Real Estate News The new government: Housing is once again the Secretariat and will be led by a well-known person in the sector - Infobae

[BuySellBA]

The new government: Housing is once again the Secretariat and will be led by a well-known person in the sector​

December 10, 2023

Iván Kerr, who already held the position during the Government of Mauricio Macri, will report to the Minister of Infrastructure, Guillermo Ferraro

By Jose Luis Cieri

Representative scene of buying, renting, renting, house, apartment, home. Housing is in deficit and measures must be taken to find solutions (Illustrative image Infobae)

President-elect Javier Milei, just 24 hours after his assumption of the national administration, confirmed who will finally be in charge of the Ministry of Housing and Habitat of the Nation: Iván Kerr, who already held that position in the Government of Mauricio Macri between 2015 and 2019, he will thus return to public service.

There were other names in the pipeline days before and the resolution came around this time, although there was a lot of secrecy in the libertarian scheme until defining who will lead this area from Monday onwards.

Kerr is an expert and had worked on the same topic for 8 previous years in the City Government, with Macri first and with Horacio Rodríguez Larreta later. He is 47 years old, he is a lawyer graduated from the University of Buenos Aires, with a Master's Degree in Business Law from the Universidad Austral.

The next Secretary of Housing has extensive experience in the public sphere. Between 2011 and 2014 he held the position of general manager of the Housing Institute of the City of Buenos Aires and was a member of its Board of Directors in the period 2014-2015. In addition to his work in the field of housing, Kerr was part of the Pensar Foundation, of the PRO, and served as an elected deputy for the City of Buenos Aires in 2013 and 2015.

Iván Kerr, together with Rogelio Frigerio at a meeting with beneficiaries of houses during the presidency of Mauricio Macri when the now governor of Entre Ríos led the Ministry of the Interior, Public Works and Housing

His recent work had him as coordinator of the Housing and Habitat Plan at the Pensar Foundation starting in 2020. He also assumed the role of titular trustee of Autopistas Urbanas SA (AUSA) since 2022. And he had served as an independent consultant for Estudio Sambrizzi , thus consolidating its presence and contribution in various areas.

The continuity of the Procrear plan is assured, but it will be carried out with a different approach: it will not depend exclusively on state financing. The intention is to incorporate the participation of the private sector, thus seeking to diversify investment sources and promote job creation.

He is a Housing expert and has written about construction and the rental market , one of the problems that the incoming Government will have to face, due to the crisis in the rental market, characterized by a shortage of units on offer and high prices. rental costs.

Credits​

One of its lines of action would be to achieve the recovery of mortgage credit, with incentives for demand and construction. Regarding credit, he thinks that in a context of two- or three-digit inflation there is no viable option. To implement it, he emphasized, it is essential to resolve the macroeconomy and move towards a policy of subsidizing demand, following the model of other countries where projects such as Procrear are executed by the private sector instead of the State.

Iván Kerr, chaired the Procrear program until 2019

The proposed approach implies a change from a construction State towards encouraging private participation in the housing solution, with the essential condition of establishing an orderly macroeconomy so that these instruments are effective in generating market, confidence and stability.

Who will it depend on?​

The Housing and Habitat Secretariat will depend on the Ministry of Infrastructure, which will be headed by Guillermo Ferraro (until recently it was considered that it could belong to Human Capital or the Ministry of Economy directly).

Kerr takes on a significant challenge at the helm of this body. His vision highlights the need to change the mentality of officials at the national and provincial levels, promoting going beyond the standardized construction of state-financed housing in urban peripheries. He advocates instead the inclusion of the private sector in housing projects in existing cities and neighborhoods, in a more comprehensive and sustainable perspective.

The former and future Secretary of Housing proposes a transition towards demand subsidy policies, similar to those adopted in other countries and in generating a change towards more inclusive and collaborative housing solutions.

There are currently 17,000 units underway in the Procrear Urban Developments

In his previous management and also when he was president of Procrear, more than 40,000 units were built in different parts of the country in addition to promoting Urban Developments where turnkey houses are delivered ready to live in.

The inclusion of the rental issue becomes an integral part of the solution for housing policy. This approach is part of a work plan that has already been developed and was presented to Federico Sturzenegger (another who returns to public office now with the help of libertarian leader Javier Milei), including a variety of projects developed in recent times.


www.buysellba.com

 

[StatusNomadicus]

allowing mortgages will cause a huge increase in housing demand, so prices HAVE to go up a ton. but if there's a global economic crash, who knows how the combined effects will stack-up

 

[Betsy Ross]

allowing mortgages will cause a huge increase in housing demand, so prices HAVE to go up a ton. but if there's a global economic crash, who knows how the combined effects will stack-up

There were a small % of mortgages before. I'm not sure this will work but ANY % increase in mortgages will cause prices to go up. Honestly, looking at how much prices fell, I don't see ANY risk of people buying at today's prices. All my friends that own nice apartments in great areas of Buenos Aires switched from long-term rentals to short-term rentals into Airbnb. They have been full the past many months and some of them are making more in a few months then they were the entire year renting long-term in pesos. Now they are making USD and they are never going back to long-term peso rents again.

