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What the Candidates Propose for Access to Housing - Infobae
November 19, 2023
By though it was not a central issue of the campaign, Massa and Milei presented some initiatives regarding plans, adjustment systems and the rental market.
In the midst of the difficulty in renting homes and with few possibilities of accessing one's own home through sustainable mortgage loans, the two candidates for the presidency of the Nation have their proposals in the pipeline to address the problems (Illustrative image Infobae)
In the electoral campaign Sergio Massa and Javier Milei focused their attention on the economy and security and despite the urgency, the housing crisis was relegated in the debate. But it will be a looming challenge that the next government will need to address sooner rather than later.
What were the candidates' proposals regarding access to housing? There are various aspects that require attention. It covers both those looking to expand, remodel or acquire a new property, as well as those facing the urge to rent, aggravated by a marked shortage of supply that creates a dramatic scenario for those looking for a roof over their heads. In addition, rental values increased more than 206% year-on-year throughout the national territory.
In the city of Buenos Aires, a 3-room apartment costs more than $341,000 per month today. And in Greater Buenos Aires the values of a 2-bedroom apartment average $161,000 per month.
A joint report by the Center for the Implementation of Public Policies for Equity and Growth (Cippec), the NGO Techo and the Civil Association for Equality and Justice (ACIJ) shows that the housing deficit in Argentina is a pressing issue. More than 4 million households (that is, 1 in 3) face this deficiency.
Within this figure, 1.3 million homes require a completely new home, while 2.6 million need expansion and improvements. Likewise, it is highlighted that 2 out of every 3 households reside in homes with different types of deficit: overcrowded conditions, low-quality construction materials, absence of essential services such as electricity, drinking water, gas or sewers.
Precariousness grew throughout the territory. The figure indicating that 1 in every 3 households in the country does not have adequate housing is alarming.
Massa proposed starting an ambitious plan that contemplates the issuance of one million mortgage loans starting January 1, 2024, with instruments linked to the Salary Variation Coefficient. This implies that the adjustment of the value of the quotas will not be subject to inflation, but to the salary evolution of the beneficiaries. The approach seeks to provide greater stability and adaptability to the economic conditions of the recipients and is a significant difference from conventional adjustment schemes.
Sergio Massa in his recent participation with industrialists and representatives of Argentine SMEs
Massa shared his proposals to address the situation of more than 320,000 Argentines who acquired UVA credits during the previous government, with fees indexed by inflation. He detailed a proposal under evaluation by Banco Nación (BNA) and Banco Provincia to suspend the payment of installments for 180 days and restart the contracts linking them to the salary variation coefficient in order to provide relief to the beneficiaries of UVA credits.
In addition, he anticipated an initiative to facilitate access to rentals through a guarantee from the BNA, to be implemented as of December 2023. This measure includes surety insurance through Nación Seguros, aimed at single women with children, young married couples , young people coming from the interior to study and contract renewal . The surety insurance, backed by a Guarantee Fund of the Ministry of Economy, will exempt citizens from providing a proprietary guarantee.
The project, managed through the BNA, will include a reduced rate credit for the first 90 days of rental. These measures, they say, would allow resources to be redistributed for essential expenses and will improve the situation of single women, often vulnerable in post-relational situations.
In its approach to access to housing, Milei highlights a worrying reality: according to its plan, 2 out of every 3 Argentine children are in poverty or lack access to fundamental rights such as education, housing and water. Situation that she attributes to the policies implemented during the last century. She emphasizes the importance of human capital as a driver of economic growth. In her perspective, the care and attention of children are the starting point for this process.
Javier Milei at the campaign closing event in Córdoba also has proposals for housing, an issue that requires urgent attention (Photo: REUTERS/Matias Baglietto)
His plan, which would be executed from the Infrastructure area, will focus on improving the situation of at least 10,000 neighborhoods with deficiencies in their infrastructure, as well as repairing more than 200 thousand multifamily buildings. The shortage of housing units, the lack of basic infrastructure and the deficit in the maintenance of buildings and multifamily complexes are challenges that will be addressed.
To achieve this, I would promote a cost trust scheme based on the principle that housing is financed because it is paid for, and it is paid because it is financed. This approach seeks to avoid tax costs and instead generate wealth. In addition, the massive development of private works financed by the private sector through credits will be promoted. In this model, each family will have the autonomy to decide what work to carry out, where, when and in what way, thus contributing to a decentralized solution adapted to individual needs.
“We will promote the massive development of private works financed by the private sector through private credit, allowing each family to choose which project to carry out, where, when and in what way. This model will be coordinated through the Mortgage Bank, facilitating its implementation by other interested actors. Formal workers will be invited to qualify for mortgage loans, determining approval based on 25% of their salary flow over a period of ten years,” stated Milei.
Milei, meanwhile, repeatedly stated his intention to repeal the current regulations. “We must eliminate it and stop interfering in private contracts, pulverizing property rights,” she declared. In his opinion, this intervention only harms the most vulnerable and limits their options to lower quality properties and higher prices.
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November 19, 2023
Mortgage credit, construction, rentals: What the candidates propose for access to housing
By though it was not a central issue of the campaign, Massa and Milei presented some initiatives regarding plans, adjustment systems and the rental market.
