Why investing in the United States, in real estate projects, can be a more than viable option to counteract Argentine inflation? Among other things, because historically the appreciation of properties in the United States has been on the rise. According to the Federal Housing Finance Agency, between April 2021 and the same month in 2022, real estate values in North America rose 18.8%.
Buying a property in the United States and then putting it up for rent is one of the preferred options for Argentine investors. The reason is clear: short-term profitability –monthly or quarterly–, and in dollars, a currency in itself coveted by Argentines and much more so in inflationary times. We are talking about a quick return on investment, in a stable country with clear rules of the game.
Some will wonder about the inflationary process that the world is experiencing, which also impacts the American community. Last year inflation in this country reached 6.5%, a high but insignificant number compared to the rates of some Latin American countries such as Argentina. Taking into account the historical inflationary records, and knowing that the North American authorities are working to return to annual inflation of 2% – 2.5% by the end of 2024, the real estate market continues to be a great support for anyone who wants to bet your savings, with quick returns in dollars.
For the capital that comes from abroad, whatever the country, investing in the United States allows -in addition to an important economic benefit-, achieving that profitability in dollars can be protected as a solid asset growth value. When investors come from an economy with a weak and volatile currency, as is the case with the Argentine banknote, transferring savings to bricks in a safe country generates peace of mind.
What should be taken into account when investing in North American soil?
Research the area before investing. First, you should research the US real estate market and select the most suitable state and/or city for a forward-looking real estate project.
Research real estate development before investing. Secondly, inquiries must be made to different developer companies to compare offers, and verify the track record and prestige of the firm in question.
Evaluate the investment modality. Thirdly, it is important to take into account the forms, characteristics and amounts of the investment. There are options for all types of investors/savers, according to the possibilities of each potential investor, the type of investment will be defined: house, apartment, or condo-hotel, to mention a few,
Analyze the investment projection. Fourthly, it is important to evaluate the time factor of the investment, and its projection in the short, medium and long term.
Contemplate investment expenses. Fifth, it is essential to know what the real profitability is, for which the administration and management costs of the investment must be taken into account.
It is important to know that a large investment is not a guarantee of greater profitability, and that the small-medium Argentine saver can also access the benefits provided by a real estate project/development in the United States. The world has changed, the borders have been reduced to give way to new business possibilities, with safe and profitable investments, accessible to everyone.
Jose Maria Softa isFounder Partner of Konnectiaye
specialist in real estate developments in the United States.
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