Live and Invest Overseas

Argentina

Budgeting for Life in Buenos Aires

 If you’re considering settling down in Buenos Aires, you’ll find that you can live in one of the best neighborhoods for as little as $1290 per month. But depending on whether you are renting or buying, you can also go as high as $3885 per month without being overly extravagant.

 

To maintain consistency among the sample budgets below, I’ve used 100 square meter (1076 square foot) properties located in Recoleta and Palermo, two of Buenos Aires’s top neighborhoods. I’ve also used a somewhat-arbitrary figure of $500 per month for entertainment; you could easily spend less than that, and could certainly spend more.

 

Let’s take a look at the first budget, for apartment living

 
Apartment Rental
 Rent                                      $1,700           Top neighborhoods of Rocoleta or Palermo             
 HOA Fees  $175  Depending on amenities and security
 Property Taxes  $0  
 Transportation  $70  Occasional bus and taxi fares
 Gas  $30  Used for heating and cooking
 Electricity  $40  Average value, assuming seasonal variations 
 Telephone  $25  Control line 
 Internet  $40  
 Cable TV  $30  
 Household Help, fulltime              $0  Allow $350 per month, Monday-Friday, 8-hour days
 Food  $300  
 Entertainment  $500  
 Homeowner's Insurance  $0  
     Exchange Rate: $1=3.05 pesos Argentinos (Aug 08)
 TOTAL  $2,910  
Apartment Ownership
 Rent                                      $0             
 HOA Fees  $175  
 Property Taxes  $80  
 Transportation  $70  Occasional bus and taxi fares
 Gas  $30  Used for heatinng and cooking
 Electricity  $40  Average value, assuming seasonal variations 
 Telephone  $25  Control line
 Internet  $40  
 Cable TV  $30  
 Household Help, fulltime              $0  Allow $350 per month, Monday-Friday, 8-hour days             
 Food  $300  
 Entertainment  $500  
 Homeowner's Insurance  $0  
     Exchange Rate: $1=3.05 pesos Argentinos (Aug 08)
 TOTAL  $1,290  


The figure of $1290 per month is amazingly low, considering the quality of life in Buenos Aires…and also considering that properties are not that expensive.

 

The cost of renting an apartment came in at $2910 per month. The increase is entirely due to the average monthly rent in this area, which is about $1700. You’d save on property taxes, but only $80 per month.

 

Now let’s look at living in a house:
House Rental
 Rent                                      $2,500           3or 4 bedroom house in top neighborhood              
 HOA Fees  $0  
 Property Taxes  $0  
 Transportation  $70  Occasional bus and taxi fares
 Gas  $150  Used for heating and cooking, monthly
 Water  $20  
 Electricity  $200  Assumes A/C and heating monthly
 Telephone  $25  Control line, monthly
 Internet  $40  
 Cable TV  $30  
 Household Help, fulltime              $0  Allow $350 per month, Monday-Friday, 8-hour days             
 Food  $300  
 Entertainment  $500  
 Homeowner's Insurance  $50  
     Exchange Rate: $1=3.05 pesos Argentinos
 TOTAL  $3,885  
House Ownership
 HOA Fees  $0  
 Property Taxes  $100  
 Transportation  $70  Occasional bus and taxi fees
 Gas  $150  Used for heating and cooking, monthly
 Electricity  $200  Assumes A/C and heat, monthly
 Water  $20  
 Telephone  $25  Control line
 Internet  $40  
 Cable TV  $30  
 Household Help, fulltime              $0  Allow $350, Monday-Friday, 8-hour days                                  
 Food  $300  
 Entertainment  $500  
 Homeowner's Insurance  $50  
     Exchange Rate: $1=3.05 pesos Argentinos (Aug 08)
 TOTAL  $1,485  


As you can see, the budget is still reasonable at $1485 per month. Property taxes are a bit higher than an apartment, as are the utilities.

 

If you’re planning to rent a three or four bedroom house, plan on paying an average of $2500 per month. Overall, your budget would rise to about $3885 per month.

 

Car ownership will add to the monthly budget significantly

As you may have noticed, neither of the budgets above included costs for owning a car. Here’s what you can expect to pay:
 Car Registration                 $67           Based on 4% annually for a $20,000 vehicle                           
 Insurance  $200  
 Maintenance  $50  
 Fuel  $200   
 Car Total  $517  Exchange Rate: $1=3.05 pesos Argentinos (Aug 08)

As you can see, this adds significantly to the bottom line. Personally I find it a burden to own a car when living in the city. To me, it makes more sense to rent a car for those occasions when I want to travel in the countryside. It’s easy to justify that occasional expense in order to save $500 per month on the monthly budget.

Christian MacDonald
For Live and Invest Overseas
 

If you would like to contact one of our experts to learn more about Argentina, send an email to Argentina@liveandinvestoverseas.com.
 

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