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How currency competition and dollar card payments will impact the real estate market - Infobae
Source:
www.infobae.com
December 15, 2024
If the current system is modified and the possibility of paying directly in dollars is incorporated, the purchase and sale of homes could undergo major changes.
By Jose Luis Cieri
In the segment, they expect that the Whitewashing will boost the use of dollars in the purchase and sale of homes by 2025 (Illustrative Image Infobae)
As reported by Infobae, the Government is moving forward with the implementation of a system that will allow payments in dollars for certain goods, which includes the use of debit cards linked to dollar accounts, particularly those that have laundered dollars deposited. This measure seeks to incorporate the use of dollars into the economy without the need to convert them to pesos and could transform the real estate market by introducing new payment tools and greater transparency in operations.
The scheme, announced a few months ago by the national Minister of Economy, Luis Caputo , is currently under analysis. One of the most significant modifications will be the repeal of resolution 7 of 2002, which currently regulates the display of prices in foreign currency.
"The new regulations will allow prices to be displayed in pesos and dollars with the same font size, which could have an impact on transparency and negotiation in the real estate market," explained Alejandro Moretti , member of the Board of Directors of the Buenos Aires Real Estate Association.
The use of dollar debit cards will focus on dollarized sectors, such as cars, boats, properties and commercial premises. Although supermarkets will be able to display prices in dollars, this system will not be intended for daily consumption in these stores during the initial stage.
The measure seeks to boost the real estate market, where transactions are made in cash or by bank transfer. Payments in dollars would simplify and speed up these transactions, benefiting both new and used properties.
Although progress has been made, there is no set date for implementing the system. According to the Central Bank, no regulatory changes are required, but technological development remains the main challenge.
For Moretti, this will promote transparency and objectivity in negotiations, reducing the possibility of informal transactions. “The double display of prices could also facilitate direct comparison for buyers, eliminating common confusions when negotiating.”
This, combined with new payment tools, could create a more competitive and reliable environment in the real estate sector.
“This could reduce the barriers that traditional payments often present, facilitate transactions and avoid problems associated with handling cash. By eliminating unnecessary intermediations, the market could become more fluid and efficient, and both buyers and sellers would benefit,” he said.
The bimonetary system could mark a before and after in the Argentine real estate sector, by integrating modern tools adapted to the current needs of buyers and sellers. (Illustrative Image Infobae)
Marta Liotto , former head of the Buenos Aires Real Estate Association, stressed that recent measures seek to reactivate the sector. “First it was the repeal of the Rental Law , then the credits, the money laundering and now the possibility of paying for homes with different currencies. All this points to the growth of the sector, an objective that we have been pursuing for a long time and for which we are now seeing good results,” she said.
The implementation processes will require real estate agencies to update their systems and train their staff in the use of the new tools. This could include everything from configuring payment terminals to adapting digital platforms to operate under the new bi-currency scheme.
Currently, mortgage loans in pesos face limitations due to high inflation and high rates. Financial regulations allow banks to lend in dollars only to exporters, that is, those whose activity generates dollars to repay them.
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Source:
Cómo impactará la competencia de monedas y los pagos en dólares con tarjeta en el mercado inmobiliario
De modificarse el sistema actual e incorporarse la posibilidad de pagar en dólares en forma directa, la compra venta de viviendas podría sufrir grandes cambios
www.infobae.com
December 15, 2024
If the current system is modified and the possibility of paying directly in dollars is incorporated, the purchase and sale of homes could undergo major changes.
By Jose Luis Cieri
In the segment, they expect that the Whitewashing will boost the use of dollars in the purchase and sale of homes by 2025 (Illustrative Image Infobae)
As reported by Infobae, the Government is moving forward with the implementation of a system that will allow payments in dollars for certain goods, which includes the use of debit cards linked to dollar accounts, particularly those that have laundered dollars deposited. This measure seeks to incorporate the use of dollars into the economy without the need to convert them to pesos and could transform the real estate market by introducing new payment tools and greater transparency in operations.
The scheme, announced a few months ago by the national Minister of Economy, Luis Caputo , is currently under analysis. One of the most significant modifications will be the repeal of resolution 7 of 2002, which currently regulates the display of prices in foreign currency.
"The new regulations will allow prices to be displayed in pesos and dollars with the same font size, which could have an impact on transparency and negotiation in the real estate market," explained Alejandro Moretti , member of the Board of Directors of the Buenos Aires Real Estate Association.
The use of dollar debit cards will focus on dollarized sectors, such as cars, boats, properties and commercial premises. Although supermarkets will be able to display prices in dollars, this system will not be intended for daily consumption in these stores during the initial stage.
The measure seeks to boost the real estate market, where transactions are made in cash or by bank transfer. Payments in dollars would simplify and speed up these transactions, benefiting both new and used properties.
Although progress has been made, there is no set date for implementing the system. According to the Central Bank, no regulatory changes are required, but technological development remains the main challenge.
For Moretti, this will promote transparency and objectivity in negotiations, reducing the possibility of informal transactions. “The double display of prices could also facilitate direct comparison for buyers, eliminating common confusions when negotiating.”
This, combined with new payment tools, could create a more competitive and reliable environment in the real estate sector.
Dynamics and simplicity in transactions
Moretti points out that the possibility of using debit cards in dollars will bring dynamism and allow buyers to directly access their laundered funds.“This could reduce the barriers that traditional payments often present, facilitate transactions and avoid problems associated with handling cash. By eliminating unnecessary intermediations, the market could become more fluid and efficient, and both buyers and sellers would benefit,” he said.
Impact on new and used properties
The measure would benefit both the new property market and the used property market. Moretti also highlights the importance of allowing direct transfers between the Special Account for Asset Regularization (CERA) , without additional costs, to encourage greater dynamism in the sector. This system could facilitate the acquisition of housing in both segments of the market.
The bimonetary system could mark a before and after in the Argentine real estate sector, by integrating modern tools adapted to the current needs of buyers and sellers. (Illustrative Image Infobae)
Marta Liotto , former head of the Buenos Aires Real Estate Association, stressed that recent measures seek to reactivate the sector. “First it was the repeal of the Rental Law , then the credits, the money laundering and now the possibility of paying for homes with different currencies. All this points to the growth of the sector, an objective that we have been pursuing for a long time and for which we are now seeing good results,” she said.
Technological challenges and adaptation
Although the system promises advantages, real estate agencies will face technological and operational challenges. “The key will be to train themselves to use the new tools efficiently and adapt to the operational changes that this measure will bring,” said Moretti.The implementation processes will require real estate agencies to update their systems and train their staff in the use of the new tools. This could include everything from configuring payment terminals to adapting digital platforms to operate under the new bi-currency scheme.
More credit offer
Iván Ginevra , president of the Argentine Real Estate Chamber, argues that allowing banks to grant mortgage loans in dollars could transform the market. “It would be interesting if clients also paid back their installments in dollars, since this would generate a more robust market for dollarized mortgage loans,” he explained.Currently, mortgage loans in pesos face limitations due to high inflation and high rates. Financial regulations allow banks to lend in dollars only to exporters, that is, those whose activity generates dollars to repay them.
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