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What will be the impact of money laundering on the real estate market? - Infobae
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www.infobae.com
July 17, 2024
What types of housing apply and what are the maximum values of the properties eligible for purchase through this tool. The sector welcomes the measure
By Jose Luis Cieri
People with undeclared savings will be able to use them to buy property if a new money laundering law is approved (Photo: Getty)
As reported by Infobae , the Federal Public Revenue Administration (AFIP) regulated and published today in the Official Gazette the details and benefits of the Asset Regularization Regime. The Money Laundering was a much-awaited news in the real estate market, now allowing funds to be cleared for the acquisition of properties. In the sector, the measure was received with optimism, anticipating a favorable impact on operations and the revitalization of investments.
Although the scope of the measure has yet to be defined, developers and real estate agents have asked President Javier Milei and the Minister of Economy, Luis Caputo , to include both sub-divisions and new and used housing in this tool.
It was revealed that, through dialogue with the authorities of the organization in the coming days, both options would be included and the procedures for carrying out the purchase and sale operation would be established.
With the regulated money laundering, the inclusion of a capital disclosure stands out, allowing the regularization of assets abroad without penalties and with a 0% rate for amounts up to USD 100,000, which can be applied, under certain conditions, to even larger amounts, although the final implementation is still pending.
This measure generates great expectations in the real estate market, since the laundered capital could be used for investment in properties. An evaluation is being made of which types of properties and which value ranges will benefit most from this initiative and how it could influence the dynamics of the sector in the medium term.
Alejandro Bennazar , former president and current director of Institutional Relations of the Argentine Real Estate Chamber (CIA), commented that “it is great news for the sector, in line with other actions that favored the market, such as the repeal of the Rental Law after the DNU and the reintroduction of new mortgage loans. The money laundering will further boost the segment, which has already shown signs of recovery since the beginning of the year.”
The sector is already recording its best start since 2018 , when UVA mortgage loans were at their peak, after overcoming a prolonged crisis. According to the College of Notaries of Buenos Aires, in CABA deeds increased by 36% year-on-year, while in the province of Buenos Aires they grew by 24%, according to the College of Notaries of Buenos Aires, confirming the recovery.
“There are good expectations now and we believe that both sub-prime and used homes will be the main focus for those who have undeclared dollars and are looking to invest in bricks and mortar,” added Bennazar.
The regime has three stages and the earlier you enter, the lower the rate will be:
The procedure consists, first, of declaring the adhesion. For example, for the first stage, the adhesion manifestation is until September 30, and the advance payment of 75%, if applicable tax. Subsequently, until November 30, the sworn declaration must be submitted, which will be available after the closing of each adhesion stage.
The Affidavit form will be available from the following dates, depending on each stage:
Andrés Aller , CEO of Aller & Co., highlighted the importance of considering options to avoid sanctions and seek investment opportunities, noting that a new tax whitening could balance the tax system. The AFIP has established sanctions for taxpayers in violation, which include the payment of undeclared taxes, fines and interest, highlighting the need for tax regularization for Argentines in the US with undeclared assets. The whitening offers an opportunity for regularization until April 30, 2025, with costs that vary depending on the amount and the time of adhesion.”
Argentines with undeclared assets in the United States can join the money laundering process by purchasing a property until April 30, 2025.
“For amounts up to USD 100,000 there will be no costs, and for higher amounts, the cost will vary between 0% and 15% depending on the time of adhesion,” added Aller.
If the current trend continues, a positive and more dynamic year is anticipated for the residential and rental market, surpassing the activity of previous years, according to reports from the real estate sector (Freepik)
The latest money laundering scheme for construction, which allowed the purchase of homes from scratch with less than 50% of the work completed since March 2021, did not meet expectations. It raised more than $50 billion, far from the expected $3 billion. One year after its completion, the interest of those with undeclared money was lower than anticipated.
Damián Tabakman , from the Chamber of Urban Developers, commented that “the recent tax whitening does not seek to specifically benefit the real estate or construction sector, but rather its scope is broader. These measures are also advantageous for construction, although they are not directly focused on this area. Unlike previous tax whitenings, I believe that, on this occasion, the confidence generated by Javier Milei 's government could translate into benefits for the sector.”
The real estate market is seeing a growing interest and inquiries for property purchases, with an approximate 5% increase in prices. At the same time, yields in dollars are experiencing an increase equivalent to inflation in pesos, due to indexed contracts and a stable exchange rate.
“If another money laundering operation is confirmed, it is considered an opportunity, especially since property prices are low and rental values are adjusting. Although previous experiences were not entirely positive, I remain hopeful for effective implementation this time,” said Hernán Siwacki of Capital Brokers.
Regarding the mechanics, the Minister of Economy, Luis Caputo , indicated that capital can be externalized with a 0% rate up to USD 100,000, applying special conditions for higher amounts.
