The recovery of the sector, thanks to the loans, could be seen in the number of deeds of sale of houses carried out in July -latest available data- through mortgages, which totaled 225 scriptureswhich implies a growth of 41.5% compared to the same month last year and 95.6% compared to the previous month of 2024.
The difference between the amount of rent an apartment and of the monthly fee of a UVA mortgage loan It is not substantial. However, it should be noted that the loan finances up to 80% of the property, depending on the bank. Therefore, the most important difference between a loan and a rental lies in the “advance” amount that the credit beneficiary must have availablewhich corresponds to around 20% of the value of the property. There is also a huge difference in the monthly income of the person or family group required to buy an apartment and to rent it.
Mortgage loans: what is the installment, down payment and income required to buy an apartment?
The survey of Real Estate Report It provides details on how much a person must pay in installments and down payments, as well as the income required to purchase a used 43 m² apartment in different neighborhoods of Buenos Aires.
Below are the calculations made with the UVA, plus an average rate of 5.8% at 30 years and 75% of the value of the home financed by the bank.
1) Palermo
Price: u$s2,427/m2 (u$s104,361)
Amount to be borrowed from the bank: $100,969,268
Initial payment: $592,440
Required income: $2,369,760
Advance (the remaining 25%): US$26,090
2) Recoleta
Price: u$s2,371/m2 (u$s101,953)
Amount to be borrowed from the bank: $98,639,528
Initial payment: $578,770
Required income: $2,315,080
Advance (the remaining 25%): US$25,488
3) Belgrano
Price: u$s2,247/m2 (u$s96,621)
Amount to be borrowed from the bank: $93,480,818
Initial payment: $548,502
Required income: $2,194,008
Advance (the remaining 25%): US$24,155
4) Villa Urquiza
Price: u$s2,100/m2 (u$s90,300)
Amount to be borrowed from the bank: $87,365,250
Initial payment: $512,618
Required income: $2,050,472
Advance (the remaining 25%): US$22,575
5) Little horse
Price: u$s1,890/m² (u$s81,270)
Amount to be borrowed from the bank: $78,628,725
Initial payment: $461,356
Required income: $1,845,424
Advance (the remaining 25%): US$20,318
6) Almagro
Price: u$s1,845/m2 (u$s79,335)
Amount to be borrowed from the bank: $76,756,613
Initial payment: $450,372
Required income: $1,801,488
Advance (the remaining 25%): US$19,834
7) Villa Crespo
Price: u$s1,844/m2 (u$s79,292)
Amount to be borrowed from the bank: $76,715,010
Initial payment: $450,128
Required income: $1,800,512
Advance (the remaining 25%): US$19,823
8) Flowers
Price: u$s1,643/m2 (u$s70,649)
Amount to be borrowed from the bank: $68,352,908
Initial payment: $401,063
Required income: $1,604,252
Advance (the remaining 25%): US$17,662
9) Balvanera
Price: u$s1,344/m2 (u$s57,792)
Amount to be borrowed from the bank: $55,913,760
Initial payment: $328,076
Required income: $1,312,304
Advance (the remaining 25%): US$14,448
Mortgage vs. rent: which is better?
The values revealed by Real Estate Report Regarding the initial cost of paying a mortgage loan, they show that there is no substantial difference with the average rent for a two-room unit used in CABA.
Even in some neighborhoods the initial loan payment ends up being cheaper than the rent. The value of the rent, neighborhood by neighborhood:
- Palermo: $525,455
- Recoleta: $548,180
- Belgrano: $620,000
- Villa Urquiza: $499,165
- Horse: $445,715
- Almagro: $372,500
- Villa Crespo: $491,250
- Flowers: $406,665
- Balvanera: $376,250
Source: Ambito
