Thursday, August 21, 2008

Latest Argentina News

I have taken this extract from a larger article posted on Property Wire. It can be found in its entirety here. However the bit that interests me is that about Argentina of course. Have a read and see what you think.

Argentina is a strong contender to catch up. 'Argentina is simply the best place in the world right now. Buenos Aires is one of the world's greatest and most liveable cities,' said Doug Casey, founder of US based Casey Research, an independent investment research organisation.

Why you might ask? 'The country is running a massive balance of trade surplus. The government is running a big fiscal surplus. Rich Europeans are piling in since Argentina is ethnically and culturally the most European country in the world,' he added.

He has personally invested in the country and is now in the process of developing 1,200 acres in Cafayate in Patagonia which he describes as the new Aspen. A world class golf course, spa, health club, vineyard and equestrian facilities are included in the plan.

Certainly the figures point to Argentina having great potential. Property prices have risen 50% since 2002. The government backed tourism industry has grown 10% year on year since 2003. Property prices are around a tenth of the European equivalent.

Argentina has beaches, ski centres, mountains to climb, the pampas to ride across, it's just that not everyone knows it yet. The number of tourists is predicted to increase to around 10 million by 2010.

Although there are a large number of hotels being built and Buenos Aires has turned into a building site, there is a growing demand for rental properties giving investors the opportunity to enjoy solid and sustained growth, according to Obelisk.

Buy to let property owners can expect rental income worth up to 6% of the original purchase price per year in the more popular neighbourhoods of Buenos Aiores, its Argentina Report states.

A new wave of boutique properties, re-built historic lodges and chalets are particularly popular according to Maria Reynolds of Reynolds Propiedades.

'The government of Argentina recognizes that foreign investment plays an important role in the continuing development of the economy and maintains a favourable investment policy through a number of incentives,' said a spokesman for Sothebys Realty Buenos Aires office.