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Mortgage loans: the key fact that indicates that those who want to take one out should hurry - La Nacion Propiedades
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www.lanacion.com.ar
November 04, 2024
The movements of parallel dollars directly influence the value of properties and the amount that banks lend to their clients.
By Candela Contreras
The fall of the parallel dollar opens a window to access mortgage loans in Argentina Shutterstock
In the particular Argentine real estate market, properties are sold in dollars , while mortgage loans are granted in pesos and calculated at the value of the UVA . This combination generates changes that depend exclusively on the movements of the dollar , a situation that can leave people without access to them, or on the contrary, allow more and more clients to request them.
What does this possibility depend on? The fluctuations in parallel dollars directly impact property values and the amount that banks grant to mortgage loan applicants.
As of April 2024, 23 banks have reactivated the mortgage loan market by offering their lines so that people can access their first home, with rates ranging from 3% to 9.5% depending on the entity. In addition, from the time the loan is requested until the money is delivered, the entities take between 30 and 40 days. This point is what could or could not be a risk in the case of financial volatility .
“During that time, property values in pesos , due to the variables of the blue dollar, can increase or decrease ,” says Federico González Rouco, an economist specializing in housing. That is, the increase in pesos will be in line with the rise or fall of the unofficial dollar - which is the currency in which properties are quoted . However, in the last month this situation was favorable for applicants for mortgage loans due to the fall of the parallel dollars, despite the increase in properties. If we observe the behavior of the blue dollar in the last month, it is now trading at $1,190 (November 4), about $25 less than on October 25 when it was $1,215 and $55 less than the $1,245 of September 25 of this year; while the MEP dollar (used mainly in mortgage loan operations) is trading at $1,146, $10 less than $ 1,156 (as of October 25), about $61 below the $1,207 of the same day of the previous month.
In the time it takes to grant a mortgage loan, the values of the properties in pesos, due to the variables of the blue dollar, can increase or decrease. Shutterstock
In this way, in September , despite the fact that the closing value of the square meter was around US$1,872 , according to the latest survey of used apartments carried out by Reporte Inmobiliario. “ The drop generated by the exchange rate made , compared to a month ago, the initial payment to be lower and the income necessary to qualify also to be lower than a month ago,” acknowledged José Rozados, founder of Reporte Inmobiliario at Data Day 2 organized by the platform.
"The convergence of the different dollars compared to the official one is beginning to mean that more and more people can qualify , without even considering the increase that a person's income can have," added Rozados.
This is one of the points that banks pay particular attention to . “A variable that we look at all the time is the relationship between people’s salaries and the value of the square meter of the properties. Historically, we are not in the best moment, which is why not so many people can access credit ,” said Maximiliano Coll, deputy general manager of Banco Ciudad, at the Reporte Inmobiliario event.
According to data provided by the Real Estate College of the City of Buenos Aires, a slight increase in purchasing power is observed compared to the previous month: the average salary in pesos had an increase in July of 6.59% (last data collected) and measured in MEP dollars it had an increase of 11.09% .
According to data from Banco Ciudad, in CABA, “the city has the highest GDP in the country, 20% of families can access housing through a mortgage loan . Although it is a number that seems low, it used to be much lower and we see that the trend is improving,” said Coll.
In the examples mentioned above, it can be clearly seen that, despite the fact that the square meter rose in almost all neighborhoods (while in others a slight decrease in the average was noted), the amount to be lent in pesos is lower and consequently both the advance payment and the value of the first installment are also lower . This allows more people with lower incomes to access a larger amount. Although it must be taken into account that, as the value of the properties in dollars rose, the 25% advance payment to be able to access the loan will also be higher than the previous month .
Depending on the neighborhood, you may find properties for rent at the same price or even more than the value of a mortgage payment.Daniel Basualdo
These figures show that the cost of accessing housing through a mortgage loan varies significantly between neighborhoods , and that, in many cases, the mortgage payment can be similar to rent . In concrete numbers, an average rent for a used two-room unit in CABA, according to the values published by Zonaprop, is the following :
The choice between buying and renting depends not only on the initial value of the installments, but also on other factors such as: job stability, the initial amount needed (from 20% to 35%, depending on the bank) and the long-term projection (20 or 30 years) of what you want to acquire as a home.
www.buysellba.com
Source:
Créditos hipotecarios: el dato clave que indica que quien quiere sacar uno, debe apurarse
Los movimientos de los dólares paralelos influyen directamente en el valor de las propiedades y en el monto que los bancos prestan a sus clientes
www.lanacion.com.ar
November 04, 2024
The movements of parallel dollars directly influence the value of properties and the amount that banks lend to their clients.
