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Housing: Developers and real estate agents asked Caputo to include used and under-construction properties in the money laundering process - Infobae
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Vivienda: desarrolladores e inmobiliarios le pidieron a Caputo que el blanqueo incluya propiedades usadas y en construcción
En medio del entusiasmo por la vuelta del crédito hipotecario, el sector le manifestó al ministro de Economía que el efecto dinamizador sería mayor, al permitir a más ahorristas volcarse al ladrillo. También pidieron que los préstamos sirvan para la compra en pozo
www.infobae.com
July 6, 2024
Amid the enthusiasm for the return of mortgage credit, the sector told the Minister of Economy that the stimulating effect would be greater, by allowing more savers to turn to brick and mortar. They also asked that the loans be used for the purchase of real estate.
By Jose Luis Cieri
Real estate developers met with the Minister of Economy Luis Toto Caputo and asked that the Money Laundering also cover the purchase of houses in the construction
The Minister of Economy, Luis Caputo , met with members of the Chamber of Urban Developers (CEDU) at the Museum of Latin American Art in Buenos Aires (Malba). The meeting was also attended by Rodrigo Aybar , Secretary of Territorial Development, Habitat and Housing of the Ministry of Economy, and Santiago Sánchez Sorondo , Undersecretary.
One of the first topics addressed was the new construction, to assess whether it would be included in the new money laundering, approved by Congress in the Ley Bases. In response to the first question from Damián Tabakman , president of the CEDU, regarding this point, the minister stated that this will be included in the regulations.
He also stressed that “the real estate sector drives the economy; the main objective is to get investment.” This statement was welcomed by those present, as it is expected that the money laundering will activate sales from the outset, boosting the sector and allowing more savers to allocate their money to real estate.
In addition, the reintroduction of mortgage loans by various banking entities also benefits the sector and is another piece of news that the segment celebrated two months ago. In the meeting with Caputo, Tabakman also stated that the sector needs banks to provide financing to developers for construction in the pit, since mortgage loans do not apply for that. “Although there is already some progress, this requires coordinated work,” he said.
More funds available
Minister Caputo stressed that, since the State does not take more funds from the banks, they have more money available to grant loans and responded: “It is a task that the banks will do. What better than to lend to this sector that makes safe investments.” Currently, the loans do not cover the purchase of units in the works, but according to the minister, it would be ideal for the banks to create lines so that investors can do so.He added: “The first thing that emerged was mortgage loans. Clearly, they will continue with loans to developers. Mortgage loans will explode and so will developments,” he predicted.
The head of the Ministry of Economy of the Nation, Luis Caputo, told the real estate developers: "Mortgage loans will explode and so will developments." (Photo: Gustavo Gavotti)
Regarding the future of the economy, he said: “We are facing a unique opportunity because it is the first time that there has been a political decision to do things right and a conviction not to deviate from the path.”
Regarding the speed of recovery, Caputo said that it will be determined by the private sector, which will have to do with understanding that it is time to invest.
This meeting comes at a good time for the sector, with a favorable reaction in the sale of real estate. In May, the Notaries Association of the City of Buenos Aires registered 4,590 deeds of sale, 36% more than in the same month last year , the highest value in 65 months. In the province of Buenos Aires, the year-on-year increase was 23%, with 9,459 sales compared to 7,715 in May 2023.
How the money laundering would continue
The system that allows those with savings to deposit funds should be regulated soon, which could mobilize funds in the real estate sector. Developers are confident that, following Caputo's comments, the government will be able to raise money to boost the sector.
One of the requests was for "pre-construction" to be affected by money laundering and housing credit lines.
Tabakman told Infobae : “The option already existed in the last money laundering process of the previous government and now we will have to see how the current process will be, but everything will be decided in the next few days. We estimate that the method would be similar but it remains to be implemented.”
The expectation is that investors will be able to launder more than USD 100,000, which would be the amount currently stipulated. “The ideal would be that there were no limits and that larger funds could be allocated to buy houses currently under construction,” added Tabakman.
Expand disclosure of funds
For its part, the Argentine Real Estate Chamber (CIA) requested the national Executive Branch to incorporate used properties into the Asset Regularization Regime recently approved under the Law called “Palliative and Relevant Fiscal Measures.”The application establishes the possibility of allocating funds from said regime to investments in used properties, exempting them from the established rate.
In this context, the CIA sent a note to the President of the Nation, Javier Milei , and to the Minister of Economy, Caputo. The objective of the proposal is to energize a key sector for national development. The exemption from the payment of the 5% rate for the purchase of used housing would mean a greater incentive to mobilize savings and generate income in the formal economy.
Real estate agents ask that the Money Laundering Act allow the purchase and sale of used properties
The CIA argued that the development of the real estate sector is synonymous with progress for the economy and its inhabitants. “If the real estate sector does better, citizens will have more opportunities to fulfill their desire to obtain their own home,” said Ivan Ginevra , president of the entity, in the statement.
The Basic Law does not contemplate the purchase of real estate as a destination for laundered funds, but it allows the Executive Branch to add assets that can be used to regularize the tax situation. In the sector, they assure that allocating laundered funds to the purchase of used homes would provide greater incentives to enter funds into the formal economy.
Ginevra concluded: “We are not expecting it to be as massive as in 2017. But if the properties are included in the money laundering scheme, it will give them a boost. Today there are many people who have the money and cannot buy it because they have not declared it.”
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