Have been following you for several years now and now I have one question.
How did financial crisis influence rental prices for small apartments?
I am thinking of buying loft to create small apartments (30 to 60m2) to
rent them out. Therefore I am interested to know, how how rental prices
were doing during the initial crash, during “recovery” and how they are
Maybe you have some links to rental price graphs or something similar.
Thanks in advance for your answer!
Thanks a lot for the job you are doing! It really helps people around
the world. And unfortunately – the further we go, the more it helps!
Kind regards from small country – Latvia ;),
A small apartment is actually a good investment
In the case of Argentina, the prices pretty much followed inflation,
and by this I mean they followed the real inflation, not the much lower
official one. This is important when you consider that we’re talking 30%
to 40% inflation each year in Argentina. In most modern day economic
collapses and crisis we see something similar going on. It’s interesting
to notice that while property prices may drop, in some areas more than
others of course, you rarely see rent prices drop much. Especially for
the kind of property you are thinking of, an apartment or condo,
probably in a larger city center.
Sometimes people are surprised by
this but when you think about it, it does make sense since its closely
related to the rule of 3: You cant live 3 minutes without air, 3 hours
of exposure to extreme conditions without shelter, 3 days without water
or 3 weeks without food. Rent is basically modern-day shelter and unlike
selling prices it’s something that the lower income class will depend
more on. Of course there are squatters and such but in general you get
the picture. When it comes to food, water and shelter (housing) those
are pretty basic necessities so it’s usually considered a pretty solid
investment. With bigger houses, and further away from town, there’s
usually more offers and more room to bargain, but if you need to be in
town for work or study then you’re already talking about a more limited
segment. Of course, it has the advantage of eliminating the need of
commuting, which in hard economic times is a valuable asset. A small
apartment for rent in town in a good area makes for a good investment in
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.