Comments on: Prices? http://uruguaycoastalproperties.com/blog/2009/03/prices-2/ Real Estate for the Coast Sun, 01 Aug 2010 03:56:22 +0000 http://wordpress.org/?v=2.6.2 By: Steve http://uruguaycoastalproperties.com/blog/2009/03/prices-2/#comment-189 Steve Sun, 19 Apr 2009 14:15:57 +0000 http://uruguaycoastalproperties.com/?p=326#comment-189 Robert- Nice hearing from you. You had frequent comments on Coastal Uruguay in the early days. Glad you found me here. Pretty much stopped real estate articles on CY; all of the property stuff has moved here. Thanks, Robert-

Nice hearing from you.

You had frequent comments on Coastal Uruguay in the early days. Glad you found me here.

Pretty much stopped real estate articles on CY; all of the property stuff has moved here.

Thanks,

]]> By: Robert Handen http://uruguaycoastalproperties.com/blog/2009/03/prices-2/#comment-188 Robert Handen Sun, 19 Apr 2009 02:49:29 +0000 http://uruguaycoastalproperties.com/?p=326#comment-188 Hi Steve, I'm in Buenos Aires and am looking at condos. I've spoken with several brokers here and they believe that the market here is starting to slip. More sellers, few buyers. Prices here have been ramping up since 2002 when the Argies learned not to trust the banks and anybody with money could buy a flat here and get over 12% renting it out. One optimistic broker told me that I he believed that the prices in Recoleta and Palermo are now stable, no longer going up and that because this is mainly a cash market, there would be no forecloser sales stinking up the market. He also said that with rents still close to 10% at the 100-150k price range, the cash flow should sustain the price. BA is still one of the most beautiful cities in the world. The price for a condo is still a fraction of what one would cost in New York. There is alot of fear in the air. Even candy shops have iron grills up. A 14 year old shot an killed a driver of the postal service while trying to steal his car. Clothing sales are off 15% from last year. Fewer dollars coming in from a drought reducing grain sales. Political uncertainty over upcoming elections. An economist at a big wire transfer house thinks that prices in Argentina are headed for a big leg down. She told me to wait another year or so before buying in Argentina because prices here are still up 100% since the 2002 crisis. I only bring this up since Argentina is Uruguay's big brother and what ever happens here will have an impact. I hope to visit Uruguay over the next few days. If I'm lucky, I'll make my way down the coast and perhaps we could meet. Regards, Robert Handen Hi Steve,
I’m in Buenos Aires and am looking at condos. I’ve spoken with several brokers here and they believe that the market here is starting to slip. More sellers, few buyers. Prices here have been ramping up since 2002 when the Argies learned not to trust the banks and anybody with money could buy a flat here and get over 12% renting it out. One optimistic broker told me that I he believed that the prices in Recoleta and Palermo are now stable, no longer going up and that because this is mainly a cash market, there would be no forecloser sales stinking up the market. He also said that with rents still close to 10% at the 100-150k price range, the cash flow should sustain the price. BA is still one of the most beautiful cities in the world. The price for a condo is still a fraction of what one would cost in New York.
There is alot of fear in the air. Even candy shops have iron grills up. A 14 year old shot an killed a driver of the postal service while trying to steal his car. Clothing sales are off 15% from last year. Fewer dollars coming in from a drought reducing grain sales. Political uncertainty over upcoming elections.
An economist at a big wire transfer house thinks that prices in Argentina are headed for a big leg down. She told me to wait another year or so before buying in Argentina because prices here are still up 100% since the 2002 crisis. I only bring this up since Argentina is Uruguay’s big brother and what ever happens here will have an impact.
I hope to visit Uruguay over the next few days. If I’m lucky, I’ll make my way down the coast and perhaps we could meet.
Regards,
Robert Handen

]]> By: Steve http://uruguaycoastalproperties.com/blog/2009/03/prices-2/#comment-187 Steve Fri, 03 Apr 2009 18:34:18 +0000 http://uruguaycoastalproperties.com/?p=326#comment-187 Margarita- Well......I sure hope you're right. Rather be wrong and have more money in my pocket! Things are holding up well from what I understand as well. Who knows? I sure don't. The only part of you're logic that escapes me is, "The Argies are Buying Punta, not selling." As mentioned in the article, why would you put your money in an illiquid, volatile asset if you’re afraid of losing it? This does not seem like a valid response to a global economic crisis, at least not a conservative one. But the Big Dogs to the South are s....o clever. Maybe? Margarita-

Well……I sure hope you’re right. Rather be wrong and have more money in my pocket!

