The hunt for the next Spain part II: Argentina

Almost all of the newest emerging markets have warm climates and great beaches. As more people tire of the crowded Spanish beaches and start to look further afield for their holiday in the sun, it gives the boldest property investors the chance to make a small fortune.

Argentina is a great example; it has a humid tropical climate all year round, sunny in holiday season with beaches that easily rival those of Spain, and wet but warm in rainy season.

South America has one shining advantage over most of its competitors: its rain forests, which make even rainy season a great attraction to tourists, as that is when the rain forest and its wildlife truly thrives. When a country like Argentina begins to grow into a top tourism destination, development in the economies, starting in the major cities is rapid.

Argentina's Buenos Aeries is fast developing into one of the world's great cities, on par with L.A. and Madrid. Buenos Aeries is becoming a smaller version of Holywood, because after the economic boom Buenos Aeries began to rival Madrid and Toronto as a low cost but fantastic location for film and T.V sets, and began to attract many T.V. and Movie production companies.

The bulk of that action has centred on Palermo Viejo, which is now known as Palermo Holywood and even has its own Soho. Those knowledgeable in the area's property market compare Palermo Viejo to Manhattan's lower east side, as it develops into one of the most happening districts in Beunos Aeries, with things like Tango dance clubs, hip boutiques, and coffee shops that could also bring comparisons to Venice.

You will note that from the beginning and throughout this release I have drawn many comparisons to the world's major cities, mostly Spain. People who invested in Spain years ago have made a fortune both in rental yields and capital appreciation. But as Spain's downturn in popularity continues and the other countries attract more and more of the sun-chasers, shrewd property investors should be on the look-out for the next Spain, and that could well be Argentina, or one of the other South American countries.

Living costs are far lower in Argentina than in Spain which means tourists can have a far cheaper holiday. Rental yields are already around the 10% mark, and capital appreciation is conservatively estimated at 15%.

There are no restrictions on foreign ownership other than needing a tax number, speaking of which Argentina has excellent tax benefits: no Capital Gains Tax and no inheritance or gift tax. Rental tax is 21% of the gross annual income for non-residents, and an additional 21% if monthly income exceeds 1500 Argentina Peso's (approx £250).

For more information, visit www.davidstanleyredfern.com/investment-property/argentina/