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Whitewashing: the expected impact on the real estate market and what are the opportunities to boost construction - Infobae
Source:
www.infobae.com
July 24, 2024
Although the purchase of finished properties has been authorized for now, the entire sector maintains that it is vital to allow the purchase of finished homes. The sector's chambers will once again ask the Ministry of Economy to include used and brand new units.
By Jose Luis Cieri
The disclosure of undeclared funds is expected to be a major boost for the purchase and sale of homes (Illustrative Image Infobae)
The government hopes that the funds received through the Asset Regularization Regime will help to touch the bottom of the decline in construction activity. The new money laundering not only seeks to capture undeclared dollars that add to the reserves, but also to promote economic recovery in general.
For now, the AFIP has regulated the purchase of properties in the red. Direct and indirect investments in real estate projects may be made from the entry into force of Title II of Law 27,743, including those projects that have less than 50% of the completion of the work.
With a zero rate up to USD 100,000 and for higher amounts of 5%, 10% and 15% depending on the stage, with the new whitening, they hope to increase the number of taxpayers and generate a rebound in activity, which showed an interannual variation of -5.1% of GDP in the first quarter, according to data from Indec.
Carlos Spina , president of the Association of Housing Entrepreneurs (AEV), believes that the whitewash serves to qualify the latent demand for properties. “The whitewash solves this problem and favors end users (families) who are looking for large units instead of investors who prefer smaller units,” he said.
The sector maintains that the disclosure of undeclared funds and the mortgage loans launched three months ago will boost the market for large homes (3, 4 and 5 rooms), which will generate a significant recovery.
"The Ministry of the Economy is expected to include proposals to ensure that the tax cuts impact on ongoing and new projects, which would stimulate the economy as a whole," added Spina.
It is estimated that in the coming days the Money Laundering could be extended to include the purchase of used and brand new properties, a demand that has already been requested by the sector's chambers.
The new tax is expected to boost not only construction but also the entire sector that revolves around housing.
Diego Frangella , president of the Buenos Aires Real Estate Association, considered that if the money laundering includes investment in new or used properties, it will be highly beneficial. “We are waiting for the official resolutions, and if an extension of this tool is confirmed, it will be a new push for our activity,” he said.
Both this entity and the Argentine Real Estate Chamber will try to organize meetings next week with the Ministry of Economy and the AFIP to achieve the permission to buy used and brand new properties. This already happened in the previous money laundering, during the administration of Alberto Fernández : first the acquisition of houses under construction was allowed and then the possibility was extended to all types of units.
The most attractive aspects of money laundering for investors are the possibility of obtaining rental income, diversifying the asset portfolio and the potential for property appreciation.
He also said that the money laundering, together with other measures such as mortgage loans and the decree that freed up rents, could effectively contribute to an increase in the construction of new homes.
Money laundering could increase demand for real estate, as tax incentives and other attractions will motivate more investors to put their money into the property market.
The real estate sector argues that the money laundering represents a key opportunity to reactivate the market. “The properties that are in better condition, both in terms of location and general state of preservation, once the possibilities are expanded, will be the most attractive for potential buyers,” said Ezequiel Wierzba , from Click Aparts.
One of the most attractive aspects of the money laundering scheme could be the offer of affordable financing and special bonuses on property prices.
Wierzba explained that this initiative facilitates entry into the real estate market and makes investment in different areas more attractive, with property values that vary depending on the neighborhood.
In Palermo and Belgrano, prices for high-end homes range from USD 3,500 to USD 5,000 per square meter, while mid-range homes range from USD 2,500 to USD 3,500 per m2. In Caballito and Villa Urquiza, high-end prices range from USD 2,500 to USD 3,500 per m2, and mid-range homes range from USD 1,800 to USD 2,500 per m2.
In Villa Crespo and Almagro, high-end properties have a price range between USD 2,200 and USD 3,000 per m2, while mid-range properties are between USD 1,500 and USD 2,200 per m2.
The disclosure could even move property values in major cities. New and under-construction units, especially in high-demand areas, will benefit the most.
“It is likely to boost housing construction, incentivising developers to start new projects. As long as the tax benefits and facilities are correct and transparent, we will see an increase in construction activity,” Wierzba concluded.
www.buysellba.com
Source:
Blanqueo: el impacto que espera el mercado inmobiliario y cuáles son las oportunidades para motorizar la construcción
Si bien por ahora se habilitó la adquisición de inmuebles en pozo, todo el sector sostiene que es vital permitir la compra de viviendas terminadas. Las cámaras del sector volverán a pedir al ministerio de Economía que se incluyan unidades usadas y a estrenar
www.infobae.com
July 24, 2024
Although the purchase of finished properties has been authorized for now, the entire sector maintains that it is vital to allow the purchase of finished homes. The sector's chambers will once again ask the Ministry of Economy to include used and brand new units.
