Classified ads on extinction

It has been for some years now that the classified ads on newspapers have begun to decrease. The main reason for this is that, currently, there are many free add services (or maybe cheaper) on the Web. The Internet boom has made many companies to choose this way of advertisements in order to get to more people.

Likewise, when someone needs to advertise a property, or some other ads as a job, the same newspapers offer a classified add option over their Web. This has made the number of people that use these types of ads grow. We cannot fail to mention that those people that have internet access on their houses will probably go to their computers to look for ads, instead that going out and buying a newspaper (since nowadays many people even read the newspaper online)

Nevertheless, in Argentina, there are some announcements and ads that need to be put on the newspapers, according to Law, which means that this type of advertising continues to be useful.

Moreover, many newspapers now offer both services, a classified ad on the newspapers, plus on their webs. This way classifieds are read by more people, since it is a reality that there are still some generations that are not always stuck to the computer; people still go to the newspaper in search of posts and ads.

To conclude, even though it is true that printed classified ads are decreasing in number, it is something that will continue to be in use for some time, whether because it is imposed by law or because it has the intention of reaching a wider range of generations.

Property sales are frozen due to the Dollar situation

Once again, consumption has beaten the real estate sales and inversions. Since the execution of the legislation that restricts buying dollars in Argentina and outside the country, the real estate sales have gone down.

A month ago, the situation was quite different. The “AFIP” (the Argentine national tax agency) allowed the real property transactions; in order to make the transaction, you needed to show the Bill of Sale and the corresponding documentation which explained where the funds for the sale came from. But nowadays, the AFIP does not allow many of the transactions, and property sellers won’t accept argentine pesos, so the real estate sales are stuck. According to the president of the "Cámara de la Construcción" (Construction organization), Nestor Walenten, “if (...) the first quarter's tendency is maintained, the 2012 could be the worst year of the decade for the real estate sector; even worse than in 2001.”

Currently, consumption has grown and savers have started to buy cars and other big consumption products, other than the real estate business.

Nonetheless, there is one interesting point to mention and it is that, despite the property sales having gone down during the last months, (it is estimated that in march, in relation to 2011, the reduction has been of 4,7%), the construction business has continued to grow, approximately 4,7%.

Many specialists estimate that the government will continue implementing the same legislations, so the investment flow will begin to decrease little by little. Likewise, specialists also believe that if the gap between the official dollar currency and the "parallel" one continues to grow, the situation could get worse.

Even though the repercussion of the economy of Argentina in the real estate area hasn't been too hard (yet), the low on the property sales is a reality, and it is only a matter of seeing what will happen during the next few months. 

Where can the “blue” dollar market get?

The dollar issue and its double exchange rate have become popular during the last few weeks in Argentina. The problem is that the “blue” (or parallel) dollar is becoming more popular than the official one. This is due to the fact that, even though the official dollar rate is lower than the parallel, not everyone can get them through those means.

During the last few weeks, the parallel dollar (i.e. bought in the black market) has been increasing its value, while the official rate has kept the same. This is because every day there is more people who buy in the black market than in the official one, (simply because they can’t do it in the latter).

Even tough the Government has been trying to go against the parallel market to stop it, this has made the situation to worsen. The cause is explained with simple economy: If you go against the black market, this creates financial anxiety, thus people want to buy more dollars, since they can’t do it on the official market, they do it in the black market; therefore, the “blue” dollar value goes up, and the government needs to reinforce its fight against the black market; and this becomes a vicious circle. As a consequence, the parallel dollar value continues to grow, and this could bring many negative effects on the Argentine economy.

So, it could be said that unless the government decides to make a reform officially and people become aware of the fact that this affect the economy, the parallel dollar value will continue to separate from the official one.

According to the latest news, the official dollar value is AR$4.49, and the parallel dollar value has reached the AR$5.92 and continues to grow. The difference between both has reached 27%. It is only a matter of time and actions that will make the situation to change, or just to stay the same.

Prices per square meter in the main cities of the World

Over the last few years, many studies have been done in order to know the different prices per square meter in different cities around the World. This was done so as to make comparisons, and help investor to plan and organize any future investments. As a guide, we will here mention some of the main cities and countries in the world, together with an estimative price per square meter.

