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For less than US$100,000: the neighborhoods where you can find “cheap” apartments - La Nacion Propiedades
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www.lanacion.com.ar
August 02, 2024
For less than US$100,000: the neighborhoods where you can find “cheap” apartments
Some neighborhoods in the city of Buenos Aires still defend sales prices below US$100,000
In a challenging economic context , characterized by strong changes in the real estate market, so far this year we can see how the value of properties began to see a progressive rise - mainly in properties whose price is less than US$100,000 - after a 2023 marked by the transition in which prices stopped falling.
“ Properties priced around US$100,000 are the ones with the greatest demand pressure , around 40% of the total,” explained Leandro Molina, director of Zonaprop, at the Real Estate event organized by LA NACION at the beginning of July. He also indicated that the pressure decreases as the ticket price increases : “At US$350,000, the pressure drops.”
These data show an opportunity to offer properties or invest in those that are below US$100.00, since they can be sold more quickly , given the high demand they have, and added to the recent offer of mortgage credit launched by the banks and that will influence the possibilities of purchase.
Along these lines, sector specialists anticipate that these types of units are the ones that have begun to become scarce in several neighborhoods of the city of Buenos Aires. Since, after five years without mortgage loans in Argentina, the loans announced by 21 banks in the country are exciting the real estate market because they are expected to generate an even greater increase in housing prices , mainly in areas where available options are scarce.
Real estate specialists say that units for sale for less than US$100,000 are the ones that have become scarce.Cristian Storto - Shutterstock
Now, why are apartments that are under US$100,000 so attractive both for those looking to finance their purchase with a mortgage and for those who have savings available? “Argentines know that real estate is a store of value. Therefore, this type of property is highly in demand because it is perceived that within a few months fewer square meters will be available for purchase ,” says Alejandro Moretti, manager of Nuevo Siglo Properties.
For example, according to data provided by Zonaprop based on two-room units with a balcony, the areas of Buenos Aires where properties worth less than US$100,000 are found are :
La Boca is one of the neighborhoods that has properties for less than US$100,000 and that could be revalued with the boom in mortgage loansSantiago Cichero/AFV - LA NACION
There are neighborhoods that have higher square meter values where some used units remain for less than US$100,000 , according to data provided by Nuevo Siglo Properties:
In specific cases, taking out a UVA mortgage loan - with an average rate of 5.5% to be paid over 30 years - to purchase a US$100,000 apartment (and taking a dollar worth $1000), a person will request a loan from the bank for $75,000,000 (75% of the total value of the property) and will have to pay US$25,000 (25% of the value of the home requested by the bank). In this case, the value of the first installment of the loan would be $425,841 and will be adjusted monthly for inflation. The minimum salary required to apply for it must be $1,703,364 .
There are already 21 banks that have launched their mortgage credit lines in Argentina
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Por menos de US$100.000: los barrios en los que se consiguen departamentos “baratos”
Todavía quedan barrios de la ciudad de Buenos Aires con departamentos que cuestan por debajo de los US$100.000; de cuánto sería la cuota de un crédito hipotecario
www.lanacion.com.ar
August 02, 2024
For less than US$100,000: the neighborhoods where you can find “cheap” apartments
Some neighborhoods in the city of Buenos Aires still defend sales prices below US$100,000
In a challenging economic context , characterized by strong changes in the real estate market, so far this year we can see how the value of properties began to see a progressive rise - mainly in properties whose price is less than US$100,000 - after a 2023 marked by the transition in which prices stopped falling.
“ Properties priced around US$100,000 are the ones with the greatest demand pressure , around 40% of the total,” explained Leandro Molina, director of Zonaprop, at the Real Estate event organized by LA NACION at the beginning of July. He also indicated that the pressure decreases as the ticket price increases : “At US$350,000, the pressure drops.”
