Bajo_cero2
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It is commercial offices that were former appartments for housing. Contracts qre for housing, you do not pay the real estate commision.
Rentals. The most controversial points of the law that the Senate could approve
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gracielle
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UPDATE:
3 February 2022 by Patricia Valli, Sub-editor of Economics and Politics
www.cronista.com
Rents: Feletti analyzes whether there will be "stick and carrot" for landlords and convenes a sectoral roundtable.
The Gov't will set in motion a roundtable to analyze the real estate supply due to the increase in rent prices and the lower availability of apartments, where the owners -despite the paralysis of the market- prefer to put them on sale. In this context, the Secretary of Domestic Trade, Roberto Feletti, met with representatives from tenant groups and yesterday with the Argentine Real Estate Chamber. In the next few weeks they plan to convene a working group that will also include representatives of the landlords to define a new scheme.
From the ruling party, Sergio Massa had anticipated changes to the rental law that have not yet been translated into a new proposal. There is a problem of market failure or errors contained in the law, I don't know," Feletti said in a dialogue with El Destape Radio. "The landlord does not want to rent or asks for a rent that the tenant cannot pay and the tenant can pay a rent that for the landlord is not profitable. There is no meeting point that serves both and there is a withdrawal of supply," he added about the diagnosis of the sector. In this context, the head of the Chamber of Realtors, Alejandro Bennazar, explained to El Cronista that in the meeting with the Gov't, a salary coefficient was proposed for rents without tying it to inflation, with an update divided in two stages and the extension of contracts, which so far has not been accepted by tenants or landlords.
"I don't have the solution now, but maybe it will be a mix of stick and carrot for the owners so that they offer their properties, with benefits if they offer them and if they don't, some levy, as is done in other countries", anticipated the Secretary of Domestic Trade about the scheme that may be presented. "Something is going on and the State must seek a consensus. Along with the food issue, the housing issue has become very complicated". The objective is to have a diagnosis of the sector although they clarify that it does not necessarily imply a reform of the rental law, a definition that will have to come from Casa Rosada. For Bennazar, it is necessary to advance in the modification of the law, which generated distortions in the market. "There is a 50% of the market that is outside what the law says, which is in force but is not controlled", he remarked....
3 February 2022 by Patricia Valli, Sub-editor of Economics and Politics
Alquileres: Feletti analiza si habrá "palo y zanahoria" para los propietarios y convoca a una mesa sectorial
El Gobierno convocará a una mesa del sector para analizar las subas de los precios de los alquileres y la menor oferta de departamentos. Cómo siguen las reuniones y la propuesta de los inmobiliarios.
www.cronista.com
The Gov't will set in motion a roundtable to analyze the real estate supply due to the increase in rent prices and the lower availability of apartments, where the owners -despite the paralysis of the market- prefer to put them on sale. In this context, the Secretary of Domestic Trade, Roberto Feletti, met with representatives from tenant groups and yesterday with the Argentine Real Estate Chamber. In the next few weeks they plan to convene a working group that will also include representatives of the landlords to define a new scheme.
From the ruling party, Sergio Massa had anticipated changes to the rental law that have not yet been translated into a new proposal. There is a problem of market failure or errors contained in the law, I don't know," Feletti said in a dialogue with El Destape Radio. "The landlord does not want to rent or asks for a rent that the tenant cannot pay and the tenant can pay a rent that for the landlord is not profitable. There is no meeting point that serves both and there is a withdrawal of supply," he added about the diagnosis of the sector. In this context, the head of the Chamber of Realtors, Alejandro Bennazar, explained to El Cronista that in the meeting with the Gov't, a salary coefficient was proposed for rents without tying it to inflation, with an update divided in two stages and the extension of contracts, which so far has not been accepted by tenants or landlords.
