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Buenos Aires city expenses have increased by more than 114% so far this year - Infobae
Source:
www.infobae.com
September 12, 2024
By Jose Luis Cieri
A man looks at the bills he has to pay. Among them are the expenses that require the greatest financial effort each month (Shutterstock)
Maintaining a home has become one of the biggest challenges in times of crisis, with expenses rising month after month to reach figures that are an impossible mission for thousands of owners and tenants. A private report confirmed that expenses in the city of Buenos Aires have increased by 114.89% so far in 2024.
In addition, the monthly average in August reached $201,367, surpassing the threshold of 200,000 pesos for the first time in Buenos Aires buildings.
There is a persistent upward trend in the cost of building expenses, driven by various factors related to maintenance and basic services.
Last August, the Consumer Price Index (CPI) registered a monthly increase of 4.2% and accumulated a variation of 94.8 percent for the year . Although a slowdown is observed, it is still necessary for these figures to consolidate so that, over time, they impact less strongly on the cost of expenses.
When breaking down the index by division, it was observed that the Housing, water, electricity and other fuels category was the one with the greatest increase (7%), mainly due to increases in housing rent (although the values have been slowing down because demand is unable to match the prices and in several neighborhoods they fell 40% below inflation ), related expenses, the supply of water and electricity, gas and other fuels.
The average expense on buildings (not including debts) in CABA, according to ConsorcioAbierto, corresponding to the month of August is $201,367 and in July it was $188,919, so the increase is 6.58%; if compared to the expense of August 2023, of $54,864, the year-on-year increase is 267.02 percent.
Source: ConsorcioAbierto (values from other districts in the country are also included)
Albano Laiuppa , from ConsorcioAbierto, explained to Infobae that “the increase in expenses in CABA buildings between January and August of this year is mainly driven by inflation. This is reflected in the increases in the rates of public services and in the general rise in the costs of the providers that provide services to the consortium.”
Since August 1, CABA administrations are required to send two new elements along with the settlement of expenses. On the one hand, the invoices corresponding to the expenses. On the other hand, direct access to the AFIP portal with the status of the contributions of the consortium employees.
"The Province of Buenos Aires is following the same line with the Public Registry of Administrators, which has been in operation for over a year now," said Laiuppa.
Salary agreements for building employees, such as caretakers and others, also represent a significant part of these increases in expenses (Illustrative Image Infobae)
The average expense on buildings excluding debt for August is $82,082 and in July it was $74,340, so the increase is 10.41 percent. If the expense for August is compared with that of August 2023 of $22,374, the year-on-year increase is 266.86 percent.
Source: ConsorcioAbierto
Regarding the debt in the neighborhoods, the percentages of debt on the total expenses in August according to ConsorcioAbierto were: Balvanera (48.19%), Palermo (29.7%), Almagro (24.88%), Caballito (22.7%), Recoleta (20.79%), and Belgrano (16.67%).
Laiuppa said it is key for residents to avoid falling behind on utility bills to maintain the financial health of the building. He also recommended that property managers offer flexible payment plans to avoid major conflicts.
Juan Martín Luciani Otaño , a lawyer and specialist in Horizontal Property, pointed out that “this is because the owners are not present in the salary negotiations of the managers, which are carried out between the union and the chambers of administrators, which generates disproportionate increases, especially for retired owners who cannot absorb these increases.”
Experts say that in order to try to reduce expenses, it is essential that owners become more involved in the management of the building, attending meetings and demanding greater transparency in the administration.
One of the most effective recommendations for reducing operating costs is for owners to actively participate in meetings and monitor consortium expenses on a monthly basis.
“When there is constant supervision of the owners, it can help reduce expenses,” added Luciani Otaño.
In terms of cost optimization, several buildings could reduce costs by replacing retired building managers with cleaning companies and modern security systems, such as surveillance cameras. This model allows quality of service to be maintained without incurring the high costs associated with full-time staff, according to industry sources.
“To contain the increase in expenses, it is essential that owners become more involved in the management of the building, demanding greater transparency in administration. In addition, establishing clear agreements with suppliers and reviewing service contracts can be key to reducing costs in the short and medium term,” concluded Luciani Otaño.
www.buysellba.com
Source:
Las expensas porteñas aumentaron más de 114% en lo que va del año
Por primera vez, en promedio, superaron los 200.000 pesos. Cuáles son los costos en la provincia de Buenos Aires y cómo reducir gastos en consorcios
www.infobae.com
September 12, 2024
By Jose Luis Cieri
A man looks at the bills he has to pay. Among them are the expenses that require the greatest financial effort each month (Shutterstock)
Maintaining a home has become one of the biggest challenges in times of crisis, with expenses rising month after month to reach figures that are an impossible mission for thousands of owners and tenants. A private report confirmed that expenses in the city of Buenos Aires have increased by 114.89% so far in 2024.
