| Perhaps
you dream of a high-ceiling pied-a-terre in a cosmopolitan city… or a swath
of land where grape vines grow and you can walk for miles…
Or maybe you
long for a mountain retreat where snow-capped peaks offer heart-stopping
views and world-class skiing… or perhaps you always imagined yourself a
land baron -- steward of a vast, productive expanse...
Whatever your
dream, you may be pleasantly surprised to find there's one nation where
it's not simply attainable -- but remarkably affordable, too: Argentina.
It's varied,
beautiful, sophisticated… and undervalued, which means it makes a lot of
sense right now -- whether you're in the market for a primary residence
overseas, a vacation home, or simply a smart investment.
Recovering
-- And Still a Smart Deal
As you probably
know, there was an economic crisis in Argentina in 2002. And back then,
if you'd flown down with greenbacks to spend, you'd have found properties
selling for next-to-nothing.
In Buenos Aires,
for example, you could have picked up a 1,550-square-foot loft with a rooftop
terrace in one of the city's chicest neighborhoods for $63,000 -- about
one-fifteenth what you'd have paid for a comparable place in Paris and
about half what it would have cost you the year prior.
Today, a steady
recovery is underway -- indeed, Argentina's economy is among the fastest
growing in the world, expanding at a rate of 8.6% over the past 12 months.
But that doesn’t
mean you've missed the good deals. Far from it. In fact, compare what you
get in Argentina to what you'd pay for comparable property in Europe (and
Argentina is decidedly European), and you're still looking at an extraordinary
value.
In fact, there
are (at least) four smart ways you can take advantage of your purchasing
power in Argentina today and position yourself comfortably for potential
appreciation gains as the economic recovery there continues.
1. Stake
Your Claim in the Buenos Aires Apartment Boom
Buenos Aires
is a vibrant city, which has a sophisticated, genteel Latin flair… but
is cosmopolitan like New York or Paris. Large boulevards, expansive parks
and plazas, tall trees… it's a walking city with an aristocratic European
feel. Here people use all the community green space. Stroll through a park,
and you'll see people reading, picnicking, talking… and even dancing the
tango.
In three neighborhoods
I like, properties are appreciating anywhere from 10% to 25% a year.
In upper-crust
Recoleta, you can find a luxury rental on offer for just US$124,000. It's
a one-bedroom, one-bath apartment completely renovated in 2005 and done
right.
In French-style
San Telmo, US$105,000 will buy you a lovely, ample two-bedroom apartment
with large and bright windows, high ceilings, oak floors, fabulous moldings,
and even a closed-in balcony.
In historic
Barracas, you can own a fabulous loft in a restored building for a mere
US$63,000 -- and that includes private parking as well as access to a heated
pool, gym, spa, and private green space.
2. Cash
in on China's Demand for Lumber
Stumpage prices
for timber in Argentina have tripled in the past five years in terms of
US dollars. Hardwood grows nearly 65% faster here than in the U.S., and
after harvesting, it re-sprouts on its own.
Meanwhile,
China's demand for wood has grown 400% over the past five years -- it has
trouble finding enough pulp to meet its toilet-paper needs alone. China
now looks to Argentina for all its paper needs, and there's a fortune to
be made…
You can capitalize
on this opportunity in the region of Misiones, for instance, at the La
Negra Forestry Trust project. There you can own lakefront property where
you could build your dream home, and at the same time, you get forested
land with your purchase -- land that is managed for you and, upon harvest,
is projected to yield healthy returns.
3. Own a
New World Vineyard -- Like Napa Valley for Pennies on the Dollar
Argentina's
vineyards are winning accolades around the world. Its wine exports to the
U.S. are up more than 50% over the past five years, plus producers are
making inroads into European markets as well. Many of the best labels are
just now appearing abroad. And so you can still get in at the ground floor
in the best grape-growing terroir region in the country.
In fact, three
gentlemen who traveled with me to Argentina last year did just that, buying
their own winery and producing a very quaffable product they're already
exporting Stateside.
If you're interested
in vineyard land, you can own that at a small fraction of what you'd pay
in Napa Valley, where you'd have to come up with millions.
In Mendoza,
for instance, there's a 34-acre estate 25 miles from the community of San
Rafael listed for US$80,000. It includes a seven-acre vineyard, nearly
an acre-and-a-half of newly planted olive trees (300 of them), and 14 more
acres ready for planting.
4. Enjoy
Patagonia's Vacation Playground -- Think Aspen, Only Priced Like Rural
Kansas
Bariloche is
to Argentina what St. Moritz is to Switzerland or Aspen is the U.S. From
June through September, this upscale ski resort is the place to see and
be seen. But it's just as nice in the off-season when visitors come to
hike, fish, sail, ride horses, swim, and sun.
Bariloche was
founded in 1895 by German-Swiss settlers and still retains an Alpine flavor...
chalet-style buildings with flower-filled window boxes... chocolate factories
and fondue restaurants.
Yet here, despite
the high-collar zip code, you can still own property for as little as $50,000…
and that at the Arelauquen Country Club. This is a high-end retreat by
any starlet's standards, with fine amenities like a golf course, pools,
five restaurants, and more.
And outside
of the resort, you'll find many other options, too -- like a stand-alone
home close to skiing and with views of the slopes -- four bedrooms, whitewashed
with a pretty tile roof and a mature, well-landscaped garden as well as
wooded land -- which lists for just $130,000.
Argentina
-- Good for Your Heart, Easy on Your Wallet
The good values
you'll find today in Argentina will impress you. But what will strike you
as just as attractive -- perhaps more so -- is how unabashedly beautiful,
welcoming, invigorating, and comfortable a place it is to spend time. (After
all, cheap real estate alone does not an attractive place make.)
I've traveled
to Argentina three or four times a year for the past five years -- sometimes
on my own and sometimes escorting small groups of adventurers -- and I've
never met a single traveler who didn't fall in love with this beguiling
nation.
It's a nice
combination, when you think about it: Argentina makes smart sense both
for your wallet… and your heart.
.
Barbara Perriello,
the Director of Agora Travel, has been leading investment tours to destinations
the world over for nearly two decades now. You'll find her headed to Argentina
three more times this year, with space to take a few more travelers along
with her.
.
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