aggravated the social and economic situation but also broke the banking system and, with it, the savings of ordinary citizens. According to Luis Martínez de Virgilio, manager of CB Richard Ellis, the global real-estate service company, “When people were left without a reliable alternative to depositing their money in banks, they turned their investment toward the construction sector.” Martínez outlines the other factors that contributed to rapid growth: “Relatively low prices for real estate, and the balance between the construction costs and sales prices, which yields positive returns for real estate developers. Add all that up and there is a real opportunity in the construction sector.” The price of a square meter in Argentina currently varies between 750 euros and 2,300 euros.   There seems to be no end to this phenomenon, known as a real estate boom or bubble. Some specialists believe that it is here to stay. “It is not a bubble because we are dealing with growth that is real. The capital they are using for construction is real, and there is practically no bank financing [of construction projects],” says Gustavo Kancyper. He is an architect who manages Construcciones Seweco, a company that constructs buildings in Palermo Hollywood, one of the neighborhoods popular with investors.   Virgilio agrees. “I don’t think that this is a bubble because it does not have a financial effect. What you’re talking about here are private investors who know how to anticipate good opportunities in the market, demand [trends], and so forth. We expect growth to continue. Everything points in that direction, although we know that some phenomena are cyclical in nature.”    For his part, Theller says that we have reached a stage in the typical real estate cycle where “demand exerts upward pressure on prices and this pressure stimulates growth in supply, in turn.” Nevertheless, Theller recognizes some fundamental characteristics of the current growth. These include “the improved quality of the average construction project (which makes it more expensive); the relatively high growth in the population segment that is old enough to get married and become independent (which exerts greater pressure on demand); the fact that the economy has moved out of a deep recession that was largely unprecedented; and a positive wealth effect that has several different sources.” However, Theller warns, “After those various stimuli have been exhausted, both prices and volume will tend to align with the ‘fundamentals’ of the economy, and that will mean that growth rates decelerate.”   In August 2006, the Buenos Aires bureau of records recorded 5,583 deeds involved in real estate purchases worth a total of about 240 million euros. That figure was 1.9% higher than for the same month in 2005.   Buenos Aires, known as the Queen of the Plata [River] and the Paris of South America, is not the only place that is attracting attention from investors. The interior of the country is also experiencing feverish construction, especially in the larger provincial cities that have enjoyed growth in the industrial sector, and in agriculture and tourism. The UADE report shows 19.8% growth in the volume of square meters now under construction in the 42 largest cities of the country.   Winners and Losers   It is not only Argentine savers and wealthy Argentines who are involved. When it comes to investing in property, foreign buyers are also playing a major role, including other Latin Americans, Americans, and Europeans. In the opinion of Gustavo Kancyper, “The northern hemisphere [Europe and North America] is very closed and quite saturated in many business sectors. Buenos Aires remains one of the most attractive cities in the world, and it has a future.” For his part, Theller believes that “the international situation offers high liquidity, and interest rates in Argentina are relatively low. The country has been stabilized, and forecasts call for growth rates of more than 6% a year.” Virgilio adds that while the price of a square meter in Argentina “is on a par with Latin America, it continues to be cheap compared with Europe and the United States.”   One of the areas of greatest interest for foreign investors is Puerto Madero, a recently rebuilt area neighborhood that is near the city’s financial center. Its impressive office buildings, equipped with swimming pools, gymnasiums and even restaurants, sell for more than 2,000 euros per square meter, making them popular among business executives, diplomats and others who can afford them. Nevertheless, a significant segment of Argentina’s working population is still unable to acquire property. The real estate boom has left behind these renters, who find it hard to get loans. As a result, the government has launched a plan for low interest rates and loans of more than 20 years. To be eligible, renters must show that they are able to pay.   Theller says that “although not everyone can qualify for this program, an additional segment of medium-income people will be able to profit from acquiring their own housing; it depends on their previous level of savings and income.” Moreover, “the plan promotes relief of the value-added tax when the funds are used for constructing leased and rental properties.”    At the moment, however, the good intentions of the government of Nestor Kirchner have yet to bear fruit. “The new plan is a good thing but it is not enough,” says Virgilio, who is worried. “People had expected that they could go talk with the banks, and they are disillusioned because the price of housing continues to be very high compared with their incomes. It is very hard to offer interest rates that are below the inflation rate, even for the official banks.” Rates for new loans are about 9.5%, while the annual inflation rate exceeds 10%.   For the time being, the [real estate] market continues to have positive expectations. The latest data collected by INDEC (the National Institute of Statistics and Census) in July showed that private real-estate developers were optimistic that construction activity would grow by more than 19% during the remainder of 2006. For their part, companies involved in public works were estimating almost 15% growth.   According to Ecolatina, a consulting firm, next year will bring “a renewal of growth in new niches for real-estate investment and a growing contribution from public sector projects.” Overall, Ecolatina forecasts growth of 15% for 2007. The only thing worrying experts is incipient growth in construction costs. The UADE report reveals that during the first half of 2006 “construction costs registered an overall increase of 18.6% compared with the first half of last year. The rise in general construction costs included 12.7% growth in the cost of construction materials, which represent 46% of the overall index. Labor costs, which constitute 45% of overall construction costs, rose by 28.8% during that period.

EXAME - Brazil's Most Respected Financial Publication February 2007   By: Tatiana Gianini   One of the classic definitions for this music, born in the alleys and taverns of the Argentine capital, says that the tango “is a sentiment which is to be danced” The birth place of this rhythm became a synonym for the music and the soul of the ‘porteños’ . The city has lived a good part of the last few years wrapped in the same atmosphere of tragedy and sadness which characterized the great songs of Carlos Gardel. The elegant, cosmopolitan and intense city suffered as no other the impact of the recession which culminated in the country’s going into default, at the end of 2001. Visitors decreased, the capital was impoverished, and its streets became the scenario of violent protests. For the relief of Argentines, the present panorama is very different today. Improvement of the country’s economy --thanks to a BPI which rises at a rate of 9%--, wiped out that heavy cloud of melancholy. Even though expansion is still –to a great extent-- the making up of lost time in the course of the last few years, it is true that Buenos Aires begins to recover that aura which made people think of it by the name of "the Paris of Latin America". The tourist industry reflects exactly this good moment, by unifying a series of positive results. All along the past year the city received 2 million tourists –the best mark since 2001 (see table below) -- while Rio de Janeiro, the Brazilian capital with the highest rate of tourists, receives 1.6 million visitors each year. The ‘coming back’ of a great number of tourists whetted the appetite of investors. According to a recent study prepared by the consulting firm Ecolatina, investors on hotels and restaurants in Argentina climbed in the last two years from 323 million dollars to more than 600 million dollars. Last year 76 hotels were inaugurated in the country, and another 200 are now being built –most of them in the capital. There are attractions for all tastes, as in the case of Axel Hotel Buenos Aires, in the San Telmo area. On the initiative of a Spanish group, which invested 3,5 million dollars in this project, the hotel intends to be the first five-star hotel in Latin America, targeting a gay clientele. Its inauguration is expected to be in July. Apart from the places traditionally sought by visitors (such as Recoleta and San Telmo), new areas of the city moved into the tourist circuit. One of them is Palermo, with several parks, bars and design shops, among other attractions. Another outstanding site is Puerto Madero, an old and decaying port area of Rio de la Plata, which became an example of renewal at the end of the nineties and continues to offer novelties. Right now they are investing 300 million dollars to finish the Faena Art District, a commercial, residential and cultural complex. The first stage of this project was completed in 2004, with the opening of three residential spaces and inauguration of the Faena Hotel + Universe. With the name of the famed French designer Philippe Starck, this site has won several international awards in architecture and tourism; among these, one given by the English review Wallpaper and the American Condé Nast Traveller. The rest of the Faena Art District Project will be ready in three years. In view of this tourist interest there has been a significant increase in the value of real estate in these areas. In the main suburbs of Argentina’s capital, the price of a square meter climbed over 50% in the last four years – while in 2006 alone, the value of real estate went up 20%. “There are many Americans and British investing in real estate in the capital since prices here are still much lower", says Michael Koh, owner of Koh Inversiones, who specializes on advising foreign investors in real estate transactions who are interested in buying in Buenos Aires. Since 2002 he has completed 400 transactions. In addition, this businessman is building Algodón, an ultra luxury hotel in Recoleta, with only 12 rooms and prices starting at 900 dollars per night.  The company expects to inaugurate in July 2008. Beginning with the growth of tourism, there has been a growth in the market for high level produtcts and services. Last year, Italian firm Ermenegildo Zegna invested 6 million dollars to open a second shop in Buenos Aires. It will join a circuit in the capital with other establishments such as Valentino and Tiffany, all of which have recently arrived in the city. Their idea is to tempt both tourist and local consumers of a high level income, recently back to shopping once more. Meanwhile, this movement is far from the great debate in Argentina about the sustainability of the virtual economic circuit. Critics are warning that because of the lack of investment in infrastructure and a lack of fiscal control by the government, the story might end in tragedy. The Argentine challenge at this moment is to demonstrate that the tango can also have a happy ending.

The Sunday Times (United Kingdom)   January 14, 2007   Argentina’s ready to tango   Buenos Aires offers some of the best property bargains in the world. And, says Mangal Kapoor, the British are welcome   Mention Buenos Aires, and most people in Britain still think of rioters protesting about the Falklands war. But in Argentina, all that is now a distant memory. The county’s capital has reclaimed its title as South America’s most cosmopolitan city and is once again attracting visitors from around the world. What’s more, the city’s English and Anglo-Argentine communities are thriving.   A 15-hour flight from London, Buenos Aires is a beguiling city of broad avenues and well-maintained parks, where the quality of life is good and the cost of living is low. Summer runs from late November to February, with temperatures reaching average highs of 24C-29C.   And there’s more good news: property is incredibly cheap compared with capital cities of similar sophistication elsewhere in the world. Although prices have recovered substantially from the lows of the economic crisis of June-July 2002, when they fell by up to 50%, it is still possible to buy a flat in downtown Buenos Aires at a fraction of the cost in London.   Prospective buyers, though, should move fast. Official figures from the country’s College of Notaries show that property prices in Buenos Aires rose by 37% in the year to October 2006.   The hottest property spot in the city is Puerto Madero, the former docks east of the central Plaza de Mayo. Giant cranes still loom on the opposite bank of the River Plate, but in Puerto Madero, old red-brick warehouses have been turned into smart shops and stylish restaurants, and a new apartment building designed by Foster and Partners, El Aleph, is due for completion in June 2009, with off-plan flats, starting at £150,000, available through Aylesford International estate agency. The flamboyant developer behind El Aleph, Alan Faena, has already built one of the city’s trendiest locales in the area in collaboration with Philippe Starck: the iconic Faena hotel, which drips luxury. Adjoining it is another recently completed Faena apartment block, El Porteño, where an on-site letting and management service is offered for overseas buyers. Flats here, available through estate agent Pablo Casares, range from 50sq m to 300sq m (540sq ft-3,300sq ft) and cost £110,000- £600,000.   If Puerto Madero sounds too expensive, bargains can still be had a five-minute walk south of the city centre, in areas such as San Telmo, home to many of the city’s tango salons, and Monserrat, the old artisans’ quarter. Jane Green, 38, an interior designer, and her Dutch husband, Klaus van de Meyer, 40, who is in the oil business, bought an investment flat in Monserrat during a brief working stint in the city. Now based in Dubai, they also own a flat in Notting Hill, west London.   “We found a dilapidated loft about a year ago for £30,000 and spent a bit doing it up,” says Green. “It’s now worth £55,000. We rent it to young Europeans, who flock here to set up businesses or just to have fun. The cost of living is so low.” More upmarket is Palermo, north of the centre, where the city’s famous polo ground and racecourse are located. It is divided into Palermo Chico (expensive), Palermo Viejo (moderate) and Palermo Soho (up and coming), where prices for a duplex flat start at about £250,000.   In a city of more than 11m people (97% of whom have European roots), it is possible to indulge your every fantasy. Two years ago, James de Molyneux, an American property developer, and his boyfriend, Rex Crawford, bought the top two floors of an art nouveau building in Caballito, a district he describes as “middle-class”. The flat, on Rivadavia, a road that bisects the city from east to west, needed extensive renovation.   “We now have 7,000sq ft with three dining rooms, a three-bed suite on the roof terrace, a winter garden and a Louis Philippe salon,” says de Molyneux. “There are parquet floors throughout and we have two resident butlers.” He thinks the flat is now worth about £300,000.   But why confine yourself to the capital? Some enterprising buyers, such as Neil Rushen, from Burton on Trent, Staffordshire, have gone further afield. Having decided to quit Britain, he and his wife, Sue, “looked in all the usual places: France, Spain, South Africa, eastern Europe, 28 countries in all”, before plumping for the Mendoza wine-growing region, about an hour’s flight from Buenos Aires. In August 2004, the couple took possession of a 19th-century country house near San Rafael with a guest lodge and 60 acres, for £100,000. “There are no restrictions to foreigners buying property in Argentina, and the process is relatively straightforward compared with England,” says Rushen, who believes the country’s economic problems are firmly in the past. “There may be fluctuations, but the market is definitely on the way up.”   Rushen has set up Mendoza Property to help other British buyers follow his example. One person who already owns there is the Duchess of York. She has bought a large plot on the Santa Maria de Los Andes development in Lujan de Cuyo, a 2,000-acre vineyard estate where individual owners select the grape varieties to grow on their plot and the estate’s wine-makers do the rest. Plots start at about £175,000 for 12 acres.   Catering to both Argentinians and foreign buyers are the many “country clubs” within a couple of hours’ drive of the capital. These are gated communities with golf courses, polo fields and lakes for watersports, reminiscent of the home counties, but with searchlights.   Plots start at about £50,000 and owners build to their own specifications, with costs low and the standard of finish high. The new Santa Maria de Lobos estate has attracted the likes of Tommy Lee Jones, who splashed out on a triple plot overlooking the lake. Lobos, 70 miles southwest of Buenos Aires along the excellent toll roads, is the main polo centre, but country clubs also exist closer to town, at Martindale, Tortuga and Maschwitz.   Porteños, as residents of Buenos Aires are known, head abroad to find a beach. Punta del Este, Uruguay’s most famous resort, is about an hour away by air. Akin to Miami in the 1970s, it might not be to everyone’s taste, but along the beach, Rafael Viñoly, a Uruguayan architect, has designed Edificio Acqua, a dramatic collection of flats inspired by Frank Lloyd Wright, with sweeping coastal views. Flats can be bought off-plan for completion later this year through Pablo Casares. They aren’t cheap — a 300sq m studio is about £450,000 — but they are beautiful. All property deals in Argentina are closed in US dollars, so sterling’s current strength is another incentive to buy. But there is one district in Buenos Aires where British buyers might think twice about investing. Its name? Belgrano.   On the market   One of 250 flats at El Aleph, a development in Puerto Madero, designed by Foster and Partners, is due to completed by 2010. A three-bedroom penthouse with a terrace is for sale for £1.6m with Aylesford International, 020 7351 2383, www.aylesford.com   An hour’s flight from Buenos Aires, this five-bedroom villa in San Rafael has a swimming pool, three terraces and three acres of land, including a plum orchard. It is for sale for £103,000 with Mendoza Property, 020 7193 1807, www.mendozaproperty.com   In Recoleta, a historic neighbourhood of the city, this 915sq ft flat is on the market for £110,000. Recently renovated, the two-bedroom, air- conditioned flat is for sale, fully furnished, with ApartmentsBA.com, 00 5411 5254 0100, www.apartmentsba.com A 3,230sq ft flat in Darwin Lofts, a former textile factory, in the trendy Palermo Viejo district, has three bedrooms and a large, open-plan reception room. The flat is for sale for £190,000 with ApartmentsBA.com, 00 5411 5254 0100, www.apartmentsba.com   A 3,230sq ft flat in Darwin Lofts, a former textile factory, in the trendy Palermo Viejo district, has three bedrooms and a large, open-plan reception room. The flat is for sale for £190,000 with ApartmentsBA.com, 00 5411 5254 0100, www.apartmentsba.com Pablo Casares, 00 5411 4814 4533; Santa Maria de los Andes, 00 5411 4331 3250, www.santamariadelosandes.com; Santa Maria de Lobos, 00 5411 4334 1000, www.santamariadelobos.com

