Savers can maximize Fixed term returns by earning an income equivalent to that of the Rental value of an apartmentjust as interest rates in pesos exceeded the movement of the dollar. In addition, it helps plan for inflation that is stabilized at around 2% monthly. The thing is that a bank deposit provides the opportunity to invest much less capital than in real estate and makes it possible to earn the same.
In the city of Buenos Aires, the average rental price for an average 40 m2 studio apartment is $624,727 per month. while the rent for an average 2-bedroom house of 50 sqm is $729,916 per month, according to the latest data from the ZonaProp website.
On the side of one traditional fixed termis an instrument that can be used Earn a similar amount to renting an apartmentand it must be taken into account that the minimum time for depositing funds is 30 days.
Well, today a bank placement offers one nominal annual rate (TNA), which averages 22% in leading companies, a percentage equivalent to an interest income of 1.8% every 30 days.
This value is now just below that inflationwhich was last November 2.5%, according to INDEC, and it is estimated that it will be around 2.1% in December, based on the last Survey of market expectations (REM)which was determined by the central bank in a survey of around 40 economists.
And according to some analysts, this could be the case an increase in interest rates in the coming weeks that companies offer to savers in order to capture more pesos.
Instead this dollar price remains virtually unchanged throughout December.
Engage with this panorama The traditional fixed term allows you to invest capital to generate an income comparable to renting an apartment without having to own this asset and the payout required for it, which is approximately $98,000 for a 40m² studio apartment and $123,000 for a 50m² two-bedroom apartment.according to ZonaProp estimates.
At the same time, because inflation is lowerthe initial capital that remains invested (and embedded) in a traditional fixed term to generate interest similar to a rental, You don’t lose as much purchasing power due to the rise in consumer prices, which was also the case at other times.
Fixed Term: How much do you have to invest to earn the equivalent of a rental?
In summary, to generate an income equivalent to the average rental value of a one-room apartment (single room), which according to ZonaProp is $624,727 monthlyAn initial investment of 30 days requires a traditional fixed term of 30 days $34,549,300.
Now taking into account that some banks pay a higher interest rate when they invest a larger amount of money, such as: Provincial BankThe capital to be paid in can be significantly reduced. The thing is, For this amount of pesos, it offers 25% TNA.
Therefore, in the latter case to earn $624,727 per monthwill require the creation of one in some companies traditional fixed term for $30,403,380, about $4.1 million less than certain banks.
The The amount to be invested is $20,600 at the Banco Nación selling price in US dollars. almost 20% of the total value of a studio apartment.
Finally by a With a traditional fixed rental, you can earn as much as renting a one-bedroom property, while only requiring 20% of the capital to purchase.
Instead this Owner of an apartment who offers it for rent, has the advantage that Your capital continues to be quoted in dollarsTherefore, the equivalent value in pesos is constantly updated, in line with the daily devaluation of the currency, which increasingly moves in line with inflation.
And in addition to this upgrade of your property, Additional income must be added which you get by inserting Rent for the apartment itself.
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