By Jose Luis Cieri
The disclosure of undeclared funds is expected to be a major boost for the purchase and sale of homes (Illustrative Image Infobae)
The government hopes that the funds received through the Asset Regularization Regime will help to touch the bottom of the decline in construction activity. The new money laundering not only seeks to capture undeclared dollars that add to the reserves, but also to promote economic recovery in general.
For now, the AFIP has regulated the purchase of properties in the red. Direct and indirect investments in real estate projects may be made from the entry into force of Title II of Law 27,743, including those projects that have less than 50% of the completion of the work.
With a zero rate up to USD 100,000 and for higher amounts of 5%, 10% and 15% depending on the stage, with the new whitening, they hope to increase the number of taxpayers and generate a rebound in activity, which showed an interannual variation of -5.1% of GDP in the first quarter, according to data from Indec.
Carlos Spina , president of the Association of Housing Entrepreneurs (AEV), believes that the whitewash serves to qualify the latent demand for properties. “The whitewash solves this problem and favors end users (families) who are looking for large units instead of investors who prefer smaller units,” he said.
The sector maintains that the disclosure of undeclared funds and the mortgage loans launched three months ago will boost the market for large homes (3, 4 and 5 rooms), which will generate a significant recovery.
"The Ministry of the Economy is expected to include proposals to ensure that the tax cuts impact on ongoing and new projects, which would stimulate the economy as a whole," added Spina.
Expand options
Although the possibility of acquiring properties under construction, new and used was initially raised, the regulations currently only allow the purchase of properties under construction and under certain conditions.It is estimated that in the coming days the Money Laundering could be extended to include the purchase of used and brand new properties, a demand that has already been requested by the sector's chambers.
The new tax is expected to boost not only construction but also the entire sector that revolves around housing.
Diego Frangella , president of the Buenos Aires Real Estate Association, considered that if the money laundering includes investment in new or used properties, it will be highly beneficial. “We are waiting for the official resolutions, and if an extension of this tool is confirmed, it will be a new push for our activity,” he said.
Both this entity and the Argentine Real Estate Chamber will try to organize meetings next week with the Ministry of Economy and the AFIP to achieve the permission to buy used and brand new properties. This already happened in the previous money laundering, during the administration of Alberto Fernández : first the acquisition of houses under construction was allowed and then the possibility was extended to all types of units.
The most attractive aspects of money laundering for investors are the possibility of obtaining rental income, diversifying the asset portfolio and the potential for property appreciation.
Prices
Regarding the impact on prices, Frangella projects stability in CABA, pointing out that the current trend shows a slight decrease in prices due to an increase in supply and stable demand. “So far this year, sales have been made below the prices initially published,” he commented.He also said that the money laundering, together with other measures such as mortgage loans and the decree that freed up rents, could effectively contribute to an increase in the construction of new homes.
Panorama
For now, the houses that are eligible for money laundering are those that are in a pit. These must meet certain specific conditions, such as being part of duly registered and approved projects, which guarantees the legality and transparency of the investment.
Money laundering could increase demand for real estate, as tax incentives and other attractions will motivate more investors to put their money into the property market.
The real estate sector argues that the money laundering represents a key opportunity to reactivate the market. “The properties that are in better condition, both in terms of location and general state of preservation, once the possibilities are expanded, will be the most attractive for potential buyers,” said Ezequiel Wierzba , from Click Aparts.
One of the most attractive aspects of the money laundering scheme could be the offer of affordable financing and special bonuses on property prices.
Wierzba explained that this initiative facilitates entry into the real estate market and makes investment in different areas more attractive, with property values that vary depending on the neighborhood.
In Palermo and Belgrano, prices for high-end homes range from USD 3,500 to USD 5,000 per square meter, while mid-range homes range from USD 2,500 to USD 3,500 per m2. In Caballito and Villa Urquiza, high-end prices range from USD 2,500 to USD 3,500 per m2, and mid-range homes range from USD 1,800 to USD 2,500 per m2.
In Villa Crespo and Almagro, high-end properties have a price range between USD 2,200 and USD 3,000 per m2, while mid-range properties are between USD 1,500 and USD 2,200 per m2.
The disclosure could even move property values in major cities. New and under-construction units, especially in high-demand areas, will benefit the most.
“It is likely to boost housing construction, incentivising developers to start new projects. As long as the tax benefits and facilities are correct and transparent, we will see an increase in construction activity,” Wierzba concluded.
www.buysellba.com
