The Government dissolved the trust fund that supported the Procrear program and implemented the divisible mortgages for real estate projects in development, better known as constructions “in well”. What do these measures entail and how are they expected to impact the real estate market?
He Procreatecreated in 2012 under the management of Cristina Fernández Kirchneroffered lines of credit subsidized by the national State for access to housing. Now the trust fund that supported it, but the works in progress will be settled in favor of third parties to complete them and then they can be acquired but through credit.
In addition, those beneficiaries of the Procrear program who still have debts will continue to pay the credit but through the Mortgage bank“under the same remuneration conditions as those established in the Trust Agreement signed on July 18, 2012 for said efforts.”
What is a divisible mortgage?
The divisible mortgages They give the possibility that real estate projects in the hands of developers are mortgaged by functional unit, instead of the entire building or an entire lot as has occurred until now. This prevented the units from being sold through credit because they could not be deeded.. Now that possibility will also be open to small investors.
“This means that construction companies will be able to pay their loans little by little, and as they do so, apartments will be released for deeds. Buyers will also have access to mortgage loans to acquire any functional unit in a well,” he explained. to Scopethe former president of the Unique College of Real Estate Brokers of the City of Buenos Aires (CUCICBA), Marta Liotto.
Until now, it was the case that if the construction company had requested a loan to develop the project, it had to pay it in full to be able to deed the property in the name of the buyer and, according to Liotto, this “discouraged sales”.
The divisible mortgage: expectations of developers
From the real estate market they hope that “accelerate” developments thanks to the mortgage division. Furthermore, they claim that it is a deregulation that they have been waiting for “for years” and positions them as a “market of first world”.
“It is something that we in the real estate sector, together with developers and construction companies, have been requesting for quite some time. We have been asking for it from the administration of Mauricio Macri when they launched mortgage loans and it was not viable at that time. This initiative will accelerate developments and access to housing,” said Liotto.
For its part, Ezequiel Wierzba, of WGW Developmentsmentioned that this measure “will facilitate the sale” and the “financing” of functional units in well projects. This would help “invigorate” the real estate market and give “greater flexibility” to both developers and buyers, while potentially expanding the supply.
“We celebrate this great news for our sector, which we have been waiting for for many years, and which positions us as a first-world market”the developer celebrated Alan Mohadebpartner of CEK GROUP.
In this sense, Mohadeb highlighted that divisible mortgages are “fundamental for access to housing, for the development of private investment and for promoting economic and productive reactivation.” And he added that there is “a lot of interest” in the operations resulting from money laundering.
The value of square meter (m2) in well It is currently in a strong upward trend after the deregulation of rents and is close to the price of a brand new apartment, between US$2,741 and US$2,745respectively, according to the survey of Zonaprop. On the other hand, the m2 of those used is much lower in US$2,138.
“With this measure, the Government aims to make the market for subsidized properties even more active and this could not only increase demand, but is also likely to put upward pressure on prices, especially if more buyers are able to take advantage of divisible mortgages. to secure units in new projects,” analyzed Wierzba.
Source: Ambito
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