🇵🇾 More information on Aleksandr's real estate buyer's agent services in Asuncion, Paraguay: thewanderinginvestor.com/services/international-real-estate-services/my-real-estate-buyers-agent-in-asuncion-paraguay/ 🇵🇾 Full analysis of the real estate market in Asuncion, Paraguay: thewanderinginvestor.com/international-real-estate/paraguay-asuncion-real-estate-market-investment-guide/ 🇵🇾 More information on Paraguay residency and contact Aleksandr: thewanderinginvestor.com/services/residency-and-citizenship-by-investment/how-to-obtain-residency-in-paraguay/
A couple of things worth mentioning: prices are very negotiable, water is usually included in HOA expenses, and you can rent to foreigners by hiring a guarantor service (Alucerto)
As a developer and buyer of these sort of apartments in Paraguay I can assure you everything that has been said in this video is true. One thing that you could have mentioned is buying these sort of properties "al pozo" which is buying from the start of the development of the building. In this case you can pay in installments and cheaper than when the building is finished. I develop duplexs and buy apartments to diversify my portfolio and to keep up with inflation. Not realy to make money quickly. Nice video guys.
And when the developer take your money and disappears? There are a lot of cases that people baught with this modality and lost all their savings. "comprar en pozo" it's usually a scam there are neither regulation or law that protect the buyer of this modality.
As a Paraguayan, I can say that this guy did a good job studying the Paraguayan economy. I would add that money laundering is a big thing here in Paraguay, which is why you can see many new empty buildings, gas stations on every corner, pharmacies, all over Asunción.
@@michiel5160 I've seen plenty of land fit for that and are dirt cheap specially for people with a big bag of foreign currency, sadly you kinda need someone in the field so you get to the final seller, not much info online
90% of occupancy is a very optimistic number. I have been living here for many months, lived in many apartments and I can say that most of them weren't rented for some time. I also heard stories about people who could rent their apartment for many months...
Agreed. There are dozens and dozens of buildings being built, with many of the already built buildings sitting mostly if not completely empty. With the minimum wage being close to $350 USD there are only a small number of potential renters in-country year round. Money laundering is a HUGE issue here. The people making the apartment buildings aren't interested in making fast or stable money, but are interested in finding a legal avenue to convert their illegitimate money into legal capital. People buying property or renting these luxury apartments in Paraguay aren't well-to-do, they are doing so to escape somewhere else. This isn't an investment market for rental income.
Can anyone recommend me an affordable immigrant agent that costs around $500-$1,000 to help me get PY TR or PR? I want to move out of the US head to PY. Many agent cost over $1k. Thanks!
Very interesting. I am English and live in Las Mercedes Asunción. Which is after seven years of living here, i wouldn'tleave. I work remotely and would never consider moving back to London. I hope you reply to a very honest view of Asunción.
Paraguay is the invisible country. Few people can find it on the map, or know its history or whereabouts. You come here for the anonymity and the quiet village feel. Like every place, it has its pros and cons and is not for perfectionists or people who must be constantly entertained. One of the pros is its accessibility. You can be a legal resident in the blink of an eye without too much hassle or cost.
Asuncion is a nice place to visit but wouldn’t live there. You’ve probably heard that before. I’m born and raised in NYC and I don’t even want to live here at my age. Now for me if you travel about 30-1hour from Asuncion is the place I’d be interested in. How do I know? I’ve been to PY many times and have been married to a Paraguayan for 35 years. That’s my connection to PY
Can anyone recommend me an affordable immigrant agent that costs around $500-$1,000 to help me get PY TR or PR? I want to move out of the US to save on taxation and more freedom - maybe I live in PY a few months per yr to keep its TR or PR. Many agents cost over $1k. Thanks!
Good video. One thing I suggest people consider when investing in Paraguay Real Estate - thoroughly assess the build quality. Incidental/ongoing costs and an increased need for 'maintenance can feature in buildings that have not been well designed and built. I'm not saying this is all buildings in Paraguay but it can be an issue.
Can you tell me how much the rent is for a 54 m2 two bed apartment? And what would be an appropriate purchase price? San Roque district. With balcony, no parking space, no pool. New building. That would be very nice.
@@Colette_BS123 The appropriate price would be the one that gets the property sold in a reasonable timeframe. I happen to think 3 years to sell a property is not convenient for any investor who might need to recover their money for some emergency. If we discount the opportunity cost of the money being held up during the time the property is on the market… Now we got a problem. Look if someone wants to live there long term that’s fine but let’s not try to say the real estate market is not overpriced when it is. I’m guessing developers are bagging an insane margin.