Foreign Travel Deals On a Weak Dollar   High-End Hotels in Latin America, Parts of Asia Lure Americans With Cheap Rates; Beating the Euro   By DARREN EVERSON   The Wall Street Journal January 4, 2007   Americans wanting to vacation abroad shouldn't let the depressed dollar get them down. Although the greenback slipped against most major currencies last year, there are still good deals to be had overseas in 2007.   Travelers will find the greatest value in parts of South America, such as Chile, and in more offbeat destinations in Asia. Vietnam, which has beautiful beaches as well as lively, historical cities, has seen a flurry of high-end hotels open recently with room rates well under $200 a night. Even in pricey Europe, where the dollar fell 10.3% against the euro last year, Spain and Portugal are relative bargains. (Starwood Hotels & Resorts Worldwide Inc., for example, is offering special winter rates and double Starpoints through March 31 at its seven Luxury Collection hotels in both countries: A double deluxe room at the Sheraton Algarve at Pine Cliffs Resort in Algarve, Portugal, now costs €96 (roughly $127) and includes a daily buffet breakfast per person.)   Travelers should also be on the lookout for special fixed dollar rates that some European hotels in prime destinations are offering to lure American travelers. Some of these rates are much cheaper than those available in many U.S. cities, where travelers have been hit with rapidly increasing room rates ($500 a night price tags aren't uncommon for mid-tier New York City hotels). By contrast, the Empire Palace in Rome, a member of the Small Luxury Hotels of the World, has guaranteed dollar rates for U.S. citizens and residents starting at $172, buffet breakfast included. The Hotel San Regis in Paris, another SLH property, has a special dollar rate starting at $264 with a continental breakfast included.  The declining dollar has stuck traveling Americans with sticker shock all over the world.  After the euro rose to an all-time high of $1.3643 in December 2004, the dollar rebounded to $1.20 in March before retreating again, slipping to a 20 month low in December, as the euro reached $1.3336. Late afternoon yesterday, the euro stood at $1.3169 from $1.3276 late Tuesday. Besides its double-digit percentage declines against the euro and the pound sterling in 2006, the dollar also dropped more than 7% against the currencies of Australia, Brazil, Indonesia, Norway, Poland, Sweden and Thailand last year.   But in a handful of countries, including Chile, the dollar has actually rallied recently: It rose 3.5% against the Chilean peso in 2006. Prices in the capital of Santiago are reasonable. The well-regarded Torremayor Hotel, located in the vibrant municipality of Providencia, runs $74 a night. Outside Santiago, the deals can be even better. Cullen Vandora of Baltimore, Md., rented a car and drove five hours north to the town of La Serena, where he found vineyards and decent hotels for $45 a night. "It's kind of off the beaten path," he said. "I think I was the first gringo they'd seen in a while."   The dollar also gained slightly last year against Vietnam's currency, the dong, leading to deals at even higher-end places like the four-star Victoria Hoi An Beach Resort & Spa set in the town of Hoi An on the South China Sea. A room there with private beach access is $143. A top-of-the-line honeymoon suite with a jacuzzi, garden and outdoor shower goes for $195. If you're intent on traveling to Europe, now -- not the summer -- is the time, travel agents say, since the winter is Europe's tourist off-season and many hotels are offering discounts. Hilton International Inc. has winter deals at Hilton hotels across Europe, including rates of $147 (U.S.) at the Hilton Vienna and $140 at the Hilton Milan.   Airfare-wise, booking soon -- as in within the next few days -- is advisable, since the major American air carriers are offering competing New Year's fare sales on domestic and international routes. UAL Corp.'s United Airlines has a $159 one-way fare from Boston to Munich, Germany. Northwest Airlines Corp. is offering a $189 one-way from Detroit to London. AMR Corp.'s American Airlines has a $399 round-trip from New York's John F. Kennedy International Airport to Brussels, Belgium. In each case, the fares are valid for travel through March 31, but tickets must be purchased by Jan. 9. Skiers discouraged by the high prices at European slopes and the so-far spotty snow in the U.S. Northeast should consider Canada. Although Canada isn't the value it used to be -- the U.S. dollar was trading at 1.1723 Canadian yesterday; it fetched 1.61 Canadian in January 2002 -- the greenback gained slightly (0.3%) against the Canadian dollar last year.   Mont Tremblant in the eastern Canadian province of Quebec or Banff in Alberta out West are popular spots, says Daniela Gugliotta, vice president of sales and marketing for Alpine Adventures/SkiEurope, which books ski trips to Canada, Europe and the U.S. Six-day, three-resort adult lift passes in Banff cost $432 Canadian (roughly $369 U.S.) in peak season (Jan. 27-Feb. 15 and Feb. 24-April 8); a comparable six-day Silver Passport in Park City, Utah, is $408.   Good deals can also be found in New Zealand, where the dollar fell relatively minimally (3.1%) in 2006, and Argentina, although the latter isn't quite as cheap as it was after the economic crisis at the turn of the century. Still, apartment rentals in Buenos Aires can go for under $50 a night.   Rita Thieme, a real-estate agent in central Massachusetts, took a week-long trip last month to Argentina, where her sister rented an apartment for a month for $1,200 in Buenos Aires through ApartmentsBA.com. The 1,300-square foot one-bedroom included a kitchen and balcony. Argentina is "extraordinarily cheap," Ms. Thieme said. "You can go out to dinner and have the best of everything, including wine, and it ends up being $20 per person."   Jaimito Cartero of Phoenix said he typically spends about that or even less in Buenos Aires daily on lodging. Instead of staying in hotels, he also goes the apartment-rental route, staying in modest studios or one-bedrooms for $140-300 a week. Of course, traveling to offbeat areas can lead to some travel hiccups. Chris Maternowski of Chapel Hill, N.C., said that when he stayed at the Sheraton Saigon in September 2005, the power went out for an hour on his first day at the hotel. It went out two more times the next day. "Sort of odd for a big, modern Western hotel," he said, "but that's Saigon." Still, there were upsides. Mr. Maternowski's room -- the nicest he's ever stayed in, he said; a two-room corner suite with a flat-screen TV, marble bath and "orchids everywhere" -- cost $100 a night.

OVERSEAS PROPERTY – ARGENTINA   London Sunday Express – By Richard Webber   November 12, 2006   Although sunny stalwarts like Italy, France and Spain remain popular destinations when splashing out on a foreign retreat, increasingly adventurous investors are starting to broaden their horizons.               One country attracting interest is Argentina, the second largest country in South America. Real estate agents report an influx of enquiries from Brits wanting their slice of a diverse country whose 2400-mile length stretches from the sub-tropical north to sub-antarctic south, and boasts myriad landscapes, from the rugged Andes and immense eastern plains to the lakes and forests of Patagonia.               One of the world’s wealthiest countries at the turn of the century, such financial standing reflects in its strong infrastructure. Together with many European influences and properties selling for a song, Argentina has become an attractive proposition for would-be investors, says Dan Hathway, 36, who’s lived in San Rafael, in the western province of Mendoza, with his Argentinian wife, Laura, 33, and two young daughters, since 2004.               Dan’s company, Andino Properties, helps foreigners invest in Mendoza by sharing the knowledge gained buying three properties of his own, including an 84-acre farm, which he’s converting into a vineyard and olive grove, and a four-bed city house, costing £25,000 and now worth £65,000.               “Prices are cheap to the British, but for locals, with an average monthly wage of £150, they’re not, particularly as house sales are conducted in cash,” explains Dan. Although mortgages aren’t available for foreign buyers, they’re appearing for the indigenous population, but prohibitive terms, including interest rates up to 14 per cent, mean most people deal in cash. “Argentines view property like bank accounts, often substituting them due to the perceived lack of security of the banking system.”               Such absence of faith stems from a monumental currency collapse in 2001, when GDP fell nearly 11 per cent. Now, the economy is thriving again, despite climbing inflation and a need to curb corruption, thanks to a revival in exports and domestic demand.               Dan extols the country’s virtues, including spectacular scenery, a relaxed lifestyle and low cost of living. “£350 a month is sufficient for good living,” he says. But it’s the affordable property prices that attract most investors, with land available from as little as £400 an acre and properties from £10,000 in San Rafael.             Thanks to Andino Properties, Billy Buxton, 37, and his 28-year-old partner, Jenny Lowe, have secured a 20-acre plot near San Rafael for around £18,000. Taking a sabbatical from his UK job with a mental health charity, Billy and Jenny have just finished travelling the world.   Stopping off in Argentina, they were soon enamoured of San Rafael’s tree-lined avenues and friendly locals. “I was blown away by how friendly and welcoming the people were,” explains Billy, who admits the close proximity of the Andes and the feeling of spaciousness were also pluses. “We can reach the ski slopes within two hours. And wherever you are, you’re never far from such vast wilderness, which beats the crowdedness of the UK.”   They knew it was a country they could call home, and within five years intend to do just that. “We plan to build a farmhouse, plant a thousand trees and grow olives and other fruit organically.”   For those investors using their property as a holiday home, a growing tourism market and domestic demand is ensuring healthy rental yields. Six hundred miles away in the cosmopolitan capital, Buenos Aires, K. Johnston's luxury three-bed apartment in the Recoleta district is on target to earn nearly £15,000 in rental income in just ten months.   Johnston, 36, based in Afghanistan, uses her apartment, which cost £97,000 in 2005, three times a year. “Buenos Aires is enormously rich in culture, comparable to Paris or Rome.” Says Johnston, who advises potential investors to gain assistance from a reputable company, such as ApartmentsBA.com, who not only sourced her apartment but renovated it and manage its rental.   The company’s American president, Michael Koh, 33, who’s bought more real estate in the capital during the last two years than anyone else in the world, says: “There’s good potential for renting out to corporate visitors and tourists, creating a solid income stream. Most of my clients netted about 10 per cent last year on rentals alone, together with a 30 per cent capital appreciation on the value of their property.”   Michael adores Buenos Aires. “It’s a city with much energy and life. There are great restaurants, beautiful architecture, an excellent transport network, it’s safe and one of the cheapest cities in the world to live in.”   Michael rates Recoleta as the most upscale neighbourhood, but cites Palermo Solo, Viejo and Hollywood as up-and-coming districts. Prices have risen sharply in recent time and Michael expects the trend to continue, forecasting prices will double within six years. For bargain hunters, he suggests San Telmo. “The area isn’t as developed and you can pick up properties between £480-£640 per squared metre. Recently, I saw a lovely 90-year-old, 133 squared metre apartment for £67,000.”   Argentina, arguably the most advanced South American country, boasts more than its fair share of stunning scenery, typified by Bariloche, a principal Andean all-year resort in the Lake District region of Patagonia. With skiing in winter, sailing and trekking in summer, Maria Reynolds of Reynolds Propiedades compares it, geographically, to the lakes of northern Italy but “even more spectacular at a fraction of the price”. She enthuses: “It has incredible scenery, four full seasons, European architectural and culinary sensibility and every outdoor sport imaginable – it’s one of the last great places on the planet.”   For “luxury at a bargain price”, Maria refers to the Arelauquen Golf and Polo resort, a gated exclusive community just 15 minutes from downtown Bariloche, where a round of golf costs just £2 and homes start around £170,000. “Lakefront properties on Lake Nahuel Huapi, Guiterrez and Moreno start at around £100,000. They’re not easy to find but worth the effort because there is only so much lakefront like this in the world.”   Maria has noticed an increase in Brits buying second homes or uprooting permanently, to enjoy a high quality of life; and with property prices expected to grow, albeit at a slower pace than recent years, she expects more people to invest in the country’s real estate market. “With most people paying cash, it’s a stable market, more so than investments in the UK and US where people are heavily leveraged and prices and subject to variations in interest rates.”   Foreigners are, however, only permitted to buy property in this region in the border zones, which operate within approximately 65 miles from neighbouring countries, if it’s proved it will benefit the local community. “Usually, showing that one is going to invest money in building a house, using local labour and supplies, is sufficient,” explains Maria, who admits the drawn-out process can take up to a year.   But she’s convinced it’s worth the wait. “Many Brits are moving to Patagonia because it has a long history of immigration from Europe. They want to enjoy a high quality life at a fraction of the price of the UK.”     INFORMATION:   For Dan Hathway of Andino Property, visit www.andinoproperty.com or tel: 0054 26 2743 7811.   For Michael Koh of ApartmentsBA.com, visit www.apartmentsba.com or tel: 0054 11 5254 0100.   For Maria Reynolds of Reynolds Propiedades & Relocation, visit www.ArgentinaHomes.com or tel: 0054 11 4801 9291.

