Yields are low in Asuncion
November 17, 2005
|Last Updated: Nov 17, 2005|
|ASUNCION - Centre - Apartments||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|100 sq. m.||40,000||70||2.10%||400||0.70|
|150 sq. m.||85,000||200||2.82%||567||1.30|
Centre - Houses
|200 sq. m.||100,000||300||3.60%||500||1.50|
|250 sq. m.||130,000||500||4.62%||520||2.00|
|300 sq. m.||180,000||800||5.33%||600||2.70|
|350 sq. m.||190,000||900||5.68%||543||2.60|
|400 sq. m.||200,000||1,000||6.00%||500||2.50|
|Source: Global Property Guide|
The capital city of Asuncion is the only place where property rights are secure enough to make it advisable to buy.
Yields are low however. A 100 sq. m. apartment may cost only US$40,000, but it might rents for as little as US$70 per month. This would give the landlord a very low yield, at 2.1%.
Houses in Asuncion tend to be worth around US$500 to US$600 per sq. m., and they rent for around US$1.50 to US$2.70 per sq. m. per month. Rental yields on houses are therefore around 3.5% to 6%.