IncomeBAIncome-Producing Real Estate Opportunities for Foreign Investors in Buenos Aires, Argentina & Uruguay

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Buenos Aires

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Mendoza

As the leading online resource for real estate investment opportunities in Buenos Aires, Argentina and Uruguay, InvestBA readers and subscribers are always asking about credible developers and new residential projects in this unique corner of the Southern Cone.

While many investors are looking for a good location, great price and income-potential, others are asking for intangibles like simplicity, flexibility and transparency. Discerning foreign investors also want a level of service and amenities they have grown accustomed to at home.

IncomeBA addresses the importance of hard assets like real estate in markets like Argentina and Uruguay, and how they can help you plan for a successful retirement.

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Retirement planning is a critical part of our lives. Many people worked hard to save for retirement, followed the rules laid out by the financial services industry, and expected to be in a position to have a worry free retirement.

Unfortunately, the stock market does not work in a linear fashion, and many investors saw their portfolios drop by more than 40% at the worst possible moment. This destroyed retirement hopes and horizons for many and left them looking for answers.

While the financial services industry has often pushed the 4% Rule for retirement planning, the complexity of the typical retiree’s cash flows makes it nearly impossible to apply a simple rule of thumb like 4%.

The simple truth is the industry continues to change tactics in order to continue to sell but has neglected to protect investors throughout the past decade.

The stock market has essentially moved sideways for the last ten years, and people who invested at the peak of the late 1990s are still down over 50%, proving you can have ten-year periods of negative returns.

Whether you are currently retired, retiring soon or have a much longer retirement horizon, it is important to begin to look at how you will structure your retirement income and what opportunities exist at this time to help you increase your chance for a successful retirement.

Retirement Planning & The 4% Fallacy

There are several good reasons to consider investing in hard assets like real estate in emerging markets.

Argentina went through a massive financial crisis in 2001/02 that eroded 70% of the currency’s value, triggered credit and mortgage defaults and wiped out consumer confidence in the banking system.

Overnight, the Argentina real estate market went from a credit-based system to a cash market, thus eliminating speculation and becoming a true market based on supply and demand. Property values were quickly undervalued creating excellent opportunities for cash buyers. This, along with the total lack of credit in the market, produced record rental yields for property owners in Buenos Aires.

While global markets have been reeling since 2008, Argentina’s fortunes have risen thanks in large part to the degree that the U.S. and powerhouse BRIC nations now depend on Argentina’s exports...from soy in China to Malbec in the U.S. to automobiles in Brazil.

In terms of global recognition, Financial Times recently described Argentina as “China’s New Investment Frontier”, Citi named Buenos Aires among the Top 5 Global Megacities of the next 15 years, and Spiegel dubbed artsy BA, “Metropolis of the Zeitgeist.”

Today opportunties abound in energy, agriculture, mining , vineyards and real estate where there is no U.S.-style credit bubble forming, because 90-95% of real estate purchases are all cash transactions.

Argentina: From Crisis Comes OpportunityIncomeBA

The Tourism Boom in Argentina & Uruguay

Argentina and Uruguay are consistently ranked the #1 and #2 Latin American destinations according to International Living’s annual Quality of Life Index. Both countries receive high marks each year for their wonderful climate, affrodability and safety, very rare commodities in other corners of Latin America today.

Not surprisingly, a record number of foreign tourists visited both countries in 2010. 22.8 million foreign visitors arrived in Argentina’s airports last year, while Uruguay tourism arrivals per capita recently reached 61.4%, the highest rate in all of Latin America.

The cruise industry is booming in Argentina and Uruguay, while both countries are aggresively marketing to Brazilian, Indian and Asian tourists.

Brazil’s economy is the undisputed juggernaut of Latin America, and both Argentina and Uruguay benefit from record arrivals of Brazilian tourists with disposable incomes. Today, Brazilian Portuguese is a familiar chorus in the fine restaurants of BA, on the beaches of Punta del Este and the ski slopes of Bariloche.

Also in recent years, more American and Canadian tourists and retirees have been discovering Argentina and Uruguay. This trend is partly due to the growing popularity of wines from both countries, the global rise and accessibility of polo, positive media coverage from papers like The Wall Street Journal and The New York Times, and even popular cable shows like HGTV’s HouseHunters International showcasing Americans and Canadians investing in Southern Cone real estate.

IncomeBA

IncomeBA allows the small investor an opportunity to participate in the surging hospitality industry in Argentina and Uruguay with a highly-amenitized hotel property that can be used as a full-time residence, a vacation home, a long-term rental or any combination the Owner desires. Owners have no obligation to partcipate in the hotel pool and have 100% flexibility in the use of their property.

A Real Estate Strategy for the Small Investor

We believe record tourism inflows to Argentina and Uruguay combined with the aforementioned absence of bank financing and a dire lack of hotels due to strict zoning regulations in tourist-oriented neighborhoods like BA’s Palermo and Montevideo’s Carrasco create a unique income opportunity for small investors.

For example in Palermo, one of BA’s most popular neighborhoods for tourists, there were only about 800 hotel beds as of September 2010 with hotel occupancy rates consistently in the 80% plus range.

