It's Too Expensive Here!

[sergio]

Last year I had a tenant from Honduras, she is from a city that has the highest murder rate in her country(and central america). She pays $1200 for a one bedroom in Recoleta, she thought 1200 was a good deal, that's how much she has to pay in her country for an apt like that, she is not from a rich family or anything.

$1,200 Dollars?

 

[garryl]

$1,200 Dollars?

yes, dollars.

 

[sergio]

Wow, that's a lot. I thought places like Panama were affordable. At least that is how it is advertised for American retirees.

 

[Noesdeayer]

sergio:
Panama is affordable but hot .The currency used is USD.
Costa Rica is a little more expensive but ,in my view,a better choice for its temperate climate and varied cultural offerings.I used to spend time there in July and August winter in Argentina.
Honduras is very dangerous due to constant narco gang warfare.Argie friends have warned me not to go there even as a tourist.

 

[domthegreat]

Yes, mortgages are available again. Especially the govt banks are pushing it

Ive heard mortgages are part of the larger plan for the new gov, but I haven't seen many details. What exactly are they offering? Might be a good time to snag one...

 

[Ries]

the government simply doesnt have the money to change the mortgage market- they have spent billions trying to change the dollar/peso rate, and that still barely works.
Mortgages require a private banking market, unless Macri found a metal box containing a hundred billion while he was moving furniture in the Casa Rosada.

 

[Noesdeayer]

domthegreat:
Google:" Nuevos creditos hipotecarios. cinco claves para tener en cuenta" La Nacion,8 de abril 2016.
Is a good summary of the new mortagages available.I hope you can read Spanish or use translator software.I have no time today to summarize this in English.
Ries:
Hello! Mortgages in Argentina now have a private banking market,You might stay closer in touch from up there in the US.

 

[Ries]

domthegreat:
Google:" Nuevos creditos hipotecarios. cinco claves para tener en cuenta" La Nacion,8 de abril 2016.
Is a good summary of the new mortagages available.I hope you can read Spanish or use translator software.I have no time today to summarize this in English.
Ries:
Hello! Mortgages in Argentina now have a private banking market,You might stay closer in touch from up there in the US.

1.3% ? (see the link)
yes, argentina does have the possibility of a mortgage- and its so seldom used as to be about the same as not existing.

Anyway, my point was that the government cannot magically wave their hands and create a mortgage market-
it will only happen if banks decide to lend, with reasonable terms, rates, and lengths.
Banks are not willing to take the risk, and interest rates are high, and down payments are high, and loan lengths are short, by US standards.


currently, less than 1% of the population qualifies for a loan, and last year was the lowest number of mortgage loans made in 15 years.
http://buenosaireshe...w-mortgage-plan


“With the current system, giving loans at a rate that’s affordable for people means private banks would be losing money. Of the more than 58,000 deeds that were signed in Buenos Aires City last year, only 2,700 were done with mortgages,” Picasso said.
With such a bleak scenario for private bank mortgages, the state took the initiative with the Procrear housing programme, which accounted for 0.3 percent of the country’s GDP in 2003 and reached 0.6 percent in 2015. The initiative — used for building and remodelling houses as well as for purchasing any of the houses developed by the programme — will be continued during Macri’s administration.

 

[ElQueso]

Yeah, when you have 30% annual inflation you can't do much of a mortgage market here unless somehow subsidized by the government. I know they've been announcing new mortgages and all, but right now it must be fluff for the most part. Hell, just getting a 30K peso loan, according to Banco Frances of about 6 months ago, was costing 68% interest! you can't even really finance a car here because of teh inflation and instability.

I've seen mortgages before for about 40% interest with 50% down payment and something like 5 years to pay and that was before the worst of the inflation, when it was just into double digits. I admit to not having looked very much at the new plans that were being talked about back in April, but I can't imagine that mortgages will come into play for any except the rich here until inflation has been cured for a few years at least and the banks have some confidence in the future.

 

[garryl]

(1)In order for (US) private bank to issue mortgage, an appraisal system has to be in place, otherwise people are just going to cheat and jack up the prices. Does Argentina have that ?
(2)(US)Private banks ultimately get the mortgage (most of the )funding from Fed backed companies like FANNIE MAE/FREDIE MAC, does Argentina Federal government have billions of pesos to flood the mortgage market ?
If the above 2 are not possible, the mortgage effect shall be minimum ?