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Properties: what the three political forces propose for the future of the real estate market - La Nación
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www.lanacion.com.ar
September 08, 2023
The proposals of candidates, former officials and legislators about ways to address the housing deficit.
By Mercedes Soriano
Manuel Socías (Frente de Todos), Iván Kerr (Juntos por el Cambio) and Ramiro Marra (La Libertad Avanza)
The presidential elections are approaching and the campaigns do not leave housing policies aside. The candidates and representatives of political parties shared their diagnosis of the real estate market and the proposals they are evaluating to reverse the housing crisis in an event held by Reporte Inmobiliario.
To reverse this scenario, he established a series of guidelines that, from his point of view, should be carried out in the country.
1. Repeal the rental law. "I believe that in a market in which there are plenty of suppliers and demanders, the State, instead of putting its foot down and being the arbitrator, has to come out and say how to generate social rent to help those who do not receive rent and let the market generate the conditions themselves,” he said at the event. Along these lines, he pointed out based on his experience that in popular neighborhoods the current law does not work: “No one rents there under the rental law. Where you want more protection there is no protection, but the owner of all the properties comes and if you don't pay, he takes you out without an eviction trial."
2. Make a territorial planning agreement with the country's large urban conglomerates. “Argentina grows very poorly due to poor planning and then it is very expensive to carry out that infrastructure,” he summarized and maintained that they propose agreements to grow. From his vision, the focus has to be on the cities. He explained that the Procrear plan, which proposes as a solution to build a house on one's own land, is unviable "because there are not even lands with property titles to give a mortgage" and that instead the State "would have to promote greater density in the cities."
3. Redirect the role of the State. “We believe that the role of the State is to subsidize demand and encourage supply, not what is done today, which is to subsidize supply through contracting public works to build homes,” Kerr said.
Manuel Socías (Frente de Todos), Iván Kerr (Together for Change) and Ramiro Marra (La Libertad Avanza) at the event held at MALBA
4. Recover the mortgage loan. In line with the representatives of the other parties, Kerr defined that until macroeconomic stability is achieved, there will be no mortgage credit.
In that sense, he said that when the scenario is more viable, the party will work on mortgages on future assets - which work in Peru - or mortgages with a registrable promise of sales, which is largely how much of the real estate developments in Peru are financed. Uruguay. “Until a real estate project is subdivided and deeded, a mortgage loan cannot be granted and that increases the value of the property. If this development is from a well and could be mortgaged from the promise of sales, the financing could come from the well and would make the final cost of the home much cheaper,” he said.
He also raised the need to digitize mortgages: “Work to ensure that all signatures are digital, where the link is made directly through biometric data, where there is no longer a public deed that goes to a registry, that is saved and that All of this increases the cost of access to housing.”
5. What to do with the lowest-income sector. Taking into account that 60% of the housing deficit has less than two minimum vital and mobile wages and that surveys indicate that the housing problem in this segment is more qualitative than quantitative - as he noted -, he proposed “developing microcredit tools for the improvement of housing, for connection to infrastructure, drinking water, sewage, gas, etc.”
6. What to do with FONAVI. This is the fuel tax that finances the housing policy. “In fact, it goes directly to the provinces for the current spending of the province and they do not use it for housing policy. Instead, it should be used as a tool to leverage financing, which is what the real estate sector needs most,” he said.
7. UVA mortgage loan. The senators met in a plenary session of commissions to try to modify the conditions of mortgage loans indexed to UVA, which currently have around 95,000 debtors in the country. He defended this initiative and spoke of the creation of a compensation fund. “The current Government says that UVA credits are a scam but what is a scam is inflation, which is what needs to be solved. The one who bought a UVA mortgage loan complains because his payment was adjusted much more than his salary was adjusted. However, he did not lose because before he was not an owner. The rents were adjusted above inflation, meaning that if he had rented he would have paid more than what he paid for his rent. What we propose in our bill is to create a Compensation Fund where the user pays adjusted for salary, but that
the bank perceives inflation,” he explained.
