the market of rentals continues to experience increasing variation of prices that exceeds the rhythm of the inflation. In the last 12 months, the largest increase since 2012 was registered and reaching an increase of 145.2%According to the latest report from zoneprop, which concludes that this trend has a significant impact on the real estate sector, generating concern and challenges for tenants.
Within the City of Buenos Aires, the neighborhood of Palermo is that it has the most expensive rents. In particular, the apartments with two rooms, which reached an average price of $205,483 per month in June. And, according to the report, this figure reflects the high demand and popularity of the area, as well as the shortage of available housing in that coveted area.
On the other handLiniers is positioned as the cheapest neighborhood in terms of rents, with an average of $114,447 per month. AND Chacarita and Almagro stand out as the neighborhoods with the highest increase in rental prices. These locations have experienced significant growth in demand and as a result prices have been driven up. While San Telmo is positioned as the neighborhood with the smallest increase in rental prices.
Fixed Term: how much to invest to earn a rental
Thus, given that the rental market in the city has experienced a notable price increase in the last 12 months, exceeding the inflationsavers seeking to earn an income similar to that of the rental with a traditional fixed term of 30 days they will have it difficult. However, it is not impossible.
The first thing to keep in mind is that the fixed term offers a nominal annual rate (TNA) of 97%as provided by the Central Bank (BCRA), which represents a monthly income of 7.97%, for individuals who deposit less than $30 million. In this way, the saver who wants to earn each month money equivalent to what the owner of a two-room apartment can obtainwhose average is $158,328 per month, according to Zonaprop, must constitute a traditional 30-day fixed term with an initial capital of $1,985,901.
Clearly, it is a significant amount, but, without a doubt, it is a much smaller investment than the one that would require the purchase of a property for this purpose. And it is that, to carry out a traditional fixed term and earn the same as a rental You need to invest just 3.6% of the capital required to buy a two-room apartment, which starts at US$60,000.
It seems like a convenient business. However, it is important to note that the pesos deposited in the traditional fixed term must remain immobile for a whole month, in order to earn interest at that time of $158,328. That is a disadvantage.
Likewise, another con is that the initial capital invested in pesos to be able to obtain income similar to that of a rental it loses value as time goes by due to the high monthly inflation registered, while one of the advantages of investing in bricks is that they are real quoted in dollars, so its equivalent value in pesos is updated constantly.
Thus, although the risk and the investment are much lower with a fixed term, it is not the best option to protect the capital from inflation. Meanwhile, an investment in real estate is more durable and is more protected against devaluation, but, of course, you have to have the dollars to allocate for that purpose.
Source: Ambito
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