Punta del Este Marina

While year-round rental income isn't assured, Punta del Este real estate can still be a good investment anchor.

Over the past eighteen months, foreign buyers closed over $1.5 billion in real estate transactions in Uruguay with $700 million of those deals taking place in the balneario playground of Punta del Este; an impressive number for a town with a year-round population of only 7,300.

Yet, considering high season is limited to January, February and a few major holidays during the shoulder months, El Pai­s says buying real estate in Punta de Este isn’t for small investors looking for year-round rental income.

“Today, we are net sellers of properties in Punta del Este,” says Mariano Sardans, CEO of wealth management firm FDI Gerenciamiento Patrimonial, “When the profitability begins to turn negative, the people who originally bought looking for rental income begin to sell.” And, Sardans notes, those who never bought in the first place may be looking for opportunities in the U.S. and Europe, now that real estate prices there have fallen sharply in the wake of the global financial crisis.

Still, Punta del Este remains an attractive alternative for small investors who want an investment anchor, says Francisco Bistiancic, president of the Maldonado Real Estate Chamber. “There are people who don’t want to lose money and don’t expect to generate 10% rental income per year. With this type of investment, the small buyer has the assurance that no bank is going to freeze his assets and that his money won’t lose its value due to currency fluctuations. And he takes advantage of the opportunity to be able to enjoy his purchase during the summer months.” (Full Story in Spanish)

For more news and information about investing in Uruguay, visit our archives and download the new issue of InvestBA Privada.

911 Carrera at the Argentina Real Estate Expo

Small investors at the Real Estate Expo were looking for safer investment alternatives than a $200k 911 Carrera.

Ten days have passed since Expo Real Estate Argentina 2010 (Did you see our video?), which gave Clari­n sufficient time to absorb all the information presented and formulate some conclusions of their own. Most notable was the fact small investors were really the stars of the event, significantly outnumbering large brokers, developers or architecture firms.

“We’re not talking about people with huge international support or institutional funds backing them,” said one attendee, “We’re talking about individual investors looking for a safe alternative for investing their capital.”

Just one small problem, Clari­n opines. The small real estate investor walking the floor of the Exhibition Hall is as likely to influence the direction of the local market (in terms of product and pricing), as a small shareholder attending the Annual Meeting of a large publicly-traded company (with the possible exception of Berkshire Hathaway).

Small real estate investors have concerns, needs and great ideas; yet, the push-push-push marketing by the local broker-developer community leaves them out in the cold. Don’t believe us? Try finding a local broker or developer with a blog, twitter account, or any type of social media plugin soliciting user feedback.

Instead, our inboxes are cascading with Argentine broker e-mails with subject lines like INCREIBLE PROPIEDAD! or PARA INVERSORES! and the requisite 5MB attachments which we never open. As one very astute broker told Clari­n, “The new way of operating should be less about having a big Rolodex and more about reading the market and having the capacity to segment your clients.”

Which is exactly what we do @InvestBA. We blog in several languages, we inform and educate, we promote lifestyle, we solicit feedback daily, and we know exactly which of our international clients would be interested in what types of real estate opportunities in Buenos Aires, Argentina and Uruguay. In short, Clari­n characterized the presence and demands of the small investor as “nuevos desafi­os,” but we view them as “nuevas oportunidades.”

 

Bariloche

Mendoza

Uruguay

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