Prices are going to go UP. I am thinking about self-directing my IRA so I can take some funds and buy an apartment in Buenos Aires. I already own the one I live in but I want to buy one to rent out on Airbnb. But tapping my retirement savings is the only way I can realistically afford it.

 

[Canada Goose]

allowing mortgages will cause a huge increase in housing demand, so prices HAVE to go up a ton. but if there's a global economic crash, who knows how the combined effects will stack-up

Yes I also believe this to be the case. Even if there is a global economic crash, in other countries everyone is up to their eyeballs in debt. Here in Argentina there is no one up to their eyeballs in debt. There is not really credit here. Everyone owns their property outright that isn't renting. Look at the statistics and you will see most people own their homes outright. Lots renting but majority own.

And I don't see anything else SAFE to invest in that the masses in Argentina are investing in. I don't see people investing in stock market here like USA and Canada. A very very tiny % of the public is investing in crypto in Argentina. It is all land and real estate. It looks like over the long haul here like many countries it has been a safe play.

I am cashing out and decided to sell my apartment in Canada and buying a place in Buenos Aires. Actually 2 of them. One to live in and one to rent out and live on the cash flow.

 

[StatusNomadicus]

smart @Canada Goose - i don't know how people can think that the housing market isn't at the peak of bubble-popping. and the stock market for sure has already started correcting. it's going to be a messy 2024. if you like data analysis, Patrick Bet-David's podcast Valuetainment or "PBD Podcast" offers a lot of good statistics:

https://www.tiktok.com/video/7303261217039109419

any certainty on where you're going to live? i still have 3 weeks of research to do, to get my steps in here and see all the areas. for a baseline, like i told earlyretirement, Independencia / San Jose is NOT a good place to live https://maps.app.goo.gl/fC7VenTrQRkXvk1eA

 

[earlyretirement]

Yep I totally agree. I've been posting about how I see a recession in 2024 or 2025. I have big investors buying commercial for 40 cents on the dollar of already super discounted prices. I'd have to believe that commercial crash in the USA is going to cause contagion in other areas. Most commercial that is resetting ARM's (adjustable rate mortgages) the people don't have the money to bring to the table once rates reset and it's a race to the exits. I already see it happening in all areas.

 

[Canada Goose]

smart @Canada Goose - i don't know how people can think that the housing market isn't at the peak of bubble-popping. and the stock market for sure has already started correcting. it's going to be a messy 2024. if you like data analysis, Patrick Bet-David's podcast Valuetainment or "PBD Podcast" offers a lot of good statistics:

https://www.tiktok.com/video/7303261217039109419

any certainty on where you're going to live? i still have 3 weeks of research to do, to get my steps in here and see all the areas. for a baseline, like i told earlyretirement, Independencia / San Jose is NOT a good place to live https://maps.app.goo.gl/fC7VenTrQRkXvk1eA

Great Tik Tok! I agree about bubble in housing. Too frothy. I think it would be crazy not to sell now. I just listed my apartment in a pocket listing in Vancouver with my realtor friend and I already have 3 offers at over asking price. I am not in Canada to deal with it and have to rush home. I wanted to stay here longer but I need to get home now to prepare. I had not expected to sell it so soon but my trip to Buenos Aires has expedited things quite a bit. I already know I want to buy at least one and probably 2 apartments. I did a consultation with @BuySellBA last week and that told me everything I needed to know. I will retain them to purchase the property and they will take me through closing even if I'm not here to close in person.

I am going to buy in the new Meet Palermo building that is mentioned in this thread. I visited the building and I really like the area. It is quiet and feels residential and not too touristy. I do NOT want to be in a crazy touristy area like Soho. It was also very clean around that area and I like the proximity to public transport and also the shopping mall and also a University are a few blocks away and a big Coto grocery store at the end of the block. That has been a recipe for success for me in other areas.

I need to sell my apartment first to buy another unit but I didn't want to commit to another property until I sign the paperwork to close on my apartment. Then I think I will try to buy in the same building so I can just self manage it while I'm living there. @BuySellBA agreed to manage the 2nd property too and allowing me to pay one retainer fee for both units which was generous!

