6 Argentina-new to our top 10

What happened in Argentina? The period of over-valuation in the 1980s and '90s devastated the country and discouraged industry and tourism, asother countries nearby priced Argentina out of the market. The people of big nation watched in disgust as unemployment soared, inflation jumped, industries were decimated, and pensions taken away. In late December 2001, after days of street riots and political unrest, Argentina halted payment on its public debt. The economy went into a tailspin. In a salvation effort, the government devalued the currency. From a peso valued at a dollar, Argentina went to one worth 19 cents in January 2002. Since then, the Argentine peso has been gradually creeping up. (As we go to press, the Argentine peso is worth about 32 U.S. cents.)

On Feb. 25, 2005, Argentina completed the biggest debt restructuring in world history, as investors holding $103 billion in defaulted Argentine debt were asked to accept a government offer to pay back about a third of their original investments. After the deadline past, Argentine stocks immediately soared to a new all-time high in peso terms.

According to Money Week (www.moneyweek.com), Argentina's economy has grown at 8% a year over the last three. Property prices have risen by 50% over the same period, but still cost around a 10th of the price of similar homes in the U.S. or Europe.

Buenos Aires is among the world's "brand-name" cities, generously, though understandably, referred to as the Paris of South America. The architecture of BA is eclectic. Older classic-style buildings that would be well at home in any European city sit alongside unappealing highrises built in the '60s, '70s, and '80s, as well as, here and there newer and less offensive modern structures.

The older apartments in Buenos Aires are much bigger than their European counterparts, making them more comfortable than the typical Continental pied-a-terre. The typical apartment in Buenos Aires is approximately 3,000 square feet, with three bedrooms, two bathrooms, a large kitchen, sitting room, dining room, and maid's quarters. Compare this with Paris, where a 300-square-foot apartment isn't unheard of.

Furthermore, the per-square-foot cost of these apartments is a third to a 10th that of a similar property in Europe. A 1,000-square-foot apartment, for example, in one of these Argentine properties of character will cost you about $175,000 to $200,000 right now (that's about $175 per square foot). All indications are that an investment in an apartment in Buenos Aires remains a good one.

7 Stay Stateside for convenience

The United States is back up from seventh position last year to fifth place this year. 

Yes, economic indicators are troubling…yes, the U.S. dollar seems to be on a free-fall against many world currencies, including the euro (US$1 equals 0.76 euro as we go to press)…yes, U.S. investment markets are uncertain…yes, the war in Iraq continues, and the threat of terrorism…yes, there seem to be a lot of strong reasons right now to consider seriously the idea of residing elsewhere.

Still, the truth is, the U.S. is one big, convenient, comfortable, safe, even cheap place to be. You can live easily, affordably. You can do anything, go anywhere, buy anything anytime. In many ways, what the U.S. offers is hard to beat.