"I don't have the solution now, but maybe it will be a mix of stick and carrot for the owners so that they offer their properties, with benefits if they offer them and if they don't, some levy, as is done in other countries", anticipated the Secretary of Domestic Trade about the scheme that may be presented. "Something is going on and the State must seek a consensus. Along with the food issue, the housing issue has become very complicated". The objective is to have a diagnosis of the sector although they clarify that it does not necessarily imply a reform of the rental law, a definition that will have to come from Casa Rosada. For Bennazar, it is necessary to advance in the modification of the law, which generated distortions in the market. "There is a 50% of the market that is outside what the law says, which is in force but is not controlled", he remarked....
gracielle
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2 February 2022 by Delfina Casali
www.lanacion.com.ar
Rents: how much will the increase be for renewing the contract in February. The increase established by the index prepared by the Central Bank will be around 52%, a percentage similar to that of the last few months....The percentage increase applies only to those who have to renew their lease in February and establishes the amount to be paid monthly during the following year.
To calculate the adjustment, tenants and landlords should consult the index published daily by the Central Bank (BCRA) on its official website. This is an indicator that considers in equal parts the variation of inflation (according to the CPI measured by the INDEC) and salaries, according to the average remuneration of stable workers (Ripte), whose obligatory nature was introduced in the market with the new rental law (27.551). As was the case last year, experts believe that rental contract increases will be in line with or below year-on-year inflation, although above the increase in salaries....
....At the end of last year, the ruling party expressed its intention to modify the law, considering that "it ended up reducing the offer, reducing the possibility of developing the business and, in addition, generating uncertainty and difficulties for the tenant", in the words of the head of the Chamber of Deputies, Sergio Massa. At first, it was reported that one of the options was to suspend the regulation for 180 days while a new one was being drafted. However, the idea did not materialize and, for the time being, the issue was not included in the agenda of extraordinary sessions....Not knowing what will happen in legislative matters with rents aggravates the low supply that the market has today, which in turn pushes prices up, according to the sector. "We have already started the year with uncertainty, after last year the promise was that the law would be repealed or suspended and in the end nothing happened," analyzed Daniel Bryn, head of Invertiré Real Estate. "For the time being, in the first quarter of the year we will not have a solution and this causes many owners to wait to place their property for rent", he assured....
Three steps: how to calculate the contract increase
To apply the adjustment based on the LCI, a formula must be used, taking into account the value it yields on two dates: that of the beginning of the contract and that on which the increase will be made. To consult the index, the steps are as follows:
1. Enter the Central Bank's website (http://bcra.gob.ar/), go to the “estadísticas” tab and then “principales variables”. At the end of the list, there is the option to view it.
2. The user will be able to select the start and end dates of the period to be consulted. First, he/she must place the date on which the contract was signed, in order to know what the index was at that time and on which the update will be made.
3. Take the current rental price, which will be adjusted and divide it by the value of the index with the start date of the contract. Finally, multiply that figure by the index of the date on which the rental amount changes. In short, the formula to be applied is: the total rent divided by the index at the date the contract was signed, multiplied by the index of the day on which the increase is applied. The value resulting from this calculation will be the amount of rent that the tenant will have to pay during the next year, until it is updated again.
Alquileres: de cuánto será el aumento para renovar el contrato en febrero
La suba establecida por el índice que elabora el Banco Central girará en torno al 52%, un porcentaje similar al de los últimos meses
www.lanacion.com.ar
To calculate the adjustment, tenants and landlords should consult the index published daily by the Central Bank (BCRA) on its official website. This is an indicator that considers in equal parts the variation of inflation (according to the CPI measured by the INDEC) and salaries, according to the average remuneration of stable workers (Ripte), whose obligatory nature was introduced in the market with the new rental law (27.551). As was the case last year, experts believe that rental contract increases will be in line with or below year-on-year inflation, although above the increase in salaries....
....At the end of last year, the ruling party expressed its intention to modify the law, considering that "it ended up reducing the offer, reducing the possibility of developing the business and, in addition, generating uncertainty and difficulties for the tenant", in the words of the head of the Chamber of Deputies, Sergio Massa. At first, it was reported that one of the options was to suspend the regulation for 180 days while a new one was being drafted. However, the idea did not materialize and, for the time being, the issue was not included in the agenda of extraordinary sessions....Not knowing what will happen in legislative matters with rents aggravates the low supply that the market has today, which in turn pushes prices up, according to the sector. "We have already started the year with uncertainty, after last year the promise was that the law would be repealed or suspended and in the end nothing happened," analyzed Daniel Bryn, head of Invertiré Real Estate. "For the time being, in the first quarter of the year we will not have a solution and this causes many owners to wait to place their property for rent", he assured....
