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Buying properties in progress or brand new: what is best and the key factors to take into account - Infobae
Source;
www.infobae.com
February 13, 2025
Both options attract buyers, while the bet is that divisible mortgages, still pending final regulation, and access to mortgage credit will boost the purchase of homes in foreclosure.
By Jose Luis Cieri
Access to housing depends on financing, down payments and opportunities in the real estate market (Getty)
The real estate market in Argentina is going through a particular moment that highlights the fluctuation in prices between brand new properties and those under construction (in progress) . In this context, a trend stands out that, although it may seem contradictory, has clear economic bases.
While finished units maintain high values due to replacement costs and inflation in materials ( they rose 70% year-on-year and are beginning to slow down due to lower inflation ), developments in the pit offer more competitive prices and flexible payment schemes, attracting buyers looking for a better equation between investment and future value.
The Ministry of Economy is expected to finish regulating divisible mortgages , which will allow the purchase of homes under construction by leveraging mortgage loans. In the future, banks could allocate funds to this new line of credit, which has no precedents in the country.
Added to this is the impact of macroeconomic conditions, with rising interest rates for mortgage loans for the purchase of used or brand new vehicles and greater caution on the part of buyers.
The price gap between new wells is growing in a market with firm demand, but conditioned by financing and economic expectations.
According to Cristian Szczygiel , commercial manager of Newland, to Infobae , brand new homes are currently cheaper than units in the pit , due to “a mismatch of macroeconomic variables. Brand new properties have sunk, fixed and defined costs, while units in the pit must face the constant increase in costs in dollars.”
However, he clarified that this gap has already been reduced due to the tendency towards stabilization of the cost of the units in dollars.
Lorenzo Raggio , general manager of Interwin Marketing Inmobiliario, also stressed that “those who bought and built in a previous economic context did so with a much lower official dollar than the current one, which allows developers to sell at competitive prices.”
As for the differences between purchasing a brand new or undeveloped home , the advantages and disadvantages depend on the profile of each buyer and their objectives.
Buying off-site is an attractive opportunity for those looking to get in with a lower initial outlay, since “the price can be between 20% and 25% lower than the final value of the finished unit,” Szczygiel clarified.
Properties under construction offer more affordable prices and financing in installments adjusted by the CAC Index
Furthermore, this modality allows payments to be distributed throughout the construction process, which provides a certain degree of financial flexibility.
Purchasing a brand new property avoids delays and extra costs and offers a property that is ready to use.
However, “full payment for completed properties must be made within a shorter period, which may be a limitation for some buyers,” Szczygiel admitted.
According to Zonaprop, a 50-square-meter apartment has an average value of USD 132,864. In the case of a three-room unit with a balcony and 70 m2, the price rises to USD 209,204, although it can be purchased in installments adjusted by the index of the Argentine Chamber of Construction (CAC). To access this scheme, it is necessary to have approximately 40% of the value as a down payment and thus finance the rest with the developers.
In contrast, a brand new property ranges from USD 150,000 for a one-bedroom apartment to USD 200,000 for a two-bedroom apartment, on average.
“Demand for properties remains strong, driven by the perception that prices will continue to rise,” Raggio said.
“ Brand new units are sold from around USD 2,800 per m2, while similar options in the well start from USD 2,400,” Szczygiel explained.
Although the difference may seem modest in this case, he stressed that "the margin of savings will depend on the time of investment and the type of construction."
Regarding the strategies used by developers to encourage off-site purchases, Szczygiel highlighted the main benefit as “flexibility in payments during construction time and even after delivery . ”
Buying a finished property eliminates delays and extra costs, allowing its immediate use (Illustrative Image Infobae)
He also pointed out that several companies facilitate entry with reduced advance payments, which, added to the revaluation of the property, generates profitability.
Regarding how the sector will evolve, Raggio estimated that construction costs tend to stabilize, with monthly increases in the CAC Index below 5%. “This stability could strengthen mortgage credit and energize the market. With the economic normalization, more buyers will be able to access properties, which will eventually boost prices,” he said.
Both specialists agreed on the importance of buyers carefully evaluating the risks if they opt for off-site units. “It is essential to investigate the developer’s reputation and financial capacity to avoid problems,” Szczygiel recommended.