 

[StatusNomadicus]

nice, hope you guys do some good business! Gallo/Paraguay 1300 was almost where i wanted to be (i found many 60k used apartments all over that area (very southwest corner of Recoleta, almost touching Almagro and Balvanera), but it just wasn't interesting to me...but it's good if you want to be walking short distances:

Subte D-line 9min
H-line 13min
B-line 15min
Don Julio 23min
Chinofino 27min
Distrito Arcos 31min
Cemetery of Recoleta 35min
USA Embassy 40min
Mercat Villa Crespo 43min
Congress 44min
Plaza Holanda 47min

 

[Canada Goose]

nice, hope you guys do some good business! Gallo/Paraguay 1300 was almost where i wanted to be (i found many 60k used apartments all over that area (very southwest corner of Recoleta, almost touching Almagro and Balvanera), but it just wasn't interesting to me...but it's good if you want to be walking short distances:

Subte D-line 9min
H-line 13min
B-line 15min
Don Julio 23min
Chinofino 27min
Distrito Arcos 31min
Cemetery of Recoleta 35min
USA Embassy 40min
Mercat Villa Crespo 43min
Congress 44min
Plaza Holanda 47min

Yes, the reality is that the people renting it will be mostly tourists probably and @BuySellBA told me the split is probably 75% tourists and corporate booking and 25% expats or longer term stay. So the reality is people will just Uber and all of those areas are a 5-10 minute Uber ride to Soho/Hollywood, etc. Most tourists are lazy and don't walk too far. Most just zip in and out of an Uber. ALL of the tourists I am meeting or talk to just take Uber nonstop throughout their stay.

Locals walk a lot but locals are NOT the target audience of a luxury apartment rental. So all of those walking times are totally moot. I looked at several apartments for sale and the thing that I took the most out of the consultation is ain't no way I want to get stuck buying an apartment that I can't rent out short-term on Airbnb. That totally defeats my purchase of buying something in Buenos Aires.

The fact that @earlyretirement purchased a few units in the same exact building for himself is why I am buying one there. I read many articles about apartments he purchased before. He told me that he owned 15+ apartments personally in Buenos Aires at one point. ALL of them he was able to sell at very high prices when he sold them and they had high occupancy rates and that was why he could sell them so high. Why reinvent the wheel or try to guess? I am just going to follow his lead. Plus with his business model, I like it. If I'm making no money, he will make no money so I would have to imagine he will keep my place full. He bought up much of the building. It seems like he knows what he is doing.

 

[StatusNomadicus]

ALL of the tourists I am meeting or talk to just take Uber nonstop throughout their stay.

agreed; i often have to remind myself that how i live is not how well-paying tenants want to live while in a new city

for sure you won't go wrong with buying in the same building...you'll have a teammate if anyone tries to block short-term renting in the future. and if the building has major issues, he'll be just as motivated as you to light a fire under the right people's asses

@Canada Goose if you need small tasks done while you're in commiecanada-land, i'll be in CABA until June or so, and always happy to network with the few like-minded folks out there. i sold my house in the USA (southwest) this year, and i don't envy you for having to go through that scam of a process. safe travels when you fly!

 

[earlyretirement]

agreed; i often have to remind myself that how i live is not how well-paying tenants want to live while in a new city

for sure you won't go wrong with buying in the same building...you'll have a teammate if anyone tries to block short-term renting in the future. and if the building has major issues, he'll be just as motivated as you to light a fire under the right people's asses

@Canada Goose if you need small tasks done while you're in commiecanada-land, i'll be in CABA until June or so, and always happy to network with the few like-minded folks out there. i sold my house in the USA (southwest) this year, and i don't envy you for having to go through that scam of a process. safe travels when you fly!

Ha, ha. NO, once a building has HOA rules and it's set up for short-term rentals it can NOT be changed. I think you are confused on that point. That is what I meant on our consultation @StatusNomadicus . This building at Meet Palermo will NEVER have an issue with short-term rentals. Think of a building that is set up to be a hotel. Later they aren't going to change it so owners can't rent out the rooms like a hotel. That's the way you have to look at it.

In other buildings where I bought hundreds of units, the buildings sometimes tried to block short-term rentals. Even when we were successful, it often times took legal bills fighting them. And a few like Guatemala 4551 (Guatemala/Armenia) were successful in fighting it to prevent short-term rentals. I sold at the perfect time in that building.

It's those life lessons and experiences that tell me that I will focus my efforts on buildings that are zoned and set up from the beginning for Airbnb type short term rentals. I'm planning on building my own building as well. It's a tremendous amount of planning and I'm scoping out land now. It's a long process negotiating with land owners, etc. But I will also set up my luxury towel as a short-term rental building. Think of it almost as an apartment hotel where all the owners individually own a "hotel room" in the building. That's how these specific short-term Airbnb buildings are set up these days. But not all of them. Only a small number of them are set up that way from the start.