S&P ugrades Argentina to B+ as debt decreases   Mon Oct 2, 2006   NEW YORK, Oct 2 (Reuters) - Standard & Poor's said on Monday it upgraded Argentina's credit ratings to reflect improvement in the country's external liquidity and a decrease in its debt burden.   The ratings agency raised Argentina's long-term local and foreign currency ratings to "B+" from "B". The outlook on the ratings is stable.  "Impressive current account and fiscal surpluses, combined with rapid and broad-based GDP growth in recent years, have strengthened the sovereign's financial profile," S&P said in a research note. "The threat of economic disruption caused by the acrimonious process of debt rescheduling has also abated."   Net external debt may decline toward 95 percent of current account receipts in 2006 from more than 120 percent in 2005. Total public sector debt may fall to less than 60 percent of GDP during the course of 2007 from nearly 80 percent in 2005. S&P said creditworthiness could improve if Argentina manages to sustain GDP growth with stability, breaking with its record of volatile economic performance, as well as greater regulatory certainty.   Yet the agency warned that continuation, or deepening, of greater use of discretionary government intervention in markets as in recent years could hit investment over the long-term, constraining GDP growth and Argentina's sovereign rating. The stable outlook on Argentina is based on the expectation of favorable economic performance in 2006 and in 2007, with continued good GDP growth and fiscal and current account surpluses.   S&P also raised its foreign and local currency ratings on the city of Buenos Aires and the province of Mendoza to "B+" from "B". The outlook on Buenos Aires remains positive and the outlook on Mendoza is stable.   "The upgrades on Buenos Aires and Mendoza are due to the sovereign upgrade and based on the strong links between different levels of government in Argentina," said Standard & Poor's credit analyst Sebastian Briozzo.

Chris Mayer – Daily Reckoning – UK Wed 18 Oct, 2006 Don't cry for me, Argentina, The truth is I never left you. - Evita Buenos Aires, Argentina. Travellers sometimes call it "the Paris of South America," for good reasons, which I'll get to momentarily. More importantly for investors, though, it is also a place where prime waterfront real estate goes for prices only one-tenth of what comparable properties go for in Europe and the United States. There are reasons for that, too. But I'll make the case that they are not good reasons. Argentine real estate may never trade on par with Europe or the United States. But if it is two-tenths as valuable, prices will double. Sounds like a fair bet to me. Especially since Argentina's real estate is practically bubble-proof at this stage. Investing in Argentina's real estate: The 2001 meltdown Investors who think about Argentina in their reflective moments perhaps recall the awful meltdown in 2001. If they had any money in Argentina back then, they probably recall the episode with a shiver and reach for the brandy. The litany of woes was great. Bank accounts are frozen. The peso loses 75% of its value. The government defaults on its debt. The economy falls apart. Unemployment hits 25%. Violent protests in the streets. The stock market collapses. From 1998-2002, the Argentine economy actually shrank by about a fifth. When the Argentines have a crisis, they don't mess around. Emerging markets generally have a habit of melting down every once in a while. Just look at the roll call over the last dozen years or so: the Tequila Crisis (Mexico, 1994), the Asian Crisis in 1997, Turkey in 2000, Argentina in 2001 and Venezuela in 2002. And I'm probably forgetting somebody. All in all, it was a tough stretch for emerging markets. Investors in these countries at these times stood about as much a chance as a toupee in gale-force winds. Consider that from 1994-2002, the MSCI emerging market index lost 60% of its value. However, these markets also snap back famously. Last year, the MSCI index (a common benchmark for emerging markets) climbed back to its 1994 peak - and made back all those losses. Then, in May-June of this year, emerging markets as a group lost a quarter of their value in stunning fashion. It was a little reminder that stability and emerging markets are an unnatural pairing, like a courtship between a snake and an eagle.   Investing in Argentina's real estate: Since the crisis Still, there are times to buy. With that thought in mind, let's take a look at Argentina four years after the crisis. Argentina has always had a romantic quality to it. The eyes of travelers everywhere widen at the thought of those lush grasslands of the Pampas, the rolling plateaus of Patagonia, the rugged Andes Mountains in the west and Tierra del Fuego ("Land of Fire") at the southernmost tip. Travelers also probably fondly recall Argentina's biggest city, Buenos Aires. With more than 11 million people, about one-third of all Argentines live in and around the city. Buenos Aires has its charms. One of them is being easy on the wallet, a fact that has attracted a growing expat community. The European-flavoured architecture reflects the influences of its early settlers. There are wide avenues and plazas. You can wander down cobbled streets finding old-time cafes and world-class restaurants. Enjoy empanadas - small meat-filled dough pockets - which are a staple in the city. Be sure to visit one of the many local parillas (or grills) and you will find out why the Argentines consume more beef per head than any other country. Something about those free-ranging cattle on the fertile plains of the Pampas produces some of the world's tastiest beef. A good meal with wine and an unforgettable steak can cost less than a pair of movie tickets. Argentina is also the eighth largest country in the world and the second largest in South America. Yet its economy ranks only 38th in size globally - behind countries such as Iran, Portugal and Greece. Somehow, it feels like it should be bigger. It is also one of the world's fastest growing economies, and Buenos Aires is among the world's fastest growing cities. "Perhaps the most tangible sign of Argentina's economic recovery," The Wall Street Journal reports, "is its booming real estate market, which has transformed Buenos Aires, the capital, into a construction site." Though gauging economic growth is a tricky business, estimates peg Argentina's at around 8% annually. The stock market has come back, and real estate has been a top performer. Those who survived the debacle in 2001-02 looked to real estate as a safe haven against further inflation. Then, too, foreign investors snapped up cheap real estate as easily as they downed those magnificent steaks. 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. Prices in prime real estate locations are only one-tenth of what they are in the United States and Europe. Puerto Madero is one such prime location. Restaurants and lofts converted from old warehouses now line the old port. It is a popular barrio, or neighbourhood, in Buenos Aires. There is also, as the Journal notes, "420 acres of undeveloped land within walking distance of the financial district, and an open view to Rio de la Plata, the wide estuary that separates Argentina and Uruguay." This area is among the swankiest and most expensive in town. Prices go for $280 per square foot. For similarly located property in the United States or Europe, you could pay 10 times that. It's not surprising, then, that many buyers of cheap Argentine real estate are foreigners. There are inconveniences. For one thing, Argentina's mortgage market is practically nonexistent. 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 - though that could change at some point. The government is taking steps to encourage mortgages. But for now, it would seem Argentine real estate has a long way to go. Argentina, because it is Argentina, may never command prices on par with Europe or the States, but if the discount goes from one-tenth the price to two-tenths the price - real estate prices will have doubled. That's a small step for a market that is only beginning to use housing loans and is only a few years from a major financial crisis. Fortunately, there is an easy way to get Argentine real estate exposure in your portfolio. You only have to buy one stock and you get the full array of Argentine real estate - quality office properties in Buenos Aires, shopping centers, residential developments, luxury hotels and undeveloped land.

