Finance Prof
Well-known member
Although the product is limited, still a good sign that banks feel comfortable enough to start offering some of it's customers 30 year mortgages. This should create real estate prices to go up.
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Good news. Looks like mortgages are starting again in Buenos Aires to buy real estate
- Thread starter Finance Prof
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Betsy Ross
Well-known member
I also saw this. This will be a big positive for higher level professionals. My neighbor who are both attorneys are planning on taking advantage of this to buy another property. They already own one property but are buying an investment property. The last time they did this, prices did go up.
Digital Nomad
Well-known member
I also read about the new credit for housing market which sounds fantastic. I read this blog which is great. He also says real estate prices will go up. Construction costs are very high now.
www.bowtiedmara.io
The May Pact & Omnibus Revival
The month of May will be of crucial importance for the Milei presidency
www.bowtiedmara.io
GlasgowJohn
Well-known member
UVA based loans and mortgages are potentially very dangerous for the consumer.
Repayments are not only dependent on interest rates but also on the rate of inflation.
I would never recommend these loans to anyone
Repayments are not only dependent on interest rates but also on the rate of inflation.
I would never recommend these loans to anyone
Digital Nomad
Well-known member
I don't know anything about the UVA based. I guess you make a good point but do you consider the point of them extending credit a step in the right direction @GlasgowJohn?
GlasgowJohn
Well-known member
Extending credit is the way to go but with high-interest rates and high inflation rates, I am not sure how many will take the loan offer up.
The guys who qualify for the loan because of salary, in many cases already have cash - so I am not too sure how any new buyers will be brought into the market.
The guys who qualify for the loan because of salary, in many cases already have cash - so I am not too sure how any new buyers will be brought into the market.
Avocado
Well-known member
It mostly true. People that take these loans already have lot of cash. Banks are no giving loans to middle class people. Only people that have high paying job and already have $$$$. This probably only publicity for banks to get new customers.
Betsy Ross
Well-known member
Yes, while I think it is a positive that banks are starting to offer mortgages, people need to really understand these products. It's not like the USA where people know what they will have to pay back over 20-30 years. Still, people here only shot at buying are probably going to be these products.
More and more banks are offering them now.
Otro de los principales bancos privados se suma a la pelea por los créditos hipotecarios
Uno de los grandes del mercado anunció una línea a 20 años y sin monto límite; estará disponible para los clientes de la entidad a partir del 27 de mayo
www.lanacion.com.ar
Digital Nomad
Well-known member
From what I am reading the banks lost money on some of these products in the past?Yes, while I think it is a positive that banks are starting to offer mortgages, people need to really understand these products. It's not like the USA where people know what they will have to pay back over 20-30 years. Still, people here only shot at buying are probably going to be these products.
More and more banks are offering them now.
Otro de los principales bancos privados se suma a la pelea por los créditos hipotecarios
Uno de los grandes del mercado anunció una línea a 20 años y sin monto límite; estará disponible para los clientes de la entidad a partir del 27 de mayo
Flamingo
Well-known member
I seriously doubt this time around banks will lose money but then again you never know. There is a lot of faith it seems like this time around.
Demand sounds like it's through the roof on people inquiring about the mortgages. Banco Ciudad alone got over 11,000 applications in only a few weeks and more and more banks are going to offer them.
“People are very anxious, inquiries overflowed our communication channels and we are overwhelmed,” Daniel Tillard, president of Banco Nacion, the country’s largest state-owned lender, said in an interview. The bank announced it will disburse some $4 billion of mortgages over the next four years to 40,000 potential home owners.
finance.yahoo.com
“People are very anxious, inquiries overflowed our communication channels and we are overwhelmed,” Daniel Tillard, president of Banco Nacion, the country’s largest state-owned lender, said in an interview. The bank announced it will disburse some $4 billion of mortgages over the next four years to 40,000 potential home owners.
Argentines Flock to Banks as Milei Awakens Mortgage Market
(Bloomberg) -- Argentines are rushing to banks to apply for mortgages as interest-rate reductions since President Javier Milei took power begin to wake the home-loan market from a six-year slumber.Most Read from BloombergTrump Vows ‘Day One’ Executive Order Targeting Offshore WindBiden Accuses...
Finance Prof
Well-known member
THIS ^^^^^
I don't think people really understand that if inflation doesn't stay down they can own a lot more than they think. Inflation is heading in the right direction but banks in Argentina haven't been known to be transparent and fully explain things to their clients. These types of UVA loans can be quite toxic.
Betsy Ross
Well-known member
Demand sounds like it's through the roof on people inquiring about the mortgages. Banco Ciudad alone got over 11,000 applications in only a few weeks and more and more banks are going to offer them.
“People are very anxious, inquiries overflowed our communication channels and we are overwhelmed,” Daniel Tillard, president of Banco Nacion, the country’s largest state-owned lender, said in an interview. The bank announced it will disburse some $4 billion of mortgages over the next four years to 40,000 potential home owners.
Argentines Flock to Banks as Milei Awakens Mortgage Market
(Bloomberg) -- Argentines are rushing to banks to apply for mortgages as interest-rate reductions since President Javier Milei took power begin to wake the home-loan market from a six-year slumber.Most Read from BloombergTrump Vows ‘Day One’ Executive Order Targeting Offshore WindBiden Accuses...
Well there is NO alternative for most people buying. It's either this higher risk mortgage or nothing. Many I talk to say they are applying while they can. It will literally be the only way that many can afford to buy a place and people want to lock the ability in while they can.
Fingerless
Active member
Good note about them potentially being dangerous. Just read this. Sounds like a lot of things to work out.
Digital Nomad
Well-known member
Wow I saw this article and some are predicting prices going up 100% by the end of 2025. That would be incredible but doesn't sound likely?
www.mdzol.com
Por qué los precios de los inmuebles podrían aumentar hasta 100%
Después de seis años duros para el sector inmobiliario, desde las inmobiliarias auguran un período de fuerte mejora que se evidenciará en una marcada suba de precios del metro cuadrado.
earlyretirement
Moderator
The number of mortgages is drastically going up. I predicted last year when President Milei was campaigning that he would do a tax amnesty and billions would come in. We see that playing out now. I also predicted that mortgages would once again enter the market. The numbers keep going up each month. Sales activity is going up and this trend should continue. We should also see more of the billions of dollars that came in from the amnesty going into the real estate market.
So far, everything is going as predicted. Here you can see the number of mortgages by month and the number of property closings each month.
So far, everything is going as predicted. Here you can see the number of mortgages by month and the number of property closings each month.
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