Argentines who will take the opportunity to vacation in the northern country during the Argentine winter, but with their eyes set on identifying new and safe investment opportunities in that country, which has historically been characterized by a stable and legally respectable economy.
In this way, Argentines try to face inflation and beat it, by investing their savings in a stronger currency such as the dollar, to obtain a return in that same currency. In some cases, such as those who decide to invest in real estate, they also benefit from the appreciation of these properties, which are growing in the northern country. For example, according to the S&P CoreLogic Case-Shiller National Home Price Index in the United States, which analyzes 20 cities in the country, home prices were up 18.8% year over year in 2021.
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Live USA
Those Argentines who are looking for vacations in some areas of the United States, such as Miami, one of the most popular destinations, can take the opportunity to see the possibility of doing business. The combination of beach and relaxation with investments is not new, but it is gaining more ground in the face of the economic uncertainty that is hitting Argentina again.
In a single trip they can combine winter vacations to escape the heat of summer in certain areas of the north, and at the same time consult investment options with guaranteed profitability. In fact, some end up making their investment in the same trip, although this is not necessary, since it can be done virtually from a distance.
In the real estate sector, one of the most accessible and popular options, especially for small and medium-sized Argentine investors, are the condo-hotels, since you can own a property for less than $50,000, obtain a return in dollars of order of 8-10% annual net, and the possibility of using your unit to enjoy the vacation part of your trips.
According to Statista, nearly 1 million people visited the United States from Argentina in 2018 and 2019, a number that was drastically affected in 2020 due to the pandemic. However, in 2021 an increase in Argentine visitors began to be seen. Miami is one of the most visited destinations by, since it presents that hybrid between vacations and business, added to the Latin culture that makes them feel at home. According to a report published by Florida Realtors at the end of last year, Argentines invested 900 million dollars in this city, but it is not the only one.
New York and Orlando are still going strong as investment and vacation destinations, but the incessant search of investors for new and better alternatives for profitability has opened the game to new destinations that are becoming popular, such as Georgia, Michigan, and Virginia, particularly in the real estate sector.
According to Moody’s Analytics, it is estimated that, for the next 10 years, the population of the Sun Belt – where, for example, Florida and Georgia are found, among other southern states -, will grow by 13%, that is, about Approximately 19,000,000 people. While for other States that do not belong to the Sun Belt, the growth projection is much lower: about 2% – about 3,000,000 people. These projections allow the analysis of long-term investment strategies, beyond the situation of price stabilization.
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In addition to condo-hotels, Argentines have other short-term profitable investment alternatives, for example what is known as flexible office spaces, and coworking environments. The pandemic redefined what was known as a traditional office, the work space came to have various places and formats. These business models provide a flexible opportunity for those who work remotely, in a hybrid way, or need an office, but do not want to assume high costs and long-term obligations.
Flexible work spaces appear as a new investment option in the real estate world of the United States, both for Americans and foreigners, Argentines who will be vacationing in the next month. In this case, it is an opportunity for large investors –the investor puts up capital for the development of the real estate project–, and also for small investors –with a condo-office model, where a unit is acquired–.
The 6 positive characteristics that tempt the Argentine investor
- The support of the Federal and State Government of the USA, to the arrival of foreign investors, and of course, local ones.
- The massive internal migratory displacement from areas with a very strong urban concentration (NYC, Chicago, Boston, among others), towards areas that offer improvements in the quality of life, especially after the negative effects that the pandemic made visible.
- The tax incentives of the Southern States that attract investors who seek to project in the Real Estate business.
- The Southeast of the United States, and its attributes that make this area a privileged place for the reception of tourism and new residents.
- The privileged climate of these areas contributes to the decision-making of potential foreign and local investors.
- The growing aggregate demand for housing in the face of a still very limited supply means that the current construction cycle will remain strong, with the aim of satisfying that demand.
Konnectia holder. Specialist in real estate developments based in Miami, and operating in different states of the United States.
Source: Ambito