Add in the fact that most of these hotels are locally-owned, poorly-amenitized, one-off projects, and the opportunity to bring something truly unique to market becomes even more apparent.

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A Real Estate Strategy for the Small Investor

The following examples show the investment return at 30%, 50% and 70% occupancy on one unit purchased at US$137,500.

IncomeBA

110 Nights(US$250) $27,500 USD

Management Fee(40%) -($11,000)

Monthly Expenses & Taxes -($3,000)

9.82% Net Annual Rate of Return $13,500 USD

183 Nights(US$250) $45,750 USD

Management Fee(40%) -($18,300)

Monthly Expenses & Taxes -($3,000)

17.78% Net Annual Rate of Return $24,450 USD

256 Nights(US$250) $64,000 USD

Management Fee(40%) -($25,600)

Monthly Expenses & Taxes -($3,000)

25.75% Net Annual Rate of Return $35,400 USD

50% Occupancy (183 Nights)30% Occupancy (110 Nights) 70% Occupancy (256 Nights)

This pro-forma is for illustrative purposes only. Certain variables could change resulting in different numbers. This is based on current market rates, taxes and estimates of utilities and other costs.

A Real Estate Strategy for the Small Investor

The following graph shows the comparison in income between The 4% Rule and IncomeBA at 30%, 50% and 70% Occupancy with a US$1,000,000 Investment

IncomeBA

This pro-forma is for illustrative purposes only. Certain variables could change resulting in different numbers. This is based on current market rates, taxes and estimates of utilities and other costs.

A Real Estate Strategy for the Small Investor

The adjacent graph shows the income you would receive over a 10-year period with a US$1,000,000 investment using:

The 4% Rule (Standard Withdrawal)

100% IncomeBA at 30%, 50% and 70% hotel occupancy rates

Blended Investment of 80% traditional and 20% IncomeBA with 30%, 50% and 70% occupancy rates

IncomeBA

This pro-forma is for illustrative purposes only. Certain variables could change resulting in different numbers. This is based on current market rates, taxes and estimates of utilities and other costs.

A Real Estate Strategy for the Small Investor

Finally we offer a comparison between The 4% Rule versus an 80% Traditional and 20% IncomeBA strategy using the most conservative hotel occupancy rate of 30%.

US$800,000 at 4% Standard Withdrawal generates $32,000 annual income

US$200,000 IncomeBA at 9.82% annual rate (30% occupancy) generates $19,640 annual income

Your total annual income would be $51,640 or about 29% more income per year than under The 4% Rule.

IncomeBA

This pro-forma is for illustrative purposes only. Certain variables could change resulting in different numbers. This is based on current market rates, taxes and estimates of utilities and other costs.

A Real Estate Strategy for the Small Investor

The first IncomeBA luxury condo hotel is located at 5865 Nicaragua in Buenos Aires

Central Palermo Hollywood location adjacent to major BA attractions, restaurants, shopping & nightlife

Construction commenced February 2010

Finished Units Delivered April 2011

Hotel Grand Opening May 2011

IncomeBA

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sold soldsold sold sold soldsold sold sold soldsold sold sold soldsold sold available sold

available sold sold soldsold sold sold sold

amenities amenities

sold

available

A Real Estate Strategy for the Small InvestorIncomeBA

01 02 03 047th6th5th4th3rd2nd1st

sold sold sold soldsold sold sold soldsold sold sold soldsold sold sold soldsold sold sold soldsold sold sold sold

The second IncomeBA luxury condo hotel is located at 4955 Charcas in Buenos Aires

Central Palermo Hollywood location adjacent to major BA attractions, restaurants, shopping & nightlife

Construction commences May 2011*

Finished Units Delivered October 2012*

Hotel Grand Opening November 2012*

*estimated

amenities amenities amenities amenities

sold

available

P Hotels: The New Symbol of Excellence in the Southern ConeIncomeBA

All IncomeBA luxury properties in Argentina and Uruguay will carry the flag of P Hotels, the new symbol of excellence in the Southern Cone.

P Hotels were designed by American investors and businessmen with a level of comfort and amenities that seasoned world travelers demand including pools with solariums, gyms, fully-equipped kitchens, custom cabinetry, spacious bathrooms with jetted tubs, individual storage units, deluxe cable, high-speed Internet with WiFi and much more.

Future P Hotels are currently planned for the most attractive tourist and business destinations in Argentina and Uruguay including Mendoza, Tupungato, Bariloche, Iguazú, Montevideo, Canelones, Montevideo and Carmeló.

The IncomeBA IntangiblesIncomeBA

simplicity transparency flexibility United States Developer Group Majority of Owners are Foreign Investors All Funds Pass Through Central Bank Detailed Rental Pool Reporting

Whole Ownership Condominiums Simplified Payment Schedule Accelerated Construction Cycle Small, Stylish, Functional Units

Turnkey Luxury Hotel Management Units Offer Low Cost of Entry Rental Pool Participation Optional Unit Management is Owner’s Option

Project & Pricing InformationIncomeBA

USA: 1 772 933 4663 ARG: 5411 5486 2585

E-mail: info@investba.comSkype: InvestBA

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IncomeBAIncome-Producing Real Estate Opportunities for Foreign Investors in Buenos Aires, Argentina & Uruguay