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How much does it cost to buy a new construction apartment with laundered money? - La Nacion Propiedades
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Cuánto cuesta comprar un departamento en pozo con los dólares del blanqueo
Un informe reveló los valores de compra de las unidades en construcción que se pueden comprar con el dinero blanqueado en la primera etapa
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September 26, 2024
A report revealed the purchase values of the units under construction that can be purchased with the money laundered in the first stage
With the cost of construction in dollars at the lowest level in the last seven years, entering into a real estate venture from its construction opens up an advantageous possibility for investors.Shutterstock
The first stage of money laundering , called the Asset Regulation Regime, expired on September 30 and its extension until October 31 has just been confirmed. In this way, the possibility of formalizing cash that, until now, "was under the mattress" is provided. This benefit proposed by the Federal Public Revenue Administration (AFIP) allows the regularization of assets - which are outside the financial system - of up to US$100,000 without paying taxes and if larger amounts are laundered , rates are paid depending on when they enter the system: 5% until October 31 (new date extended); 10% until January 31, 2025 (the second stage that expired on December 31, 2024 was extended); from 15% until April 30, 2025 (the third stage, which was until March 31, 2025, was also extended).
However, there are alternatives to formalize above that amount without paying any penalty: if the laundering is of cash, it must be deposited in a Special Asset Regulation Account (CERA) , before October 30. If it is left in the financial system until December 31, 2025, taxes are not paid nor is there a limit on the amount to be regularized . To use that money before that date without paying rates, it is possible to do so if it is invested in some of the placements authorized by the Ministry of Economy, among them, real estate projects in the works . Until December 31, 2025, you can choose the project in which to invest . They must be those works that are up to 50% complete at the time the law comes into force and are registered with the AFIP.
In the case of buying a brand new or used property , no tax is paid if the amount to be laundered is less than US$100,000 or 5% is paid on the excess amount until September 30.
“This is a great opportunity to boost the sector. Those who want to invest in developments or need to access the benefit to continue with works already started will be able to do so without paying taxes ,” says Leandro Molina, director of Zonaprop.
Money laundering for purchases in the pipeline includes both new projects and those with a degree of progress of less than 50% at the time of the entry into force of the law.Shutterstock
The resolution includes both new projects and those with a degree of progress of less than 50% at the time of the law's entry into force . In this way, this construction incentive provides benefits to those people who have their money undeclared in the country and can invest it in a real estate project . "We think it is a good measure to promote development and investment in real estate projects. Construction is what generates work, investment, activity and deserves this privileged treatment," says Damián Tabakman, president of the Chamber of Urban Developers (CEDU) .
Now, one of the biggest doubts that people who decide to use laundered money in real estate projects and thus avoid paying surpluses have is knowing how much it costs to invest in projects in progress .
Money laundering: How much does a unit in a new development cost?
In concrete numbers, the average value of the units in the pit reaches US$3,689 per square meter , according to a report on developments in the City of Buenos Aires carried out by Zonaprop. One fact to keep in mind is that, since the change in trend, in November 2023 (after a sharp drop due to the pandemic), prices have increased by 13.6% and are 12% below the maximum reached in August 2018 .Thus, a one-bedroom apartment of 50 m² in a well-stocked area costs US$132,864, while a two-bdroom apartment of 70 m² costs on average US$209,204. These data show that well-stocked apartments are 27% higher than used ones (US$2122/m²), but remain 0.3% below brand new units (US$2696/m²).
When comparing by neighborhood, Puerto Madero has the most expensive offer in the City , with an average price of US$6,310/m² . It is followed by Palermo , with US$3,624/m² , and San Telmo, with US$3,604/m² . On the other hand, Villa Riachuelo is the most accessible neighborhood for acquisition, with an average of US$1,574/m² . Parque Avellaneda and Vélez Sarsfield complete the podium of the most affordable neighborhoods, with average prices of US$1,620/m² and US$1,706/m² , respectively.
A recovery after two years of decline
In 2024, the supply of developments under development accumulates an increase of 2.4%. Units of up to one bedroom represent 65% of the total supply of units in the pipeline , decreasing 13 percentage points compared to the beginning of 2022, when they represented 72% of the supply. The remaining 35% is oriented towards units of two bedrooms or more .In the ranking by neighborhoods, Palermo leads with the largest market share , an area that concentrates 20.6% of the total supply of units in condominium . Monserrat , on the other hand, is the one with the lowest supply, representing only 1.6% , the report states.
Percentage of properties listed in the well according to each neighborhood
However, Villa Ortúzar is the neighborhood with the highest supply of units in the same pool , that is, 36.8% of the total for sale notices correspond to apartments under development . It is followed by Núñez, with 21.3%, and Colegiales with 20.2%. On the other hand, Villa del Parque is the neighborhood with the lowest supply of units of this type , the for sale notices represent only 10.2%.
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