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Following the extension of the money laundering period, there are more real estate enquiries and property purchases could grow by 30% this year - Infobae
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Tras la prórroga del blanqueo, hay más consultas inmobiliarias y la compra de propiedades podría crecer 30% este año
Las desarrolladoras notan un mayor dinamismo en el mercado, con el regreso de inversores que buscan destinar inmuebles al alquiler, motivados por la posibilidad de obtener un retorno anual del 6% en dólares
www.infobae.com
October 02, 2024
Developers are noticing a greater dynamism in the market, with the return of investors seeking to allocate properties for rent, motivated by the possibility of obtaining an annual return of 6% in dollars.
By Jose Luis Cieri
A project in the Belgrano neighborhood, one of the areas with the greatest building development in CABA
The recent extension of the deadline to join the money laundering program generated positive expectations in the real estate sector. This extension, from September 30 to October 31, will allow undecided taxpayers more time to analyze their options, something that is already driving an increase in enquiries, particularly in projects intended for rental, although there are also end users with purchase intentions.
Developers anticipate growth in operations of up to 30% this year compared to 2023, reflecting renewed interest from investors. Last year, that is, between the end of 2022 and the same period last year, it is estimated that more than 9,000 homes and plots of land were sold in private neighborhoods between the city of Buenos Aires and Greater Buenos Aires (GBA). But the money laundering will strongly boost the sector this year and allow 2024 to close with significant year-on-year growth. The expectation is that this impact will begin to materialize more clearly in November.
“Those who made deposits up to September 30 will be able to withdraw the money to use for real estate projects starting on this date. However, it is important to clarify that those who withdraw funds from their accounts called CERA (Special Account for Asset Regularization) will not be able to regularize funds again under this same mechanism, which limits the opportunities to duplicate benefits within the same money laundering scheme,” Malí Vázquez , institutional director of the Chamber of Urban Developers (CEDU), told Infobae.
Money laundering includes the option of purchasing different types of properties , and has a direct focus on projects in progress that have a construction progress of up to 50% at the time the law comes into force.
This has concentrated investment in younger developments, prompting enquiries that are expected to translate into transactions when the funds released are available to be used for properties under construction.
Vázquez commented: “The new construction market received numerous enquiries. This led us to create a CEDU website with more than 120 developments suitable for Whitewashing.”
The most sought-after properties
Although the level of closed transactions is not yet high, the flow of investments is expected to increase as investors take advantage of the extended deadline until December 30, 2025 to choose which project to allocate their funds to.The sector agrees that units with up to two bedrooms will be the most in demand due to their ability to generate rental income, especially after the deregulation post-DNU that repealed the 2020 regulations.
Plots in private neighborhoods also tempt those looking to buy through money laundering
And several investors expect to obtain a return of up to 6% in dollars, since these are brand new units once they are delivered, especially from mid-2025 onwards.
Another segment that received a considerable number of inquiries is that of lots. “Although the focus is on residential units, several investors see land as a more flexible investment opportunity, with the possibility of developing it in the future or simply keeping the lot as a safekeeping asset,” Vázquez added.
Essential aspects
“Money laundering sets out several crucial points that investors must take into account in order to maximise the benefits of this measure,” said Martín Flachsland , marketing manager of Estudio Kohon.Below are some aspects to keep in mind when buying in a well:
- Extension: The first stage of the money laundering process has been extended until October 31, 2024, giving interested parties more time to regularize their funds.
- Regularized Funds: Those who regularize funds of up to USD 100,000 before the deadline will be able to withdraw them without withholdings starting October 1, 2024.
- Investments: Funds exceeding USD 100,000 must be used for real estate investments or other authorized projects before December 31, 2025. If they are not used for these purposes, a 5 percent withholding tax will be applied.
Tips
To take advantage of the extension of the money laundering period, it is essential to act quickly and have specialized advice. Having the documentation in order, such as purchase-sale vouchers and sworn statements, ensures a smooth investment.Flachsland commented: “Investing in property is one of the safest decisions, especially in uncertain times. Laundering allows investors to allocate funds to developments that protect their capital and offer long-term returns.”
Homes that are in the early stages of construction are particularly attractive to those who wish to take advantage of money laundering.
The extension of the money laundering ban until October 31 generated positive expectations.
Hernán Pisarenko , commercial director of the developer HA, mentioned that this measure especially benefits projects with the greatest potential for appreciation. “Clearly, the expectation of applying these funds to projects with less than 50% of construction progress is great, particularly in those located in growing areas, thanks to the quality of the developer and the project itself,” he said.
The most sought-after units are those that combine a more affordable ticket with a higher expectation of appreciation. This makes smaller developments or those in the early stages of construction attractive for those who wish to take advantage of this fiscal tool.
On the other hand, higher investment amounts, between USD 250,000 and USD 400,000, reflect the search for opportunities in the premium market.
Pisarenko said it is difficult to confirm whether the money laundering will lead to an increase in housing prices. Regarding the extension, he explained that it is operational to allow entities to process deposits, but the greatest flow of operations is expected to occur in the coming weeks. “The strongest will come when investors see the ideal moment to use their funds,” he concluded.
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