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Although mortgage credit is back, changing homes with a swap is still valid: key points to keep in mind - Infobae
Source:
www.infobae.com
August 19, 2024
With more than 3,000 properties in CABA and 6,000 in Greater Buenos Aires offering this option, the modality is an alternative for those looking to change homes. Recommended steps to be successful
By Jose Luis Cieri
Technically, the exchange is a bilateral contract in which one party, owner of a property, transfers it to another person, who is the owner of another property and who gives it to him in exchange for the first one (Illustrative Image Infobae)
The exchange remains an attractive alternative for those looking to change their home. In fact, the real estate sector has detected an increase in the number of operations of this type. Different portals offer more than 3,000 properties in CABA and 6,000 in Greater Buenos Aires that include the exchange option.
The interest is mainly focused on people looking to gain square meters or access units with greater contact with the outside world. Although the reintroduction of mortgage loans reactivated the housing market ( there was an increase in enquiries to banks and real estate agencies and more transactions were processed with bank financing), the exchange remains a valid tool for those looking to change homes.
Until early 2019, only 3% of transactions were made through exchanges. With nuances, the proportion increased at some point during the pandemic and climbed to 10% according to sources in the real estate market.
One of the reasons for this increase is the situation of those owners who, not having sufficient savings, resort to exchanges to change their home. The return of mortgages broadens the panorama and offers new possibilities for those looking to buy and sell properties.
There are different options for transferring a property from one person to another. The real estate exchange, explained to Infobae the notary Bernardo Mihura de Estrada , general director of the Property Registry of the city of Buenos Aires, “is a bilateral contract where one party, owner of a property, transfers it to another person, who is the owner of another property and who gives it to him in exchange for the first. If the properties are of different values, a monetary compensation can be agreed to equalize the assets.”
However, if the compensation is greater than the value of the lesser asset, it is technically not an exchange, but a sale with compensation. “The tax treatment of the exchange is more beneficial than that of two cross-sales. The Stamp Tax, that is, the tax on the transfer instrument (in this case, exchange) is reduced by half,” said Mihura de Estrada.
A favorable sign for the segment is the recent growth in the number of notarial acts per month both in CABA and in the province of Buenos Aires, where between 4,000 and 5,000 and 8,000 deeds are carried out respectively. And a good percentage are now exchanges.
The exchange of assets is a mechanism that also speeds up real estate transactions in a scenario that threatens to rebound favorably even with the return of mortgage loans (Photo: Getty)
“In exchanges, comprehensive advice from a notary is very important, since it is not a common operation and the parties must know the characteristics of the contract in detail. If there are no deliveries of money in compensation, we obviously understand that it would not be necessary to investigate the origin of the funds, since there are none, beyond complying with all the information regimes of the UIF (Financial Information Unit) and the Federal Administration of Public Revenues (AFIP),” added Mihura de Estrada.
There are also people who usually trade in cars as part payment. Technically, this can be called an exchange, since one thing (property) is traded in for another thing (vehicle).
The advantage of the Stamp Tax in CABA is that the 3.5% is calculated on 50% of the transferred values, not on the total, since the tax rule considers both transfers as a single operation. If there is compensation in money, the 3.5% is also applied to that amount. And the procedure is carried out through a notary.
For its part, with the repeal of the Real Estate Transfer Tax (ITI), costs were saved as with any other transfer.
There are some other expenses such as title study, debt clearance, registry and cadastral certificates, registry fees and notary fees (all of this can amount to approximately 3% + VAT of the market value of each of the properties and depending on the particularities of the contract).
www.buysellba.com
Mihura de Estrada said it is common for families to exchange their apartment in urban areas for a house in suburban areas, seeking more space, a healthier life and nature. This type of operation has become more frequent lately.
Sometimes offers are made that do not end well because several people offer much less than the property is worth, hoping to obtain a larger discount, and unless someone is desperate to sell, they will not accept the reduction.
“A price reduction of 10% or 12% of the value can be agreed upon at most, but it is common for those who accept the exchange not to give away too much and will try to maintain the quoted price as much as possible,” commented Mariana Lucángeli , a real estate market analyst in Buenos Aires.
“Mostly, lower-value properties were given as part payment,” said Ximena D'Adam of Century 21 D'Adam.
For these operations to be successful, it is essential to pay attention to certain key aspects. “First of all, it is essential to review the documentation and legal status of the property being handed over as part of the payment before moving forward with the negotiation,” warned D'Adam.
This includes verifying ownership, the existence of debts or liens, and the tax status of the property.
Another important aspect is to establish, from the beginning of the negotiation, how the stamp and notary fees will be paid. This will avoid misunderstandings and financial differences while the transaction is in progress.
It is essential to have a professional appraisal of the property being traded in to determine its true value. D'Adam concluded: “Finally, it is important to remember that the notary fees are split equally between both properties.”
www.buysellba.com
Source:
Aunque volvió el crédito hipotecario, cambiar de vivienda con permuta sigue vigente: claves a tener en cuenta
Con más de 3.000 propiedades en CABA y 6.000 en el Gran Buenos Aires ofreciendo esa opción, la modalidad es una alternativa para quienes buscan cambiar de hogar. Pasos recomendados para tener éxito
www.infobae.com
August 19, 2024
With more than 3,000 properties in CABA and 6,000 in Greater Buenos Aires offering this option, the modality is an alternative for those looking to change homes. Recommended steps to be successful
By Jose Luis Cieri
Technically, the exchange is a bilateral contract in which one party, owner of a property, transfers it to another person, who is the owner of another property and who gives it to him in exchange for the first one (Illustrative Image Infobae)
The exchange remains an attractive alternative for those looking to change their home. In fact, the real estate sector has detected an increase in the number of operations of this type. Different portals offer more than 3,000 properties in CABA and 6,000 in Greater Buenos Aires that include the exchange option.