Three steps: how to calculate the contract increase
To apply the adjustment based on the LCI, a formula must be used, taking into account the value it yields on two dates: that of the beginning of the contract and that on which the increase will be made. To consult the index, the steps are as follows:
1. Enter the Central Bank's website (http://bcra.gob.ar/), go to the “estadísticas” tab and then “principales variables”. At the end of the list, there is the option to view it.
2. The user will be able to select the start and end dates of the period to be consulted. First, he/she must place the date on which the contract was signed, in order to know what the index was at that time and on which the update will be made.
3. Take the current rental price, which will be adjusted and divide it by the value of the index with the start date of the contract. Finally, multiply that figure by the index of the date on which the rental amount changes. In short, the formula to be applied is: the total rent divided by the index at the date the contract was signed, multiplied by the index of the day on which the increase is applied. The value resulting from this calculation will be the amount of rent that the tenant will have to pay during the next year, until it is updated again.
Johnny
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Am I the only one who thinks that all of that is absolute madness?2 February 2022 by Delfina Casali
Rents: how much will the increase be for renewing the contract in February. The increase established by the index prepared by the Central Bank will be around 52%, a percentage similar to that of the last few months....The percentage increase applies only to those who have to renew their lease in February and establishes the amount to be paid monthly during the following year.Alquileres: de cuánto será el aumento para renovar el contrato en febrero
La suba establecida por el índice que elabora el Banco Central girará en torno al 52%, un porcentaje similar al de los últimos meses
To calculate the adjustment, tenants and landlords should consult the index published daily by the Central Bank (BCRA) on its official website. This is an indicator that considers in equal parts the variation of inflation (according to the CPI measured by the INDEC) and salaries, according to the average remuneration of stable workers (Ripte), whose obligatory nature was introduced in the market with the new rental law (27.551). As was the case last year, experts believe that rental contract increases will be in line with or below year-on-year inflation, although above the increase in salaries....
....At the end of last year, the ruling party expressed its intention to modify the law, considering that "it ended up reducing the offer, reducing the possibility of developing the business and, in addition, generating uncertainty and difficulties for the tenant", in the words of the head of the Chamber of Deputies, Sergio Massa. At first, it was reported that one of the options was to suspend the regulation for 180 days while a new one was being drafted. However, the idea did not materialize and, for the time being, the issue was not included in the agenda of extraordinary sessions....Not knowing what will happen in legislative matters with rents aggravates the low supply that the market has today, which in turn pushes prices up, according to the sector. "We have already started the year with uncertainty, after last year the promise was that the law would be repealed or suspended and in the end nothing happened," analyzed Daniel Bryn, head of Invertiré Real Estate. "For the time being, in the first quarter of the year we will not have a solution and this causes many owners to wait to place their property for rent", he assured....
Three steps: how to calculate the contract increase
To apply the adjustment based on the LCI, a formula must be used, taking into account the value it yields on two dates: that of the beginning of the contract and that on which the increase will be made. To consult the index, the steps are as follows:
1. Enter the Central Bank's website (http://bcra.gob.ar/), go to the “estadísticas” tab and then “principales variables”. At the end of the list, there is the option to view it.
2. The user will be able to select the start and end dates of the period to be consulted. First, he/she must place the date on which the contract was signed, in order to know what the index was at that time and on which the update will be made.
