For those coming to Armenia for the first time, it can be a place where a decision to come here permanently is made quickly. The city lacks nothing, it is clean and safe, the climate is perfect, the people are friendly, and the cost of living is nothing like you’ve ever experienced if you are coming from most other countries. Think 1960’s or 1970’s prices wherever you call home. But that raises an issue, where am I going to live, and do I rent or buy??
Our position has not changed, our advice is a rental with possibly a “rent to own option”, if one found a suitable place. That gives someone the right to buy at the end of the rental term but not the obligation to, the owner cannot trigger a sale, that is only the option holder’s right. There are two reasons that we suggest a rental, whether you have the purchase option in your contract or not.
With a rental you can walk at the end of the term having taken no financial risk, most contracts are drawn for a year. Life has a way of throwing curveballs at us, and trying to sell here if you bought, when thousands of miles away, would not be the best position to be in. We feel that one needs a year as a minimum to understand the full benefit, and pitfalls, that can arise in Armenia.
The second, and perhaps more important reason, is that your currency is something other than pesos. Our forecasters, foreign exchange experts at large banks and currency clearing houses, we have eight, are all predicting a weakening of the peso for years. Real estate prices will increase, that seems to be the nature of the beast, and no one can predict the future, but as long as the peso depreciates close to what property appreciates, it’s a wash. A year from now you would need to buy more pesos because of the price increase but you would get more for each dollar because of the continuing depreciation.
In summary, rent until you feel comfortable and then buy if that is your preference, but try to set that “Wow” feeling aside so you mitigate any financial risk. We are here to help whatever you decide, there are other considerations, ones relating to visas, that we will touch on in an upcoming blog.