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Divisible mortgages: the keys to the new decree for buying houses in a pit and the end of the Procrear plan - Infobae
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www.infobae.com
November 13, 2024
Decree 1017/2024 introduces this modality, which allows buyers to access credits for units under construction without the need for a prior deed. The regulation also makes the conditions for financing real estate developments more flexible.
By Jose Luis Cieri
The new loans will boost construction in Argentina. The measure is expected to reactivate a sector that was hit by rising costs and building materials.
Through Decree of Necessity and Urgency (DNU) 1017/2024 , published this Wednesday in the Official Gazette, the Government launched a series of measures aimed at revitalizing the real estate market and facilitating access to mortgage credit in Argentina. According to the Ministry of Economy, these provisions seek to modernize and make the mortgage system more flexible, with the aim of allowing more citizens to achieve the dream of owning their own home, especially in a context of recent economic stabilization.
Below are the key points of this regulation and how it will impact those seeking access to housing.
The decree establishes the possibility of divisible mortgages for real estate developments under horizontal property. This means that, when purchasing a unit in a project, each buyer will be able to assume his or her own individual debt, which facilitates the financing of properties independently and reduces the financial burden for developers.
This change aims to make the purchase of homes in large real estate developments more accessible, boosting construction and demand. Thus, financing is adapted to each unit, allowing greater financial autonomy for buyers and reducing risks for developers.
What does the use of the real right of surface entail?
The legislation enables the real right of surface as a mortgage guarantee, which allows those who have rights to build on other people's land to use them as collateral to obtain a loan.
This measure is aimed at housing and construction projects, facilitating financing on land that does not necessarily have title deeds.
Can pre-sales be registered for units under construction?
Yes, the DNU includes the possibility of registering purchase and sale tickets for future units that are not yet built. With this tool, greater legal security is provided for pre-sales, since the contracts will have legal support and publicity, protecting the rights of buyers and promoting confidence in the market.
Part of the Official Gazette reporting the measure
Is it mandatory to take out insurance for units under construction?
No, unlike the previous regulations, the new decree makes insurance optional for pre-horizontality contracts. This means that those who purchase a unit under construction will be able to decide whether or not they wish to take out insurance, allowing greater flexibility in negotiations between developers and buyers.
What will happen to current beneficiaries of Procrear loans?
The decree clarifies that those who already have loans granted under Procrear will continue with their commitments through an agreement with the Mortgage Bank , ensuring that they are not harmed by the elimination of the program.
The Minister of Economy, Luis Caputo , highlighted in X that the introduction of the mortgage of future property is a “historic milestone”, since it allows buyers to access credits for projects under development without needing to have a prior deed.
"This modality will allow buyers to access financing for homes under construction without needing to have a prior deed, recognizing their right of ownership from the beginning," he said.
The expectation is that progress will be made towards a more accessible mortgage market that will encourage the construction of new homes, generate employment in the sector and strengthen the value chain.
In addition to mortgage loans to buy used and brand new homes, it will soon be possible to buy units in a pit through bank financing.
Furthermore, greater availability of credit could have a multiplier effect on the economy, stimulating consumption and investment.
The Ministry of Economy will carry out a federal harmonization plan in conjunction with the provinces and the City of Buenos Aires to ensure the uniform application of the regulations, especially in the registration of pre-sales and the use of surface rights in real estate developments. Currently in CABA there are more than 50,000 homes under construction that will be delivered between the end of 2025 and 2028.
On the other hand, the National Securities Commission (CNV) will promote the securitization of mortgages, facilitating their placement in the capital market; while the Superintendency of Insurance will work on the design of specific coverage to support mortgage loans, providing greater security to financial institutions that grant credits.
Palermo is one of the neighborhoods where most construction is taking place in CABA, this measure will make construction spread throughout the country
Those interested in accessing a mortgage loan can consult trusted banks or authorized financial institutions to obtain details on the requirements and conditions, taking advantage of the new regulatory framework for acquiring their own home. Currently, 22 banks already offer loans for the purchase of used and brand new homes .
“This DNU encourages the financing of new homes: mortgages for future assets, de-bureaucratization and elimination of the obligation to have insurance against bankruptcy. The main objective of these new measures is to facilitate access to credit so that more families can fulfill the dream of owning their own home. This is based on economic stabilization, which allowed banks to once again offer more accessible mortgage loans,” concluded Rodrigo Aybar , the Secretary of Territorial Development, Habitat and Housing of the Nation.
www.buysellba.com
Source:
Hipotecas divisibles: las claves del nuevo decreto para comprar viviendas en pozo y el fin del plan Procrear
El DNU 1017/2024 introduce esta modalidad, que le permite a los compradores acceder a créditos para unidades en obras sin necesidad de escritura previa. La normativa también flexibiliza las condiciones para el financiamiento de desarrollos inmobiliarios
www.infobae.com
November 13, 2024
Decree 1017/2024 introduces this modality, which allows buyers to access credits for units under construction without the need for a prior deed. The regulation also makes the conditions for financing real estate developments more flexible.