Siwacki recommended investing in well-located studios or two-room apartments, both under construction and finished, with a possible annual rent of 5% or 6% in dollars. The national real estate market is at a turning point, where prices appear to have reached their lowest level.
In CABA there are more than 20,000 properties for less than USD 100,000 that are estimated to be the first to be sold with the new credits and money laundering.
One- and two-bedrooms apartments among the most popular for purchase (Photo Courtesy: Mudafy)
Ignacio O'Keefe , from Inmobiliaria O'Keefe, added that “the real estate market is attentive, with the focus centered on the next economic measures and the money laundering, crucial to revitalize the market of used properties. This tool is recommended to invest in one-bedroom apartments or two-bedrooms houses as profitable options.”
According to the sector, end users will be the ones who carry out most transactions and, to a lesser extent, investors seeking to obtain a return on rentals.
Luis Signoris , from Compañía Gerenciadora Fiduciaria (CGF) and responsible for various projects such as Lagoon Pilar or Diego Palma, said: “We see it as very positive that projects from the ground up are being taken into account as part of the money laundering, given that it promotes a key segment such as first homes. We have had many inquiries about this type of venture and the payment possibilities in various projects. So, surely, they will have a great boost with this proposal within the Ley Bases.” The progress in the deeds was fruitful, and various construction companies maintain their confidence in bricks and mortar.
“We have been developing projects in high-growth corridors, such as Villa Urquiza, Núñez, Saavedra, Belgrano, Caballito and the center of CABA. Focused on low-risk housing, offering a promising growth curve and access to investments in real estate at values similar to those proposed by the money laundering, avoiding additional costs,” concluded Martín Flachsland , from Estudio Kohon.
www.buysellba.com
Source:
Cuál será el impacto del blanqueo de capitales en el mercado inmobiliario
Qué tipos de viviendas aplican y cuáles son los valores máximos de los inmuebles elegibles para compra a través de esta herramienta. El sector recibe positivamente la medida
www.infobae.com
July 17, 2024
What types of housing apply and what are the maximum values of the properties eligible for purchase through this tool. The sector welcomes the measure
By Jose Luis Cieri
People with undeclared savings will be able to use them to buy property if a new money laundering law is approved (Photo: Getty)
As reported by Infobae , the Federal Public Revenue Administration (AFIP) regulated and published today in the Official Gazette the details and benefits of the Asset Regularization Regime. The Money Laundering was a much-awaited news in the real estate market, now allowing funds to be cleared for the acquisition of properties. In the sector, the measure was received with optimism, anticipating a favorable impact on operations and the revitalization of investments.
Although the scope of the measure has yet to be defined, developers and real estate agents have asked President Javier Milei and the Minister of Economy, Luis Caputo , to include both sub-divisions and new and used housing in this tool.
It was revealed that, through dialogue with the authorities of the organization in the coming days, both options would be included and the procedures for carrying out the purchase and sale operation would be established.
With the regulated money laundering, the inclusion of a capital disclosure stands out, allowing the regularization of assets abroad without penalties and with a 0% rate for amounts up to USD 100,000, which can be applied, under certain conditions, to even larger amounts, although the final implementation is still pending.
This measure generates great expectations in the real estate market, since the laundered capital could be used for investment in properties. An evaluation is being made of which types of properties and which value ranges will benefit most from this initiative and how it could influence the dynamics of the sector in the medium term.
Alejandro Bennazar , former president and current director of Institutional Relations of the Argentine Real Estate Chamber (CIA), commented that “it is great news for the sector, in line with other actions that favored the market, such as the repeal of the Rental Law after the DNU and the reintroduction of new mortgage loans. The money laundering will further boost the segment, which has already shown signs of recovery since the beginning of the year.”
The sector is already recording its best start since 2018 , when UVA mortgage loans were at their peak, after overcoming a prolonged crisis. According to the College of Notaries of Buenos Aires, in CABA deeds increased by 36% year-on-year, while in the province of Buenos Aires they grew by 24%, according to the College of Notaries of Buenos Aires, confirming the recovery.
“There are good expectations now and we believe that both sub-prime and used homes will be the main focus for those who have undeclared dollars and are looking to invest in bricks and mortar,” added Bennazar.
Instrumentation to date
It is important to note that, with the money laundering, it is possible to regularize any amount at no cost, if the money is kept in the financial system until December 31, 2025, or certain investments authorized by the Ministry of Economy are made. Those who regularize any type of assets or holdings worth up to USD 100,000 will also not be subject to paying taxes.The regime has three stages and the earlier you enter, the lower the rate will be:
- Stage 1: until September 30, 2024, a 5% rate is paid on the surplus of USD 100,000.
- Stage 2: until December 31, 2024, the rate is 10%.