Good to know the full story like this but the country or at least the capital not a property investment location - at best a wealth preservation and backup plan for regional countries/individuals
Very honest appraisal. Issue is today that their are so many high yielding opportunities with less risk and better prospects hard to see any real business case unless you want to be specifically in Paraguay.
As a foreigner living in Paraguay, this is a giant BS. Those numbers are all exaggerated and the market is way more smaller than they said. The only truth that I can save from their conversation is that Paraguay is neither a touristic country nor a buissness hub. It's seem to me that this is a complete scam to launder the money of the drugs lords. There is no ROI in this investment 😅😅😅
The reason I was looking at an airbnb was to have short term rentals and be able to use the place for myself and friends/family. From what you're saying then, stick to buying a place near the airport and downtown near the immigration places people will need to visit.
5mm Windows, no soundproofing and the neighbors walking upstairs are trampling on your nerves. I know Asuncion Building quality (haha) very well. Rent one at 600$.
As a paraguayan, im not buying any real state anywhere soon in time. I think our market is completly crashed by foreign people and money laundering. If the level of construction is still growing at some point no even foreign people would put money here bc of huge over offer.
This does not seem like a good investment whatsoever. The base price of the apartment is very high for very simple construction, $800 income on $150,000 investment when there is property tax, maintenance, insurance, water, HOA. Hard pass,
Fantastic analysis! There are many brazilians getting their second residence in Paraguay for safety. I can imagine Argentinians doing the same. Another point I saw in Paraguay was the influx of brazilian students. There were many universities made just for brazilians to study medicine. I also imagine that a property targeting this demographic could give a safe return
$140k for 80 sq meters -> $1750 / sq mt seems a bit high for this part of Asuncion, no? Or have prices gone up since I last checked? If I could get something like this for $100k, maybe that would make more sense. Do you think that would be realistic? Or, if this apartment was $140k and in the nice area that borders both Recoleta and Villa Morra, then that could be interesting since it could bring in AirBnB revenue. Do you have a sense of what the ROI on that would look like?
As a Paraguayan many of your data is inaccurated...for example hoa is billed to the occupant/renter,warranty is about twice the monthly rent,also all services/utilities are billed to the renter,allthough you could add to the price of the monthly rent cable tv and internet aswell as countty taxes which are 5% over the overall price of monthly rent...the only fixed cost towards the lender is land tax
Pretty good overview, but you didn't mention one of the main drivers of real estate in Paraguay - money laundering. At the moment investing in real estate in Paraguay makes no sense. You're going to yield around 4% and take on various risks and headaches. There is low liquidity too as you pointed out, especially when you have a property that is 500k plus. I can buy a t-note and yield 5%, many high quality stocks that yield over 5%, etc.
good and informative. but 3% p.a.+this is exactly the BC, as in Asuncion the property price is extremely high compared to rental. in country like Paraguay anything less than 9% p.a. net is very high risk.
You would be a fool to invest in one of these cardboard apartments. You really need to see the quality. It is really bad. The kitchen cupboards are made with 12mm ply which expands and needs replacing within a few years due to the heat. You cannot hang anything on the walls or put in a screw, nail, etc because it will fall off. The noise and light pollution do not make for a pleasant stay. You can hear your neighbours and the roads around the place are always busy. It would cost no more than $5k to build one of these places. The area is great. They all look good in the first few months, but take a look in 5 years and the place is filthy and falling apart because the paraguan way is not to maintain anything in the real sense of the word. If it comes with a parking space, you better not be driving a big car. I could go on, but i would advise you to put your money elsewhere.
I have a friend that purchased a recently finished apartment and it had TONS of issues, including a ill fitting window in the living room. Getting it fixed was also a huge pain because the Paraguayan culture is very relaxed and problem solving isn't a major priority. In the house I'm renting (supposedly a luxury home) all the wood warps leading to doors that cannot close properly and mildew and mild growing on the ceilings in the bathrooms. I cannot speak about the initial quality of the build of the apartments, but I definitely question how long they will last. If my house is any indication I believe the apartments won't stay as luxurious for too long.
You need to adjust your calc since you estimated 1.2k yearly water expenses while in reality is 120 dollars. Also the maintenance Factor is not needed until much later after a couple of years of usage. The property management is a one off of 10% once you sign the lease, so you do not get charged the upcoming years.
not true. property management is 10% from every monthly invoice. this is why it is called rental management fee. same in all South America, for ex in Colombia this is close to 12%
Very interesting, expected a much higher yield but great that you are transparent about it. Usually a bank tends to finance around 80% of the houses in the EU or US, in this example no banks are involved. Is that simply not possible or what's the reason? That would in most cases boost the yield.
