Buenos Aires Real Estate Prices to Increase by 20% This Year

[Musicman]

La compra venta de inmuebles se recalienta: esperan subas de hasta 20% en los precios antes de fin de año

Con más escrituras y precios en alza, el mercado inmobiliario muestra señales de recuperación. La construcción se estabiliza y mejora el clima para invertir. La Cámara Inmobiliaria y Apymeco destacan un nuevo ciclo de oportunidades

www.ambito.com

A great time to be investing I think

 

[dlish]

The president of the Argentine Real Estate Chamber is always the best guy to trust when it comes to real estate sales predictions

 

[LuckyLuke]

Seems to me like a no-brainer. If wages in dollars are increasing (despite real wages in pesos declining) and real estate is priced in dollars, you are going to see a commensurate increase in the perceived value of real estate relative to wages. Mortgage credit availability is adding fuel to that fire. It remains to be seen if any of this is making homes any more affordable.

Where is gets really interesting is that mortgage payments down here are limited to a percentage of your salary regardless of principal/interest.

Which means two things:

1)Those who take advantage could theoretically pay much less rent over the length of their life.

2) Some may never own the home unless annual interest falls below the percentage of salary garnishable (30% I believe).

This will no doubt make banks defacto immobilarias and drive up the price of real estate.

I would not be surprised to see many take out a mortgage, paying 30% cuotas of their "en blanco" salary, only to rent it out "en negro" to capture the profit spread. Those hoping to buy a home outright may have no choice but to take a mortgage now before prices soar out of reach in the hopes they can pay it off soon.