- Stage 3: until March 31, 2025, the rate rises to 15%.
The procedure consists, first, of declaring the adhesion. For example, for the first stage, the adhesion manifestation is until September 30, and the advance payment of 75%, if applicable tax. Subsequently, until November 30, the sworn declaration must be submitted, which will be available after the closing of each adhesion stage.
The Affidavit form will be available from the following dates, depending on each stage:
- Stage 1: October 7, 2024.
- Stage 2: January 2, 2025.
- Stage 3: April 1, 2025.
Andrés Aller , CEO of Aller & Co., highlighted the importance of considering options to avoid sanctions and seek investment opportunities, noting that a new tax whitening could balance the tax system. The AFIP has established sanctions for taxpayers in violation, which include the payment of undeclared taxes, fines and interest, highlighting the need for tax regularization for Argentines in the US with undeclared assets. The whitening offers an opportunity for regularization until April 30, 2025, with costs that vary depending on the amount and the time of adhesion.”
Argentines with undeclared assets in the United States can join the money laundering process by purchasing a property until April 30, 2025.
“For amounts up to USD 100,000 there will be no costs, and for higher amounts, the cost will vary between 0% and 15% depending on the time of adhesion,” added Aller.
Panorama
Mariano García Malbrán , president of the Chamber of Real Estate Services Companies (CAMESI), stated that “money laundering in Argentina will boost the real estate market and the economy. It will allow the injection of undeclared funds, boosting construction and generating employment. Tax incentives increase investment in properties and improve tax collection, attracting foreign investment. The simplification of the process and financial stability strengthen investor confidence. Together with new mortgage loans and the lifting of the exchange rate restrictions, these measures could be what our sector needs.”
If the current trend continues, a positive and more dynamic year is anticipated for the residential and rental market, surpassing the activity of previous years, according to reports from the real estate sector (Freepik)
The latest money laundering scheme for construction, which allowed the purchase of homes from scratch with less than 50% of the work completed since March 2021, did not meet expectations. It raised more than $50 billion, far from the expected $3 billion. One year after its completion, the interest of those with undeclared money was lower than anticipated.
Damián Tabakman , from the Chamber of Urban Developers, commented that “the recent tax whitening does not seek to specifically benefit the real estate or construction sector, but rather its scope is broader. These measures are also advantageous for construction, although they are not directly focused on this area. Unlike previous tax whitenings, I believe that, on this occasion, the confidence generated by Javier Milei 's government could translate into benefits for the sector.”
The real estate market is seeing a growing interest and inquiries for property purchases, with an approximate 5% increase in prices. At the same time, yields in dollars are experiencing an increase equivalent to inflation in pesos, due to indexed contracts and a stable exchange rate.
“If another money laundering operation is confirmed, it is considered an opportunity, especially since property prices are low and rental values are adjusting. Although previous experiences were not entirely positive, I remain hopeful for effective implementation this time,” said Hernán Siwacki of Capital Brokers.
Regarding the mechanics, the Minister of Economy, Luis Caputo , indicated that capital can be externalized with a 0% rate up to USD 100,000, applying special conditions for higher amounts.
Siwacki recommended investing in well-located studios or two-room apartments, both under construction and finished, with a possible annual rent of 5% or 6% in dollars. The national real estate market is at a turning point, where prices appear to have reached their lowest level.
In CABA there are more than 20,000 properties for less than USD 100,000 that are estimated to be the first to be sold with the new credits and money laundering.
One- and two-bedrooms apartments among the most popular for purchase (Photo Courtesy: Mudafy)
Ignacio O'Keefe , from Inmobiliaria O'Keefe, added that “the real estate market is attentive, with the focus centered on the next economic measures and the money laundering, crucial to revitalize the market of used properties. This tool is recommended to invest in one-bedroom apartments or two-bedrooms houses as profitable options.”
According to the sector, end users will be the ones who carry out most transactions and, to a lesser extent, investors seeking to obtain a return on rentals.
Luis Signoris , from Compañía Gerenciadora Fiduciaria (CGF) and responsible for various projects such as Lagoon Pilar or Diego Palma, said: “We see it as very positive that projects from the ground up are being taken into account as part of the money laundering, given that it promotes a key segment such as first homes. We have had many inquiries about this type of venture and the payment possibilities in various projects. So, surely, they will have a great boost with this proposal within the Ley Bases.” The progress in the deeds was fruitful, and various construction companies maintain their confidence in bricks and mortar.
“We have been developing projects in high-growth corridors, such as Villa Urquiza, Núñez, Saavedra, Belgrano, Caballito and the center of CABA. Focused on low-risk housing, offering a promising growth curve and access to investments in real estate at values similar to those proposed by the money laundering, avoiding additional costs,” concluded Martín Flachsland , from Estudio Kohon.
www.buysellba.com
