Buenos Aires, Argentina: rental yields poor
November 14, 2018
|Last Updated: Nov. 14, 2018|
|RECOLETA APARTMENTS||YIELD (p.a.)|
|TO BUY (USD)||MONTHLY RENT (USD)|
|PUERTO MADERO APARTMENTS|
|PALERMO CHICO APARTMENTS|
|LAS CAÑITAS APARTMENTS|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: ZonaProp Definitions: Data FAQ See also: Update Schedule
Gross rental yields on apartments in Buenos Aires are poor, especially by the standards of the continent (yields in Latin America tend to be high). The typical gross rental yield on an apartment in Buenos Aires - the rental return earned on the purchase price, before taxation, vacancy costs, and other costs - isn´t something that will attract foreigners to invest, even if they could get a mortgage in Argentina, which they won´t be able to.
Yields on apartments in Buenos Aires range from 1.8% to 3.5%. As always, rental yields are higher on smaller apartments. Given that a typical landlords´ expenses are around 2% per annum in maintenance, repairs, empties, etcetera, this means that many landlords will effectively earn nothing.
Round trip transaction costs are quite high in Argentina (i.e., the total costs of buying and selling a property). See our Argentina residential transaction costs analysis and Residential transaction costs in Argentina compared to the rest of Latin America.