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The two words said by the Nobel Prize winners in economics that remove all doubts about the property market in Argentina - La Nacion Propieddes
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www.lanacion.com.ar
October 25, 2024
The two words said by the Nobel Prize winners in economics that remove all doubts about the property market in Argentina
After several years of suffocation, the market is finally breathing
By Soledad Balayan
The Argentine real estate market is experiencing an increase in purchase and sale transactions, despite the exchange rate restrictions, driven by recent measures of the new governmentHernan Zenteno - The Nation/Hernan Zenteno
The Argentine real estate market has reset. Driven by several measures from the new government, local real estate is experiencing a performance not seen in years.
Even with the exchange rate restrictions, the real estate market is movingshutterstock - Shutterstock
The rental market has never experienced such competition between landlords on the supply side, given the variety of rental conditions offered (since the term, currency and conditions in general are free, landlords can differentiate their proposals). Those looking to rent also benefit from being able to choose the property according to the conditions that are most attractive and beneficial for their particular situation.
The impact of this measure on the market in general is such that it positively affects not only the rental segment, but also the sales segment, as it encourages investment in Argentine soil.
It was thought that young people did not “want” to buy property, but evidence shows that in reality they “could not”. Professionals with stable jobs and a good salary, if they want, have the possibility of accessing UVA mortgage loans to be able to buy a property instead of renting.
With 22 banks offering UVA mortgage loans, and inflation stabilizing, the real estate sales market shows renewed interest among those looking to become homeowners FreePik
It is enough to look at the data on the amounts approved by banks to verify that there is a genuine interest in owning a home. According to economist Federico González Rouco , in August UVA mortgage loans were granted for $67 billion (close to US$50 million) and in September they exceeded US$100 million.
As the economy stabilizes and wages recover, more people will have access to credit.
The great advantage for those who can buy a used property at this time is that prices have dropped considerably (they fell by 40% in real terms compared to 2019 prices).
The elimination of the real estate transfer tax (ITI) reduces costs for sellers who acquired properties before 2018, facilitating sales Unsplash
Additionally, those who have left the country in recent years but want to sell their local assets to use that money in their new place of residence, also benefited since they do not have to carry out a tedious sales authorization procedure with AFIP that was necessary to pay this tax at the time of sale.
These are words that are essential for the development of a healthier and more agile real estate market. The focus of the measures that are revitalizing the local market is on these words: a correct design of incentives and the protection of property rights.
*The author of the article is Soledad Balayan, owner of Maure Inmobiliaria and Co-founder of ROI and SELECTIA
www.buysellba.com
Source:
Las dos palabras que dijeron los premios Nobel de economía que sacan todas las dudas del mercado de propiedades en la Argentina
Después de varios años de asfixia, el mercado -por fin- respira
www.lanacion.com.ar
October 25, 2024
The two words said by the Nobel Prize winners in economics that remove all doubts about the property market in Argentina
After several years of suffocation, the market is finally breathing
By Soledad Balayan
The Argentine real estate market is experiencing an increase in purchase and sale transactions, despite the exchange rate restrictions, driven by recent measures of the new governmentHernan Zenteno - The Nation/Hernan Zenteno
The Argentine real estate market has reset. Driven by several measures from the new government, local real estate is experiencing a performance not seen in years.
- Greater number of purchase and sale transactions (with the exchange rate restrictions in force).
- Lower supply of apartments for sale compared to the previous year.
- Small rebound in sales prices in some segments and types (prices rise in units with greater demand pressure).
- Greater supply of rental units .
- Fall in real rental prices .
Even with the exchange rate restrictions, the real estate market is movingshutterstock - Shutterstock
What were the measures that drove the change?
1. DNU
The DNU enabled citizens to choose the type of rental contract , currency, type of indexation and period that best suited their needs. This simple measure caused the rental supply to overflow the market, to such an extent that we went from having no rentals to having a record supply of properties for this purpose. Deep down, the vast majority of owners did not want to sell them or have them empty, they only wanted logical and safer market conditions to turn them into rentals.The rental market has never experienced such competition between landlords on the supply side, given the variety of rental conditions offered (since the term, currency and conditions in general are free, landlords can differentiate their proposals). Those looking to rent also benefit from being able to choose the property according to the conditions that are most attractive and beneficial for their particular situation.
The impact of this measure on the market in general is such that it positively affects not only the rental segment, but also the sales segment, as it encourages investment in Argentine soil.
2. Mortgage loans
In a short time, 22 banks relaunched UVA mortgage loans and in recent months the options have become consolidated with the stabilization of inflation. Although on the demand side few people are able to access them today, there is a segment that has the possibility of buying their first home.It was thought that young people did not “want” to buy property, but evidence shows that in reality they “could not”. Professionals with stable jobs and a good salary, if they want, have the possibility of accessing UVA mortgage loans to be able to buy a property instead of renting.
With 22 banks offering UVA mortgage loans, and inflation stabilizing, the real estate sales market shows renewed interest among those looking to become homeowners FreePik
It is enough to look at the data on the amounts approved by banks to verify that there is a genuine interest in owning a home. According to economist Federico González Rouco , in August UVA mortgage loans were granted for $67 billion (close to US$50 million) and in September they exceeded US$100 million.
As the economy stabilizes and wages recover, more people will have access to credit.
The great advantage for those who can buy a used property at this time is that prices have dropped considerably (they fell by 40% in real terms compared to 2019 prices).
3. Elimination of the real estate transfer tax (ITI)
The vast majority of those who are selling properties today made the purchase before 2018, so they obtain the tax benefit of eliminating this tax called ITI.
The elimination of the real estate transfer tax (ITI) reduces costs for sellers who acquired properties before 2018, facilitating sales Unsplash
Additionally, those who have left the country in recent years but want to sell their local assets to use that money in their new place of residence, also benefited since they do not have to carry out a tedious sales authorization procedure with AFIP that was necessary to pay this tax at the time of sale.
4. Bleaching
A new tax laundering system , which, depending on the amount to be laundered and the tax rate to be paid, benefits both the used residential market (laundering less than US$ 100,000) and the construction work segment.5. Keywords
A few days ago, the Nobel Prize in Economics was awarded to Daron Acemoglu (MIT), Simon Johnson (MIT) and James A Robinson (University of Chicago) and, as I usually do every year, I listen to some interviews and presentations that the winners have given in recent years, disseminating their work. After listening to a talk given by James Robinson at Talks at Google, I took note of two recurring words from his presentation: incentives and property rights.These are words that are essential for the development of a healthier and more agile real estate market. The focus of the measures that are revitalizing the local market is on these words: a correct design of incentives and the protection of property rights.
*The author of the article is Soledad Balayan, owner of Maure Inmobiliaria and Co-founder of ROI and SELECTIA
www.buysellba.com
