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Milei's Government lowered a rate that benefits those who want to buy a property in CABA - La Nacion Propiedades
Source:
www.lanacion.com.ar
October 14, 2024
This measure was published today by DNU in the Official Gazette; how much did the rate charged by the Real Estate Registry decrease?
By Fernando Torres Ullmer
Javier Milei lowered a rate that benefits those who want to buy a propertyJulian Bongiovanni
1Hear
The Government has once again taken matters into its own hands in the real estate sector. In this case, through Decree 902/2024 , published in the Official Gazette this Monday, a reduction in the rate charged by the Real Estate Registry of the Federal Capital was made official. Currently, the rate represents two per thousand (2‰) of the amount of the transaction , but it will become one per thousand (1‰) in some cases and in others it will fall to 0.5‰, when the rule comes into force on October 29. For example, in a US$100,000 transaction the rate payment was US$200 and now it would be US$100.
What does it mean to lower the rate? “ The rate is the compensation that the Real Estate Registry receives for the service it provides: registering the transfer of the property , in other words, the Registry charges an amount to whoever registers a property. So, this new rule changes the percentage of that amount , which will be lower and will benefit whoever buys a property and registers it as their own,” explains Sebastián Domínguez, CEO of SDC Tax Advisors.
“ Any reduction in taxes or rates always benefits traffic . What do I mean? This reduction is not going to generate a sales boom , as happened with the elimination of the stamp tax under Domingo Cavallo, but everything adds up,” says Jorge De Bártolo, president of the College of Notaries of Buenos Aires, who adds: “ Everything contributes to making the expenses involved in the real estate market transparent , which begin from the moment one publishes their property in a real estate agency.”
First page of Decree 902/2024
Second page of Decree 902/2024
Something important to mention is that this measure does not come into effect today , but rather it comes into effect 15 days after its publication in the Official Gazette: on October 29. In addition, this decree only applies in the Federal Capital , since the remaining records are kept by the provinces.
For whom will the rate be reduced to 0.5‰? The measure stipulated that when it comes to the acquisition of properties for personal use , through official housing plans , the rate will be reduced to 0.5‰, as indicated in article 2 of the law.
“Generally speaking, any measure that tends to lower operating costs is good news for the sector , as was the case months ago with the elimination of the ITI. In addition, these regulations increase investor demand ,” explains Fabián Achával, director of the real estate company of the same name.
"I don't think it will have a practical effect, but I do think it is a more philosophical message that this Government will do everything it can to reduce the State and public services," says Martín.
“ These measures do not have an immediate effect , but rather they make people start to look more at the business in the medium and long term, because what it does is give more credibility to the real estate market ,” explains Diego Cazes, general manager of LJ Ramos, who adds: “ When the Government intervenes in the market in the wrong way, it drives away investors . On the other hand, when it gives signals (like this one) that it is not going to intervene, it encourages people and gives them confidence to invest in the market.”
Cazes explains that the first law that gave a horizon to real estate was the repeal of the rental law. “ That was the first measure of this Government and it had a very positive impact and a spectacular response from the market. There began to be more supply and people took the signal that the Government is going to take care of the assets and the investment.”
www.buysellba.com
Source:
El Gobierno de Milei bajó una tasa que beneficia a quien quiere comprar una propiedad en CABA
Esta medida salió por DNU hoy en el Boletín Oficial; ¿cuánto disminuyó la tasa que cobra el Registro de la Propiedad Inmueble?
www.lanacion.com.ar
October 14, 2024
This measure was published today by DNU in the Official Gazette; how much did the rate charged by the Real Estate Registry decrease?
By Fernando Torres Ullmer
Javier Milei lowered a rate that benefits those who want to buy a propertyJulian Bongiovanni
1Hear
The Government has once again taken matters into its own hands in the real estate sector. In this case, through Decree 902/2024 , published in the Official Gazette this Monday, a reduction in the rate charged by the Real Estate Registry of the Federal Capital was made official. Currently, the rate represents two per thousand (2‰) of the amount of the transaction , but it will become one per thousand (1‰) in some cases and in others it will fall to 0.5‰, when the rule comes into force on October 29. For example, in a US$100,000 transaction the rate payment was US$200 and now it would be US$100.
What does it mean to lower the rate? “ The rate is the compensation that the Real Estate Registry receives for the service it provides: registering the transfer of the property , in other words, the Registry charges an amount to whoever registers a property. So, this new rule changes the percentage of that amount , which will be lower and will benefit whoever buys a property and registers it as their own,” explains Sebastián Domínguez, CEO of SDC Tax Advisors.
“ Any reduction in taxes or rates always benefits traffic . What do I mean? This reduction is not going to generate a sales boom , as happened with the elimination of the stamp tax under Domingo Cavallo, but everything adds up,” says Jorge De Bártolo, president of the College of Notaries of Buenos Aires, who adds: “ Everything contributes to making the expenses involved in the real estate market transparent , which begin from the moment one publishes their property in a real estate agency.”
First page of Decree 902/2024
Second page of Decree 902/2024
Something important to mention is that this measure does not come into effect today , but rather it comes into effect 15 days after its publication in the Official Gazette: on October 29. In addition, this decree only applies in the Federal Capital , since the remaining records are kept by the provinces.
For whom will the rate be reduced to 0.5‰? The measure stipulated that when it comes to the acquisition of properties for personal use , through official housing plans , the rate will be reduced to 0.5‰, as indicated in article 2 of the law.
What do market experts think?
"We were aware of this and it is very good for people. This is in addition to the elimination of the Real Estate Transfer Tax (ITI) , a tax that was paid by the seller, but now this measure favors the buyer," explains De Bártolo.“Generally speaking, any measure that tends to lower operating costs is good news for the sector , as was the case months ago with the elimination of the ITI. In addition, these regulations increase investor demand ,” explains Fabián Achával, director of the real estate company of the same name.
"I don't think it will have a practical effect, but I do think it is a more philosophical message that this Government will do everything it can to reduce the State and public services," says Martín.
“ These measures do not have an immediate effect , but rather they make people start to look more at the business in the medium and long term, because what it does is give more credibility to the real estate market ,” explains Diego Cazes, general manager of LJ Ramos, who adds: “ When the Government intervenes in the market in the wrong way, it drives away investors . On the other hand, when it gives signals (like this one) that it is not going to intervene, it encourages people and gives them confidence to invest in the market.”
Cazes explains that the first law that gave a horizon to real estate was the repeal of the rental law. “ That was the first measure of this Government and it had a very positive impact and a spectacular response from the market. There began to be more supply and people took the signal that the Government is going to take care of the assets and the investment.”
www.buysellba.com