The candidates agreed that the real estate market is going through a state of crisisAlejandro Guyot
On the one hand, he proposed the reform of the State to promote the generation of business in the private sphere. In that sense, he believed that in the country social promotions are frowned upon, such as earning money or living in a private neighborhood or a tower. Then, he focused on generating the necessary supply driven by private investment to capture the demand of those who naturally ascend socially. “We promote all types of developments from the private sector. We understand that there are certain sectors that sometimes need a certain containment to be able to access their first home, but we also need to generate greater supply, that we should not chase real estate developers, nor should we put ourselves in a derogatory position because they want to win. silver,” he said. In short, he stated that “Everyone is free to live wherever they want if they have the capital to access it.”
For his part, he defined that the difficulty of investing today in Argentina is related to the framework of uncertainty and not to a lack of funds.
In addition, he proposed a labor reform to access credit from formal and informal sectors and on the other hand a monetary and financial reform, which implies the dollarization of the economy.
Marra's vision is aimed at developing subsidies for demand and putting the State in a facilitating role.
Under that line of thought, the candidate wants to repeal the rental law. With the paradigm of “fewer laws and more markets” as North, he encouraged that the rental market be regulated again between the parties.
Furthermore, its vision is aimed at developing subsidies for demand and putting the State in a facilitating role.
For Manuel Socías, legislator of the City of Buenos Aires for the Frente de Todos, the economic philosophy of the ruling party follows a vision of “expanded stabilization.”
In relation to the diagnosis of the real estate market, he considered that “the housing situation in Argentina is critical”, although he assumed responsibility for the party in this regard: “The Peronist view of the housing environment based on the public production of housing to be delivered in Property obviously has no scale, capillarity or speed and fiscally it is very very inefficient.”
However, he pointed out against encouraging the private real estate construction market. In his opinion, it does not help to reverse the housing deficit because “it produces investment options so that high-income sectors find in real estate investment a way to dollarize or preserve the value of their savings.”
This focus is complemented by a vision of the State as a provider in terms of housing production. “The State is the one that has to guarantee the right to housing by arbitrating policies, aligning resources and incentives so that the sector can effectively produce housing and not financial instruments to cover risk. Based on the responsibility of the State, the private sector can do business but make it socially useful business that helps reverse the housing problem,” he summarized.
Socías recognized the lack of effectiveness in the ruling party to solve the housing problem.
For Socías, the main housing problem in Argentina is the rental market, although she discredits the fact that it is because of the law that Congress repeatedly discussed modifying. “We have between 8 and 10 million people who are tenants in a market that has collapsed, not as a result of the law but as a result of macroeconomic instability, inflation and most likely due to the exchange gap, because the profitability for a rental owner measured in parallel dollars today it is at the historical floor,” he said. Along those lines, he pointed out that all incentives are aligned for the owner to return to the rental market.
The legislator admitted that the rental problem is one that “our Government did not address” despite having a ministry dedicated to housing and habitat, and in response he put on the table what for him could reestablish the market.
Specifically, his proposal to reverse the situation is based on the fact that “a regulatory framework is no longer enough but we must move towards a stabilization fund.” A strong investment must be made by the State that advances to a segment of the owners the net present value of the rental contract and the fund collects it from the tenants in 36 consecutive installments, with the update that is below inflation, which "resolves the owner's exposure to inflation and resolves the tenant's exposure to updates that are above their income variation," he proposed.
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Propiedades: lo que proponen las tres fuerzas políticas para el futuro del mercado inmobiliario
Las propuestas de candidatos, ex funcionarios y legisladores acerca de las formas de abordar el déficit habitacional
www.lanacion.com.ar
September 08, 2023
The proposals of candidates, former officials and legislators about ways to address the housing deficit.
