In Argentina the dream of owning your own home faded away over the years and the lack of bank loans In recent years, it even made it almost impossible. However, last week they began reactivate the first mortgage creditsinitially it was done by a private bank, but quickly this week new lines were launched by the city Bank.
The public banking of the City of Buenos Aires granted two new lines of credit with financing of up to $250 millionpayable in 20 yearsin Grapes plus an interest rate from 3.5% of the Annual Nominal Rate (TNA)in the case of those who acquire the home in Microcenterwhile it will be from one of the 5.5% of the TNA For those who purchase property in areas of influence of Banco Ciudad (AMBA, provinces of Córdoba, Mendoza, Tucumán and Salta).
It should be noted that the new mortgage lines allow financing up to 75% of the sale value of the property to be acquired. In turn, the fee-income relationship should not exceed 25% of net income of the applicant or his family group.
In this scenario, the real estate market analyst, Daniel Brynestimated how much the monthly fee for a mortgage credit granted by the city Bank compared to the cost of monthly rent.
What is the difference between the mortgage loan payment and a rental?
According to the forecasts made by the real estate market analyst, Daniel Bryn, the fee for a studio apartment compared to the cost of renting it would be 26% more expensive while for a 2 room it would rise by 36% and in the case of a 3 room, 42%.
For a 40m2 studio apartment the value of the apartment would be US$80,080based on the average price of 2,200 dollars per m2 published in March by Zonaprop. In that case, the The cost of the fee would currently be 526 UVAswhich gives a monthly fee of $460,326 versus a rental $365,546 (+26%), also taking the average price of the property platform. The person who wishes to take the loan will have a 75% financingas previously stated, that it would be $66,918,780 of which should return about $110,478,191.
In the case of the installments as well as the amounts to be returned, it is always tied to the UVA cost and the TNA, which may vary and may become more expensive. Thus, To request this mortgage loan the applicant must have income of $1,841,303, while to rent they may have income of $731,092.
Meanwhile, for a 2 rooms of 50m2 the value of the apartment would be US$110,100with a quota of 658 UVAswhich gives a monthly fee of $575,407 against a cost of rent of $422,505 (+36%). To apply for this loan, the family group must have net income of $2,301,629 while for a rental of these magnitudes it would be $850,000.
He Mortgage credit for a two-bedroom with these characteristics would be equivalent to $83,648,475 and the total to pay would be $138,097,738 at the moment.
And to a 3-room apartment of 70 m2which has a value of US$154,140you will have an initial fee of 875 UVAswhich would raise the monthly fee to $805,570 In front of a rent of $567,747 (+42%). To apply for this line of credit, the family group must have a net income of $3,222,281 while to rent an apartment of these magnitudes you would need to earn $1,135,494.
In the case of a 3-room apartment, the credit would be for about $117,107,865 while the total to pay would be located in $1931,336,834currently.
Source: Ambito