Back from the Brink   By:  Pat Adams Global Traveler Magazine August 2006 Having weathered the worst, Buenos Aires is back and business is good. Looking at Buenos Aires from the window of a taxi on the world’s widest avenue — Avenida 9 de Julio — it’s all a bit difficult to believe. Just five years ago, Argentina’s economy collapsed, impoverishing more than half the population and leading to the largest loan default ($155 billion) in modern history. And yet, by appearances, the crisis has come and gone with hardly a trace. Massive French-style mansions and soaring steeples, most built around the turn of the 20th century when Argentina was one of the richest countries in the world, overlook grand plazas and manicured greens. Stylishly coiffed, if conservatively dressed, executives chat on cell phones while sipping espressos in curbside cafes or feasting on succulent, homegrown steaks in smoky parillas; the air buzzing with Castellano (Argentina’s distinctive, slang-saturated version of Spanish). The recession of the late 1990s and the devastating devaluation of the peso, from 1-to-1 with the U.S. dollar to 3-1, literally overnight, certainly have left their scars — both financial and emotional — as well as a lingering distrust of any advice originating in Washington. But if the crisis was crippling in a way few countries have ever known, the recovery has been equally impressive. Since 2003, when populist president Nestor Kirchner took office, the economy has steamed ahead at an average clip of nearly 9 percent a year, far outpacing the rest of the region. And there’s little sign of any slowing; the International Monetary Fund projected growth of 7.6 percent for Argentina in 2006. Even neighboring Chile, the biggest economic success story in the Americas over the last two decades, can’t boast those numbers. As China and India drive up demand for natural resources, Argentina, the world’s fifth-largest exporter of agricultural goods, is profiting as never before. Soy, meat, dairy, grain, tobacco, wool, and hide products from the lush Pampa Húmeda are delivered via highway to Buenos Aires, the nation’s capital and biggest city. Located on the Rio de La Plata (River of Silver), the country’s hub of commerce, industry, finance and culture is also one of the world’s busiest ports. From its founding in 1588 by the gold-seeking Spaniard Pedro de Mendoza, Buenos Aires’ significance as a point of distribution, rather than any precious metal, has fueled its growth. Long before declaring its independence in 1810, porteños (port dwellers), as the city’s inhabitants are known, defied Spain’s orders that all trade pass through Lima, Peru. A thriving industry in contraband smuggled into the “City of Fair Winds” laid the financial foundations for South America’s most developed country. That may seem a tenuous title given the boom-bust cycle that has long characterized Argentina’s economy. But current trends, like a decreasing poverty rate, down 25 percent since 2002, and steadily shrinking unemployment, have given Argentines and outsiders alike reason to believe the best times are yet to come. Investment has more than doubled since the crisis, hitting $41 billion in 2005, or 24 percent of GDP; the automotive industry is bouncing back; and a construction boom — the sector expanded by 20.5 percent last year — is breathing new life into once-deserted areas of the capital. Most remarkable of these rejuvenated spaces is Buenos Aires’ 47th barrio, Puerto Madero. Built in 1889, the port was abandoned soon thereafter, too small for the burgeoning maritime trade empire it was designed to serve. When that empire fizzled out, the port’s gutted, rat-infested warehouses came to reflect the dashed hopes of the nation itself. In 1989, however, with inflation at almost 200 percent, president Carlos Menem sold the land to a private consortium, sparking a process of development that eventually would render a new port with a new purpose. Today, Puerto Madero embodies a resurgent, confident, and ever-modernizing Buenos Aires. High-end eateries and high-rise office buildings have filled the void, and an all-but-forgotten mound of rubble has become the most valuable residential real estate in Latin America (prices average $1,800 per square meter). Indeed, residential projects are driving the area’s rebirth, and chief among them is the Faena Hotel + Universe.   A luxury hotel and apartment building in one, the Faena is the brainchild of Argentine fashion designer-cum-entrepreneur Alan Faena. Designed by French architect Phillipe Starck, it's the ultra-cool crash pad of Buenos Aires' international jet-set. And still it strives to preserve, as Faena puts it, "the essence of who we Argentines are." Housed in a historic brick grain silo, the hotel is just one of a series of restored buildings that make up Faena's grand plan: "El Porteño Art District." The objective, he said, is to "redefine the living experience by transforming an urban space into a center for the arts and creativity." Still, the area's transformation hasn't been entirely urban or carefully planned. One of Buenos Aires' most attractive features is the Resérva Ecológica. During the military dictatorship that ruled Argentina between 1976 and 1983, authorities sought to build a satellite city across from the port. But after the military lost its grip on power, plans stalled and nature took its course. Today, joggers and bikers take to the 868-acre green space for fresh air, exercise or romantic strolls by the water. The economic turnaround hasn't been without its problems. At 12 percent, inflation is a continuing concern. The government has resorted to controversial price freezes as well as a ban on meat exports. But prices keep creeping up. According to the president of the Central Bank of Argentina, Martín Redrado, that's natural for a rebounding economy. Unlike in years past, he said, Argentina's fiscal solvency and prudent monetary policy can keep it under control. Buenos Aires is business-friendly, comfortable and connected. U.S. travelers don't need a visa to enter the country, and most porteños are glad to show off their English, which many, mostly younger people, speak quite well. There are 17 five-star hotels, endless options for fine dining, and cybercafes (or locutorios) all over the city. WiFi hotspots are increasingly common and cell phones are ubiquitous. With its biggest fiscal surplus in 50 years, a trade surplus bolstered by Asian demand, tourism levels at historic highs, and consumer spending on the rise, Argentina is putting a painful past behind it - and Buenos Aires is leading the way.       Checking In With Michael Koh President of ApartmentsBA.com Before becoming one of Buenos Aires’ biggest names in real estate, Chicago native Michael Koh was co-owner of a healthcare coverage company in Dallas, Texas. “It was a great job, I was making plenty of money,” he recalled. “But I was seeing a lot of our clients pass away just three or four years into retirement. And it made me wonder — What if it were me? What if I had three years?” The job changed Koh’s perspective. He decided he actually would live as though his doctor had told him he had only three years left. And because he could afford to do it, Koh began to travel. He started going to the places he’d always wanted to go, seeing and doing the things he’d only ever read about in magazines. Buenos Aires had long been at the top of Koh’s list. “I loved the culture, the people, everything,” he said.     When he first arrived in 2002, Argentina was still reeling from a deep recession, and the government’s decision to devalue the peso that year led to a currency crash. In addition to losing fortunes in savings, many Argentines lost all trust in the banking system, the effects of which continue to play out today. For a while, Koh was rotating between Buenos Aires’ luxury hotels, savoring his “last days.” But with expenses accumulating, he wondered if an apartment might be a better choice. So he went searching. It was an experience, he says, he would never want to repeat. “It was a disaster. I got cheated.” Eventually, Koh found an empty apartment, which he bought and furnished himself. In hopes of renting it out while away, he created a Web site called Apartments BA. “All of a sudden, there was a lot of demand for it,” he recalled.“And I thought,‘Wow, there’s a business here.’ ” Six weeks later, Koh was subletting three more apartments and drafting a business plan to compete with the five-star hotels blocks away. Starting out as a consultant to prospective buyers, Koh quickly gained a reputation for knowing the intricacies of the Buenos Aires real-estate market. His venture capital investment company, Koh Inversiones, which buys high-end property for foreign clients and then rents them to tourists, opened for business later that year. “I haven’t met about 30 percent of my clients,” he said. “They hire me over the Internet or through a referral from a friend. Trust is key.” Many of Koh’s clients haven’t ever seen their properties. “This is just an investment for them,” he said. So far, it’s been a very good one. Koh said last year his investors enjoyed a rise in property values of 25 percent, and made 10 percent on rental income. What’s the outlook for 2006? “Strong,” he said.Tourism is at an all-time high — it’s now the country’s third-biggest source of income — and real estate is one of the safest investments in the city. “You have to remember that ever since the crisis, locals don’t put their money in the bank. They buy property. And now you have foreigners discovering what a great place this is.” “Older folks, especially,” he added. “They love it.” If it was the thought of growing old and dying in Dallas that moved Koh to travel to Buenos Aires in the first place, it’s the sight of retirees enjoying their lives here that makes him marvel at his new home. “I’ve been all over the world,” Koh said, “This is one of the only cities where you can go and see senior citizens drinking espressos at three in the morning. Buenos Aires has something for everybody. And it never even snows.” Just the Facts Standard Time Zone: GMT -3 Phone codes: 54 Currency: Argentine peso Entry/Exit Requirements: A valid passport is required for all U.S. citizens, but no visa is required for visits up to 90 days for tourism and business. Official Language: Spanish Key Industries: Processing and manufacturing of agricultural goods, automobile manufacturing, oil refining, metalworking and textiles

THE WALL STREET JOURNAL   Argentina Real Estate Booming, And Nearly Bubble Free     September 7, 2006   By Serena Saitto   BUENOS AIRES (Dow Jones)--Perhaps the most tangible sign of Argentina's economic recovery is its booming real estate market, which has transformed Buenos Aires, the capital, into an open-air construction site.   In July, Argentina's construction activity grew at a record annual rate of 27.9%, making the industry a major driver of the extended economic rebound after the 2001-2002 economic bust. Economic growth for 2006 is expected to exceed 8% for the fourth consecutive year. And yet the risk of a housing slowdown, such as that currently sparking fears in the U.S. of deteriorating credit quality, is muted here. The reason is that there is virtually no mortgage market behind the property boom.   "Most of our sales happen in cash," says Marcelo Cusmai, the partner of Dypsa International, a real estate company developing three towers in Buenos Aires' former port, Puerto Madero. Cusmai's comments can be taken quite literally. Typically, a home purchase is settled in a secured location, where the buying party will count through stacks of hundred dollar notes before pushing them across the table to have the other side recount them.  This seemingly archaic system does not seem to be reflected in the many ambitious property developments seen around Buenos Aires.   The Puerto Madero area is a case in point. It is being renovated along the model of other major port developments, such as the Docklands in London, and is becoming one of the hottest zones in this metropolis of 13 million. It boasts 170 hectares of underdeveloped land in walking distance from the financial district and an open view to the Rio de la Plata, the wide river that separates Argentina and Uruguay.   Philippe Stark's award winning design of the Puerto Madero's Faena Hotel certified the area as the most hip and expensive in town, selling at about $3,000 per square meter. Still, this price looks like a bargain for buyers from the U.S. and Europe, where per-meter price-tags can run as high as EUR20,000 ($15,600). "Fifty percent of our buyers are foreigners attracted by the projected 10% annual return of this investment and by the beauty of the project," said Cusmai.   The rush to buy properties started in 2002, just after Argentina defaulted on its debt. At that time, those who had escaped the meltdown of Argentina's banking system bought into real estate, which suddenly looked like the safest investment. The trend has continued ever since. That's mostly because the rest of the world has also continued with its housing boom, keeping Argentina's properties comparatively cheap even as they have grown by an average of 50% since 2002, according to Argentina's Real Estate Chamber.   Federico Weil, the founder of TGLT Real Estate, also ruled out a credit bubble risk in Argentina, noting that all of his $100 million investment group's transactions are in cash. "The dynamic of a bubble has a lot to do with the market's leverage; where there's no debt, there's no exposure to interest rate movements," says Weil, 33, who is a Wharton MBA graduate. Like Cusmai and other real estate developers, Weil - who projects a 50% annual return for his real estate investments - sees property demand running upward thanks also to measures that the Argentine government is trying to implement to boost the mortgage market.   In an effort to transform tenants into home owners the administration of President Nestor Kirchner wants stamped into law recent measures that extend the maximum term for mortgage loans to 30 years from 20 years and halve interest rates to 7.5%.   Bankers still doubt the feasibility of these measures without government subsidies. Some worry about political resistance to home foreclosures, which has made debt collection difficult. Others note that the existing payment system, in which the legally declared value is often fixed lower than the actual transaction price to facilitate tax avoidance, creates inconsistent title deeds. That, in turn, inhibits the creation of a mortgage-backed securities market into which banks could offload risk and obtain fresh liquidity for new lending.   Even so, economists and other industry representatives believe that the mere prospect of opening up the market to those who don't currently have the cash to operate in it creates the promise of continued growth.  They also believe that the cash factor eases the bubble risk, but they are cautious not to rule it out.  "It's true the bubble scenario in Argentina is very unlikely because the market's leverage here is very low; this risk exists when people are forced to sell assets to repay debts especially when interest rates start increasing like in the U.S.," said Esteban Fernandez Medrano, an economist with local research company Macrovision.   However, he didn't exclude the possibility that a financial crisis, even one imported from abroad, could depress property prices or put rent payments at risk. "Even though Argentina is far from the U.S., there's a relative effect of what happens in the rest of the world, given that foreign buyers are coming to Argentina," he said. Nonetheless, he predicted that this relationship will continue to be a positive one and that the real estate market will keep its upward trend, based on projected economic growth.   Moreover, Nestor Walenten, secretary of Argentina's Real Estate Chamber, distinguished between the construction industry and the real estate market. "Construction is booming and the industry's activity is 10% above levels seen in the late 1990s before of the crisis, whereas the existing housing's market is still down by 15% to 20% compared to those years," said Walenten, who also runs a real estate business.   Yet Walenten reckoned that real estate prices have peaked, hitting a point "where they are going to stay in the medium term, unless the government is seriously able to implement the credit-boosting measures it just approved."

Buenos Aires enjoys property boom Argentina is climbing out of its economic crisis by tempting foreigners to buy homes in its capital, writes Oliver Balch Tuesday August 1, 2006 Guardian Unlimited   Recycled, New York-style loft apartment. En-suite bedroom, plus spacious roof terrace. Located in the heart of one of the world's most exotic capital cities. Price tag? Roughly the same as a private parking space in central London. It is little wonder that foreigners are flocking to Buenos Aires to snap up the city's property bargains. The most exclusive districts of the Argentine capital average between £1,000 and £1,600 per square metre.   By comparison to other major world cities, it's a steal. A central apartment in Moscow will set you back around £2,700 per square metre. For London, prospective buyers are looking at closer to £3,580.   "Foreigners look around and they are thrilled with the idea of what they can get for their money," says Cecilia Campbell of Buenos Aires-based estate agents, Reynolds Properties. Dan Perlman, a professional chef from the US, is one of those recently lured onto the Buenos Aires' property ladder. Having sold his apartment in New York, he originally came to spend a few months just to get to know the city.   "I found that I really liked it here," says Mr Perlman, the new owner of a spacious apartment in Buenos Aires' Recoleta neighbourhood. Recoleta's Parisian architecture and famous cafés make it one of the most popular buys for foreigners. Other classic favourites include the downtown district of Barrio Norte and the refurbished port area of Puerto Madero.   Property prices have been rising steadily over the last few years, as Argentina begins to climb out of a major economic crisis in 2001-2002. House prices in the Buenos Aires' wealthier districts shot up as much as 25% last year.   The market is showing signs of stabilising now. All the same, investors in buy-to-rent properties can still expect rental income worth 4%-6% of the original sale price. But the big gains are to be made in the city's less traditional areas, says Argentine independent property agent, Maria Garvey: "There are still plenty of great opportunities for investors ready to take a risk with more up-and-coming neighbourhoods."   "Lots of foreigners, for example, are interested in purchasing in off-beat districts like San Telmo and Barracas, where there are still some real bargains. Right now, Palermo Viejo is the really hot place to buy." Once home to writer Luis Borges, Palermo Viejo's bohemian feel has given way to a seriously trendy vibe in recent years. Its cobbled streets are now awash with fashionable boutiques, ultra-cool bars and multiple 'for-sale' signs.   Palermo Viejo's cachet is most evident in the desperate rebranding attempts of its estate agents. Potential buyers now have to negotiate the subtle differences between Palermo Soho, Palermo Hollywood and, the latest, Palermo Queens.   American-born Jennifer Juhasz, owner of a film production company, bought a £97,000 property in the area early last year. When she came to sell in May, she faced a "bidding war". The two-bedroom house eventually went to a Canadian investor for £160,000. Foreigners are now responsible for almost one in three sales in these and other sought-after post codes. Britons and Americans make up the largest proportion of buyers, followed by the French and Spanish.   But Buenos Aires' property boom comes at a cost. Property values, as with everything else, dropped like a stone in the wake of Argentina's crippling devaluation almost five years ago. Saddled with spiralling personal debts and unmanageable dollar mortgages, many home-owners had to put their main asset up for sale. Meanwhile, the foreign money flowing into Buenos Aires' housing market has helped property values rebound to almost pre-crisis levels, particularly at the top-end of the market. As a consequence, many Argentines are now finding themselves squeezed out of the property market altogether.   Magdalene Morales, aged 26, blames the continued valuation of houses in US dollars as the major barrier to getting on the property ladder. Following a pre-crisis parity with the peso, the US dollar is now valued at more than three times its Argentine equivalent. "The high price of property makes it impossible for young people who are just getting started and dream of getting their own house," she complains. The problem can be seen most clearly in the rental market, she insists: "The steady stream of foreigners has provoked a boom in short and long-term rents. Many property owners only rent to foreigners because that way they can get a much higher price". Like many people her age, Ms Morales continues to live at home with her parents. An additional difficulty facing Argentine house-buyers is the lack of affordable credit. Most mainstream banks do offer mortgage services, but few are tempted by the astronomical repayment rates.   But not everyone points the finger at foreigner investors. Wealthy Argentines, who either avoided the economic crash or have prospered during the country's gradual recovery, are also ploughing money into the housing market. As 35 year-old Cristián Santillan, a salesman with a pharmaceutical company and recent first-time buyer, puts it: "After the 2001 crisis, Argentines no longer trust the banks. They prefer to put their money into property because they see bricks and mortar as being more secure."   Oliver Balch is a Buenos Aires-based journalist specializing in sustainable development and Latin American affairs