In addition, the monthly average in August reached $201,367, surpassing the threshold of 200,000 pesos for the first time in Buenos Aires buildings.
There is a persistent upward trend in the cost of building expenses, driven by various factors related to maintenance and basic services.
Last August, the Consumer Price Index (CPI) registered a monthly increase of 4.2% and accumulated a variation of 94.8 percent for the year . Although a slowdown is observed, it is still necessary for these figures to consolidate so that, over time, they impact less strongly on the cost of expenses.
When breaking down the index by division, it was observed that the Housing, water, electricity and other fuels category was the one with the greatest increase (7%), mainly due to increases in housing rent (although the values have been slowing down because demand is unable to match the prices and in several neighborhoods they fell 40% below inflation ), related expenses, the supply of water and electricity, gas and other fuels.
The average expense on buildings (not including debts) in CABA, according to ConsorcioAbierto, corresponding to the month of August is $201,367 and in July it was $188,919, so the increase is 6.58%; if compared to the expense of August 2023, of $54,864, the year-on-year increase is 267.02 percent.
Source: ConsorcioAbierto (values from other districts in the country are also included)
Albano Laiuppa , from ConsorcioAbierto, explained to Infobae that “the increase in expenses in CABA buildings between January and August of this year is mainly driven by inflation. This is reflected in the increases in the rates of public services and in the general rise in the costs of the providers that provide services to the consortium.”
Since August 1, CABA administrations are required to send two new elements along with the settlement of expenses. On the one hand, the invoices corresponding to the expenses. On the other hand, direct access to the AFIP portal with the status of the contributions of the consortium employees.
"The Province of Buenos Aires is following the same line with the Public Registry of Administrators, which has been in operation for over a year now," said Laiuppa.
Buenos Aires also had a strong impact
This survey, which is being carried out in more than 10,000 consortia that use the software, also confirmed that in the province of Buenos Aires, expenses rose by 116.99% in buildings between January and August of this year.
Salary agreements for building employees, such as caretakers and others, also represent a significant part of these increases in expenses (Illustrative Image Infobae)
The average expense on buildings excluding debt for August is $82,082 and in July it was $74,340, so the increase is 10.41 percent. If the expense for August is compared with that of August 2023 of $22,374, the year-on-year increase is 266.86 percent.
Expenses with debt
In August, the average expenses in buildings with debt in CABA were $241,992, 7.24% more than in July, when they were 225,648 pesos. On average, 17% of the functional units in CABA have debts, with an average debt per building of $1,700,000.
Source: ConsorcioAbierto
Regarding the debt in the neighborhoods, the percentages of debt on the total expenses in August according to ConsorcioAbierto were: Balvanera (48.19%), Palermo (29.7%), Almagro (24.88%), Caballito (22.7%), Recoleta (20.79%), and Belgrano (16.67%).
Laiuppa said it is key for residents to avoid falling behind on utility bills to maintain the financial health of the building. He also recommended that property managers offer flexible payment plans to avoid major conflicts.
Tips
Another factor driving the rise in expenses is the increase in salaries and social security contributions of employees of the consortia.Juan Martín Luciani Otaño , a lawyer and specialist in Horizontal Property, pointed out that “this is because the owners are not present in the salary negotiations of the managers, which are carried out between the union and the chambers of administrators, which generates disproportionate increases, especially for retired owners who cannot absorb these increases.”
Experts say that in order to try to reduce expenses, it is essential that owners become more involved in the management of the building, attending meetings and demanding greater transparency in the administration.
One of the most effective recommendations for reducing operating costs is for owners to actively participate in meetings and monitor consortium expenses on a monthly basis.
“When there is constant supervision of the owners, it can help reduce expenses,” added Luciani Otaño.
In terms of cost optimization, several buildings could reduce costs by replacing retired building managers with cleaning companies and modern security systems, such as surveillance cameras. This model allows quality of service to be maintained without incurring the high costs associated with full-time staff, according to industry sources.
“To contain the increase in expenses, it is essential that owners become more involved in the management of the building, demanding greater transparency in administration. In addition, establishing clear agreements with suppliers and reviewing service contracts can be key to reducing costs in the short and medium term,” concluded Luciani Otaño.
www.buysellba.com
