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The first stage of the money laundering process ends: its impact on the housing market and future expectations - Infobae
Source:
www.infobae.com
October 31, 2024
The real estate sector is registering a growth in demand for properties under construction. Developers hope that the incentive will keep investment in buildings active and that the new stages will support the recovery of activity.
By Jose Luis Cieri
A construction project underway on Santa Fe Avenue and Julián Álvarez, in Palermo
The money laundering process in Argentina, which allows unregistered funds to be declared under tax benefits, ends its first stage tomorrow, October 31. This phase allows cash deposits with a 5% penalty for amounts over USD 100,000 . So far, net deposits of more than USD 12 billion have been registered in the private sector . Starting in November, the fine will increase to 10%, according to current regulations.
In the real estate sector, developers with active construction projects expect that a large part of these funds will be channeled towards housing under construction, since the law allows avoiding fines by investing in projects with less than 50% progress as of July 8 .
Malí Vázquez , institutional director of the Chamber of Urban Developers (CEDU), highlighted that this initiative has led to a significant increase in inquiries about properties, especially for small one- and two-room units under construction. These units are seen as an attractive option for investors looking for developments with growth potential and rapid appreciation in value.”
e money laundering process offers a 0% rate for works with up to 50% progress, provided that the money is deposited by tomorrow. Subsequently, investors will have until December 30, 2025 to decide which development registered with the AFIP (now called the Agency for Tax Collection and Customs Control, ARCA ) they will invest in. This scheme has sparked great interest from both end users and investors, according to developers who are members of CEDU, who receive numerous queries daily.
The most sought-after locations included neighborhoods such as Palermo , Belgrano and Barrio Norte , which not only offer a great quality of life, but also solid profitability and potential for future appreciation.
“The possibility of acquiring properties at competitive prices, together with the advantage of regularizing the funds destined for their purchase, is boosting the real estate market,” Vázquez added.
According to Gastón Lentini , consultant and financial advisor, “money laundering and the stability of the real estate sector have made bricks and mortar a safe investment for Argentines. Currently, there are some USD 12 billion in funds available for investment and part of this money will go to the private housing sector.”
Lentini stressed the importance of money laundering and advised investing in the real estate sector instead of keeping dollars frozen, “since this implies a loss of purchasing power. The key will be to take advantage of the opportunities offered by the market, in a context that, despite the difficulties, continues to show signs of recovery.”
Osten Tower in Puerto Madero continues under construction in the youngest neighborhood of the city
The third stage, from February 1 to April 30, 2025, will apply a 15% rate. However, for works with a progress of up to 50%, the rate remains at zero, even for amounts exceeding 100,000 dollars.
Vázquez said that the money laundering process reactivates the real estate market and stimulates investment, generating thousands of direct and indirect jobs in the construction industry.
Alejandro Ginevra , from the GNV Group, explained that the money laundering with zero tax costs generated operations of between USD 200,000 and more than USD 1,000,000 , since “people understand that Puerto Madero always secures and enhances the investment.”
Businessmen in the sector agree that, although the adjustment and devaluation at the beginning of the year impacted construction costs - with increases that in some cases reached 100% - this increase has not yet been transferred to the sale price of homes.
“The Government has taken the right path; the repeal of the Rental Law, new mortgage loans and the Money Laundering Act are vital for our sector,” said the developer.
While private works advance, public works remain largely paralyzed, especially in projects dependent on the Nation such as Procrear .
“Banks should allocate financing lines to builders and developers, major promoters of economic expansion. The lack of private activity caused them to abandon these lines; now they must return to that direction in line with current policy,” concluded Ginevra.
www.buysellba.com
Source:
Finaliza la primera etapa del blanqueo: su impacto en el mercado de viviendas en pozo y las expectativas a futuro
El sector inmobiliario registra un crecimiento en la demanda de propiedades en construcción. Desarrolladores esperan que el incentivo mantenga activa la inversión en edificios y que las nuevas etapas sostengan la recuperación de la actividad
www.infobae.com
October 31, 2024
The real estate sector is registering a growth in demand for properties under construction. Developers hope that the incentive will keep investment in buildings active and that the new stages will support the recovery of activity.