May 25th 2006 | BUENOS AIRES From The Economist Magazine   Looking for lofts in Buenos Aires     IN 2003, when John Kahoun, a New Yorker, decided to buy an apartment as a rental investment, he was deterred by the cost of property in Manhattan. So for $70,000 he bought a loft in Buenos Aires, the home of his former wife. As Argentina's economy has recovered from its 2001-02 collapse, so have property prices. Mr Kahoun's property in Palermo Viejo, a trendy neighbourhood beloved by film-makers and artists, has nearly doubled in value.   Foreigners like Mr. Kahoun have contributed to a continuing property boom in Buenos Aires. They account for up to a quarter of buyers in some wealthier neighbourhoods. Two years ago, Michael Koh, an American, set up ApartmentsBA.com, a firm which buys property for foreign clients and rents it out to foreign tenants—about 15% of whom come to the city for plastic surgery. Mr. Koh says his investors, many of whom have never seen their properties, enjoyed a rise in their capital asset of 25% last year on top of rental income worth 10% of their investment.   By comparison with the United States or Europe, housing in Buenos Aires is still cheap. Modern apartments in the elegant districts of Palermo and Recoleta cost less than $1,500 per square metre, and bargain-hunters can buy in slightly older buildings in pleasant, middle-class barrios for a third less. So far the foreign invasion has not prompted a xenophobic backlash. That may be because it is largely confined to the leafiest neighbourhoods, where many new blocks of flats are going up. And foreign buyers must climb over mounds of red tape.   Sellers demand cash. But foreigners are not legally allowed to bring large sums of money into the country. So the typical route is to transfer the money to the account of an Argentine foreign-exchange house held at a bank abroad. The exchange house converts the funds into pesos, to comply with controls on the import of foreign currency, and then back into dollars (for a fee of around 2%). On completion, the exchange house presents the buyer with a suitcase full of cash to hand over to the vendor. Only then can the would-be resident of Buenos Aires celebrate with a steak and a bottle of vino tinto.

Does Argentina offer more than Paris? World-class restaurants, museums and health-care services are luring overseas buyers to Buenos Aires   By James Scott   Buenos Aires Herald   May 24, 2006     Chicago residents Mark Warden and his wife Mary Beth found a steal on the ideal second home, offering a retreat from the bitter Illinois winters, great culture and stunning architecture. The only catch is it takes an overnight flight to Buenos Aires to get there.   The couple paid about US$150,000 last year for a 90-square-meter, one-bedroom apartment on Rodriguez Peña in Recoleta. The experience went so smoothly that the Warden’s are now closing on another place – in a century-old building – that cost just US$60,000.   “I was surprised at the sophistication of the city,” said Mark Warden, a retired president of an Illinois community college. “This could be any place in Spain or Italy.”   The Warden’s aren’t the only ones who’ve opted to move farther south than Florida in their search for a second home, trading in the comforts of a US lifestyle for the rich cultural experience Buenos Aires offers.   With real estate prices soaring across much of the United States, Canada and Europe, investors increasingly are buying up everything from apartments in downtown Buenos Aires to farms in the countryside and even wineries that dot the basins of the Andes Mountain.   The rush is fueled in part by the 2002 devaluation of the peso – once pegged one-to-one with the dollar – that has meant that an apartment in the heart of the city can go for not much more than what a luxury car might cost back home.   Cheap prices aren’t all that is fueling the trend. Buenos Aires offers world-class restaurants, museums boasting European masters and modern health care services that have landed the city on the covers of many world travel magazines.   “It offers pretty much everything for everybody,” said María Reynolds, who along with her husband, Paul, runs Reynolds Propiedades, an agency that assists foreign buyers. “If you like tango, there’s tango. There is also polo, lots of golf courses and the weather and food are fantastic.”   Bargain prices   The obvious draw for many is price. In Paris, the costs are about US$8,000 to US$9,000 per square meter. In New York’s Manhattan, the average cost per square meter is US$10,000 to US$12,000 and in some parts of London the numbers can exceed US$18,000 per square meter.   In contrast, Puerto Madero – Buenos Aires’ hippest, not to mention most expensive, new neighborhood that lines the water – the cost is about US$3,000 a square meter.   Homes in the more established Recoleta, with a feel of New York’s Upper East Side, range from about US$1,400 to US$2,600 per square meter. Barrio Norte is an even better deal with at US$1,100 to US$1,300 per square meter.   While costs have been climbing in recent years, many believe the market will continue to rebound, pushed in part by the now soaring tourism industry. The number of visitors is growing roughly 10 percent per year with more than four million tourists expected to visit this year.   Chicago-born businessman Michael Koh helps international investors and second-home seekers buy real estate through his company Apartmentsba.com.   Koh, who bought his first house here in 2003, said he now buys an average of two to three properties a week. His team of 35 employees helps handle everything for clients from showing properties and writing sales offers to overseeing the closings, renovations and decorations.   His business has boomed. What started as buying apartments for individual investors has morphed into working for investment funds, buying land and building new homes and now undertaking the acquisition of dated buildings to transform them into  high-end hotels.   “You can buy cheap real estate and make money anywhere in the world,” Koh said.  “The good thing about Buenos Aires is it is real estate you will actually use.”   María Reynolds said her family’s business has experienced a similar increase since the devaluation. Prior to the devaluation, the company focused on temporary rentals, handling only a few sales each year   The company, which now sees more than 100 sales a year, offers seminars twice a year for prospective buyers looking to navigate the bureaucracy.   To facilitate overseas buyers, Reynolds has developed a property management arm of the business as well as provides interior decorating services for clients looking for a hassle-free investment.   “We see quite a stable demand. It has not gone down,” Reynolds said. “On the contrary, there is more international promotion. We see more foreigners becoming aware of this possibility.”   How it works   Buying real estate in Argentina can be daunting for overseas investors. Mortgages are nearly nonexistent, meaning transactions are done in cash. Also, sellers rarely will want to register the actual sales price hoping to avoid taxes.   Unlike other countries, however, overseas buyers here can purchase a home in their name and are guaranteed the same protections as local buyers.   Yearly expenses include property taxes and a 0.75 percent wealth tax that is based on the value of the property. Property owners that rent also need to withhold 21 percent of the income to pay rental taxes.   Prior to selling a property, the government may do a check of the utility records to see if the property was occupied. If a owner hasn’t paid the rental taxes, then the government will assess what it believes is owed in taxes.   For those looking for a stress-free move, businesses have sprung up that will handle most everything. Cliff Williamson runs Transpack Argentina, a relocation firm that will pack your house up anywhere in the world and import it to Argentina.   Williamson also runs Latin American Homecoming, a subsidiary that handles everything from picking clients up at the airport to providing profiles of neighborhoods and schools. His business even offers a 24-hour hotline for late night emergencies.   “We’re moving in a lot of people,” said Williamson, who averages about 400 moves into Latin America a year, many involving corporate relocations. “One of the things that makes Argentina very attractive is that the rest of the world is so turbulent. Argentina doesn’t look so bad.”   Chicago-based flight attendant Anne Elizabeth fell in love with Buenos Aires 30 years ago, but didn’t have the resources then to make an investment.   A year and a half ago, she came back to visit, rekindled her love with the city and ended up buying a one-bedroom apartment in a century old building just a few blocks from the Recoleta Cemetery. Designed by a French architect, she said, the building has a sister in Paris.   Elizabeth spent US$93,000 to buy the unit then spent another US$40,000 renovating it, including a complete overhaul of the kitchen and bathrooms with granite, appliances and cabinets. Her taxes, regime and utilities, she said, never exceed US$250 a month.   For her, Buenos Aires was less about the deal and more about the lifestyle. “I love walking across the street to get my fruit and vegetables from a local vendor,” said Elizabeth, who spends one week a month here. “Everybody in the neighborhood knows my name. I love that part of it.”     On the Net: www.reynoldspropiedades.com www.apartmentsba.com www.transpack.com.ar

RTE House Hunters in the Sun Magazine – Ireland’s Leading International Property Magazine    June 2006     LATIN FEVER   For many, South America seems just to far away and to untested to be suitable for a property purchase, but for the more daring investors among you, Argentina, Brazil and Chile could really get your temperature up. And as, Ben West reports, with growing property markets, now is a great time to buy.   Today’s property investor is embracing ever more adventurous locations. Where, 20 years ago, purchasing a villa in Italy may have seemed a daring, now exotic countries that many of us would be hard – pressed to locate precisely on a map are becoming the order of the day.   The incredible continent of South America, with its breathtaking geographical extremes of volcanic mountain ranges and huge and huge unspoiled beaches, vast rainforests and majestic plains, is attracting a growing band of European buyers. When you look at the fabulous opportunities on offer combined with the low price tags, it’s easy to understand why.   But although the property markets of many South American countries are in their infancy and show great potential, it is important to bear in mind that the continent generally remains afflicted by economic volatility and political instability. Therefore any location being considered for a property purchase needs to be thoroughly researched.   ARGENTINA   Argentina is packed with attractions for the foreign investor, including the vibrant world-class capital city of Buenos Aires and huge tract of stunning, varied scenery. Although property prices have always been very low here, the economic crash and currency devaluation in 2002 reduced them further.   The economy is gradually recovering, with demand exceeding supply of quality properties and enlarging local mortgage market, prices are now steadily rising. According to Maria Reynolds of Reynolds Propiedades, rental yields in good locations of Buenos Aires typically range between four and eight per cent, although Michael Koh of ApartmentsBA.com is more upbeat, claiming that investors in areas such as Recoleta could see a net rental return of 12 to 16 per cent per year.   “There have been three straight years of appreciation in property prices in Buenos Aires”, he says.  “Many foreigners are buying real estate as an investment”. Like Recoleta (where prices range from € 1,540 to 2,530 per square meter) another current hotspot is the newly developed neighborhood of Puerto Madero in the old dock area of Buenos Aires (€ 2,160 per square meters). A rented 67,000 euros one-bedroom apartment in the Recoleta neighborhood would net about € 755 per month. Lands with coast or lakes in Patagonia, vineyards at Mendoza and farms, land and hunting lodges at La Pampa and Buenos Aires province are also popular.   “My rental clients compare the price they paying to stay in a hotel versus a five-star apartment”, says Marcela del Campo of Settle Business. “People pay at least  € 251 a night to stay at nice hotels.  “The tremendous potential for rental income is just the icing on the cake for investors. Tourism is booming here in Argentina and I see no slowdown for the foreseeable future”, says Michael Koh.   But if living in the capital doesn’t appeal, Cordoba is a popular province attracting buyers. Its landscape of rolling hills, mountains and rugged cliffs is reminiscent of the south of France and although 500 miles west of the capital, its undeveloped land prices are very tempting, being from around € 170 per hectare.   To buy in Argentina, purchasers are required to obtain a tax identification number (CDI), which is done by granting a power of attorney to a resident so that they can get it for you. You then appoint a notary public (Escribano) to handle the sale for you. There are no purchasing restrictions for foreigners and buying is simple, usually lasting around six weeks. Fees, based on a percentage of the sale price, are made up of around two per cent notary fees and costs, estate agency fees of around three per cent, 21 per cent VAT, and stamp duty of around 2.5 per cent but varying in different provinces. Property taxes are set locally and depend on the property value. Buenos Aires is exempt.