Reminds me of the Panama market - driven by money laundering (and people stashing assets abroad). Panama has so many empty units it is insane (purchased but left empty for many years). I wonder what the "owned but empty and not trying to rent" rate is in Paraguay?
If Argentina enters economic troubles in a deflationary sense like a real loss of purchasing powerdue to recession/usd transition or whatever I think they would be buying a lot less apartments in ASU. Don't you think this would bring the prices down? I think they are a bit overheated now mostly due to Argie demand of previous years.
BA now: volume increasing but prices not yet. Will probably happen in the coming months. Prices are down 30% from peak. Instability in Argentina = money flowing to Paraguay
I notice in the above calculation there no Income tax on renting it out. Isn't that 10% of gross income needed to add into costs? @@TheWanderingInvestor
Beautiful green area with lovely homes; however, plopping that apartment building in this area ruins the beauty of the area. Neighbors must be very bummed to have this eyesore.
@@aaasianamerican1216 Aleksandr can help: thewanderinginvestor.com/services/international-real-estate-services/my-real-estate-buyers-agent-in-asuncion-paraguay/
Hello friend Maurice! I would like to schedule a personal appointment. There's one thing that made me run away from visiting Paraguay, it's because people can buy weapons there. Weapons are not prohibited! Doesn't that make the place dangerous?
It’s safe in Paraguay. Guns are not an issue. Consulting sessions can be booked here, I’d be happy to help: thewanderinginvestor.com/internationalization-and-diversification-consulting/
It is true that the USA will tax your income no matter where you might earn it or where you live. One must be careful. My father worked and lived in Japan for many years so when we moved back to the USA he got hit with a huge income tax bill. That's why we had no furniture in our house. He was paying IRS back taxes for many years.
@@TheWanderingInvestor After watching this video and reading the tax code cited, I am not sure those statements about overseas income are true. Regardless, a 10% tax rate can be attractive, still. ruclips.net/video/NNIpbaUIBV4/видео.htmlsi=i1fgizIZmbQfVWhu
@@TheWanderingInvestor I knew it. Disguised Bratva - russian mafia buddy. In order to be the Vertrauensmann of obviously a politicians or mafiosi rental unit you need to be in the same Milieu like these crooks themselves. Definately Bratva.
Investment is much worse than in Buenos Aires. Probably Paraguay is a niche for people with phobias about government control. There is no rational reason, for 140 thousand you can buy 80 meters in the center of Buenos Aires, the world capital.
Argentina is not a perpetual mess like you say, the new president is a libertarian and is getting rid of taxes. The locals are in similar situation as the locals in Paraguay but at least things will change for the better in the coming years
Argentina is a 💩 place. Monkey president pledging allegiance to Israel and declaring war on 1/2 the country is another basket case study of being on the wrong side of history. With Argentina’s history, nothing new, just another lunatic dictator licking the elites boots while pretending to care about his citizens.
It is the same thing as in China. People invest and speculate with buildings because they do have some spare money. Be it money from drug traffic, corruption, stealing from the governement, etc.. How else one would be able to afford such an nice condo like that. The average person not. It is increasingly expensive to build a house. So only if you are a politician (corruption, bribes, extorsions) or do a little local drugs as an small drug lord, you are able to even build such an nice flat. Hence the whooping 1000$ they are asking. Just insane. However the buildings are normally built well and are not these chinese tofu bread garbage buildings you see falling down in China. People here make sure the building is built solid for their stolen money. Or do you think these latinparaguayans are such competent businessmen to get to such riches? I do not see any Jeff Bezos in Paraguay but mostly financed themselves with drug trafficking like here and there 100 Kg in an small plane like a Cessna and fly that to the brazilian border and such. From those people you are renting there. It is drug money laundered and invested in something legal like this very nice condo. Aleksandr is an polish, russian, ukranian or eastern Europe name. Most likely east european mafia moved in already. That guy has obviously contact to capo politicians who own that beautifull flat. That is an investment for the croockies of the country to show to their buddies. They charge most likely for renting it out for private alkohol and prostitution parties for such political acquaintances. Rest assured the average german immigrant will never be able to afford to rent that flat. Thats why these flats and weekend houses stay mostly empty all life long. I have an old rent house which I rent for around 120 USD. So there you have an idea.