In the midst of the difficulty in renting homes and with few possibilities of accessing one's own home through sustainable mortgage loans, the two candidates for the presidency of the Nation have their proposals in the pipeline to address the problems (Illustrative image Infobae)
In the electoral campaign Sergio Massa and Javier Milei focused their attention on the economy and security and despite the urgency, the housing crisis was relegated in the debate. But it will be a looming challenge that the next government will need to address sooner rather than later.
What were the candidates' proposals regarding access to housing? There are various aspects that require attention. It covers both those looking to expand, remodel or acquire a new property, as well as those facing the urge to rent, aggravated by a marked shortage of supply that creates a dramatic scenario for those looking for a roof over their heads. In addition, rental values increased more than 206% year-on-year throughout the national territory.
In the city of Buenos Aires, a 3-room apartment costs more than $341,000 per month today. And in Greater Buenos Aires the values of a 2-bedroom apartment average $161,000 per month.
A joint report by the Center for the Implementation of Public Policies for Equity and Growth (Cippec), the NGO Techo and the Civil Association for Equality and Justice (ACIJ) shows that the housing deficit in Argentina is a pressing issue. More than 4 million households (that is, 1 in 3) face this deficiency.
Within this figure, 1.3 million homes require a completely new home, while 2.6 million need expansion and improvements. Likewise, it is highlighted that 2 out of every 3 households reside in homes with different types of deficit: overcrowded conditions, low-quality construction materials, absence of essential services such as electricity, drinking water, gas or sewers.
Precariousness grew throughout the territory. The figure indicating that 1 in every 3 households in the country does not have adequate housing is alarming.
What Milei and Massa propose
Both the main representative of La Libertad Avanza and the current Minister of Economy referred to possible policies to be carried out if they win this Sunday's runoff.Massa proposed starting an ambitious plan that contemplates the issuance of one million mortgage loans starting January 1, 2024, with instruments linked to the Salary Variation Coefficient. This implies that the adjustment of the value of the quotas will not be subject to inflation, but to the salary evolution of the beneficiaries. The approach seeks to provide greater stability and adaptability to the economic conditions of the recipients and is a significant difference from conventional adjustment schemes.
Sergio Massa in his recent participation with industrialists and representatives of Argentine SMEs
Massa shared his proposals to address the situation of more than 320,000 Argentines who acquired UVA credits during the previous government, with fees indexed by inflation. He detailed a proposal under evaluation by Banco Nación (BNA) and Banco Provincia to suspend the payment of installments for 180 days and restart the contracts linking them to the salary variation coefficient in order to provide relief to the beneficiaries of UVA credits.
In addition, he anticipated an initiative to facilitate access to rentals through a guarantee from the BNA, to be implemented as of December 2023. This measure includes surety insurance through Nación Seguros, aimed at single women with children, young married couples , young people coming from the interior to study and contract renewal . The surety insurance, backed by a Guarantee Fund of the Ministry of Economy, will exempt citizens from providing a proprietary guarantee.
The project, managed through the BNA, will include a reduced rate credit for the first 90 days of rental. These measures, they say, would allow resources to be redistributed for essential expenses and will improve the situation of single women, often vulnerable in post-relational situations.
In its approach to access to housing, Milei highlights a worrying reality: according to its plan, 2 out of every 3 Argentine children are in poverty or lack access to fundamental rights such as education, housing and water. Situation that she attributes to the policies implemented during the last century. She emphasizes the importance of human capital as a driver of economic growth. In her perspective, the care and attention of children are the starting point for this process.
Javier Milei at the campaign closing event in Córdoba also has proposals for housing, an issue that requires urgent attention (Photo: REUTERS/Matias Baglietto)
His plan, which would be executed from the Infrastructure area, will focus on improving the situation of at least 10,000 neighborhoods with deficiencies in their infrastructure, as well as repairing more than 200 thousand multifamily buildings. The shortage of housing units, the lack of basic infrastructure and the deficit in the maintenance of buildings and multifamily complexes are challenges that will be addressed.
To achieve this, I would promote a cost trust scheme based on the principle that housing is financed because it is paid for, and it is paid because it is financed. This approach seeks to avoid tax costs and instead generate wealth. In addition, the massive development of private works financed by the private sector through credits will be promoted. In this model, each family will have the autonomy to decide what work to carry out, where, when and in what way, thus contributing to a decentralized solution adapted to individual needs.
“We will promote the massive development of private works financed by the private sector through private credit, allowing each family to choose which project to carry out, where, when and in what way. This model will be coordinated through the Mortgage Bank, facilitating its implementation by other interested actors. Formal workers will be invited to qualify for mortgage loans, determining approval based on 25% of their salary flow over a period of ten years,” stated Milei.
Locations in trouble
On the issue of rent, Massa also suggested that the provinces establish rental laws at the provincial level, arguing that national legislation does not adequately address all situations and recognizing the differences between the reality of CABA and other subnational districts.Milei, meanwhile, repeatedly stated his intention to repeal the current regulations. “We must eliminate it and stop interfering in private contracts, pulverizing property rights,” she declared. In his opinion, this intervention only harms the most vulnerable and limits their options to lower quality properties and higher prices.
https://buysellba.com/news-/-media/f/what-the-candidates-propose-for-access-to-housing
www.buysellba.com