By Candela Contreras
The fall of the parallel dollar opens a window to access mortgage loans in Argentina Shutterstock
In the particular Argentine real estate market, properties are sold in dollars , while mortgage loans are granted in pesos and calculated at the value of the UVA . This combination generates changes that depend exclusively on the movements of the dollar , a situation that can leave people without access to them, or on the contrary, allow more and more clients to request them.
What does this possibility depend on? The fluctuations in parallel dollars directly impact property values and the amount that banks grant to mortgage loan applicants.
As of April 2024, 23 banks have reactivated the mortgage loan market by offering their lines so that people can access their first home, with rates ranging from 3% to 9.5% depending on the entity. In addition, from the time the loan is requested until the money is delivered, the entities take between 30 and 40 days. This point is what could or could not be a risk in the case of financial volatility .
“During that time, property values in pesos , due to the variables of the blue dollar, can increase or decrease ,” says Federico González Rouco, an economist specializing in housing. That is, the increase in pesos will be in line with the rise or fall of the unofficial dollar - which is the currency in which properties are quoted . However, in the last month this situation was favorable for applicants for mortgage loans due to the fall of the parallel dollars, despite the increase in properties. If we observe the behavior of the blue dollar in the last month, it is now trading at $1,190 (November 4), about $25 less than on October 25 when it was $1,215 and $55 less than the $1,245 of September 25 of this year; while the MEP dollar (used mainly in mortgage loan operations) is trading at $1,146, $10 less than $ 1,156 (as of October 25), about $61 below the $1,207 of the same day of the previous month.
In the time it takes to grant a mortgage loan, the values of the properties in pesos, due to the variables of the blue dollar, can increase or decrease. Shutterstock
In this way, in September , despite the fact that the closing value of the square meter was around US$1,872 , according to the latest survey of used apartments carried out by Reporte Inmobiliario. “ The drop generated by the exchange rate made , compared to a month ago, the initial payment to be lower and the income necessary to qualify also to be lower than a month ago,” acknowledged José Rozados, founder of Reporte Inmobiliario at Data Day 2 organized by the platform.
"The convergence of the different dollars compared to the official one is beginning to mean that more and more people can qualify , without even considering the increase that a person's income can have," added Rozados.
This is one of the points that banks pay particular attention to . “A variable that we look at all the time is the relationship between people’s salaries and the value of the square meter of the properties. Historically, we are not in the best moment, which is why not so many people can access credit ,” said Maximiliano Coll, deputy general manager of Banco Ciudad, at the Reporte Inmobiliario event.
According to data provided by the Real Estate College of the City of Buenos Aires, a slight increase in purchasing power is observed compared to the previous month: the average salary in pesos had an increase in July of 6.59% (last data collected) and measured in MEP dollars it had an increase of 11.09% .
According to data from Banco Ciudad, in CABA, “the city has the highest GDP in the country, 20% of families can access housing through a mortgage loan . Although it is a number that seems low, it used to be much lower and we see that the trend is improving,” said Coll.
What is the monthly payment and income required to purchase an apartment?
Most banks finance up to 75% of the total value of the property in pesos, provided that the initial payment does not exceed 25% of the applicant's income. The remaining 25% of the property value is paid in dollars as a down payment to be able to enter.How did the amount of money needed to access a loan vary from one month to the next depending on where the department was located?
A survey by Reporte Inmobiliario offers a clear picture of how much a person must pay in installments and the income required to purchase a used 43 m² apartment in different neighborhoods of Buenos Aires. Below is a comparison of the last two months based on calculations made taking into account an average rate of 5.8% for 30 years and 75% of the value of the home financed by the bank :1) Palermo
August:
- Price : US$2,427/m² (US$104,361). Amount to be borrowed from the bank : $100,969,268 (US$78,271). Down payment : $592,440. Income required : $2,369,760. Advance payment (the remaining 25%): US$26,090.
September:
- Price : US$2,558/m² (US$109,994). Amount to be borrowed from the bank : $95,694,780 (US$82,496). Down payment : $561,500. Income required : $2,246,000. Advance payment (the remaining 25%): US$27,499.
2) Recoleta
August:
- Price : US$2,371/m² (US$101,953). Amount to be borrowed from the bank : $98,639,528 (US$76,465). Down payment : $578,770. Income required : $2,315,080. Advance payment (the remaining 25%): US$25,488.
September:
- Price : US$2,212/m² (US$95,116). Amount to be borrowed from the bank : $82,750,920 (US$71,337). Down payment : $485,550. Income required : $1,942,200. Advance payment (the remaining 25%): US$23,779.
3) Belgrano
August:
- Price : US$2247/m² (US$96,621). Amount to be borrowed from the bank : $93,480,818 (US$72,466). Down payment : $548,502. Income required : $2,194,008. Advance payment (the remaining 25%): US$24,155.