🇵🇾 More information on Aleksandr's real estate buyer's agent services in Asuncion, Paraguay: thewanderinginvestor.com/services/international-real-estate-services/my-real-estate-buyers-agent-in-asuncion-paraguay/
🇵🇾 Full analysis of the real estate market in Asuncion, Paraguay: thewanderinginvestor.com/international-real-estate/paraguay-asuncion-real-estate-market-investment-guide/
🇵🇾 More information on Paraguay residency and contact Aleksandr: thewanderinginvestor.com/services/residency-and-citizenship-by-investment/how-to-obtain-residency-in-paraguay/
In Paraguay,Asuncion,Houses with garden included,are priced fairly lower than appartments ...mainly because security reasons...
Water is 120 per year not 1200 as stated in the list of expenses
Been waiting on the Paraguay real estate video since Feb. 2023, finally here !!!!
and what's your take on the video?
I am also a german that imigrated to Paraguay a few years ago and can confirm that all the information said here are correct! Good video!
Thank you 🙏
How are you liking it? Will you live long term?
A couple of things worth mentioning: prices are very negotiable, water is usually included in HOA expenses, and you can rent to foreigners by hiring a guarantor service (Alucerto)
As a developer and buyer of these sort of apartments in Paraguay I can assure you everything that has been said in this video is true. One thing that you could have mentioned is buying these sort of properties "al pozo" which is buying from the start of the development of the building. In this case you can pay in installments and cheaper than when the building is finished. I develop duplexs and buy apartments to diversify my portfolio and to keep up with inflation. Not realy to make money quickly. Nice video guys.
And when the developer take your money and disappears? There are a lot of cases that people baught with this modality and lost all their savings. "comprar en pozo" it's usually a scam there are neither regulation or law that protect the buyer of this modality.
@xangelu yes, definitely there's a lot of cases of scam. Therefore it is really important to investigate the group that is developing the project.
What''s your company name ? I will contact you
As a Paraguayan, I can say that this guy did a good job studying the Paraguayan economy. I would add that money laundering is a big thing here in Paraguay, which is why you can see many new empty buildings, gas stations on every corner, pharmacies, all over Asunción.
Good point. Thank you.
Do you have an idea of land prices in other areas of Paraguay. I'd like to know what a decent sized lot (at least 5000m2) for a homestead would be.
EN PANAMA HAY MUCHOS EDIFICIOS VACIOS TAMBIEN... ¡¡¡¿¿EL LAVADO DE DINERO NO ES ESCLUSIVO DEL PARAGUAY!!!!!!
@@michiel5160 I've seen plenty of land fit for that and are dirt cheap specially for people with a big bag of foreign currency, sadly you kinda need someone in the field so you get to the final seller, not much info online
@@michiel5160for a homestead,depending on the area it fluctuates...please be more precise (us states = paraguayan departments which have gobernors )
I am Paraguayan, thank you very much for the contribution, I enjoyed reading the article and watching the video.
That apartment should be around 80k IMO. 140k doesn't make sense.
you are right. fair price would be 80+85K US, i.e. 1000 us-sqm. not more. but if the developers are able to find buyers+good for them
90% of occupancy is a very optimistic number. I have been living here for many months, lived in many apartments and I can say that most of them weren't rented for some time. I also heard stories about people who could rent their apartment for many months...
Agreed. There are dozens and dozens of buildings being built, with many of the already built buildings sitting mostly if not completely empty. With the minimum wage being close to $350 USD there are only a small number of potential renters in-country year round. Money laundering is a HUGE issue here. The people making the apartment buildings aren't interested in making fast or stable money, but are interested in finding a legal avenue to convert their illegitimate money into legal capital. People buying property or renting these luxury apartments in Paraguay aren't well-to-do, they are doing so to escape somewhere else. This isn't an investment market for rental income.
Can anyone recommend me an affordable immigrant agent that costs around $500-$1,000 to help me get PY TR or PR? I want to move out of the US head to PY. Many agent cost over $1k. Thanks!
Same request for me by the way
Very interesting. I am English and live in Las Mercedes Asunción. Which is after seven years of living here, i wouldn'tleave. I work remotely and would never consider moving back to London. I hope you reply to a very honest view of Asunción.
Hi Mark, are you living there as permanent resident?
good to hear Mark, thinking of doing the same next year
Is integrating with their culture and language awkward? English only speaking American and a bit interested in retiring there.
mistake the water is $10 per month $120 per year not $1200
Yes, thank you. Typo in formula. Net yield goes up to 3.8%
Paraguay is the invisible country. Few people can find it on the map, or know its history or whereabouts. You come here for the anonymity and the quiet village feel. Like every place, it has its pros and cons and is not for perfectionists or people who must be constantly entertained. One of the pros is its accessibility. You can be a legal resident in the blink of an eye without too much hassle or cost.
