DC_20833 wrote:I have been in Peru for 11 years and the price of housing boomed until 2 years ago. It is now a buyer's market. I paid $450,000.00 in September of 2016 for a 3-bedroom apartment which is 1937.504 square feet and I would get today around $400,000.00. What drives the Peruvian economy is precious metal prices and they are way down so it is now a buyer's market. I spoke with a realtor and she said the prices will remain down for the next ten years.
Alpineprince wrote:I will concede that the price boom is over for now, but I also disagree with your methodology. They always say "You make money in RE when you buy, not when you sell"! 11 years ago,everybody I know was buying up property, why did you wait 11 years?
Alan wrote:Actually, the price of metals is back up, thank goodness. Agro is strong, too and foreign direct investment is also gaining speed. It's not as bad as it feels.
Slippin' Jimmy wrote:DC_20833 wrote:I have been in Peru for 11 years and the price of housing boomed until 2 years ago. It is now a buyer's market. I paid $450,000.00 in September of 2016 for a 3-bedroom apartment which is 1937.504 square feet and I would get today around $400,000.00. What drives the Peruvian economy is precious metal prices and they are way down so it is now a buyer's market. I spoke with a realtor and she said the prices will remain down for the next ten years.
Looks like you got rear-ended on that deal.
50 grand in the hole.
Better turn slumlord and try to recoup your loss.
SilverbackPeru wrote:I never understood how any of these house prices were acceptable at the time. $450,000 is way too much money for a three bedroom apartment in Lima I always thought. But what can you do, people were willing to pay those prices.
I don't think the economy is going to crash as it's more diverse now but i can only see those house prices going down a bit more maybe in the future until things get balanced out a bit more.
toughrider wrote:SilverbackPeru wrote:I never understood how any of these house prices were acceptable at the time. $450,000 is way too much money for a three bedroom apartment in Lima I always thought. But what can you do, people were willing to pay those prices.
I don't think the economy is going to crash as it's more diverse now but i can only see those house prices going down a bit more maybe in the future until things get balanced out a bit more.
It's cheaper to buy a new apartment than a second hand one.
If you buy a ''pre venta'' apartment, you get often a big discount. And you will be the first one who will be using the loo too.
There are all the time new apartment buildings popping up all over Lima.
SilverbackPeru wrote:I never understood how any of these house prices were acceptable at the time. $450,000 is way too much money for a three bedroom apartment in Lima I always thought. But what can you do, people were willing to pay those prices.
SilverbackPeru wrote:Luxury property is a good way of cleaning illegal money (same as high end casinos and hotels) so there could be a little bit of truth when people say prices are being pushed up cos of the drug trade.
Alan wrote:SilverbackPeru wrote:Luxury property is a good way of cleaning illegal money (same as high end casinos and hotels) so there could be a little bit of truth when people say prices are being pushed up cos of the drug trade.
That's a good point. According to this article, nearly 50% of illegal money is laundered through real estate.
https://rpp.pe/economia/economia/los-pr ... ia-1029215
It's not just drug money though. Money from corruption and informal mining represent an even higher percentage of the total.
Alpineprince wrote:Any ideas on where to advertise to reach this market?