By Jose Luis Cieri
The new loans will boost construction in Argentina. The measure is expected to reactivate a sector that was hit by rising costs and building materials.
Through Decree of Necessity and Urgency (DNU) 1017/2024 , published this Wednesday in the Official Gazette, the Government launched a series of measures aimed at revitalizing the real estate market and facilitating access to mortgage credit in Argentina. According to the Ministry of Economy, these provisions seek to modernize and make the mortgage system more flexible, with the aim of allowing more citizens to achieve the dream of owning their own home, especially in a context of recent economic stabilization.
Below are the key points of this regulation and how it will impact those seeking access to housing.
Changes in the new DNU in the mortgage sector
What are divisible mortgages and how do they work?The decree establishes the possibility of divisible mortgages for real estate developments under horizontal property. This means that, when purchasing a unit in a project, each buyer will be able to assume his or her own individual debt, which facilitates the financing of properties independently and reduces the financial burden for developers.
This change aims to make the purchase of homes in large real estate developments more accessible, boosting construction and demand. Thus, financing is adapted to each unit, allowing greater financial autonomy for buyers and reducing risks for developers.
What does the use of the real right of surface entail?
The legislation enables the real right of surface as a mortgage guarantee, which allows those who have rights to build on other people's land to use them as collateral to obtain a loan.
This measure is aimed at housing and construction projects, facilitating financing on land that does not necessarily have title deeds.
Can pre-sales be registered for units under construction?
Yes, the DNU includes the possibility of registering purchase and sale tickets for future units that are not yet built. With this tool, greater legal security is provided for pre-sales, since the contracts will have legal support and publicity, protecting the rights of buyers and promoting confidence in the market.
Part of the Official Gazette reporting the measure
Is it mandatory to take out insurance for units under construction?
No, unlike the previous regulations, the new decree makes insurance optional for pre-horizontality contracts. This means that those who purchase a unit under construction will be able to decide whether or not they wish to take out insurance, allowing greater flexibility in negotiations between developers and buyers.
End of the Procrear plan
President Javier Milei argued that the Procrear program was no longer sustainable , as it represented a significant financial burden for the State and did not meet the expected standards of transparency and efficiency. Instead, more flexible credits are being promoted through the private sector.What will happen to current beneficiaries of Procrear loans?
The decree clarifies that those who already have loans granted under Procrear will continue with their commitments through an agreement with the Mortgage Bank , ensuring that they are not harmed by the elimination of the program.
Benefits of the measures
The aim of this new regulation is to facilitate access to mortgage credit, encouraging the construction of housing and boosting the real estate market.The Minister of Economy, Luis Caputo , highlighted in X that the introduction of the mortgage of future property is a “historic milestone”, since it allows buyers to access credits for projects under development without needing to have a prior deed.
"This modality will allow buyers to access financing for homes under construction without needing to have a prior deed, recognizing their right of ownership from the beginning," he said.
The expectation is that progress will be made towards a more accessible mortgage market that will encourage the construction of new homes, generate employment in the sector and strengthen the value chain.
In addition to mortgage loans to buy used and brand new homes, it will soon be possible to buy units in a pit through bank financing.
Furthermore, greater availability of credit could have a multiplier effect on the economy, stimulating consumption and investment.
The Ministry of Economy will carry out a federal harmonization plan in conjunction with the provinces and the City of Buenos Aires to ensure the uniform application of the regulations, especially in the registration of pre-sales and the use of surface rights in real estate developments. Currently in CABA there are more than 50,000 homes under construction that will be delivered between the end of 2025 and 2028.
On the other hand, the National Securities Commission (CNV) will promote the securitization of mortgages, facilitating their placement in the capital market; while the Superintendency of Insurance will work on the design of specific coverage to support mortgage loans, providing greater security to financial institutions that grant credits.
Palermo is one of the neighborhoods where most construction is taking place in CABA, this measure will make construction spread throughout the country
Those interested in accessing a mortgage loan can consult trusted banks or authorized financial institutions to obtain details on the requirements and conditions, taking advantage of the new regulatory framework for acquiring their own home. Currently, 22 banks already offer loans for the purchase of used and brand new homes .
Impact on access to housing
With the introduction of these measures, an increase in the supply of properties for both purchase and rental is expected, which could contribute to the reduction of prices in the market and to improving access to housing for a greater number of families.“This DNU encourages the financing of new homes: mortgages for future assets, de-bureaucratization and elimination of the obligation to have insurance against bankruptcy. The main objective of these new measures is to facilitate access to credit so that more families can fulfill the dream of owning their own home. This is based on economic stabilization, which allowed banks to once again offer more accessible mortgage loans,” concluded Rodrigo Aybar , the Secretary of Territorial Development, Habitat and Housing of the Nation.
www.buysellba.com