Asuncion is a nice place to visit but wouldn’t live there. You’ve probably heard that before. I’m born and raised in NYC and I don’t even want to live here at my age. Now for me if you travel about 30-1hour from Asuncion is the place I’d be interested in. How do I know? I’ve been to PY many times and have been married to a Paraguayan for 35 years. That’s my connection to PY
Can anyone recommend me an affordable immigrant agent that costs around $500-$1,000 to help me get PY TR or PR? I want to move out of the US to save on taxation and more freedom - maybe I live in PY a few months per yr to keep its TR or PR. Many agents cost over $1k. Thanks!
Another great video, very engaging
Thank you 🙏
Good video. One thing I suggest people consider when investing in Paraguay Real Estate - thoroughly assess the build quality. Incidental/ongoing costs and an increased need for 'maintenance can feature in buildings that have not been well designed and built. I'm not saying this is all buildings in Paraguay but it can be an issue.
I lived 10 years in the PHILIPPINES , so I know the concern…
It’s illiquid bc supply exceeds demand. Price is not according local standards.
Can you tell me how much the rent is for a 54 m2 two bed apartment? And what would be an appropriate purchase price? San Roque district. With balcony, no parking space, no pool. New building. That would be very nice.
@@Colette_BS123 The appropriate price would be the one that gets the property sold in a reasonable timeframe. I happen to think 3 years to sell a property is not convenient for any investor who might need to recover their money for some emergency. If we discount the opportunity cost of the money being held up during the time the property is on the market… Now we got a problem. Look if someone wants to live there long term that’s fine but let’s not try to say the real estate market is not overpriced when it is. I’m guessing developers are bagging an insane margin.
That was exactly my thought, it is not good when you overpay and there is no much liquidity.
@@nomadinvesterThank you for your assessment .
Don’t like living in apartments and if they are hard to sell and there’s a limited supply of clientele to rent to what’s the point?
Brilliant video! Thank you!
The numbers and the whole social situation are pretty accurate.. i can tell as a local resident. So really good analysis!
Me too,finslly a video on paraguay property ,please do more ,much appreciation
Good to know the full story like this but the country or at least the capital not a property investment location - at best a wealth preservation and backup plan for regional countries/individuals
Yes. Probably not a bad long term play either for patient capital.
Very honest appraisal. Issue is today that their are so many high yielding opportunities with less risk and better prospects hard to see any real business case unless you want to be specifically in Paraguay.
The problem with those apartments is that they're sadly too expensive and way out of the price range for most locals.
Totally 🥲
As a foreigner living in Paraguay, this is a giant BS. Those numbers are all exaggerated and the market is way more smaller than they said. The only truth that I can save from their conversation is that Paraguay is neither a touristic country nor a buissness hub. It's seem to me that this is a complete scam to launder the money of the drugs lords. There is no ROI in this investment 😅😅😅
I think their numbers are pretty realistic, although on the very optimistic side
Tu eres el narco
The reason I was looking at an airbnb was to have short term rentals and be able to use the place for myself and friends/family. From what you're saying then, stick to buying a place near the airport and downtown near the immigration places people will need to visit.
This article will be helpful: thewanderinginvestor.com/international-real-estate/paraguay-asuncion-real-estate-market-investment-guide/
5mm Windows, no soundproofing and the neighbors walking upstairs are trampling on your nerves. I know Asuncion Building quality (haha) very well. Rent one at 600$.
really well sayed... the market is slow, most rents u find are around 200usd and with that monthly, you aint paying it of in 40 years...
Excellent, thank you!
As a paraguayan, im not buying any real state anywhere soon in time. I think our market is completly crashed by foreign people and money laundering. If the level of construction is still growing at some point no even foreign people would put money here bc of huge over offer.
Great video and good and safe diversification from Europe
This does not seem like a good investment whatsoever. The base price of the apartment is very high for very simple construction, $800 income on $150,000 investment when there is property tax, maintenance, insurance, water, HOA. Hard pass,
Fantastic analysis!
There are many brazilians getting their second residence in Paraguay for safety. I can imagine Argentinians doing the same.
Another point I saw in Paraguay was the influx of brazilian students. There were many universities made just for brazilians to study medicine. I also imagine that a property targeting this demographic could give a safe return
Excellent work. Subscribed.
