Argentina Investment Ideas
Having just sold my house in the states, I'm looking at various investment opportunities in Argentina. When I arrive there in a week or so, I'll begin trying to find some good places to make some better-than-average returns. I've identified some decent opportunities already, and I'll go over them here for all you would-be investors.
The first thing that caught my eye were short-term apartments that are being rented to foreigners -- like the ones I stay in when I come here. I typically come to argentina for at least a month at a time, so it makes no sense to get a hotel for that long. The best option are short-term apartments. For foreigners renting out a furnished apartment, the going rate is more than twice the amount for locals who get an unfurnished dig. This still represents thousands of dollars in savings over a hotel, mind you, so you're not getting ripped here.
Additionally, locals have to produce all sorts of documentation and go through a lot of hassle to rent a place out that foreigners do not have to deal with. Apparently its hard to get long-term tenants out when they stop paying, so they have to put up all sorts of payment guarantees to the landlord. Foreigners don't have to deal with any of that nonsense.
Anyhow, the going rental rate on a $40,000 USD apartment could be $700 / month if furnished nicely. That's pretty good in my book. Add to this the fact that the landlord can use a property management service for free (the renter pays the commission), and you have situation that is much better than the United States, where I've only ever been able to get a 6-8% return on a rental when using a property manager (I don't like to deal with tenants).
Another investment I'm looking into is taxi cabs. Through an associate of mine who owns about 10 along with his father (its somewhat of a family business), I've learned that the return on these can be out of this world. I'm talking about 1000 pesos per month in profit on a $35,000 peso initial investment for the taxi license and car -- not to shabby at all. That's a little over 34%. I need to get more details on this, but needless to say, my curiosity is peaked. I'll report more once I find out more.
Once I go forward with one of these deals (or possibly both), I'd be happy to help out other foreigners who'd like to get their feet wet in the local Argentine market. I hope that some other people here can e-mail in some other good investment ideas so I can share that with the group as well.