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An apartment in a well, brand new or used?: What should be bought today and why - La Nacion Propiedades
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¿Un departamento en pozo, a estrenar o usado?: qué conviene comprar hoy y por qué
La opinión de expertos en el sector inmobiliario es clave para tomar la mejor decisión al momento de comprar una propiedad
www.lanacion.com.ar
March 20, 2024
The opinion of experts in the real estate sector is key to making the best decision when purchasing a property
By Candela Contreras
The opinions of the experts and what you need to know before making the decision to buy a property in a well, brand new or used
As a result of the scarcity of instruments that allow savings to beat inflation, which in February registered an increase of 13.2% and accumulated 276.2% in the last 12 months - and with construction costs 30% lower in dollars than the historic of the last two decades, brick remains one of the best refuges of value . But, to define what is most convenient when deciding where to make the investment: in a well, brand new or used ; It is advisable to be clear about the purpose of the purchase.
As a general rule, the greater the liquidity of a product, the better protection of value . For this reason, the developers explain that you have to understand what is being purchased and the liquidity of the asset, always taking into account the resale value, the location, and the evolution of the area.
So the big question is: what are the benefits and risks of each investment?
In well
Choosing what to do with an apartment in a hole is not easy, especially if you take into account that Argentina is a country with macroeconomic cycles and exchange rate adjustments . Which is why it is never possible to know in advance whether the apartment under construction will cost more or less, in dollars, once it is completed.When purchasing a unit from the moment the land is acquired, the most common advantage is the possibility of financing the unit during the construction phase and paying for it in pesos. In any case, the total investment cannot be financed: in general, developers require an average advance of 30% of the value and fees in pesos adjustable by the index of the Argentine Chamber of Construction, CAC , which increases in line with inflation.
One of the great advantages of buying a well unit is the possibility of financing the value.
“It is advisable to buy from a well, as long as it is from a solvent, accredited developer who does things well. Because you are going to acquire a new product, with the latest trends and with the ease of paying for it while it is being built,” adds Damián Tabakman, president of the Business Chamber of Urban Developers (CEDU).
In addition to the economic benefit, Valeria Soldati, partner and Director of the Recoleta Office of the homonymous real estate agency, adds another advantage: she says that you can choose between several options that are for sale , such as the typologies and the floor, and “in some projects You can even modify the environments or finishes.”
“ The general rule is that whoever buys from a well expects to receive a return of 30% ,” explains Miguel Ludmer, director of Interwin.
But, as there are benefits, there are also certain risks that must be taken into account: one of them happens if the CAC index rises abruptly and directly impacts the value of the quotas. “This happened in the last two months of 2023 (17.2% in November and 33.4% in December), because materials rose, and it was affected with values above that of general inflation,” reports Tabakman.
Furthermore, since it is a construction project, the common risks of any construction process must be taken into account: “Sometimes deadlines can be extended due to some issue: weather, staff stoppages, delays in delivery of materials, to name a few surprises. ”Soldati clarifies.
Brand new
The main advantage of a finished apartment is immediate possession and, if you want to earn a profit, you can hang the rental sign at that moment. Another point in favor has to do with the fact that whoever acquires an apartment to live in is the first owner and represents a unique emotional value .On the other hand, those who have the money in hand can find discount opportunities due to the possibility of meeting a developer who needs the cash to start another work.
“ Brand new apartments tend to be the most sought-after, because they are generally in projects aligned with current trends, they are modern, attractive and have amenities ,” adds Soldati. At the same time, he adds that it is one of the best alternatives if you also need the property to live in immediately. Regarding the difference with a used property , he clarifies that, although it has a higher cost, “the value invested in the purchase remains at high levels for much longer, and when it comes to needing to sell, you will be favored in the deadlines.”
For its part, in this case the disadvantage is usually that brand new units tend to have higher sales values than one in a well or a used one. In numbers, the average value of a square meter of a brand new apartment in the city of Buenos Aires is US$2,510, while the average price is US$2,435 and a used one reaches US$2,045, according to the latest report from Zonaprop . .
Values per square meter in February 2024 in CABA
Side B is that when purchasing a completed property there are certain additional costs : higher deed expenses, regulation fees, the accommodation fund, among others.
If the decision is to rent it, the big question is how much a brand new apartment depreciates once it is occupied. Different factors must be taken into account: location, size, construction quality, services and amenities offered by the building and the unit itself. But if the apartment has desirable features and is in a good location, it is likely to maintain its value or even increase as time goes by.
Boquete explains that a new or brand new apartment always starts with a sales value above the used one with similar characteristics because they are projects that have more modern materials and a design more adapted to the needs of the moment. “If the decision is to rent it for three years, once finished, the unit will need an investment to then put it back into its premiere state,” explains the director of Toribio Achával.
A brand new apartment is the best option for those who want a property with the latest developments and at the moment
Used
Like a brand new apartment, the benefit of buying at this stage is that it is already built and you can see, visit, and try it out . Unlike brand new apartments or units, used properties tend to have lower market prices . The ideal in this case is to visit the home accompanied by an architect, especially when the building in which it is located is old or has been uninhabited for a long time.Regarding the profile of the investor , for Miguel Ludmer, a person turns to a used apartment when they do not have a new one in the same budget, unless the first one has better features or a better land with a better building.
In this case, among the cons that it presents , as in the “brand new” option, everything must be paid together; However, in well units there is the possibility of paying for the property in installments. “ Today it is convenient to buy used apartments . There is still a lot of supply and the value per square meter is still well below that of brand new units, and if they are not yet recycled, we can find even lower values. The difficulty of this choice lies in having all the money together to disburse; or if I have the potential to imagine what that unit could look like post-renovation, and in the middle probably afford a rental and two moves,” agrees Irina Vecchi, Director of Soldati Pilar.
One of the differences between brand new or used units compared to one in a well has to do with the price and the method of payment.
What to take into account before making the decision
From the well
- It is key to find out if the land was deeded, if the plans have municipal approval, which developer is carrying out the work and what solvency it has to face it. “All projects in progress are a promise to deliver a department, on a certain date and of a specific quality and that is why it is very important who is behind that promise that is made,” says Tabakman.
- Analyze with a notary the legal figure used for construction and find out its advantages and disadvantages.
- Get to know a finished project from the same developer to know the style and designs.
- Talk to investors who participate in this or previous company buildings.
Brand new
- Although the uncertainty is less, there are also aspects to take into account, such as checking if the work already has the subdivision plan and if the unit can be deeded.
- Know the writing costs. In general, for a first sale they are higher.
- Test that all the services work and review the details of the property, before the deed, which is when you can complain to the builder.
- Know the coverage offered by the developer for hidden defects or defects.
Used
- It is key to visit the property with a construction specialist. The law does not establish any specific prohibition regarding the construction or conservation status of a unit that is sold.
- Verify the correct operation and flow of all services: water and gas pressure, electricity power, among others.
- Verify that the apartment is not occupied or rented since the law does not prohibit the sale of an occupied property.
- Verify the identity between what was built and the plans registered in the corresponding state agency. The existence of differences that hinder or delay the deed is common.
- Verify if the property is seized, mortgaged, in succession or with any legal restriction, if the seller is the sole owner or not and if there are any restrictions on selling.
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