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Rent or take out a UVA mortgage loan?: neighborhood by neighborhood, how much each option costs in CABA - Infobae
Source:
www.infobae.com
September 25, 2024
A private report revealed the initial installments of a loan and their comparison with a monthly rent in nine areas of Buenos Aires
By Jose Luis Cieri
The number of real estate transactions through new mortgage loans is gradually increasing (Illustrative Image Infobae)
A recent private analysis confirmed that the reactivation of the mortgage loan market presents an economic alternative to the traditional rental of properties in the city of Buenos Aires. Starting in May, more than 20 banks began to offer UVA-adjusted loans, encouraging a rebound in the real estate sector.
According to data from the Argentine Banking Association (Adeba) , there is a “clear and forceful” recovery of bank credit to the private sector, as reported by Infobae : between May and August, $10.942 billion pesos were placed in real terms, which is equivalent to a real growth of 46% in those 4 months. Of that total, loans for the purchase of homes grew by 6% in real terms in that period.
A report by Reporte Inmobiliario highlighted that, although the monthly amounts between renting and paying a UVA mortgage loan are similar, the main difference is in the advance payment , which is usually 25% of the value of the property. In addition, the monthly income needed to buy a property is higher than that required to rent it.
Regarding the return of mortgage loans, José Rozados , from that consultancy, said that “with the new macroeconomic model and the restrictions on financing to the State that dominated in the last four years, banks now have the opportunity and need to redirect their funds to long-term and low-risk lines for the financial system. This coincides with a great demand for housing by people who could not access the purchase. With the opening of this avenue, many see the purchase of a property as a more viable option instead of continuing to pay rent.”
The equivalence or even the inferiority of initial mortgage payments compared to rents is becoming a crucial incentive for people to decide to buy homes.
Palermo Price: USD 2,427 per m2 (USD 104,361). Amount to be loaned: $100,969,268. Initial payment : $592,440. Required income: $2,369,760. Advance payment: USD 26,090.
· Recoleta Price: USD 2,371 per m2 (USD 101,953). Amount to be loaned: $98,639,528. Initial payment: $578,770. Necessary income: $2,315,080. Advance payment: USD 25,488.
· Belgrano Price: USD 2,247 per m2 (USD 96,621). Amount to be loaned: $93,480,818. Initial payment: $548,502. Necessary income: $2,194,008. Advance payment: USD 24,155.
· Villa Urquiza Price: USD 2,100 per m2 (USD 90,300). Amount to be loaned: $87,365,250 Initial payment: $512,618. Necessary income: $2,050,472 Advance payment: USD 22,575.
· Caballito Price: USD 1,890 per m2 (USD 81,270) Amount to be loaned: $78,628,725. Initial payment: $461,356. Necessary income: $1,845,424. Advance payment: USD 20,318.
Almagro Price: USD 1,845 per m2 (USD 79,335). Amount to be loaned: $76,756,613. Initial payment: $ 450,372 . Necessary income: $1,801,488. Advance payment: USD 19,834.
· Villa Crespo Price: USD 1,844 per m2 (USD 79,292). Amount to be loaned: $76,715,010. Initial payment: $450,128. Necessary income: $1,800,512. Advance payment: USD 19,823.
· Floress Price: USD 1,643 per m2 (USD 70,649). Amount to be loaned: $68,352,908. Initial payment: $401,063. Necessary income: $1,604,252. Advance payment: USD 17,662.
· Balvanera Price: USD 1,344 per m2 (USD 57,792). Amount to be loaned: $55,913,760. Initial payment: $328,076. Necessary income: $1,312,304. Advance payment: USD 14,448.
· Palermo : $525,455.
· Recoleta : $548,180.
· Belgrano : $620,000.
· Villa Urquiza : $499,165.
· Caballito : $445,715.
· Almagro : $372,500.
· Villa Crespo : $491,250.
· Flores : $406,665.
· Balvanera : $376,250.
The profiles of people who could qualify for these new mortgage loans vary depending on their ability to demonstrate income, which must start at approximately $1,000,000 depending on the area and type of property.
“Taking advantage of current rates, long terms and the possibility of adding family income can be a significant advantage,” said Rozados.
For those considering the transition from renting to homeownership in the current climate, it is critical to conduct a measured analysis of the percentage of income that will be allocated to the mortgage and understand that it will not be reduced by inflation.