3. Take the current rental price, which will be adjusted and divide it by the value of the index with the start date of the contract. Finally, multiply that figure by the index of the date on which the rental amount changes. In short, the formula to be applied is: the total rent divided by the index at the date the contract was signed, multiplied by the index of the day on which the increase is applied. The value resulting from this calculation will be the amount of rent that the tenant will have to pay during the next year, until it is updated again.
gracielle
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I am the owner of the PH where I live in Caballito. It is the only property I own here. Nevertheless I agree with your post.
antipodean
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In a game where no one is allowed to “win”, everyone looses and it’s those with the least who hurt the most. It’s not a problem of “market failure or errors contained within the law”.UPDATE:
3 February 2022 by Patricia Valli, Sub-editor of Economics and Politics
Rents: Feletti analyzes whether there will be "stick and carrot" for landlords and convenes a sectoral roundtable.Alquileres: Feletti analiza si habrá "palo y zanahoria" para los propietarios y convoca a una mesa sectorial
El Gobierno convocará a una mesa del sector para analizar las subas de los precios de los alquileres y la menor oferta de departamentos. Cómo siguen las reuniones y la propuesta de los inmobiliarios.
The Gov't will set in motion a roundtable to analyze the real estate supply due to the increase in rent prices and the lower availability of apartments, where the owners -despite the paralysis of the market- prefer to put them on sale. In this context, the Secretary of Domestic Trade, Roberto Feletti, met with representatives from tenant groups and yesterday with the Argentine Real Estate Chamber. In the next few weeks they plan to convene a working group that will also include representatives of the landlords to define a new scheme.
From the ruling party, Sergio Massa had anticipated changes to the rental law that have not yet been translated into a new proposal. There is a problem of market failure or errors contained in the law, I don't know," Feletti said in a dialogue with El Destape Radio. "The landlord does not want to rent or asks for a rent that the tenant cannot pay and the tenant can pay a rent that for the landlord is not profitable. There is no meeting point that serves both and there is a withdrawal of supply," he added about the diagnosis of the sector. In this context, the head of the Chamber of Realtors, Alejandro Bennazar, explained to El Cronista that in the meeting with the Gov't, a salary coefficient was proposed for rents without tying it to inflation, with an update divided in two stages and the extension of contracts, which so far has not been accepted by tenants or landlords.
"I don't have the solution now, but maybe it will be a mix of stick and carrot for the owners so that they offer their properties, with benefits if they offer them and if they don't, some levy, as is done in other countries", anticipated the Secretary of Domestic Trade about the scheme that may be presented. "Something is going on and the State must seek a consensus. Along with the food issue, the housing issue has become very complicated". The objective is to have a diagnosis of the sector although they clarify that it does not necessarily imply a reform of the rental law, a definition that will have to come from Casa Rosada. For Bennazar, it is necessary to advance in the modification of the law, which generated distortions in the market. "There is a 50% of the market that is outside what the law says, which is in force but is not controlled", he remarked....
While some parts of the law were valid and necessary the issue causing the predictable mess is that is that of the price adjustments. The ideology behind this part of the law is fixated on ignoring the severity of inflation just so a self-serving government can save face amongst its voters and keep on spending as it wants, attempting to cover up the fact that to finance this extravagance both renters and landlords will keep getting poorer.
antipodean
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They don’t want to rent primarily because each month their income will be down by 4-5% for the next three years and the two adjustments in that time won’t be enough to “reset” their income to the same level it was when it started.
For example if the owner needs an income of $80.000 present value to cover / supplement their living expenses or generate a return on their investment, knowing that annual inflation is over 50% and they would need to wait one year to adjust their income then they need take a gamble to price accordingly today - meaning instead of asking you for $80.000, they will ask you for $120.000+ and whether or not you have $120.000+ today or if the property is worth $120.000+ today is another story. Better to do nothing and wait and see what changes or if a buyer comes along.
Other way to make it attractive for them is to offer a USD price reference that you will pay in ARS according to the rate on the day - few working Argentines would dare do this. Or offer to do a temporary contract of 6 months with the intent to renew subject to price adjustment that you can make a gentleman’s agreement on how it will work (essentially like it used to be done with mutually agreed and pre-established adjustments every 6 months, only more precarious for you) Final option or a mix between this and points above, is putting $20.000 as rent subject to the new law and $60.000 in another non-rental contract (like a loan agreement) with adjustments as agreed between the parts - more complex and lawyerish but it happens - tenant probably needs some colateral or a looot of trust on the part of the owner for this however.
.
Last edited:
jblaze5779
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I like how instead of looking at the reasons why nobody wants to lease their apartments, they just put laws to force you to lease.
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