 

Property Investor News Magazine - United Kingdom   By:  Mark Hempshell   April 2006   Argentina was sparsely populated until Europeans arrived in 1502 and the country was colonised by Spain - from whom independence was declared in 1816. Over the next 160 years centralist and federalist, conservative and radical, and civil and military administrations traded power. In 1983 after decades of political turmoil, plagued by terrorism and oppression under which countless numbers of opponents 'disappeared', the last military dictatorship was ousted and democracy was restored. In the 1980's and 1990's the Government introduced measures to take civilian control of the armed forces and permanently establish the country as a democracy. Despite, at times, having suffered from political and economic turmoil República Argentina is still the most developed country in South America, and to all intents and purposes a 'first world' nation, not a 'third world' one. It has the highest GDP per capita, the highest levels of university education and an infrastructure comparable with industrialized nations. The Economy Foreign investment and immigration from Europe shaped Argentina into an advanced economy during the 19th century. From 1880-1930 the country was one of the ten wealthiest nations in the world. But years of political problems contributed to economic decline, leading to massive public debts and severe hyperinflation by the late 1970's. In 1991, under President Carlos Menem, the Government embarked on a programme of trade liberalisation, deregulation and privatisation with the aim of rejuvenating the economy. Most significant of these, as we will see later, was the 'Convertibility Law', which pegged the value of the currency, the peso, to the US dollar on a one-for-one basis. Initially the economy improved but falling exports, growing imports, unemployment and the impact of the Asian economic crisis eventually took their toll. By 2001 GDP had plummeted, inflation exceeded 1,000% and unemployment reached 25%. The peso-dollar tie was ended in 2002 and the currency lost 70% of its value. Argentina defaulted on its international debts, public employees went unpaid and bank accounts (an extremely unpopular measure known as corralito) were frozen, leading to street rioting. In 2003 strict fiscal measures including revaluing the currency,  import substitution policies and increasing exports contributed to a sudden surge in GDP. Internal consumption increased, foreign investment returned and the so-called 'Tango Revival' began. The economy grew 8.8% in 2003, 9% in 2004, and 9.1% in 2005 by which time unemployment had fallen to 10%. The Government completed restructuring of the national debt in February 2005, which now stands at 69% of GDP and is slowly decreasing. According to INDEC, the National Institute of Statistics and Census, GDP expansion for 2006 could be 7%. State Of The Property Market As in other developed nations property here was always considered a rock-solid investment. But the economic collapse of 2001-2002 shook that belief to its foundations. During this time people lost the majority of their savings and their pensions. The breaking of the peso-dollar tie caused the currency to lose 70% of its value against the dollar by December 2002 - making previously-attractive dollar mortgages cripplingly expensive. People were desperate to sell their property to salvage something and, burdened by many sellers and few buyers, the property market collapsed. The rental market was also severely affected : According to 'Reporte Inmobiliario', which reports on trends in the market, average residential rents dropped by 74% from US$29 to US$7 per m² during 2001 alone. But with the economic revival the market began to move again. By the end of 2003 residential property had, on average, recovered to 67% of its pre-crash value. By January 2006 prices in many areas have recovered to their pre-crash levels, and in some have increased by as much as 34% in a year. Property transactions, together with new build completions, reached a new record in November 2005. Some outside observers wonder how, given recent events, confidence has returned to the market so quickly. One key reason is that, after the corralito, many Argentineans do not trust the banks and still regard land and property as a more secure investment. Another factor which bodes well for the property market is that buying property here is straightforward. Foreign investors may buy without permission. Once you have found property the title is checked, the escritoire is signed and the purchase is registered. There is no capital gains tax. Buenos Aires Argentina is divided into 23 provinces and one autonomous city - Buenos Aires, widely known as capital federal. The city itself has a population of 2.7 million and the city plus the greater metropolitan area 11.5 million, making it one of the largest conurbations in the world. Buenos Aires has a modern high-rise centre with thriving commercial districts, yet is notable for its quality of life with extensive green spaces, good public amenities and transport and - as the name suggests - a pleasant climate. It is gradually becoming recognized as something of an undiscovered gem compared to most overcrowded international cities. In a recent article 'The Washington Post' proclaimed 'Forget about Europe, go instead to beautiful Buenos Aires - the city with everything but without the high costs of European cities.' Living costs are indeed low for any city, although rising : A good meal for two with wine costs US$20, a cinema visit US$4 and domestic staff can be hired for US$2 an hour. Not unsurprisingly, therefore, it is proving a major draw to expatriates, migrant workers, entrepreneurs, retirees and students from Argentina, the rest of South America and, increasingly, the USA. Property prices here have been rising briskly since 2003, but are still extremely low by capital city standards. It is still possible to buy a studio apartment in a good central area for US$50,000, although these are becoming rarer. Across the city generally new build property tends to be more expensive than old, and floor area tends to be more generous than in most European cities. Recoleta, north of the centre, is regarded as the most desirable and fashionable residential district and is also popular with tourists. It is very much the 'Fifth Avenue' or 'Mayfair' of the capital, home to deluxe hotels, fine restaurants and designer shops. Current apartment prices range between US$1,500-US$3,000 per m², with one bedroom apartments typically selling for US$90,000 and two bedroom apartments starting at US$135,000. Prices were already high by Argentinean standards so showed a relatively modest 15% price rise in 2005. Palermo is another good quality residential area,  with a reputation as a 'trendy' district. Current prices in Palermo range between US$1,300-US$2,800 per m². Puerto Madero is a newly developed area, similar to the London Docklands. Prices are already at a premium here, at around US$2,200-$3,000 per m² and only a few sites are left for new development. Of course, as elsewhere, the greatest price appreciation is often found in the up-and-coming districts. San Telmo to the northwest of the centre is a bohemian area of pavement cafes, bistros and antique shops, still showing signs of its working class roots. A regeneration programme to improve security and enhance the street scene is currently underway. Also up-and-coming is La Boca on the southern edge of Buenos Aires at the mouth of the River Riachuelo. These districts are home to the city's famous Tango clubs. Prices are currently in the region of US$800 to US$1,200 per m² and these areas are tipped by many commentators for growth. Michael Koh, President of ApartmentsBA.com, has made extensive real estate investments on behalf of his own company and as a consultant to investors, and firmly believes in Recoleta despite its relatively high prices. He says 'Recoleta will always be Recoleta. The best investment is buying in a good area like Recoleta but not on a posh street like Avenida Alvear where prices have already gone over US$3,000 per m². You can go just a few blocks away in a very nice part of Recoleta and pay US$1,500 per m².' He points out 'Many investors are buying for short-term rentals (serviced apartments). So it doesn't make sense to pay US$3,000 per m² when you can pay half of that in a good part of Recoleta. The average tourist that comes down and books an apartment won't know the difference of 5 or 6 blocks.'  Michael is also very confident about the Palermo Soho/Viejo/Hollywood areas which he believes will be transformed, particularly as tourism increases. He tells us 'I predict these areas will explode with growth within the next 3-5 years' and he has started to purchase up plots of land in this area in anticipation of building luxury houses and boutique hotels. Tourism, Agriculture And Land Investments An important issue to factor in is the part tourism could play in the property market. Tourists dwindled to almost nothing when the peso-dollar tie made it prohibitively expensive to visit. But today's bargain living costs saw visitors rocket to 3 million last year. Tourism Secretary Carlos Enrique Meyer recently predicted 4.1 million tourists and US$3.5 billion of tourist income for 2006, with 10 million visitors projected by 2010. A number of airlines are restarting or launching new routes. Major draws for tourists are Buenos Aires, the Iguazú Falls and Patagonia. There are several good quality ski resorts in the Andes (the season is June-September) such as Bariloche, Las Leñas and Villa Angostura. Hotels in these areas are frequently fully booked, fuelling the demand for short-term house and apartment rentals. Investors are also active in buying land with future residential development potential in tourist areas. Argentina has always been a major and well developed agricultural country. As well as being self-sufficient in food it is the world's fifth largest agricultural exporter, and agriculture accounts for 60% of all exports. Agricultural land is very cheap by international standards and there has already been notable foreign investment in agricultural land. International investors such as George Soros, Kerry Packer, the Sultan of Brunei and Ted Turner are already believed to have bought up large tracts of land, particularly in Patagonia. Analysts agree that, should the USA and EU eventually agree to remove or reduce subsidies  for their own agricultural sectors countries like Argentina could benefit considerably. Future Prospects So what are the prospects for prices in 2006 and of course rental yields? Michael Koh reports 'Prices have drastically risen all over the city in good areas like Recoleta, Barrio Norte, Palermo, Palermo Soho/Viejo/Hollywood, Puerto Madero. Areas outside of those areas were not as drastic.  Property prices went up by as much as 25%-30% last year in some areas of the city. However, much depends on the kind of apartment, building and location.' On rental yields he says 'The rental market has exploded. There are a lot of apartment rentals on the market for tourists. Hundreds if not over a thousand.  The typical average rental probably yields about 6-8% per year on the total investment.' However, he advises that high quality, well equipped properties can yield much more. I offer luxurious furniture, high-tech electronics, local cellphones, USA phone lines, high-speed Internet and many other features. Most locals aren't willing to make this investment. However, it enables us to make a much higher rate of return.  Many of my clients have yielded as high as 11% - 16% a year on the rental income alone.'   Michael is extremely confident about prospects for the market, stating 'I've always said that real estate here in Argentina is one of those once in a lifetime opportunities. I still maintain that property rates can easily double in good areas from today's prices.'