By Jose Luis Cieri
A construction project underway on Santa Fe Avenue and Julián Álvarez, in Palermo
The money laundering process in Argentina, which allows unregistered funds to be declared under tax benefits, ends its first stage tomorrow, October 31. This phase allows cash deposits with a 5% penalty for amounts over USD 100,000 . So far, net deposits of more than USD 12 billion have been registered in the private sector . Starting in November, the fine will increase to 10%, according to current regulations.
In the real estate sector, developers with active construction projects expect that a large part of these funds will be channeled towards housing under construction, since the law allows avoiding fines by investing in projects with less than 50% progress as of July 8 .
Malí Vázquez , institutional director of the Chamber of Urban Developers (CEDU), highlighted that this initiative has led to a significant increase in inquiries about properties, especially for small one- and two-room units under construction. These units are seen as an attractive option for investors looking for developments with growth potential and rapid appreciation in value.”
e money laundering process offers a 0% rate for works with up to 50% progress, provided that the money is deposited by tomorrow. Subsequently, investors will have until December 30, 2025 to decide which development registered with the AFIP (now called the Agency for Tax Collection and Customs Control, ARCA ) they will invest in. This scheme has sparked great interest from both end users and investors, according to developers who are members of CEDU, who receive numerous queries daily.
The most sought-after locations included neighborhoods such as Palermo , Belgrano and Barrio Norte , which not only offer a great quality of life, but also solid profitability and potential for future appreciation.
“The possibility of acquiring properties at competitive prices, together with the advantage of regularizing the funds destined for their purchase, is boosting the real estate market,” Vázquez added.
Advantages
Following low levels of activity in the construction sector during the pandemic, 2024 will see a significant recovery across the entire value chain, from logistics to maintenance personnel.According to Gastón Lentini , consultant and financial advisor, “money laundering and the stability of the real estate sector have made bricks and mortar a safe investment for Argentines. Currently, there are some USD 12 billion in funds available for investment and part of this money will go to the private housing sector.”
Lentini stressed the importance of money laundering and advised investing in the real estate sector instead of keeping dollars frozen, “since this implies a loss of purchasing power. The key will be to take advantage of the opportunities offered by the market, in a context that, despite the difficulties, continues to show signs of recovery.”
How will it continue?
Starting on November 1, the second stage of the money laundering process will begin, which will run until January 31, 2025, with a 10% rate for those who regularize their funds.
Osten Tower in Puerto Madero continues under construction in the youngest neighborhood of the city
The third stage, from February 1 to April 30, 2025, will apply a 15% rate. However, for works with a progress of up to 50%, the rate remains at zero, even for amounts exceeding 100,000 dollars.
Vázquez said that the money laundering process reactivates the real estate market and stimulates investment, generating thousands of direct and indirect jobs in the construction industry.
For the works
Developers estimate that the greatest interest in homes under construction comes from the demand for two and three-room apartments, as well as larger units in large developments, especially in Puerto Madero .Alejandro Ginevra , from the GNV Group, explained that the money laundering with zero tax costs generated operations of between USD 200,000 and more than USD 1,000,000 , since “people understand that Puerto Madero always secures and enhances the investment.”
Businessmen in the sector agree that, although the adjustment and devaluation at the beginning of the year impacted construction costs - with increases that in some cases reached 100% - this increase has not yet been transferred to the sale price of homes.
“The Government has taken the right path; the repeal of the Rental Law, new mortgage loans and the Money Laundering Act are vital for our sector,” said the developer.
While private works advance, public works remain largely paralyzed, especially in projects dependent on the Nation such as Procrear .
“Banks should allocate financing lines to builders and developers, major promoters of economic expansion. The lack of private activity caused them to abandon these lines; now they must return to that direction in line with current policy,” concluded Ginevra.
www.buysellba.com