These data show an opportunity to offer properties or invest in those that are below US$100.00, since they can be sold more quickly , given the high demand they have, and added to the recent offer of mortgage credit launched by the banks and that will influence the possibilities of purchase.
Along these lines, sector specialists anticipate that these types of units are the ones that have begun to become scarce in several neighborhoods of the city of Buenos Aires. Since, after five years without mortgage loans in Argentina, the loans announced by 21 banks in the country are exciting the real estate market because they are expected to generate an even greater increase in housing prices , mainly in areas where available options are scarce.
Real estate specialists say that units for sale for less than US$100,000 are the ones that have become scarce.Cristian Storto - Shutterstock
Now, why are apartments that are under US$100,000 so attractive both for those looking to finance their purchase with a mortgage and for those who have savings available? “Argentines know that real estate is a store of value. Therefore, this type of property is highly in demand because it is perceived that within a few months fewer square meters will be available for purchase ,” says Alejandro Moretti, manager of Nuevo Siglo Properties.
Neighborhoods where you can find properties for less than US$100,000
In concrete terms, according to the main real estate platforms , there are currently around 20,000 apartments in the city for less than US$100,000 . However, a key fact to keep in mind is that not only the price of publication or closing of the agreement must be considered, but also the costs of the deed process .For example, according to data provided by Zonaprop based on two-room units with a balcony, the areas of Buenos Aires where properties worth less than US$100,000 are found are :
- Lugano : with an average ticket price of US$51,923
- Nueva Pompeya : units around US$72,555
- Villa Riachuelo : average values are US$75,233
- La Boca: average prices of US$80,115
- Floresta : values around US$84,525
- Avellaneda Park : units are around US$85,155
- Balvanera : average ticket price of US$87,518
- Parque Patricios : prices around US$89,933
- Vélez Sarsfield : has an average ticket price of S$89,985
- San Cristóbal : units are around US$92,400
- Slaughterhouses : two rooms available for S$92,505
- Villa Real : units with an average ticket price of US$92,873
- Constitution : they are valued at US$93,240
- San Nicolas : prices are around US$94,448
- Versailles : units have an average price of US$94,710
- Villa General Mitre : the average ticket is around US$97,073
La Boca is one of the neighborhoods that has properties for less than US$100,000 and that could be revalued with the boom in mortgage loansSantiago Cichero/AFV - LA NACION
There are neighborhoods that have higher square meter values where some used units remain for less than US$100,000 , according to data provided by Nuevo Siglo Properties:
- Two 60m² bedroom can be found in Boedo, Colegiales, Almagro or Villa del Parque
- One 37m² bedroom can be found in Belgrano or Recoleta
- Two 50m² bedroom can be found in Caballito or Palermo
- Three 90m² rooms can be found in Constitución, San Telmo, Mataderos or Villa Lugano
How much is the installment on a mortgage loan to buy US$100,000 apartments?
There are now 21 banks that have launched their new lines of mortgage loans , after five years of almost non-existence of the same. In this context, the rates of the loans range between 3% and 9.5% . The amounts to be lent reach up to $250 million , although there are cases in which there is no limit. In general, these loans finance between 75% and 80% of the value of the property , with a single entity, the Bank of Córdoba (Bancor), which lends 100% with a limit of $90 million. The financing terms vary between five and 30 years , and the installments , being UVA loans, are adjusted for inflation . In addition, the installment committed by the borrower must represent between 20% and 30% of the monthly income.In specific cases, taking out a UVA mortgage loan - with an average rate of 5.5% to be paid over 30 years - to purchase a US$100,000 apartment (and taking a dollar worth $1000), a person will request a loan from the bank for $75,000,000 (75% of the total value of the property) and will have to pay US$25,000 (25% of the value of the home requested by the bank). In this case, the value of the first installment of the loan would be $425,841 and will be adjusted monthly for inflation. The minimum salary required to apply for it must be $1,703,364 .
There are already 21 banks that have launched their mortgage credit lines in Argentina
www.buysellba.com