February 19, 2006   A World of Affordable Choices   By STEPHANIE ROSENBLOOM     THE NEW YORK TIMES     NEW YORK — sung about by Frank Sinatra, chronicled by Carrie Bradshaw and trampled by King Kong — has long had mythic status. Even the real estate is legendary.   Rents have always seemed exorbitant compared with those in other big cities, and now buying in Manhattan costs a record-setting $1,002 a square foot, on average. Still, there are plenty of properties for less than $500,000, and some dynamic neighborhoods in Brooklyn and Queens have rentals for below $1,000 a month.   New York, though, is not the only city capable of captivating the unencumbered and adventurous. The world is dappled with electric and storied cities — and real estate is staggeringly affordable in many of them. "There is so much value in a lot of foreign countries," said Nigel Leck, an international property expert on the BBC program "Uncharted Territory." "The capital growth will be very, very good."   Entrepreneurial types should seize the moment in Eastern Europe, where cities like Budapest, Prague and Krakow, Poland, are in need of basic services and programs to propel them into the future. Those who want the privileges of home — a democratic government, a transparent market, the protection of property rights — but want more bang for their buck, should consider Toronto, Montreal and Quebec.   Sun-seekers looking to live and invest in a more tropical climate may want to migrate to one of the many flourishing cities in Latin America. Young executives who want to position themselves for the next decade can get deals in Shanghai, while romantics can embrace a piece of Paris for less than they may have thought.   Jeff Hornberger, manager of international market development for the National Association of Realtors, said that many European and Latin American countries welcome foreign buyers. But that does not mean the process is devoid of red tape. Information about ownership laws in 24 countries can be found on WorldProperties.com. Click on "Country Info," then "Business Practices." Select a country from the drop-down menu. Where it reads "Select Business Practice," choose "Foreign Ownership." That will note any restrictions. In Mexico, for example, Article 27 of the Mexican Constitution of 1917 prohibits foreigners from owning residential real estate within 30 miles of any coastline or 60 miles of either border.   "As a rule of thumb, countries that were former British colonies have few, if any, restrictions, whereas many other countries restrict and require you to get a special permit to buy," David M. Michonski, chief executive of Coldwell Banker Hunt Kennedy and an international real estate specialist, wrote in an e-mail message. "But in resort markets, the countries often make exceptions." Renting is a more informal process. "It is always easier to rent in a foreign country than to buy and I know of no restrictions on renting anywhere," Mr. Michonski wrote.   By and large renting is an agreement solely between the property owner and the renter. "If you're going to Italy and you're renting from a mother whose kids have left the home, she probably just wants a down payment," Mr. Hornberger said.   Some property experts say the most challenging part of relocating is finding a job. Yet it can sometimes be easier than buying property. "Many countries welcome American know-how and since Americans rarely compete for the low-paying local jobs, restrictions are often far more lax than to purchase," Mr. Michonski wrote.   At WorkAbroad.Monster.com there are job listings for nearly 200 countries. The site has tips about working papers, corporate relocation and private-sector jobs like teaching English. It also makes mention of risk-takers who, without any business connections, travel abroad to study, work freelance or start their own business and end up making valuable local contacts and securing work for themselves.   Of course, to learn about a country's visa and residency requirements, you will have to contact its embassy or visit its Web site. Latin American cities are among the most exciting and affordable, especially Buenos Aires, the sultry, party-until-the-wee-hours city known as the Paris of South America. In 2002, the Argentine peso was devalued by the government, resulting in a currency crash. But four years later the city is getting back on its tango-dancing feet.   "This is a city that is getting more expensive because the economy is on the recovery," Mr. Hornberger said, "but it's still at a fraction of the cost." Dinner for two with a good bottle of wine and dessert is $15 a person in a nice restaurant, said María Reynolds, who is an owner of Reynolds Propiedades & Relocation in Buenos Aires. "If we ever go out and pay more than $18 a person it's like 'wow, that's expensive,' " she said. (In Manhattan it costs $16.95 for a fajita at Señor Swanky's, a Mexican chain.) The enclave of the moment is San Telmo, a "young, hip urban scene with a thriving arts community and a strong ex-pat community," as Mr. Hornberger put it. The neighborhood is dotted with fine restaurants, bars, boutiques and colonial houses. Property costs between $56 and $93 a square foot, Ms. Reynolds said. Renting is also affordable. There are furnished studios with weekly maid service for $450 a month at www.buenosaireshousing.com.ar. (That is less than the $497 it costs to keep a car in the garage near New York's Museum of Modern Art.)   Real estate is more costly though still reasonable in Recoleta, an elegant downtown tourist magnet. Prices are about $180 to $300 a square foot, Ms. Reynolds said.   Lief Simon, the editor of Global Real Estate Investor, a newsletter published by International Living, likes Panama City with its high-rise buildings, restaurants and some 80 banks. "It's a first-world city," he said, and yet two-bedroom apartments can be had for $60,000 to $80,000.   Mexico City, recommended by some property experts, makes others cringe with its crowded streets and polluted air. Still, "there are a lot of young Americans living down there and they're finding employment," said Mr. Hornberger, who suggested living in Condesa, a chic area that has been likened to New York's East Village. There are two- and three-bedroom apartments in Condesa for about $1,200 to $1,500 a month. Some one-bedrooms in downtown Mexico City are less than $700 a month. Those who are partial to cooler temperatures but wish to remain on this side of the Atlantic could head north to Canada. "It's a great opportunity for kids today," Mr. Michonski said.   Toronto is the financial headquarters of the country and three of its trendiest neighborhoods are among the most affordable. "It's a mini-Manhattan, but we're decades and decades behind in terms of where you are with your price points," said Michael Kalles, president of Harvey Kalles Real Estate (harveykalles.com) in Toronto. The Beaches neighborhood has a lively beachfront boardwalk, volleyball courts and an outdoor swimming pool, yet is close to the city's downtown. Buying at the low end of the market in the Beaches is about $260 to $300 a square foot, said Michael Manley, a director of the Toronto Real Estate Board.   Rent is $690 to $1,210 a month, said Ryan Schwerdtner, managing director of a Canadian rental Web site, http://www.viewit.ca. Rents vary significantly, he said, because properties range from beachfront homes to basement apartments.   Two of the trendiest downtown areas are West Queen West (known for its galleries, dance clubs and shopping) and King West Village (its myriad pubs make it ideal for night owls). New condos in Queen are going for $220 to $330 a square foot and are being snapped up by young people, Mr. Kalles said. Loft and one-bedroom rents in both areas are about $870 to $1,130, Mr. Schwerdtner said.   In Montreal, the "place to be and to be seen" is Plateau Mont-Royal, said Bertin Jacques, a spokesman for Tourisme Montréal. Property in this area — which is popular with young Canadians because of its cafes, restaurants and nightclubs — is about $220 to $240 a square foot and rentals are about $650 to $1,470 a month, he said.   The Gay Village enclave, which can be likened to New York's Chelsea neighborhood, also draws a number of straight people because of its dynamic night life and affordability, Mr. Jacques said. Real estate is about $190 a square foot and rentals are about $780 to $1,210, he said. If Buenos Aires is the Paris of South America, Quebec City is the Paris of North America. It is divided into Haute-Ville (the upper town) and Basse-Ville (lower town). Haute-Ville is more expensive than Basse-Ville, which, like New York's South Street Seaport, is distinguished by a port (Old Port) along the St. Lawrence River. Warehouses converted into 750- to 2,000-square-foot apartments are about $170,000 to $390,000, said Richard Séguin, a spokesman for Quebec City Tourism.   Speaking of Paris, the city of Renoir and haute couture is far less expensive than New York and San Francisco, a fact that has escaped many would-be expatriates.   "There's a lot that is still way underpriced because it needs renovation and gentrification," said Adrian Leeds, who moved from Los Angeles to Paris in 1994 and is the editor of www.parlerparis.com, a newsletter about Paris, as well as other Web sites about France, including French Property Insider (www.frenchpropertyinsider.com).   Those looking for a deal should skip the Sixth and Seventh Arrondissements, home to the Luxembourg Gardens, Eiffel Tower and Musée D'Orsay. Instead, they might consider buying in developing arrondissements where the city's bohemians and "bobos" (bourgeois bohemians) flock: the 10th, 18th and 19th. Just be wary of the 10th Arrondissement (one of the city's up-and-coming areas), advised Yolanda Robins, a property manager for French Property Insider who moved from Philadelphia to Paris two years ago. The areas along the tree-lined Canal St.-Martin are beautiful, she said, but those near the train station "can be horrible." The average price per square foot in the arrondissement is about $530 to $670, she said.   The artsy 18th Arrondissement, known as Montmartre, is perched on a hilltop, and the Eiffel Tower can be glimpsed from some of its apartments. Property costs about $670 a square foot on the west side of the arrondissement and about $440 a square foot on the east side, which is undergoing gentrification, Ms. Robins said. Property in the 19th is about $440 to $610 a square foot, she said.   Long-term furnished rentals in those arrondissements are about $3 to $4 a square foot a month, according to Ms. Leeds. "It doesn't even come close to London," she said. As Mr. Hornberger put it: "London is out of reach unless you've got a really good trust fund."   Yet some Anglophiles and English majors remain undeterred. Ryan Benson, director of Dream Properties London, suggested renting in St. John's Wood. But even there, a 270-square-foot studio on the famous Abbey Road is on the market for about $1,470 a month (at www.foxtons.co.uk). Other areas to search are Maida Vale, West Hampstead and Little Venice, though the pickings are slim. Suburbs like Stanwall and Radlett are less expensive but what is saved in rent is paid for in gasoline or commuting time. Those doing business in China (Mr. Michonski calls it "the land of the future") may want to work and buy in Shanghai. Adrienne Farrelly, general manager of Shanghai Properties (shanghaiprops.com) suggested looking in People's Square, nestled among two of the city's major commercial and retail streets. Nearby is Top of the City, an apartment complex where property is about $350 a square foot and rentals start at around $700 for a 689-square-foot one-bedroom, Ms. Farrelly wrote in an e-mail message. "It's probably the best value in town given that it's at People's Square," she wrote. Property experts agree, however, that the best values are really in Eastern Europe. There are "huge swaths of land" available for "knockdown prices," said Mr. Leck of "Uncharted Territory."   "That's where the opportunities lie," Mr. Simon said, "and that's where the young person who's entrepreneurial could make some money." It costs about a $110 a square foot to buy in Bucharest, Romania, he said. "I think the biggie there in Eastern Europe is Bulgaria," said Mr. Michonski, adding that it has magnificent beaches as well as mountains for skiing and that "you can live like a king on $10,000 a year."   But, alas, if the siren song of New York is too mighty to ignore, you can find rentals for about $1,000 a month. Manhattan Apartments (www.manhattanapartments.com) and Mark David & Company (www.markdavidny.com) have some in Harlem and Washington Heights. In Brooklyn, there are a few studios in Park Slope and Kensington for less than $1,000 and in Williamsburg and Greenpoint for about $1,200 on the Craigslist Web site. In Queens, some studios and one-bedrooms in Astoria are less than $1,000.   Those who are cash-strapped but still want to live in Manhattan can rent a room (or a corner of a room) for about $500 to $800 a month. They may lack space and privacy. But they provide a sliver of the Big Apple. And more than one dream in this city began with less than that.

International Homes Magazine  - Leading Property Investment Magazine in the UK  -  Vol. 13 No. 1  February 2006   Land and Freedom      By: Michael Gunn       Is Spain looking just too crowded and familiar?  Latin America has the ideal alternative for those who’ve honed their Spanish but hunger for more dramatic surroundings, greater adventure and much cheaper property.  Take a bow Argentina – the continent’s second largest territory with plenty of land to spare.        “Argentina isn’t some small Caribbean island or tiny Central American tax haven,” says David Cummings of Tierra Estates.  “It’s a proper country with vast opportunities for exploring.  There are tropics at one end, glaciers at the other, sea on one side, soaring mountains the other.”  Even the most cursory glance at a map bears him out – from the subtropical borders with Bolivia and Paraguay, down the western spine of the Andes range, all the way to the Patagonian steppes, this 5,000-km stretch of land promises a lifetime of exploration.         Also, unlike some of it’s South American neighbors, Argentina is a safe and friendly destination that can deliver a first world lifestyle, but at third world prices.  Such a climate is a direct result of the country’s 2001 economic plunge – when Argentina defaulted on massive international debt and saw the peso lose 75 per cent of its value in a single day.  Five years on and things have definitely improved.  The economy is back on track, foreign investment has returned and unemployment has leveled at 12 per cent – the World Bank predicts the country will remain economically stable for the next 20 years.   Tourism is set to play a major role too with a target of 10 million annual visitors by 2010.   Added to that, low cost airlines have resumed flights to Buenos Aires and firms such as Air Milan and Continental are restarting direct routes.  For now, however, living costs are still very low.  “Investors can buy wonderful properties with land for very little and without the burden of a mortgage,” says Dan Hathway of Andino Property.  The state of affairs has brought burgeoning numbers of overseas visitors keen to join Argentina’s first wave of property pioneers.     Air and graces.    First stop is Buenos Aires, the so-called ‘Paris of Latin America’, where old world elegance still flourishes at the heart of one of the continent’s largest cosmopolitan centres.  With a population of 2.7 million divided between 47 districts (or barrios) modern BA is a fantastically varied beast.  The architecture showcases the country’s resplendent past in the Metropolitan Cathedral and Teatro Colon, the world’s largest opera house, while the enterprising future finds it place in the redevelopments of Palermo and Puerto Madero.        Currently the biggest attraction is that property is extremely cheap for those armed with foreign currency.  Values are pegged to the US dollar and the real estate sector accounted for 60 per cent of all investment in Argentina last year.   By some estimates, half of luxury apartment purchases in Buenos Aires were by foreigners – unsurprising when you consider what a relatively small sum can buy.  One-bed apartments can cost less than $50,000 (£ 28,250), a stylish two-bed place from $80,000 (£45,205).        That’s set to change in the near future.  “Real estate has risen dramatically since the 2001-2002 devaluation,” says Michael Koh of ApartmentsBA.com, a company specializing in redevelopments and high-end rentals.  “Argentina’s economy has rebounded from the financial crises with three straight years of nine per cent growth – one of the highest rates in the world.”  In some areas of the city, property prices have risen by 30 per cent in the last year and construction figures have soared too.  “The people buying aren’t speculators,” he explains.  “Mortgages are almost non-existent here so buyers are true investors.  Purchases are 100 per cent cash for the most part, literally paid with dollars over the table.”        Recoleta in Barrio Norte is the very top rung of the property ladder.  “It’s the Mayfair of Buenos Aires – stylish, chic and very safe,” says Mr. Cummings.  “An address here is considered the right one to have.  It’s true to say it has a certain snob appeal.”  Central to practically everywhere in BA, it boasts grand European architecture, wide boulevards and the city’s finest restaurants and designer shops.  Prices range between $1,500 and $2,500 (£850 - £1,420) per sq. metre depending on the age of the building.        Also of interest is Palermo – BA’s Notting Hill or Chelsea and the haunt of Argentina’s fashionistas.  Here you’ll find the parks, lakes and the racecourses that draw the city’s rich clientele and not a few moneyed ex-pats – Price Harry has been spotted here.  “It’s got a great location and it’s very trendy these days,” says Mr. Cummings.  “Although you’ve got to know where to buy, if you fancy property developing in BA then both Palermo Viejo and Palermo Hollywood are sure-fire hits.”  Prices range from $1,000 to $1,600 (£570 - £900) per square metre.        Perhaps the freshest opportunities are to be found in Puerto Madero, the city’s former docklands.  Like its London namesake, this industrial area lay derelict for decades when it proved too small to keep up with the country’s busy shipping trade.  Following its resurrection in the 1990s, redevelopment continues apace with cranes crowding the skyline.  Prices are already at a premium at around $2,200 - $3,000 (£1,240 - £1,700) per sq. metre and only a few sites are left for development.

