Many families think it could be more convenient continue rental or try to take out a mortgage. The recent re-emergence of UVA adjustment loans has reignited the debate, with rental values remaining high and macroeconomic stability remaining uncertain.
In Buenos Aires city, the average price of a 3-room apartment is around $130,000According to data from major real estate companies. Faced with these numbers, those considering raising acquisition funds need to analyze the terms of available new financing. After years of inactivity in this area, several banks have offered financing again.
he Banco Nacion, Banco Ciudad, Banco Santander, BBVA, Mortgage They are among the entities that have resumed credit facilities arranged by UVA. In most cases, the maximum amount will cover: 80% of asset valuewith a reachable deadline 30 years. Nominal annual fees vary depending on the company, customer profile, and fee-income relationship.
For example, loan USD 100,000 Pesos equivalent 20 years today means your first payment will be closer to 20 years. $500,000 per monthHowever, this value is updated according to the inflation index. This fact is not important. The UVA component adjusts your installments according to changes in the Consumer Price Index (CPI), so your monthly payments may increase if inflation remains high.
The financial sector has emphasized that, unlike previous years, new UVA loans have restrictions on quota updates. For example, in the case of Nation Bank, the difference between the increase in revenue and the increase in quota cannot exceed 10%. If this difference increases, the loan term will be automatically extended.
on the other hand, Average rent for a 3-room apartment in CABA around $650,000 per monthaccording to a report from the Zonaprop portal. In addition to this, the quarterly updates allowed by the new rental law allow for increases agreed between the parties depending on various indicators.
When comparing the first payment on a UVA loan to the rental price, the difference appears to be limited. In some cases, Even your mortgage payment may be less than your rent, but you’ll be at greater risk of exposure to inflation.. Renters, on the other hand, avoid taking on debt but assume adjustment uncertainty and a lack of long-term stability.
According to an analysis conducted by the Real Estate Report portal; $130,000the initial monthly cost is approximately 75% of equivalent rental price. However, over time, depending on developments in prices and wages, this relationship may reverse.
Even though I’m back mortgage loanaccess is still limited. The relationship between family income and asset values continues to be one of the main barriers. According to market estimates, the income is $1,500,000 per month Eligibility for average credits excludes a large proportion of regular salaried workers.
Additionally, the lack of macroeconomic predictability makes long-term planning difficult. “The problem is not just inflation, but the uncertainty of future incomes and exchange ratesThis volatility causes many potential buyers to postpone debt decisions and choose to wait for a more stable environment.
In parallel, the supply of used homes for sale continues at a high level. Due to the sustained decline in dollar prices in recent years, many owners are considering disposing of their properties. The average value of CABA square meters is approx. $2,100However, there are significant differences between neighborhoods.
In the rental sector, the trend of strong demand and low supply continues. The repeal of previous rental laws and the initiation of agreements between the parties led to a reconfiguration of the market; Prices remain far from average purchasing power.
Analysts believe that beyond the current numbers, The convenience of taking or borrowing a home loan depends on your term and your savings ability.. If inflation somehow stabilizes and incomes continue, credit could become a viable option for the middle sector. On the other hand, in situations of high volatility, adjustable allocations can become burdensome and difficult to maintain.
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