September:
- Price : US$2283/m² (US$98,169). Amount to be borrowed from the bank : $85,407,030 (US$73,627). Down payment : $501,128. Income required : $2,004,512. Advance payment (the remaining 25%): US$24,542.
4) Villa Urquiza
August:
- Price : US$2100/m² (US$90,300). Amount to be borrowed from the bank : $87,365,250 (US$67,725). Down payment : $512,618. Income required: $2,050,472. Advance payment (the remaining 25%): US$22,575
September:
- Price : US$2309/m² (US$99,287). Amount to be borrowed from the bank : $86,379,690 (US$74,465). Down payment : $506,835. Income required : $2,027,340. Advance payment (the remaining 25%): US$24,822
5) Caballito
August:
- Price : US$1890/m² (US$81,270). Amount to be borrowed from the bank : $78,628,725 (US$60,953). Down payment : $461,356. Income required : $1,845,424. Advance payment (the remaining 25%): US$20,318
September
- Price : US$1929/m² (US$82,947). Amount to be borrowed from the bank : $72,163,890 (US$62,210). Down payment : $423,424. Income required : $1,693,696. Advance payment (the remaining 25%): US$20,737
6) Almagro
August
- Price : US$1,845/m² (US$79,335). Amount to be borrowed from the bank : $76,756,613 (US$59,501). Down payment : $450,372. Income required : $1,801,488 | advance payment (the remaining 25%): US$19,834.
September
- Price : US$1,736/m² (US$74,648). Amount to be borrowed from the bank : $64,943,760 (US$55,986). Down payment : $381,060. Income required : $1,524,240. Advance payment (the remaining 25%): US$18,662.
7) Villa Crespo
August:
- Price : US$1,844/m² (US$79,292). Amount to be borrowed from the bank : $76,715,010 (US$59,469). Down payment : $450,128. Income required : $1,800,512. Advance payment (the remaining 25%): US$19,823.
September:
- Price : US$2029/m² (US$87,247). Amount to be borrowed from the bank : $75,904,890 (US$65,435). Down payment : $445,374. Income required : $1,781,496. Advance payment (the remaining 25%): US$21,812.
8) Flores
August:
- Price : US$1,643/m² (US$70,649). Amount to be borrowed from the bank : $68,352,908 (US$52,987). Down payment : $401,063. Income required : $1,604,252. Advance payment (the remaining 25%): US$17,662.
September
- Price : US$1,634/m² (US$70,262). Amount to be borrowed from the bank : $61,127,940 (US$52,697). Down payment : $358,670. Income required : $1,434,680. Advance payment (the remaining 25%): US$17,556.
9) Balvanera
August:
- Price : US$1,344/m² (US$57,792). Amount to be borrowed from the bank : $55,913,760 (US$43,344). Down payment : $328,076. Income required : $1,312,304. Advance payment (the remaining 25%): US$14,448.
September:
- Price : US$1421/m² (US$61,103). Amount to be borrowed from the bank : $53,159,610 (US$45,827). Down payment : $311,915. Income required : $1,247,660. Advance payment (the remaining 25%): US$15,276
In the examples mentioned above, it can be clearly seen that, despite the fact that the square meter rose in almost all neighborhoods (while in others a slight decrease in the average was noted), the amount to be lent in pesos is lower and consequently both the advance payment and the value of the first installment are also lower . This allows more people with lower incomes to access a larger amount. Although it must be taken into account that, as the value of the properties in dollars rose, the 25% advance payment to be able to access the loan will also be higher than the previous month .
Depending on the neighborhood, you may find properties for rent at the same price or even more than the value of a mortgage payment.Daniel Basualdo
Pay the loan or continue renting?
“One of the reasons for this auspicious moment for the sector is that the initial mortgage payment in most locations in the country is very similar , or even in some cases lower, than the rent to be paid for the use of the home,” said José Rozados, founder of Reporte Inmobiliario , adding that “the comparable expense of rent for the purchase of the property appears to be a tangible and possible option for a significant number of inhabitants.”These figures show that the cost of accessing housing through a mortgage loan varies significantly between neighborhoods , and that, in many cases, the mortgage payment can be similar to rent . In concrete numbers, an average rent for a used two-room unit in CABA, according to the values published by Zonaprop, is the following :
- Palermo : $562,797
- Belgrano : $542,062
- Recoleta : $532,003
- Villa Urquiza : $522,375
- Villa Crespo : $515,010
- Almagro : $499,530
- Caballito: $496,159
- Balvanera : $458,087
- Flores : $441,168
The choice between buying and renting depends not only on the initial value of the installments, but also on other factors such as: job stability, the initial amount needed (from 20% to 35%, depending on the bank) and the long-term projection (20 or 30 years) of what you want to acquire as a home.
www.buysellba.com