The interest is mainly focused on people looking to gain square meters or access units with greater contact with the outside world. Although the reintroduction of mortgage loans reactivated the housing market ( there was an increase in enquiries to banks and real estate agencies and more transactions were processed with bank financing), the exchange remains a valid tool for those looking to change homes.
Until early 2019, only 3% of transactions were made through exchanges. With nuances, the proportion increased at some point during the pandemic and climbed to 10% according to sources in the real estate market.
One of the reasons for this increase is the situation of those owners who, not having sufficient savings, resort to exchanges to change their home. The return of mortgages broadens the panorama and offers new possibilities for those looking to buy and sell properties.
There are different options for transferring a property from one person to another. The real estate exchange, explained to Infobae the notary Bernardo Mihura de Estrada , general director of the Property Registry of the city of Buenos Aires, “is a bilateral contract where one party, owner of a property, transfers it to another person, who is the owner of another property and who gives it to him in exchange for the first. If the properties are of different values, a monetary compensation can be agreed to equalize the assets.”
However, if the compensation is greater than the value of the lesser asset, it is technically not an exchange, but a sale with compensation. “The tax treatment of the exchange is more beneficial than that of two cross-sales. The Stamp Tax, that is, the tax on the transfer instrument (in this case, exchange) is reduced by half,” said Mihura de Estrada.
A favorable sign for the segment is the recent growth in the number of notarial acts per month both in CABA and in the province of Buenos Aires, where between 4,000 and 5,000 and 8,000 deeds are carried out respectively. And a good percentage are now exchanges.
What to present
As far as documentation and usual requirements for writing are concerned, the exchange is treated as two cross-sales.
The exchange of assets is a mechanism that also speeds up real estate transactions in a scenario that threatens to rebound favorably even with the return of mortgage loans (Photo: Getty)
“In exchanges, comprehensive advice from a notary is very important, since it is not a common operation and the parties must know the characteristics of the contract in detail. If there are no deliveries of money in compensation, we obviously understand that it would not be necessary to investigate the origin of the funds, since there are none, beyond complying with all the information regimes of the UIF (Financial Information Unit) and the Federal Administration of Public Revenues (AFIP),” added Mihura de Estrada.
There are also people who usually trade in cars as part payment. Technically, this can be called an exchange, since one thing (property) is traded in for another thing (vehicle).
The advantage of the Stamp Tax in CABA is that the 3.5% is calculated on 50% of the transferred values, not on the total, since the tax rule considers both transfers as a single operation. If there is compensation in money, the 3.5% is also applied to that amount. And the procedure is carried out through a notary.
For its part, with the repeal of the Real Estate Transfer Tax (ITI), costs were saved as with any other transfer.
There are some other expenses such as title study, debt clearance, registry and cadastral certificates, registry fees and notary fees (all of this can amount to approximately 3% + VAT of the market value of each of the properties and depending on the particularities of the contract).
Necessary documentation
In an exchange, the same documentation is requested as is required for a purchase-sale transaction. Such as the original title of the property registered in the Real Estate Registry, copies of the DNI and proof of CUIL/CUIT of the buyer, seller and their partners or spouses when applicable. Ownership and inhibition reports.Taxes and fees.
If the property is assigned to horizontal property, a copy of the co-ownership and administration regulations, or the horizontal property regulations, the expense release, and in several cases, the plan of the assignment to horizontal property are also required.www.buysellba.com
Mihura de Estrada said it is common for families to exchange their apartment in urban areas for a house in suburban areas, seeking more space, a healthier life and nature. This type of operation has become more frequent lately.
Sometimes offers are made that do not end well because several people offer much less than the property is worth, hoping to obtain a larger discount, and unless someone is desperate to sell, they will not accept the reduction.
“A price reduction of 10% or 12% of the value can be agreed upon at most, but it is common for those who accept the exchange not to give away too much and will try to maintain the quoted price as much as possible,” commented Mariana Lucángeli , a real estate market analyst in Buenos Aires.
More tips
During the first half of the year, various exchange operations were carried out, confirmed by the segment.“Mostly, lower-value properties were given as part payment,” said Ximena D'Adam of Century 21 D'Adam.
For these operations to be successful, it is essential to pay attention to certain key aspects. “First of all, it is essential to review the documentation and legal status of the property being handed over as part of the payment before moving forward with the negotiation,” warned D'Adam.
This includes verifying ownership, the existence of debts or liens, and the tax status of the property.
Another important aspect is to establish, from the beginning of the negotiation, how the stamp and notary fees will be paid. This will avoid misunderstandings and financial differences while the transaction is in progress.
It is essential to have a professional appraisal of the property being traded in to determine its true value. D'Adam concluded: “Finally, it is important to remember that the notary fees are split equally between both properties.”
www.buysellba.com