Luxury apartments lead building boom in Argentina   October 8, 2005 BUENOS AIRES, Argentina (Reuters) – Luxury apartment towers are sprouting up across the Buenos Aires skyline, leading what developers hope will be a wider building boom four years after Argentina’s economic collapse. The market for high-end properties is attracting both wealthy Argentines and foreign investors, helping to spur more than $850 million in new projects concentrated in Buenos Aires’ wealthiest corridors. Brokers say this property market has attracted Argentines in search of a financial safe haven.  Most buyers, they say, have few intentions of actually living in their newly purchased apartments. Argentina’s economy is rebounding from its 2001-2002 financial crisis with the third straight year of growth of about 9% a year – one of the highest in the world. But many Argentines remain leery of keeping money in banks after their savings were frozen for months and dollars were forcibly converted to devalued pesos with a 70% loss.  As a result, many have turned to real estate where property values are priced in dollars and prices have rebounded to pre-crisis levels. Construction activity soared 18% in the second quarter of this year, compared with the same period a year earlier, the government statistics agency reported last month, adding the sector accounted for 60% of all investment. But a look at where the construction is concentrated has raised questions about the benefit of the pell-mell growth. “The real estate sector is a reflection of the polarization of Argentine society,” said Germán Gómez Picasso, director of the Web site www.reporteinmobiliario.com, which tracks the real estate market.  For a majority of Argentines, these properties remain far out of reach – apartment and home prices often start at around $175,000 in a country where the per capita income averages around $230 a month. “We build for the wealthy because it’s the only demand that’s out there,” said Eduardo Gutiérrez, president of Vizora, an alliance of the Argentine housing developer Farallón and banking group Macro-Bansud.  Rául Sáenz Valiente, general manager of Ceaurbán, which has invested $50 million in developing luxury properties, said these buyers don’t mess with mortgages and rather pay in cash.   According to private estimates, foreign investors accounted for some 15 to 50% of property sales. Luxurious Puerto Madero The epicenter of Argentina’s high-end property boom is the neighborhood of Puerto Madero, where a stretch of red-brick docklands and grain silos built in the late 1800s now house gleaming apartments, restaurants and offices.  Construction cranes have filled the area in recent months as new apartment towers have sprung up.  Prices per square meter in Puerto Madero average $2,600; brokers say apartments are being sold even before they are built. Recently announced housing complexes include a $220 million project by real estate developer Vizora. Another group, Faena Properties, plans to build a $170 million high-end apartment complex, a year after opening a $120 million five-star hotel. Boom or ‘mini-boom’? The construction boom has in part helped fuel Argentina’s economic recovery. The government says the sector accounts for about one-ninth of the gross domestic product.  President Néstor Kirchner has also launched a public works program, hoping to lower the country’s 12.1% jobless rate. Vizora’s Gutiérrez said he hopes the growth in luxury properties proves a starting point for more real estate projects aimed at ordinary Argentines.  Credit remains limited for a majority of Argentines, who saw their purchasing power shrink dramatically after the country’s bruising 2002 devaluation. Even with what many in the industry are calling a “mini-boom,” statistics show the sector remains far off its heady days during the 1980s when mass projects went up aimed at middle-class Argentines.  “The concentration of sales in exclusive areas and the fact that most are cash transactions show that today’s market remains reduced,” said Construya, an association of construction firms, in a report released last month.

Real Estate Update – February 2004 The real estate sector in Argentina declined sharply during a four-year recession followed by the economic crisis and financial collapse of 2001-2002.   However, the sector is gradually recovering to pre-convertibility levels and is estimated to grow between 15-20 percent in 2004. In 2002, following the lifting of frozen bank term deposits, there was an artificial demand for real estate as an alternate secure investment for life savings to exchanging released funds for Argentine bonds.  An incipient, though real, reactivation started during 2003, as the Argentine economy began to recover through exports, import substitution, and increased consumer spending accompanied by an upswing in demand for upscale residential property.  Currently economy recovery is particularly noticeable in the real estate industry, driven by the surge in construction activity, which climbed during 2003 by 37.6 percent over 2002 statistics.  According to MVA Macroeconomía consultants, for each point that the GDP grew during the reactivation, construction increased by more than 5 points.  The business cycle of sector was cast in sharp relief with a dramatic downswing followed by a sharp recent upswing marking a recovery. Current construction levels are similar to those of 2001, and construction activity is projected to grow another 25 percent in 2004, driven by urban developments in top residential areas and other non-ABC1 neighborhoods.  Several small and medium investors are focusing on construction given low land and residential properties prices post devaluation.  However, prices have also been rising quickly following the demise of the 1 peso to 1 U.S. dollar exchange rate, known as convertibility, particularly for upscale property.   The reactivation also includes new developments. Over 63 residential developments are already approved for building in Buenos Aires, an investment totaling over US$100 million, particularly in top neighborhoods such as Puerto Madero, Recoleta, Palermo, Belgrano, but also including other areas such as Caballito, Flores and Villa Urquiza. Another area that experienced recovery in 2003, reaching similar levels to those of the convertibility era (and doubled 2002 construction levels), were gated-community  developments (barrios privados) in the Greater Buenos Aires area, amounting to 4,000 single-family units for a total of US$340 million . Even if these figures represent only 30 percent of the construction levels reached during the convertibility boom of 1996-98, it is still an encouraging sign of economic recovery spurred by public confidence in the Kirchner administration. Another encouraging sign for the real estate growth was the gradual reappearance last November of new credit lines by some private banks. However, these incipient signs of reactivation will only be consolidated if the demand is maintained and financing returns. U.S realtors and developers may find that the most successful way of entering the Argentine market is through association with local partners.  The construction development community is rather exclusive, and therefore it may be difficult for U.S. companies to enter this market without an Argentine counterpart.

OFFICE SPACE REAL ESTATE MARKET     Argentina is witnessing a comeback in its premium office space, the one sub sector that lagged behind in the strong recovery of the real estate sector that Argentina has been experiencing since 2003.   Real estate business in Argentina was deeply affected by the 2001-2002 crisis and the prior four-year recession. However, currently the real estate business is recovering to pre-convertibility levels. Top residential and commercial property have fully recovered pre-devaluation prices in US dollars.   Argentina’s premium office space has experienced sustained growth since the second quarter of 2004.   Not only have the percentages of occupancy increased but also the rental rates, a fact that is mainly explained due to lack of construction of new properties and the rising demand of corporate clients looking for more modern office space. With no new office space projects under construction, it is expected that available stocks will dry up by the end of 2006.   In the first eight months of 2004, some 70,000 m2 of AAA offices have been rented in the city of Buenos Aires. Rental prices per square meter have returned to US$12 to US$14, a figure that is very close to that of the best time in the market.    The strong increase in the rental prices has turned itself into an important partner of the banks in the difficult task of recreating the real estate credit market.  While lack of credit is an obstacle for a genuine demand– though the recent reappearance of some credit lines is an encouraging sign for the real estate sector. There are already five banking institutions that have lengthened the maximum term to 20 year, with variable interest rates.   U.S realtors and developers will find that the most effective way of entering the Argentine market is in partnership with local firms.

We Are the Imperial Race October 1, 2005 by Bill Bonner It is early spring in the southern hemisphere. A fresh warm breeze blows across the Rio Plata. Trees along Buenos Aires’ broad boulevards are budding out. Cherry trees are in bloom. Here and there, groups of American tourists peer in shop windows. Birds sing. Lovers stroll arm in arm. It looks as though it might be the beginning of something. Americans abroad have a mixed reputation. They are loud. They dress badly. And they have a superior attitude that foreigners take for arrogance. But they tip better than Europeans. In our trip through Argentina, we were no different, no better. None of us had bothered to learn Spanish properly. We spoke it badly, if at all. We expected the locals to speak English…and often commented on how bad the hotel clerks’ command of our mother tongue was, hardly noticing that it was still far better than our knowledge of Spanish. We Americans are not mean-spirited or pompous about it; still, unconsciously, we expect a little deference…a little obsequiousness…a little bowing and scraping in our direction. After all, we are the imperial race. We are the alpha nation. We have the most popular culture. We have the most powerful military. We have the money. "Why do so many Americans hate the French," asked a member of our party. The answer is obvious: the French refuse to bend. The unmitigated Gauls actually turn up their noses at American tourists and make them feel like bumpkins. The French don’t dispute that our army could whip their derrieres, if it came to it. They concede, too, that the average white American probably has more money in his pocket than the average Frenchman. But neither of those things counts, say the French; what matters is culture and French culture is superior. "God*mmit…I’m an American," says the ugly tourist. He is convinced that the frogs, the Huns, and the A-rabs are all incompetent and uncivilized. He is the heir of his English cousins, who used to say: "The wogs begin at Calais." He demands better service than they give each other. He can’t understand why they can’t seem to do things the way they do back in the states…can’t pick up the trash…and can’t be trusted. Why do they drive old cars? Why don’t they have more ATM machines? How come they are always taking passport numbers and demanding papers; don’t they know that freedom is the way to go? He is convinced, too, that the whole world yearns to be just like him, and that it is just a matter of time before they succeed. This conceit is so deeply felt he is not even aware of it. Besides, he sees more evidence of it every time he takes a trip abroad. He leaves the airport in London and sees McDonald’s along the way. He reads the classified in Paris and sees apartments advertising their "American style" kitchens. He picks up a menu in Buenos Aires and finds he can order an American breakfast. He goes to the Far East and finds familiar brands everywhere he looks (he may not even realize that they are made there…not in America). He judges the quality of everything he sees by how American it is. Is the toilet paper soft…just like it is at home? Do the shops take credit cards, just like they do in Flagstaff? Are the roads paved as well as they are in Michigan? If not, they soon will be, he tells himself; for he is convinced that the whole world is going his way. At least, that is what we thought on this trip to Argentina. The country is big, beautiful and cheap. Surely, Americans will want to live here. The Atlantic coast of Argentina is just like the Carolinas…but empty. The far northeast is like Utah or Montana…but at a third the price. And down in San Martin, isn’t it just like Aspen…as it was in 1965? But won’t Americans find Argentina too, well, foreign? Not at all, down on the pampas they are becoming just like us back on the Great Plains. Soon, we will be able to live as comfortably in Patagonia as in Pennsylvania. At the peak of an imperial cycle, the imperialists always seem to delude themselves. Looking at the world, they see neither a glass half empty nor one half full, but one spilling over. The Romans spread out all over their empire, building villas in France, in England, and out on the banks of the Black Sea. The Moorish empire reached its peak in the eighth century. Then, too, they were making plans for new mosques in Poitiers, just before they were chased from the country. And all over Africa, you see the ruined houses of the European imperialists who colonized the country. "I used to have a farm in Africa," they still tell people. The trouble with being on the top of the world is that the world turns, and there is nowhere to go but down. In national economies and markets, as in the movement of the planets, there are small cycles and big cycles. The world turns, and also revolves around the sun. Day follows night; winter follows summer. National pride is self-correcting. Argentina recently had a dark night of crisis…one of many in a long season of bad weather. The 1930s brought Peronism – a popular brand of socialism – to the country. The nation’s politicians shot the country in the foot, and then in the leg. By the 1980s, they had the gun to their heads – with inflation running at 1,000 percent, per year and war with the English. One problem lead to another and in the 1990s, intending to stop inflation, the Argentine currency was pegged to the dollar, but at too high a rate. The economy collapsed again; much of the middle class was ruined. But in 2002, the sun peeked over the horizon and began what might be not only a new day, but a new season. Since the second quarter of 2002, the country has seen 12 consecutive quarters of growth, with GDP shooting up at twice the rate of America’s "recovery." We put the word in quotes to signal that we think there is something fishy about it. America’s dawning prosperity came without pain or sacrifice. Americans never stopped borrowing and spending in the recession of ’01–’02; they merely borrowed and spent even more coming out of it. See, they said to the world, our economy can’t be beat. Because, god*mmit, we’re Americans. But the recovery was phony. There was never much of a correction to recover from. So, when the time for an upturn came, all consumers could do was to borrow more money and go further into debt. They had never stopped spending, so they had no money saved. South of the Rio Plata, on the other hand, the recovery seems to be real. Here is an economy that seems to be getting back on its feet, after a long spell on the sickbed. The recovery is driven not by debt, but by real savings…and not by consumption, but business investment, which rose recently at rates as high as 11.2% per quarter. Consumers couldn’t lead a recovery in Argentina even if they wanted to. Who would be foolish enough to lend them money? Credit card debt is extremely limited. And if you want to buy property down here, we were told, "you have to pay cash." Or, if you have good credit, you may get a bank willing to finance half of the price. Not surprisingly, real estate is not very expensive. Apartments on Buenos Aires’ most fashionable streets sell for about a quarter of what they would fetch in Paris, London or New York. Out in the boondocks, prices fall even further. How much would you expect to pay for a vineyard/winery in the Napa Valley? Out in Salta Province, one is available at a price that must bring tears to the eyes of a California vintner: 1,000 acres of mature vines for only $1.5 million. And there, he would pay only $10 a day for a good worker, and only $2.50 for a steak dinner. North of the Rio Grande a homebuyer needs only a pulse. He will pay $25 for dinner, and at least $50 a day for labor. His $1.5 million will barely buy a trailer. In both Argentina and in the United States, there is a light on the horizon. But on the pampas is the light of dawn. In America, alas, it is probably evening stretched out across the sky…like an emperor’s corpse on a viewing table.