$140k for 80 sq meters -> $1750 / sq mt seems a bit high for this part of Asuncion, no? Or have prices gone up since I last checked? If I could get something like this for $100k, maybe that would make more sense. Do you think that would be realistic? Or, if this apartment was $140k and in the nice area that borders both Recoleta and Villa Morra, then that could be interesting since it could bring in AirBnB revenue. Do you have a sense of what the ROI on that would look like?
Something similar. There is barely any Airbnb demand for now.
My thoughts exactly, I'd pay 100k for this.
Yeah, overpriced
As a Paraguayan many of your data is inaccurated...for example hoa is billed to the occupant/renter,warranty is about twice the monthly rent,also all services/utilities are billed to the renter,allthough you could add to the price of the monthly rent cable tv and internet aswell as countty taxes which are 5% over the overall price of monthly rent...the only fixed cost towards the lender is land tax
Travelling all the way to Paraguay to buy a property at 140K! Sounds crazy
Why?
Crazy meaning what? Good? Bad? 140k is the price of Mercedes S class with options and crazy depression.. 😂😂
You get a better ROI in a HYSA or investing in a REIT in the US or Singapore.
Yes
Pretty good overview, but you didn't mention one of the main drivers of real estate in Paraguay - money laundering. At the moment investing in real estate in Paraguay makes no sense. You're going to yield around 4% and take on various risks and headaches. There is low liquidity too as you pointed out, especially when you have a property that is 500k plus. I can buy a t-note and yield 5%, many high quality stocks that yield over 5%, etc.
good and informative. but 3% p.a.+this is exactly the BC, as in Asuncion the property price is extremely high compared to rental. in country like Paraguay anything less than 9% p.a. net is very high risk.
You would be a fool to invest in one of these cardboard apartments. You really need to see the quality. It is really bad. The kitchen cupboards are made with 12mm ply which expands and needs replacing within a few years due to the heat. You cannot hang anything on the walls or put in a screw, nail, etc because it will fall off. The noise and light pollution do not make for a pleasant stay. You can hear your neighbours and the roads around the place are always busy. It would cost no more than $5k to build one of these places. The area is great. They all look good in the first few months, but take a look in 5 years and the place is filthy and falling apart because the paraguan way is not to maintain anything in the real sense of the word. If it comes with a parking space, you better not be driving a big car. I could go on, but i would advise you to put your money elsewhere.
I have a friend that purchased a recently finished apartment and it had TONS of issues, including a ill fitting window in the living room. Getting it fixed was also a huge pain because the Paraguayan culture is very relaxed and problem solving isn't a major priority. In the house I'm renting (supposedly a luxury home) all the wood warps leading to doors that cannot close properly and mildew and mild growing on the ceilings in the bathrooms. I cannot speak about the initial quality of the build of the apartments, but I definitely question how long they will last. If my house is any indication I believe the apartments won't stay as luxurious for too long.
Tontería tu comentario..la maldad y envidia seguro
$140,000 for 80 square meters? A little high for being in Los Laureles. So maybe a price for a foreigner. $800 a month rent? Nonsense
Whats a reasonable selling price for a 80 sqm and rental rate per month
The buyer’s agent lied about Airbnb.
You need to adjust your calc since you estimated 1.2k yearly water expenses while in reality is 120 dollars. Also the maintenance Factor is not needed until much later after a couple of years of usage. The property management is a one off of 10% once you sign the lease, so you do not get charged the upcoming years.
not true. property management is 10% from every monthly invoice. this is why it is called rental management fee. same in all South America, for ex in Colombia this is close to 12%
Very interesting, expected a much higher yield but great that you are transparent about it. Usually a bank tends to finance around 80% of the houses in the EU or US, in this example no banks are involved. Is that simply not possible or what's the reason? That would in most cases boost the yield.
@@fp1517 There is bank lending, but only for locals and at much higher rates.
I was in Paraguay in Asunción for a few weeks i found some good airbnbs,it was hard to find an airbnb for multiple days
Excellent video, thank you!
Well done! 👌
PARAGUAY ❤
Reminds me of the Panama market - driven by money laundering (and people stashing assets abroad). Panama has so many empty units it is insane (purchased but left empty for many years). I wonder what the "owned but empty and not trying to rent" rate is in Paraguay?
In places like Boquete and Bocas del Toro, low. In Panama City, high
If Argentina enters economic troubles in a deflationary sense like a real loss of purchasing powerdue to recession/usd transition or whatever I think they would be buying a lot less apartments in ASU. Don't you think this would bring the prices down? I think they are a bit overheated now mostly due to Argie demand of previous years.