Raggio emphasized that exposure to economic volatility is a challenge that investors must be prepared to face. “It is vital to always consider financial capacity in the face of possible fluctuations in income and costs,” he concluded.
www.buysellba.com
Source;
Comprar propiedades en pozo o a estrenar: qué conviene más y los factores clave a tener en cuenta
Ambas opciones atraen a los compradores, mientras la apuesta está en que las hipotecas divisibles, aún pendientes de reglamentación final, y el acceso al crédito hipotecario impulsen la compra de viviendas en ejecución
www.infobae.com
February 13, 2025
Both options attract buyers, while the bet is that divisible mortgages, still pending final regulation, and access to mortgage credit will boost the purchase of homes in foreclosure.
By Jose Luis Cieri
Access to housing depends on financing, down payments and opportunities in the real estate market (Getty)
The real estate market in Argentina is going through a particular moment that highlights the fluctuation in prices between brand new properties and those under construction (in progress) . In this context, a trend stands out that, although it may seem contradictory, has clear economic bases.
While finished units maintain high values due to replacement costs and inflation in materials ( they rose 70% year-on-year and are beginning to slow down due to lower inflation ), developments in the pit offer more competitive prices and flexible payment schemes, attracting buyers looking for a better equation between investment and future value.
The Ministry of Economy is expected to finish regulating divisible mortgages , which will allow the purchase of homes under construction by leveraging mortgage loans. In the future, banks could allocate funds to this new line of credit, which has no precedents in the country.
Added to this is the impact of macroeconomic conditions, with rising interest rates for mortgage loans for the purchase of used or brand new vehicles and greater caution on the part of buyers.
The price gap between new wells is growing in a market with firm demand, but conditioned by financing and economic expectations.
According to Cristian Szczygiel , commercial manager of Newland, to Infobae , brand new homes are currently cheaper than units in the pit , due to “a mismatch of macroeconomic variables. Brand new properties have sunk, fixed and defined costs, while units in the pit must face the constant increase in costs in dollars.”
However, he clarified that this gap has already been reduced due to the tendency towards stabilization of the cost of the units in dollars.
Lorenzo Raggio , general manager of Interwin Marketing Inmobiliario, also stressed that “those who bought and built in a previous economic context did so with a much lower official dollar than the current one, which allows developers to sell at competitive prices.”
Between one path and the other
As for the differences between purchasing a brand new or undeveloped home , the advantages and disadvantages depend on the profile of each buyer and their objectives.
Buying off-site is an attractive opportunity for those looking to get in with a lower initial outlay, since “the price can be between 20% and 25% lower than the final value of the finished unit,” Szczygiel clarified.
Properties under construction offer more affordable prices and financing in installments adjusted by the CAC Index
Furthermore, this modality allows payments to be distributed throughout the construction process, which provides a certain degree of financial flexibility.
Purchasing a brand new property avoids delays and extra costs and offers a property that is ready to use.
However, “full payment for completed properties must be made within a shorter period, which may be a limitation for some buyers,” Szczygiel admitted.
According to Zonaprop, a 50-square-meter apartment has an average value of USD 132,864. In the case of a three-room unit with a balcony and 70 m2, the price rises to USD 209,204, although it can be purchased in installments adjusted by the index of the Argentine Chamber of Construction (CAC). To access this scheme, it is necessary to have approximately 40% of the value as a down payment and thus finance the rest with the developers.
In contrast, a brand new property ranges from USD 150,000 for a one-bedroom apartment to USD 200,000 for a two-bedroom apartment, on average.
“Demand for properties remains strong, driven by the perception that prices will continue to rise,” Raggio said.
“ Brand new units are sold from around USD 2,800 per m2, while similar options in the well start from USD 2,400,” Szczygiel explained.
Although the difference may seem modest in this case, he stressed that "the margin of savings will depend on the time of investment and the type of construction."
Regarding the strategies used by developers to encourage off-site purchases, Szczygiel highlighted the main benefit as “flexibility in payments during construction time and even after delivery . ”
Buying a finished property eliminates delays and extra costs, allowing its immediate use (Illustrative Image Infobae)
He also pointed out that several companies facilitate entry with reduced advance payments, which, added to the revaluation of the property, generates profitability.
Coming
Regarding how the sector will evolve, Raggio estimated that construction costs tend to stabilize, with monthly increases in the CAC Index below 5%. “This stability could strengthen mortgage credit and energize the market. With the economic normalization, more buyers will be able to access properties, which will eventually boost prices,” he said.
Both specialists agreed on the importance of buyers carefully evaluating the risks if they opt for off-site units. “It is essential to investigate the developer’s reputation and financial capacity to avoid problems,” Szczygiel recommended.
Raggio emphasized that exposure to economic volatility is a challenge that investors must be prepared to face. “It is vital to always consider financial capacity in the face of possible fluctuations in income and costs,” he concluded.
www.buysellba.com