Things are holding up well from what I understand as well. Who knows? I sure don’t.

The only part of you’re logic that escapes me is, “The Argies are Buying Punta, not selling.” As mentioned in the article, why would you put your money in an illiquid, volatile asset if you’re afraid of losing it? This does not seem like a valid response to a global economic crisis, at least not a conservative one.

But the Big Dogs to the South are s….o clever. Maybe?

]]> By: Margarita Palatnik http://uruguaycoastalproperties.com/blog/2009/03/prices-2/#comment-186 Margarita Palatnik Fri, 03 Apr 2009 02:37:39 +0000 http://uruguaycoastalproperties.com/?p=326#comment-186 "...but the impact will be brutal in Punta’s high-end, less so in the middle market" I wrote a very long and detailed rebuttal to this assessment, then lost it when I submitted the comment without previously typing in my name... So here it goes in short: I disagree. Argentines can smell a crisis, and with this one they decided they are BUYING Punta del Este, not selling it. There will be cases of people strapped for cash, but the market as a whole is holding up incredibly well. More than one developer I know just jacked prices up. All new developments are selling, including multimillion dollar properties. Buyers come from more places than ever before, but Argentines are still dominant, and buying strongly. The upper middle class from wherever is coming in to live year-round. Prices and demand in neighborhoods considered "year round" for proximity to private schools and shopping are extremely strong. The lower end of the market is helped by non traditional buyers such as Europeans, Americans, Canadians, etc. who are taking advantage of a product considered out of fashion or whose original Uruguayan and Argentine owners have left, to vacation in places like La Paloma, La Pedrera and Brazil. So it's hard to put together all these conflicting trends (disappearance of middle class from Uruguay and Argentina from Punta del Este, replacement by foreigners, global meltdown, Uruguay increasing popularity as expat destination, etc.) into a prediction for the year, but considering how things are the world over, we're holding up amazingly well, I would say. “…but the impact will be brutal in Punta’s high-end, less so in the middle market”

I wrote a very long and detailed rebuttal to this assessment, then lost it when I submitted the comment without previously typing in my name…

So here it goes in short: I disagree. Argentines can smell a crisis, and with this one they decided they are BUYING Punta del Este, not selling it. There will be cases of people strapped for cash, but the market as a whole is holding up incredibly well. More than one developer I know just jacked prices up. All new developments are selling, including multimillion dollar properties. Buyers come from more places than ever before, but Argentines are still dominant, and buying strongly.

The upper middle class from wherever is coming in to live year-round. Prices and demand in neighborhoods considered “year round” for proximity to private schools and shopping are extremely strong.

The lower end of the market is helped by non traditional buyers such as Europeans, Americans, Canadians, etc. who are taking advantage of a product considered out of fashion or whose original Uruguayan and Argentine owners have left, to vacation in places like La Paloma, La Pedrera and Brazil.

So it’s hard to put together all these conflicting trends (disappearance of middle class from Uruguay and Argentina from Punta del Este, replacement by foreigners, global meltdown, Uruguay increasing popularity as expat destination, etc.) into a prediction for the year, but considering how things are the world over, we’re holding up amazingly well, I would say.

]]> By: Bill http://uruguaycoastalproperties.com/blog/2009/03/prices-2/#comment-185 Bill Mon, 16 Mar 2009 15:44:37 +0000 http://uruguaycoastalproperties.com/?p=326#comment-185 Just checking Steve. Hope all is well. Enjoyed meeting you and Chris during Christmas. Just checking Steve.

Hope all is well. Enjoyed meeting you and Chris during Christmas.

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