Beginning The Apartment Search
Now that I've settled in and been here about two weeks, I'm starting the process of looking for an apartment to buy. Since I wasn't able to get the kind of loan I wanted, I'll be looking for a place that's a little smaller than I normally would have purchased.
Since I may only live in Buenos Aires for a few years, I wanted to make sure that the purchase I make is also a good move financially. This means that when I'm done with the apartment, I want to be able to rent it out or sell it at a profit.
Yesterday, I met with Michael Koh of ApartmentsBA, one of the biggest apartment rental companies here in Buenos Aires. He gave me some great advice about where to buy a place, to ensure that it makes money as a rental and also has a chance for some capital appreciation. It comes down to one word -- Recoleta. According to Mike, 85% of all tourists request an apartment in the Recoleta area. So, if you want to be able to rent out the apartment, you pretty much have to buy it in the Recoleta area.
So, today I start my search for an apartment here in Recoleta. I'll keep everyone updated with how it goes.
Labels: Buenos Aires, Business, Transition Phase
posted by SoyYo at 5/27/2005 09:15:00 AM
2 Comments:
I would concur with Carolyn. While Recoleta is considered desirable, I would argue that the various neighborhoods that make up Palermo offer a better quality of life and more real upside investment wise. You will be able to buy more house, jardin and light. And when I say light, natural light can be a problem in the Recoleta. It is relatively built up and many of the newer buildings are short on windows. Unless you are able to afford the pre-war flats with french doors everywhere, most apartments are uninspired and dark.
I personally love the Palermo Viejo area, but it might be too funky for you, think East village, lots of industrial space and 2-3 story buildings with great gardens. It has great restaurants and shops. Definately more happening than the Recoleta which think is more like the upper eastside. But Recoleta is very noisy 24/7 and what green there is is very congested and even the kioskos are more expensive.
I suggest you open up your search to Palermo: Viejo, Alto, Chico, Hollywood, Canasitas and look at Belgrano too. Further out but very upscale.
I explained the difference to him regarding buying with your head and your heart. Typically, I recommend to my clients if they are going to use the apartment at least 2-3 months out of the year to buy with their heart. You want to live in an area that you really love being in regardless of how much money you will make.
I happen to really love Palermo as well. Palermo is a great area and it is starting to get more rental requests. Still, as an investment of cash flow, Recoleta still is the most requested area by my clients. Why? Almost every guide book and travel publication lists Recoleta as the safest, most affluent area. Naturally, they ask to stay in that area.
We aren't competing against other cheap apartments. We are competing with the hotels. There is a reason the Alvear Palace, Four Seasons, Caeser Park and now the Hyatt are all within blocks of one another. It's where the tourists request to be in.
No different with my business model.
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