Housing market situation

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Baltimore
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Re: Housing market situation

Post by Baltimore » Sat Apr 06, 2019 1:18 pm

at46 wrote:
Sat Apr 06, 2019 11:31 am
If the decision to build that was made based on a computer algorithm, someone must have forgotten to update it
LOL, I agree, but some people are still willing to buy those apartments at posted prices, even if after buying them they can only rent them for $800.000 pesos per month, so I'm not sure if the inmobiliaria that built those apartments made a bad decision. But I'm sure you can find the exception of a visitor/diplomat/CEO whose rent is paid for by a company that will just pay whatever rent price you ask for. BTW, I'm talking about apartments with gastos comunes between $250.000 and $350.000 per month.

Maybe these purchase decisions make sense if you are filthy rich and have lots of cash sitting under the pillow? Or maybe they made an excellent bet and apartments in the 10.000UF -15.000UF range will actually sell for 30.000UF in 5 more years...

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41southchile
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Re: Housing market situation

Post by 41southchile » Sat Apr 06, 2019 5:39 pm

So I was talking to someone last night who is involved in construction, . apparently some construction companies are selling appartments with big discounts and in some cases are having to slash their asking prices in Puerto Varas , and at least two appartment buildings are stallled mid construction due to difficulties financing . There also seems to be more and more concerns about quality of appartments and leaks and fast deteriation of some newish builds, basically construction companies building Las Condes style appartment towers (with huge huge gastos comunes too) in the inclement South is not always a good ideas it seems and the fizz has definitely gone out of the appartment market here, still wouldn't buy one. Over 100 million for a 46sqm appartment with bathrooms with no windows and no central heating, still sounds like they suckered a few people in, now the game might be up as the penny is dropping for many it seems
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

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admin
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Re: Housing market situation

Post by admin » Sun Apr 07, 2019 8:02 am

yea i have always been baffled by the santiago crowd that comes down to southern chile to live in a concrete box; when you can get a house for pretty much the same price plus 5000 square meters if land.

I believe it is same people that freak out at the sight of dirt road.
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Re: Housing market situation

Post by passport » Sun Apr 07, 2019 1:38 pm

I find it incredible that he local building code allows apartment construction without central heat

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41southchile
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Re: Housing market situation

Post by 41southchile » Sun Apr 07, 2019 2:08 pm

passport wrote:
Sun Apr 07, 2019 1:38 pm
I find it incredible that he local building code allows apartment construction without central heat
So do I. Mind you I find lot of things incredible here, but remember it's not always a case of whether the building code allows it or not, sometimes its a case of, build first get permission later (or modify their original plans that were granted permissions).
Forgivness or multas after construction is always easier to seek than permission in many constructoras eyes.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

at46
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Re: Housing market situation

Post by at46 » Sun Apr 07, 2019 6:18 pm

passport wrote:
Sun Apr 07, 2019 1:38 pm
I find it incredible that he local building code allows apartment construction without central heat
I've lived in three buildings with central heating installed. But, looking at the monthly gastos comunes, I can see that only 5-10% of the residents actually use it. The cost of central heat versus portable electric heaters for a two bedroom in my current building is about three times higher. What's the point of installing it if only a few people use it?

Choosing a building to live in I look at the number of apartments occupied permanently, and also whether or not I'd have neighbors (and what kind of neighbors) above and below. Because chances are my apartment would be warmer between two others with permanent residents in versus empty ones, with or without central heat.

In any case, orientation towards the sun and having thermopanel windows are more important factors for me than both the central heat and the neighbors. Those are the only 100% sure ways to reduce your heating costs that I know of.

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41southchile
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Re: Housing market situation

Post by 41southchile » Mon Apr 08, 2019 9:44 am

at46 wrote:
Sun Apr 07, 2019 6:18 pm
passport wrote:
Sun Apr 07, 2019 1:38 pm
I find it incredible that he local building code allows apartment construction without central heat
I've lived in three buildings with central heating installed. But, looking at the monthly gastos comunes, I can see that only 5-10% of the residents actually use it. The cost of central heat versus portable electric heaters for a two bedroom in my current building is about three times higher. What's the point of installing it if only a few people use it?

Choosing a building to live in I look at the number of apartments occupied permanently, and also whether or not I'd have neighbors (and what kind of neighbors) above and below. Because chances are my apartment would be warmer between two others with permanent residents in versus empty ones, with or without central heat.

In any case, orientation towards the sun and having thermopanel windows are more important factors for me than both the central heat and the neighbors. Those are the only 100% sure ways to reduce your heating costs that I know of.
Yeah I guess so, but in a cooler climate like Puerto Varas, if I was going to live in an appartment I'd like the option at least, maybe its those ones that are not selling?
I've seem signs up for another appartment ready to start that offers central heating, underfloor heating, energy efficient etc etc. I guess the market dictates.
But to hear of leaky appartments less than 5 years old is kind of a sign to steer well clear of them, central heating or not.
It's no secret around town that the previous socialist mayor of Puerto Varas received quite a few brown envelopes during his term from constructoras as well as a lot of other inappropriate behavior, a simple internet search of news articles will show how he put back progress in Puerto Varas by 4 years the way he operated.
Ignorance more frequently begets confidence than does knowledge: it is those who know little, not those who know much, who so positively assert that this or that problem will never be solved by science. - Darwin

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admin
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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 11:48 am

yea, every socialist mayor around the lake is either already been convicted, been charged, or is under investigation.

At least they managed to vote them all out of office. Now, undoing the damage is going to take years.

whatever "socialism" might mean somewhere else, in latin america it ALWAYS means corruption.
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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 3:06 pm

here is an interesting study on the risk and returns of real estate against other forms of investing. seems real estate, taken on a global scale, does return more for less risk.

https://www.nber.org/papers/w25653

of course, you have parse that to your investment neighborhood.

however, a similar study of one of the oldest and richest german families looked at how they survived several world wars, many recessions and depressions, also concluded they maneged to stay rich not because of gold, stocks, bonds, paintings, but through owning real estate.
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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Apr 08, 2019 3:45 pm

While it may have higher expected returns, there's the important fact that it's not a liquid asset. This is something that should always be accounted for.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

at46
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Re: Housing market situation

Post by at46 » Mon Apr 08, 2019 4:39 pm

tiagoabner wrote:
Mon Apr 08, 2019 3:45 pm
While it may have higher expected returns, there's the important fact that it's not a liquid asset. This is something that should always be accounted for.
That's the point - it's harder to make it flow into someone else's pocket 😂

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Re: Housing market situation

Post by eeuunikkeiexpat » Mon Apr 08, 2019 5:26 pm

And there are always black swans that could cause massive death like the Black Death/Dark Age times where the survivors made themselves at home in many a dead nobleman's estate :alien: Land and wealth redistribution via mother (or supra) nature vs. human commies and socialists.
There are two ways to be fooled.

One is to believe what isn't true;

the other is to refuse to believe what is true.

- Søren Kierkegaard

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