Rozados advised: “It is necessary to evaluate the long-term income projection, ensuring that one can meet a monthly payment that will increase as long as inflation is not controlled. Prudence and financial responsibility are key.”
www.buysellba.com
Source:
¿Alquilar o sacar un crédito hipotecario UVA?: barrio por barrio, cuánto cuesta cada opción en CABA
Un informe privado reveló cuáles son las cuotas iniciales de un préstamo y su comparación con un alquiler mensual en nueve zonas porteñas
www.infobae.com
September 25, 2024
A private report revealed the initial installments of a loan and their comparison with a monthly rent in nine areas of Buenos Aires
By Jose Luis Cieri
The number of real estate transactions through new mortgage loans is gradually increasing (Illustrative Image Infobae)
A recent private analysis confirmed that the reactivation of the mortgage loan market presents an economic alternative to the traditional rental of properties in the city of Buenos Aires. Starting in May, more than 20 banks began to offer UVA-adjusted loans, encouraging a rebound in the real estate sector.
According to data from the Argentine Banking Association (Adeba) , there is a “clear and forceful” recovery of bank credit to the private sector, as reported by Infobae : between May and August, $10.942 billion pesos were placed in real terms, which is equivalent to a real growth of 46% in those 4 months. Of that total, loans for the purchase of homes grew by 6% in real terms in that period.
A report by Reporte Inmobiliario highlighted that, although the monthly amounts between renting and paying a UVA mortgage loan are similar, the main difference is in the advance payment , which is usually 25% of the value of the property. In addition, the monthly income needed to buy a property is higher than that required to rent it.
Regarding the return of mortgage loans, José Rozados , from that consultancy, said that “with the new macroeconomic model and the restrictions on financing to the State that dominated in the last four years, banks now have the opportunity and need to redirect their funds to long-term and low-risk lines for the financial system. This coincides with a great demand for housing by people who could not access the purchase. With the opening of this avenue, many see the purchase of a property as a more viable option instead of continuing to pay rent.”
The equivalence or even the inferiority of initial mortgage payments compared to rents is becoming a crucial incentive for people to decide to buy homes.
How much does the UVA credit fee cost?
In the case of acquiring a used 43-square-meter apartment in different neighborhoods of Buenos Aires, the installment of a UVA loan with an average rate of 5.8%, a term of 30 years and with 75% of the value of the home financed by the bank, will be the following according to Real Estate Report:Palermo Price: USD 2,427 per m2 (USD 104,361). Amount to be loaned: $100,969,268. Initial payment : $592,440. Required income: $2,369,760. Advance payment: USD 26,090.
· Recoleta Price: USD 2,371 per m2 (USD 101,953). Amount to be loaned: $98,639,528. Initial payment: $578,770. Necessary income: $2,315,080. Advance payment: USD 25,488.
· Belgrano Price: USD 2,247 per m2 (USD 96,621). Amount to be loaned: $93,480,818. Initial payment: $548,502. Necessary income: $2,194,008. Advance payment: USD 24,155.
· Villa Urquiza Price: USD 2,100 per m2 (USD 90,300). Amount to be loaned: $87,365,250 Initial payment: $512,618. Necessary income: $2,050,472 Advance payment: USD 22,575.
· Caballito Price: USD 1,890 per m2 (USD 81,270) Amount to be loaned: $78,628,725. Initial payment: $461,356. Necessary income: $1,845,424. Advance payment: USD 20,318.
Almagro Price: USD 1,845 per m2 (USD 79,335). Amount to be loaned: $76,756,613. Initial payment: $ 450,372 . Necessary income: $1,801,488. Advance payment: USD 19,834.
· Villa Crespo Price: USD 1,844 per m2 (USD 79,292). Amount to be loaned: $76,715,010. Initial payment: $450,128. Necessary income: $1,800,512. Advance payment: USD 19,823.
· Floress Price: USD 1,643 per m2 (USD 70,649). Amount to be loaned: $68,352,908. Initial payment: $401,063. Necessary income: $1,604,252. Advance payment: USD 17,662.
· Balvanera Price: USD 1,344 per m2 (USD 57,792). Amount to be loaned: $55,913,760. Initial payment: $328,076. Necessary income: $1,312,304. Advance payment: USD 14,448.
How much does it cost to rent
When comparing the initial costs of mortgage loans with average rents in CABA, in many cases the initial loan payment is lower than the rent. Here are the rental values:· Palermo : $525,455.
· Recoleta : $548,180.
· Belgrano : $620,000.
· Villa Urquiza : $499,165.
· Caballito : $445,715.
· Almagro : $372,500.
· Villa Crespo : $491,250.
· Flores : $406,665.
· Balvanera : $376,250.
The profiles of people who could qualify for these new mortgage loans vary depending on their ability to demonstrate income, which must start at approximately $1,000,000 depending on the area and type of property.
“Taking advantage of current rates, long terms and the possibility of adding family income can be a significant advantage,” said Rozados.
For those considering the transition from renting to homeownership in the current climate, it is critical to conduct a measured analysis of the percentage of income that will be allocated to the mortgage and understand that it will not be reduced by inflation.
Rozados advised: “It is necessary to evaluate the long-term income projection, ensuring that one can meet a monthly payment that will increase as long as inflation is not controlled. Prudence and financial responsibility are key.”
www.buysellba.com
