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How will the measure that reduces the cost of real estate transactions affect the purchase and sale of homes? - Infobae
Source:
www.infobae.com
October 19, 2024
On October 29, although initially only in CABA, the reduction of the property registration fee will come into effect. It is added to another reduction that is in force after the sanction of the Basic Law
By Jose Luis Cieri
This measure contributes to making the costs of the real estate market more transparent. Any reduction in taxes or rates is always positive to encourage operations, argued the sector (Illustrative Image Infobae)
The Government has implemented a new measure that will impact the real estate sector. As of October 29, Decree 902/2024 will come into force, which reduces the fee charged by the Real Estate Registry (RPI).
Currently, the rate is two per thousand (2‰) of the value of the transaction, but it will be reduced by half: one per thousand (1‰) and, in certain cases, to 0.5 per thousand. This seeks to alleviate the costs of those who buy and register properties, in a market where every peso counts when making transactions.
This provision is exclusive to the city of Buenos Aires, since registrations in other provinces are managed by their respective governments.
Currently, the RPI rate is two per thousand (2‰) on the total amount of the transaction. Thus, for example, in a transaction of USD 100,000, the payment would be USD 200, a cost that with the exchange rate would be reduced to 100 or 50 dollars.
The real estate sector recognises that, although this reduction will not generate a boom in sales, it is seen as a gesture to reduce the tax pressure on buyers and sellers.
Román Paikin , a public accountant and owner of San Román Properties, explained to Infobae that the impact of the measure is rather symbolic, but necessary: “It is a gesture aligned with the trend to lower taxes and costs associated with real estate transactions, something always well received in a country with a high tax burden. It will not define a transaction on its own, but it represents a relief, especially for higher value properties,” he explained.
The decree also establishes that the reduction of the rate to 0.5‰ will be for the acquisition of properties intended for personal housing through official construction plans, which marks a commitment to access to the first home or social housing, a historically neglected sector.
Paikin stressed that this measure, together with the elimination of the Real Estate Transfer Tax (ITI), which applied a 1.5% tax on the value of the deed, benefits those seeking to sell or buy properties in a context of lower tax burden.
“The repeal of the ITI, together with the reduction of the registration fee, helps to stimulate the market, reduces costs and creates a more attractive environment for real estate investment,” he added.
Industry experts agree that the approval of this measure, together with the elimination of the Real Estate Transfer Tax, favors buyers and sellers of homes. These actions tend to reduce the operating costs of real estate operations.
Iván Ginevra , president of the Argentine Real Estate Chamber, explained that although the reductions will not radically transform the market, they send a positive message to investors: “The sector perceives these changes as progress, but the ideal would be to completely eliminate this type of tax, to simplify operations and reduce bureaucracy. The elimination of the ITI is a tangible relief for those who wish to sell high-value properties, because it represents a considerable saving.”
Ginevra also stressed that the elimination of the ITI not only reduces the economic cost; it also simplifies the sales process. In the past, sellers had to make a mandatory consultation with the AFIP, which often delayed operations and even caused some to fail.
By eliminating the paperwork, transactions can be much smoother. “These joint measures not only facilitate the purchase and sale of properties, but also send a message of confidence, allowing buyers to make more agile decisions,” added Ginevra.
The measure was welcomed by the sector, which sees it as part of a broader package of reforms that could generate medium- and long-term effects.
By reducing costs and simplifying procedures, these actions can attract more investors, which in turn could further boost the real estate market in the coming months, just at a time when, for seasonal reasons, sales transactions usually increase by up to 20% compared to other quarters, especially towards the end of the year.
www.buysellba.com
Source:
Cómo afectará la compra-venta de viviendas la medida que reduce el costo de las operaciones inmobiliarias
El 29 de octubre entrará en vigencia, aunque inicialmente solo en CABA, la reducción de la tasa de registro de la propiedad. Se suma a otra reducción que rige tras la sanción de la Ley de Bases
www.infobae.com
October 19, 2024
On October 29, although initially only in CABA, the reduction of the property registration fee will come into effect. It is added to another reduction that is in force after the sanction of the Basic Law
By Jose Luis Cieri
This measure contributes to making the costs of the real estate market more transparent. Any reduction in taxes or rates is always positive to encourage operations, argued the sector (Illustrative Image Infobae)
The Government has implemented a new measure that will impact the real estate sector. As of October 29, Decree 902/2024 will come into force, which reduces the fee charged by the Real Estate Registry (RPI).
Currently, the rate is two per thousand (2‰) of the value of the transaction, but it will be reduced by half: one per thousand (1‰) and, in certain cases, to 0.5 per thousand. This seeks to alleviate the costs of those who buy and register properties, in a market where every peso counts when making transactions.
This provision is exclusive to the city of Buenos Aires, since registrations in other provinces are managed by their respective governments.
Currently, the RPI rate is two per thousand (2‰) on the total amount of the transaction. Thus, for example, in a transaction of USD 100,000, the payment would be USD 200, a cost that with the exchange rate would be reduced to 100 or 50 dollars.
The real estate sector recognises that, although this reduction will not generate a boom in sales, it is seen as a gesture to reduce the tax pressure on buyers and sellers.
Román Paikin , a public accountant and owner of San Román Properties, explained to Infobae that the impact of the measure is rather symbolic, but necessary: “It is a gesture aligned with the trend to lower taxes and costs associated with real estate transactions, something always well received in a country with a high tax burden. It will not define a transaction on its own, but it represents a relief, especially for higher value properties,” he explained.
The decree also establishes that the reduction of the rate to 0.5‰ will be for the acquisition of properties intended for personal housing through official construction plans, which marks a commitment to access to the first home or social housing, a historically neglected sector.
Paikin stressed that this measure, together with the elimination of the Real Estate Transfer Tax (ITI), which applied a 1.5% tax on the value of the deed, benefits those seeking to sell or buy properties in a context of lower tax burden.
“The repeal of the ITI, together with the reduction of the registration fee, helps to stimulate the market, reduces costs and creates a more attractive environment for real estate investment,” he added.
Opinions in favor
The impact of the new measure and the previous elimination of the ITI in real estate transactions are points in favour of the sector.
Industry experts agree that the approval of this measure, together with the elimination of the Real Estate Transfer Tax, favors buyers and sellers of homes. These actions tend to reduce the operating costs of real estate operations.
Iván Ginevra , president of the Argentine Real Estate Chamber, explained that although the reductions will not radically transform the market, they send a positive message to investors: “The sector perceives these changes as progress, but the ideal would be to completely eliminate this type of tax, to simplify operations and reduce bureaucracy. The elimination of the ITI is a tangible relief for those who wish to sell high-value properties, because it represents a considerable saving.”
Ginevra also stressed that the elimination of the ITI not only reduces the economic cost; it also simplifies the sales process. In the past, sellers had to make a mandatory consultation with the AFIP, which often delayed operations and even caused some to fail.
By eliminating the paperwork, transactions can be much smoother. “These joint measures not only facilitate the purchase and sale of properties, but also send a message of confidence, allowing buyers to make more agile decisions,” added Ginevra.
The measure was welcomed by the sector, which sees it as part of a broader package of reforms that could generate medium- and long-term effects.
By reducing costs and simplifying procedures, these actions can attract more investors, which in turn could further boost the real estate market in the coming months, just at a time when, for seasonal reasons, sales transactions usually increase by up to 20% compared to other quarters, especially towards the end of the year.
www.buysellba.com