According to “The Wealth Report”, done by the Citi Private Bank and the real estate consultant "Knight Frank", the most expensive place to live in is Monaco. Then, it follows Cap Ferrat (in the South of France), followed by London and Hong Kong.

On the other hand, according to the website globalpropertyguide.com the list of the most expensive countries is the following: 1- Hong Kong: US$ 17,875.45; 3- Japan: US$ 14,079.41; 4- Switzerland: US$ 8,328.99; 10- France: US$ 6,143.81; 11- Italy: US$ 5,721.67; 17- United Kingdom: US$ 4,829.08; 18- Spain: US$ 4,541.68; 31- Germany: US$ 3,208.01; 35- Brazil: US$ 2,822.62; 51- Argentina: US$ 2,082.35; 55- United States: US$ 1,882.82; 59- Chile: US$ 1,686.00.

The list is vast and long, and it includes many other countries. It should be borne in mind that these prices are an average, and they are an estimate of how much would a square meter cost in the downtown areas of the main cities. Nonetheless, you will find much higher prices (and a bit lower too).

Of course, that all those that are planning to buy a property in some city of the world, should do some research about each place, and see where it is best to do it, according to its needs and likes.

Rent prices in the main cities of the World

Renting a flat is something that is done in the whole world. Currently, buying real property is not easy (nor cheap), and therefore, renting them is the only choice for most. We will now mention and compare rent prices for unfurnished flats in the main cities of the world. You should bear in mind that prices will vary according to the location within the city, and generally the difference between one flat and the other is this (location). Furthermore, prices are in dollars.

Renting in Santiago de Chile, Chile:

2 bedroom apartment and 1 bathroom. Surface: 46m2. Price: US$ 412.

2 bedroom apartment and 1 bathroom. Surface: 46m2. Price: US$ 474

2 bedroom apartment and 1 bathroom. Surface: 44m2. Price: US$ 432

Renting in Paris, France:

Studio with a surface of 21m2. Price: US$872.

1 bedroom apartment and 1 bathroom. Surface: 23m2. Price: US$1105

Studio with a surface of 23m2. Price: US$ 1158

2 bedroom apartment and 1 bathroom. Surface: 71m2. Price: US$ 1312

1 bedroom apartment and 1 bathroom. Surface: 39m2. Price: US$ 1327

1 bedroom loft, with a surface of 77m2. Price: US$ 2080

2 bedroom apartment. Surface: 67m2. Price: US$ 2276

1 bedroom apartment. Surface: 40m2. Price: US$ 2341

Renting in New York, USA:

Studio with a surface of 28m2. Price: US$ 1400

Studio with a surface of 23m2. Price: US$ 1700

1 bedroom apartment. Surface: 37m2. Price: US$ 1900

1 bedroom apartment. Surface: 60m2. Price: US$ 2195

2 bedroom apartment. Surface: 56m2. Price: US$ 2500

Renting in London, UK:

1 bedroom apartment and 1 bathroom. Price: US$ 1484

2 bedroom apartment, in downtown area. Price: US$ 4033

2 bedroom apartment, on the East side Price: US$ 2517

Studio, with an en-suite bathroom. Price: US$ 1613

Renting in Madrid, Spain:

3 bedroom apartment, with 2 bathrooms. Surface: 180m2. Price: US$ 2600USD

1 bedroom apartment with 1 bathroom. Surface: 55 m2. Price: US$ 1030

1 bedroom apartment with 1 bathroom, Downtown area. Surface: 54 m2. Price: US$ 1040

2 bedroom apartment with 1 bathroom. Surface: 68m2. Price: US$ 1105

1 bedroom apartment with 1 bathroom. Surface: 55 m2. Price: US$ 1014

Renting in Miami, USA:

1 bedroom apartment with 1 bathroom. Price: US$ 840

2 bedroom apartment with 1 bathroom. Price: US$ 1030

Studio with 1 bathroom. Price: US$ 1090

1 bedroom apartment with 1 bathroom. Price: US$ 1350

1 bedroom apartment with 1 bathroom. Price: US$ 1400

2 bedroom apartment with 2 bathrooms. Price: US$ 2950