By Mercedes Soriano
Manuel Socías (Frente de Todos), Iván Kerr (Juntos por el Cambio) and Ramiro Marra (La Libertad Avanza)
The presidential elections are approaching and the campaigns do not leave housing policies aside. The candidates and representatives of political parties shared their diagnosis of the real estate market and the proposals they are evaluating to reverse the housing crisis in an event held by Reporte Inmobiliario.
Together for Change
Ivan Kerr, former Secretary of Housing of the Nation of Together for Change, classified the state of the real estate market as “catastrophic. ” He shared that the housing deficit has been growing continuously since the 1980s but that in recent decades it has gone through a paradigm shift: it went from being a quantitative to a qualitative problem, that is, the need for new housing that improves the existing one prevails. “Today two-thirds of the population needs an improvement in existing conditions more than a new home. Public policy is very focused on the fact that the State is the one that does everything and does not incorporate the private sector as part of the solution,” he said.To reverse this scenario, he established a series of guidelines that, from his point of view, should be carried out in the country.
1. Repeal the rental law. "I believe that in a market in which there are plenty of suppliers and demanders, the State, instead of putting its foot down and being the arbitrator, has to come out and say how to generate social rent to help those who do not receive rent and let the market generate the conditions themselves,” he said at the event. Along these lines, he pointed out based on his experience that in popular neighborhoods the current law does not work: “No one rents there under the rental law. Where you want more protection there is no protection, but the owner of all the properties comes and if you don't pay, he takes you out without an eviction trial."
2. Make a territorial planning agreement with the country's large urban conglomerates. “Argentina grows very poorly due to poor planning and then it is very expensive to carry out that infrastructure,” he summarized and maintained that they propose agreements to grow. From his vision, the focus has to be on the cities. He explained that the Procrear plan, which proposes as a solution to build a house on one's own land, is unviable "because there are not even lands with property titles to give a mortgage" and that instead the State "would have to promote greater density in the cities."
3. Redirect the role of the State. “We believe that the role of the State is to subsidize demand and encourage supply, not what is done today, which is to subsidize supply through contracting public works to build homes,” Kerr said.
Manuel Socías (Frente de Todos), Iván Kerr (Together for Change) and Ramiro Marra (La Libertad Avanza) at the event held at MALBA
4. Recover the mortgage loan. In line with the representatives of the other parties, Kerr defined that until macroeconomic stability is achieved, there will be no mortgage credit.
In that sense, he said that when the scenario is more viable, the party will work on mortgages on future assets - which work in Peru - or mortgages with a registrable promise of sales, which is largely how much of the real estate developments in Peru are financed. Uruguay. “Until a real estate project is subdivided and deeded, a mortgage loan cannot be granted and that increases the value of the property. If this development is from a well and could be mortgaged from the promise of sales, the financing could come from the well and would make the final cost of the home much cheaper,” he said.
He also raised the need to digitize mortgages: “Work to ensure that all signatures are digital, where the link is made directly through biometric data, where there is no longer a public deed that goes to a registry, that is saved and that All of this increases the cost of access to housing.”
5. What to do with the lowest-income sector. Taking into account that 60% of the housing deficit has less than two minimum vital and mobile wages and that surveys indicate that the housing problem in this segment is more qualitative than quantitative - as he noted -, he proposed “developing microcredit tools for the improvement of housing, for connection to infrastructure, drinking water, sewage, gas, etc.”
6. What to do with FONAVI. This is the fuel tax that finances the housing policy. “In fact, it goes directly to the provinces for the current spending of the province and they do not use it for housing policy. Instead, it should be used as a tool to leverage financing, which is what the real estate sector needs most,” he said.
7. UVA mortgage loan. The senators met in a plenary session of commissions to try to modify the conditions of mortgage loans indexed to UVA, which currently have around 95,000 debtors in the country. He defended this initiative and spoke of the creation of a compensation fund. “The current Government says that UVA credits are a scam but what is a scam is inflation, which is what needs to be solved. The one who bought a UVA mortgage loan complains because his payment was adjusted much more than his salary was adjusted. However, he did not lose because before he was not an owner. The rents were adjusted above inflation, meaning that if he had rented he would have paid more than what he paid for his rent. What we propose in our bill is to create a Compensation Fund where the user pays adjusted for salary, but that
the bank perceives inflation,” he explained.
