This article about how Florida is starting to look more attractive to foreign buyers because of dropping housing prices reminds me of what happened in Argentina over the past five years. We have an apartment in Buenos Aires, so I have first hand knowledge of what took place. When their currency fell from one peso to the dollar to three to a dollar, the country went into turmoil, but it also became a bargain. Initially prices fell on apartments in the city by about 30% if you could find a buyer. Within 6 months, tourists started flocking to Argentina because it was "cheap" to enjoy for holiday. Dinners and hotels that used to be some of the most expensive in the world were now a bargain. The planes were full and tourism volume grew dramatically year after year. Then investors started buying apartments to rent them out to the flocking hoards and within a few years the prices were above their pre-currency crash levels. Most of this new boom is driven by Americans who went their on holiday and decided this would be a great place to invest and maybe live in the future. I have a friend in Buenos Aires who manages our apartment and about 150 others and he is doing great. Each year just gets bigger and better. The point is, the reason their boom began was because it was seen as cheap, just like Florida may be appearing to foreign buyers today. Panama's boom began for very much the same reasons but many developers here believe that Americans are all rich and will buy anything.
Read the article about low priced Florida real estate here....










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