BA now: volume increasing but prices not yet. Will probably happen in the coming months. Prices are down 30% from peak. Instability in Argentina = money flowing to Paraguay
@@TheWanderingInvestorPrices are starting to increase in BsAs. It is still very cheap and many interesting opportunities can be found.
I notice in the above calculation there no Income tax on renting it out. Isn't that 10% of gross income needed to add into costs? @@TheWanderingInvestor
@@k.m.370 Yes. I don’t mention taxes because for some people it matters, while for others it doesn’t based on where they are tax residents.
Overheated market planty of buildings are totally empty
Beautiful green area with lovely homes; however, plopping that apartment building in this area ruins the beauty of the area. Neighbors must be very bummed to have this eyesore.
Yes. Imagine the house next door with a constant shadow now.
@@TheWanderingInvestor Or the home with the pool which now has people looking down at them. :-(
@@TheWanderingInvestor Shadow is considered an advantage in Asu. 😅
Agreed, sad that the building looks over private homes gardens and pool areas
I had to come here for the price too painful skipping through trying to see where its mentioned haha
Rents are cheap here in Paraguay even airbnb. No reason to tie up capital here. Also it's hot 104 f here today.
Yes. Amazing Airbnbs for cheap.
104??? I thought it wasn't like that down in the continent! Is it humid?? Or desert dry,?
@@dovygoodguy1296Alta humidad. 😂 It's brutal. 🥵
@@Colette_BS123 How is there humidity in a city far from the ocean??
That's no different than San Antonio, TX temperature wise. :)
Can you do a video about the real estate market in Panama?
Will be published in a few weeks
@@TheWanderingInvestor really appreciate the work you do. Your previous Panama videos were really helpful to me as well.
What about squatters? Do you have many in Paraguay? Does the law protect them?
@@rondamon4408 not much of an issue
Que es el nombre de edificio y en que calle
I think there is a mistake on the annual water cost...
Yes. Thank you. Typo in my formula. The actual yield would be 3.8%. Still unappealing though a bit better.
I'm very interested in buying land, any recommendations on this matter please 🙏
@@aaasianamerican1216 Aleksandr can help: thewanderinginvestor.com/services/international-real-estate-services/my-real-estate-buyers-agent-in-asuncion-paraguay/
Very useful video! I lived right next to that condo for a while few years back. Very nice location.
As a matter of curiosity, how can you compare the net yield you get here with the net yield in big cities in US and UK?
Probably relatively similar actually.
But second tier UK and US coties would be better for yield
@@TheWanderingInvestor second tier? Interesting point
Are these calculations for long-term rental or short-term rental? 🤔
@@IntheWildLandscapePark long term rental
What is the interest rates on a loan if you have temporary residence?
@@collegeboy909 no mortgages for foreigners
Are u using any translating devices from Guaraní yet
@@MSWcryptoworker not trying to learn it
What about to have a residency in Paraguay but to live in Argentina?
@@HotelEuropaBasak many do it, though illegal
How do Paraguay and Uruguay compare to each other in these main subjects? Unlike Uruguay, Paraguay is landlocked. Does that make any difference?
Prices are much more expensive in Uruguay and you can expect gross yields of about 3%. Safe haven status.
@@TheWanderingInvestor Are there negative effects of Paraguay being landlocked??
@@dovygoodguy1296 logistics costs, dependent on other countries for ports, etc
Hello friend Maurice!
I would like to schedule a personal appointment.
There's one thing that made me run away from visiting Paraguay, it's because people can buy weapons there.
Weapons are not prohibited! Doesn't that make the place dangerous?
It’s safe in Paraguay. Guns are not an issue. Consulting sessions can be booked here, I’d be happy to help: thewanderinginvestor.com/internationalization-and-diversification-consulting/
Paraguay is the safest country in latin America because of terere they drink all the time. A lot of weapons there made in Israel
If I want to invest in real estate only for renting out what is the ROI annual?
This case study is literally about this
I think it's costly for 140k
The kitchen is like a narrow long hallway and hardly any furniture in it. I rather live in the countryside and earn interest on my money.
Do you know what is the tax like for U.S. citizens? Do they tax overseas dividend or capital gains on stocks?
Paraguay doesn’t tax such overseas income. But Uncle Sam will no matter where you live.
It is true that the USA will tax your income no matter where you might earn it or where you live. One must be careful. My father worked and lived in Japan for many years so when we moved back to the USA he got hit with a huge income tax bill. That's why we had no furniture in our house. He was paying IRS back taxes for many years.