The candidates agreed that the real estate market is going through a state of crisisAlejandro Guyot
Freedom Advances
In the case of Ramiro Marra, candidate for Head of Government of Buenos Aires for La Libertad Avanza, his proposals are governed by three main reforms:On the one hand, he proposed the reform of the State to promote the generation of business in the private sphere. In that sense, he believed that in the country social promotions are frowned upon, such as earning money or living in a private neighborhood or a tower. Then, he focused on generating the necessary supply driven by private investment to capture the demand of those who naturally ascend socially. “We promote all types of developments from the private sector. We understand that there are certain sectors that sometimes need a certain containment to be able to access their first home, but we also need to generate greater supply, that we should not chase real estate developers, nor should we put ourselves in a derogatory position because they want to win. silver,” he said. In short, he stated that “Everyone is free to live wherever they want if they have the capital to access it.”
For his part, he defined that the difficulty of investing today in Argentina is related to the framework of uncertainty and not to a lack of funds.
In addition, he proposed a labor reform to access credit from formal and informal sectors and on the other hand a monetary and financial reform, which implies the dollarization of the economy.
Marra's vision is aimed at developing subsidies for demand and putting the State in a facilitating role.
Under that line of thought, the candidate wants to repeal the rental law. With the paradigm of “fewer laws and more markets” as North, he encouraged that the rental market be regulated again between the parties.
Furthermore, its vision is aimed at developing subsidies for demand and putting the State in a facilitating role.
Front of All
For Manuel Socías, legislator of the City of Buenos Aires for the Frente de Todos, the economic philosophy of the ruling party follows a vision of “expanded stabilization.”
In relation to the diagnosis of the real estate market, he considered that “the housing situation in Argentina is critical”, although he assumed responsibility for the party in this regard: “The Peronist view of the housing environment based on the public production of housing to be delivered in Property obviously has no scale, capillarity or speed and fiscally it is very very inefficient.”
However, he pointed out against encouraging the private real estate construction market. In his opinion, it does not help to reverse the housing deficit because “it produces investment options so that high-income sectors find in real estate investment a way to dollarize or preserve the value of their savings.”
This focus is complemented by a vision of the State as a provider in terms of housing production. “The State is the one that has to guarantee the right to housing by arbitrating policies, aligning resources and incentives so that the sector can effectively produce housing and not financial instruments to cover risk. Based on the responsibility of the State, the private sector can do business but make it socially useful business that helps reverse the housing problem,” he summarized.
Socías recognized the lack of effectiveness in the ruling party to solve the housing problem.
For Socías, the main housing problem in Argentina is the rental market, although she discredits the fact that it is because of the law that Congress repeatedly discussed modifying. “We have between 8 and 10 million people who are tenants in a market that has collapsed, not as a result of the law but as a result of macroeconomic instability, inflation and most likely due to the exchange gap, because the profitability for a rental owner measured in parallel dollars today it is at the historical floor,” he said. Along those lines, he pointed out that all incentives are aligned for the owner to return to the rental market.
The legislator admitted that the rental problem is one that “our Government did not address” despite having a ministry dedicated to housing and habitat, and in response he put on the table what for him could reestablish the market.
Specifically, his proposal to reverse the situation is based on the fact that “a regulatory framework is no longer enough but we must move towards a stabilization fund.” A strong investment must be made by the State that advances to a segment of the owners the net present value of the rental contract and the fund collects it from the tenants in 36 consecutive installments, with the update that is below inflation, which "resolves the owner's exposure to inflation and resolves the tenant's exposure to updates that are above their income variation," he proposed.
www.buysellba.com
