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The reasons to invest in housing, beyond the return of mortgage credit - Infobae
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Las razones para invertir en la vivienda, más allá del regreso del crédito hipotecario
Con un precio del dólar que se mueve a ritmo lento el mercado inmobiliario se vuelve cada vez más atractivo para quiénes tienen capacidad de ahorro. Las perspectivas
www.infobae.com
April 29, 2024
With the price of the dollar moving at a slow pace, the real estate market becomes increasingly attractive for those who have the ability to save. The perspectives
By José Luis Cieri
After more than five years in recess, the dilemma of investing in real estate versus dollars reappears, coinciding with the strongest start to the quarter in years, according to the College of Notaries of the Autonomous City of Buenos Aires. Added to this is the return of mortgage credit (Getty Images)
With the dollar stable in its price and with the announcement of the return of mortgage loans for purchase, expansion or remodeling, investing in real estate, especially in new or used homes, emerges as a more affordable option.
The dilemma between investing in bricks vs. dollar resurfaces after more than five years, especially after a week that marked the best start to a quarter in a long time, according to the Buenos Aires College of Notaries. After the analysis of real estate operations in March, it was confirmed that deeds experienced an increase of 18.3% compared to the same section of 2023. This represents the strongest start to the year since 2018.
Ariel Champanier , from Re/Max Premium, told Infobae that currently the real estate market represents an exceptional opportunity for investors. “The purchase of real estate today is very attractive, given the competitive values that have not yet been completely adjusted. Although there is less stock available at these prices, there are still valuable options. With the cost of construction fluctuating, brand new properties or those used with potential present themselves as the best bets.”
The segment highlights the security that real estate offers compared to other types of assets, including the dollar. “The brick provides incomparable security, being its main strength. In the current market, what gains the most value is what is scarce, and in this sense, two or three-room properties in upper-middle class neighborhoods are the most coveted,” highlights Champanier.
Faced with the new credit offer from several banks, to which it is estimated that the entire system will be added, homes suitable for credit will be the first to be marketed with the UVA lines (adjustable for inflation plus a single-digit interest rate per year).
Advantages
Today, brick is positioned as an attractive investment alternative because the value of a square meter has reached its lowest point and has begun an upward trend that is expected to continue, driven by the increase in equivalent salaries in dollars and the rise in stocks and shares. bonuses.Pablo Valencia , of Valencia Neira Real Estate, told this medium: “Historically, brick was a long-term safe haven. With the value of the m2 currently low, this moment is optimal to invest and wait for the anticipated revaluation, which will occur gradually as a result of the incorporation of new credits in the market to boost demand."
Building costs have increased sharply and experts recommend buying used or brand new homes, rather than from the well.
According to data from Zonaprop, the value of used properties experienced a decrease, with an annual variation of only 0.5% and an average price of USD 2,049 per square meter.
Santiago Magnin , from Deinmobiliarios, mentioned that used properties are at a historic low. “Demand is increasing, while supply is decreasing and prices are starting to rise. This suggests an optimistic outlook, where a bull market seems to begin in the used property sector.”
In a similar way, it happens with brand new properties, where the increase in the costs of construction materials caused that in CABA there are currently 14 neighborhoods where the value per m2 of brand new properties is lower than that of those under construction, a trend that historically It was opposite. An example is seen in Núñez , where the average price for homes ready to move in is USD 2,777, while units in the process of construction have a value of USD 2,874 per m2.
The construction cost measured in dollars registered an increase of 35.5% in 2024 while the average price of apartments rose 1.1%; Today one in well is at USD 2,494 per m2. Building today costs almost triple what it was worth in October 2020, the minimum recorded by Zonaprop, and 30.2% above the 2012-2023 average.
Even in this complex scenario, Gabriela Cosovschi , from Commercial Real Estate, expressed: “Brick was and will continue to be a safe option to protect capital, especially when acquiring properties at a good price and in strategic locations. In Argentina, the cost per m2 is considerably lower compared to the rest of the world, even in high-quality areas.”
The PH are an option to bet on the "brick" dollar
Tips and appropriate units
Brand new apartments (1 and 2 rooms) are the most in demand and will increase in price, due to the credit effect. Among those used, those with 3 rooms with a balcony emerge among the most recommended.“There are numerous possibilities to carry out real estate flipping operations , which consists of buying a property to renovate, renovate it and then sell it to obtain profits. The success of these investments lies in achieving an advantageous purchase price, something essential to define the profitability of the business, especially when the cost of construction is increasing and, therefore, the profit margin is lower. Although the margin is small, it is still a profitable practice,” said Valencia Neira.
PHs are especially in demand for this type of investment, and there is even an offer of these for temporary rental through platforms such as Airbnb, given that they provide unique experiences to foreign tourists who are looking for something more special than the options in more traditional areas.
Planning
Regarding the most profitable investment strategy in the current context, Champanier said: “If I had to choose between buying to live, renting or reselling, I would say that investing in rental properties represents the best profitability today, especially in the traditional rental segment. which improved significantly compared to the previous year post DNU that repealed the Rental Law.”Specialists add another factor, the increase in confidence towards the country since the assumption of Javier Milei to the government, which is manifested in the drastic decrease in the excess interest rate implicit in the price of sovereign bonds.
With an investment of less than USD 100,000, it is advisable to first acquire an old apartment in a privileged location such as Palermo, Recoleta, Colegiales, Villa Urquiza or Belgrano, and then remodel it with a budget of USD 30,000/40,000 and sell it for $150,000.
Buying homes in Villa Urquiza is recommended. It is a neighborhood that can enhance its real estate value in the short term.
“As a second option, it recommends the purchase of two-room properties, with amenities, in strategic areas near universities or tourist areas for temporary rental, obtaining attractive rents of up to 7% annually in dollars. The third alternative involves investing in properties with particular characteristics within renowned buildings, ensuring a profitable and stable rental,” Cosovschi advised.
Due to the interest in credits, it is projected that neighborhoods such as Villa del Parque, Floresta, Parque Chas and Villa Devoto will experience an increase in both demand and the dynamization of purchase and sale operations.
Whitewashing and future
A slowdown in inflation and salary recovery are the keys to increasing the population's savings capacity and, as a consequence, boosting the purchase of homes.Valencia Neira said: “Currently, there is an air of optimism in the market. Analyzing the current situation and projecting in the short and medium term, we anticipate that monthly sales of deeded properties could once again reach 6,000 units, compared to the current average of 3,419 observed in the last 12 months. This boost would bring us closer to the prices we saw five or six years ago.”
Buying at bargain prices, renovating and then reselling or inhabiting the property is advisable in these times (Illustrative image Infobae)
To further boost the sector, the national Congress is expected to approve a new money laundering scheme that, before the end of the year, could enable the purchase of real estate worth up to $100,000 .
Gabriela Cosovschi concluded: “This is the ideal time to make home purchases instead of dollars to save. The situation would become even more favorable once money laundering is implemented and the granting of mortgage loans is confirmed. A situation that could mark a turning point, boosting the activity of the real estate market to levels rarely reached in our country.”
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