Some buildings outright BAN short-term rentals less than 30-60 days. Some don't ban it but aren't set up specifically for short-term rentals. That was what I was referring to when I said be careful as they can ban it. Typically, it's sparked by some dumb ugly tourist doing something dumb. In Guatemala 4551 it was mostly locals living there. I bought up a TON of units but we were still a miniority. I NEVER had any issues with our clients. But other companies that bought in that building didn't police well with rules and you had idiot tourists from the UK that were drunk and one set a fire on the roof. Others were drunk and urinating in the elevators. So they finally had enough and banned short-term rentals.

When you set up a building specifically for short-term rentals in the beginning, no owners can claim they didn't know what they got in for buying it. So that's the fundamental difference that you MUST understand if you're going to buy something. Many of the buildings in the Palermo Chico area ban short-term rentals. Or even if they don't ban it, and you buy and start doing rentals and they ban it.... nothing really you can do but get a lawyer and fight them. But that takes a lot of time and legal bills stack up.

 

[Nasdaq]

Yes, the reality is that the people renting it will be mostly tourists probably and @BuySellBA told me the split is probably 75% tourists and corporate booking and 25% expats or longer term stay. So the reality is people will just Uber and all of those areas are a 5-10 minute Uber ride to Soho/Hollywood, etc. Most tourists are lazy and don't walk too far. Most just zip in and out of an Uber. ALL of the tourists I am meeting or talk to just take Uber nonstop throughout their stay.

Locals walk a lot but locals are NOT the target audience of a luxury apartment rental. So all of those walking times are totally moot. I looked at several apartments for sale and the thing that I took the most out of the consultation is ain't no way I want to get stuck buying an apartment that I can't rent out short-term on Airbnb. That totally defeats my purchase of buying something in Buenos Aires.

The fact that @earlyretirement purchased a few units in the same exact building for himself is why I am buying one there. I read many articles about apartments he purchased before. He told me that he owned 15+ apartments personally in Buenos Aires at one point. ALL of them he was able to sell at very high prices when he sold them and they had high occupancy rates and that was why he could sell them so high. Why reinvent the wheel or try to guess? I am just going to follow his lead. Plus with his business model, I like it. If I'm making no money, he will make no money so I would have to imagine he will keep my place full. He bought up much of the building. It seems like he knows what he is doing.

So true! I learned that you can't think about what you prefer. You have to think of your target audience. What will they be doing. I have found that really anywhere in any part of Palermo or Recoleta will be fine for a high-end Airbnb. I have rented many and I think any of those areas in those neighborhoods are good. I don't want to go too far north or too far south as many restaurants and things I want fairly close and not too much traffic.

Ha, ha. NO, once a building has HOA rules and it's set up for short-term rentals it can NOT be changed. I think you are confused on that point. That is what I meant on our consultation @StatusNomadicus . This building at Meet Palermo will NEVER have an issue with short-term rentals. Think of a building that is set up to be a hotel. Later they aren't going to change it so owners can't rent out the rooms like a hotel. That's the way you have to look at it.

In other buildings where I bought hundreds of units, the buildings sometimes tried to block short-term rentals. Even when we were successful, it often times took legal bills fighting them. And a few like Guatemala 4551 (Guatemala/Armenia) were successful in fighting it to prevent short-term rentals. I sold at the perfect time in that building.

It's those life lessons and experiences that tell me that I will focus my efforts on buildings that are zoned and set up from the beginning for Airbnb type short term rentals. I'm planning on building my own building as well. It's a tremendous amount of planning and I'm scoping out land now. It's a long process negotiating with land owners, etc. But I will also set up my luxury towel as a short-term rental building. Think of it almost as an apartment hotel where all the owners individually own a "hotel room" in the building. That's how these specific short-term Airbnb buildings are set up these days. But not all of them. Only a small number of them are set up that way from the start.


Some buildings outright BAN short-term rentals less than 30-60 days. Some don't ban it but aren't set up specifically for short-term rentals. That was what I was referring to when I said be careful as they can ban it. Typically, it's sparked by some dumb ugly tourist doing something dumb. In Guatemala 4551 it was mostly locals living there. I bought up a TON of units but we were still a miniority. I NEVER had any issues with our clients. But other companies that bought in that building didn't police well with rules and you had idiot tourists from the UK that were drunk and one set a fire on the roof. Others were drunk and urinating in the elevators. So they finally had enough and banned short-term rentals.

When you set up a building specifically for short-term rentals in the beginning, no owners can claim they didn't know what they got in for buying it. So that's the fundamental difference that you MUST understand if you're going to buy something. Many of the buildings in the Palermo Chico area ban short-term rentals. Or even if they don't ban it, and you buy and start doing rentals and they ban it.... nothing really you can do but get a lawyer and fight them. But that takes a lot of time and legal bills stack up.

Great advice!