@@TheWanderingInvestor After watching this video and reading the tax code cited, I am not sure those statements about overseas income are true. Regardless, a 10% tax rate can be attractive, still. ruclips.net/video/NNIpbaUIBV4/видео.htmlsi=i1fgizIZmbQfVWhu
Very helpful
If you are legal retired person in Paraguay are u able to rent then?
@@MSWcryptoworker yes
I would like to set up a cattle ranch is that possible
Yes
I saw incredible stuff in Ecuador.
Bad yuk no nothing
11:46 You made a mistake in your calculations. Water should be 10 x 12 = 120, not 1200.
Yes. Thank you. Added it to the description. Net yield is now 3.8%.
that first place is NOT 140k thats gringo price asf. more like 85k
you had the water at $1200 but it should have been $120 per year
Yes. Typo. Thank you. Net yield would be a still low 3.8%
Yes. Thank you. Typo in my formula. The net yield increases to a still low 3.8%
@@TheWanderingInvestor I did not think that it changed the overall message that you provided. Good content as usual.
I like Paraguay because they don't drink the gringo koolaid.
That’s a terrible investment. 😂😂😂 Get a plot in SanB and build.
I went to Asuncion specifically to invest in real estate. Never found anything worth buying
Yeah. It’s a long term game. Nothing immediately exciting.
There isn't enough there to buy. Really, it needs new things built to make it more vital.
@@samchen2133 There is enough to Buy. However, nobody is renting. Everyone lives with their family until 50 years old.
So expensive
Awesome video! Am looking to establish in Paraguay and need someone to help me settled (buy a property). Any chance to introduce me to your partner?
Thank you. Aleksandr can help: thewanderinginvestor.com/services/international-real-estate-services/my-real-estate-buyers-agent-in-asuncion-paraguay/
It looks like Alexander speaks German himself, correct?
No. Russian.
@@TheWanderingInvestor I see. Good. Thank you,
@@jgonz260thick slavic accent
@@TheWanderingInvestor I knew it. Disguised Bratva - russian mafia buddy. In order to be the Vertrauensmann of obviously a politicians or mafiosi rental unit you need to be in the same Milieu like these crooks themselves. Definately Bratva.
i would not touch this apt for more than 100 k usd
Investment is much worse than in Buenos Aires. Probably Paraguay is a niche for people with phobias about government control. There is no rational reason, for 140 thousand you can buy 80 meters in the center of Buenos Aires, the world capital.
Argentina is not a perpetual mess like you say, the new president is a libertarian and is getting rid of taxes. The locals are in similar situation as the locals in Paraguay but at least things will change for the better in the coming years
Argentina is a 💩 place. Monkey president pledging allegiance to Israel and declaring war on 1/2 the country is another basket case study of being on the wrong side of history. With Argentina’s history, nothing new, just another lunatic dictator licking the elites boots while pretending to care about his citizens.
Argentina still does blue dollar?
ripoff price
It is the same thing as in China. People invest and speculate with buildings because they do have some spare money. Be it money from drug traffic, corruption, stealing from the governement, etc.. How else one would be able to afford such an nice condo like that. The average person not. It is increasingly expensive to build a house. So only if you are a politician (corruption, bribes, extorsions) or do a little local drugs as an small drug lord, you are able to even build such an nice flat. Hence the whooping 1000$ they are asking. Just insane.
However the buildings are normally built well and are not these chinese tofu bread garbage buildings you see falling down in China. People here make sure the building is built solid for their stolen money.
Or do you think these latinparaguayans are such competent businessmen to get to such riches? I do not see any Jeff Bezos in Paraguay but mostly financed themselves with drug trafficking like here and there 100 Kg in an small plane like a Cessna and fly that to the brazilian border and such. From those people you are renting there.
It is drug money laundered and invested in something legal like this very nice condo.
Aleksandr is an polish, russian, ukranian or eastern Europe name. Most likely east european mafia moved in already. That guy has obviously contact to capo politicians who own that beautifull flat. That is an investment for the croockies of the country to show to their buddies. They charge most likely for renting it out for private alkohol and prostitution parties for such political acquaintances. Rest assured the average german immigrant will never be able to afford to rent that flat. Thats why these flats and weekend houses stay mostly empty all life long.
I have an old rent house which I rent for around 120 USD. So there you have an idea.
Paraguay is very bad investment apartments and houses are D Quality very, very bad
Your number are wrong Water are 120 per year .. not 1,200 dollars !! @TheWanderingInvestor
Yes. This has been fixed in the description.
Wayyyyyyy overpriced for this shoebox. This is equivalent to buying a $2mill house in Dubai when factoring in PPP. No thanks