The College of Auctioneers of the province of Buenos Aires expressed his optimism about the impact on the real estate sector of the amendment to Law 27,679 on money laundering for construction, which will allow the acquisition of real estate used for housing or rent, for a term of no less than ten years.
Jose Maria Saccovice president of the entity that brings together more than 9,000 real estate agents in the Buenos Aires district, explained that “the measure will help revitalize the real estate sector and will allow an important reactivation in the construction sector, given that in general, used properties need some type of of arrangement or reform”.
The professional entity had raised with the Minister of Economy, Serge Massa, the need to incorporate tax incentives to help reactivate the sector and increase the rental offer.
“Currently used real estate represents about 75% of the market, and providing the possibility of regularizing funds will revitalize operations, and give us oxygen after two very difficult years for the root activity of the pandemic and the economic crisis,” said Sacco.
This modification allows the funds declared under the current money laundering regime for construction to also be used for the purchase of used homes.
The acquisition value of the property must be equal to or less than US$ 399,547, a calculation that arises from dividing twice the amount foreseen in Personal Assets over the current price of the official dollar, a value that is updated every year.
“Currently used real estate represents about 75% of the market, and providing the possibility of regularizing funds will revitalize operations”
Referring to the current Rental Law, Sacco confirmed the need to advance in the modification of the current legislation, and stressed that “the proposal from our sector has always been to repeal the articles that indicate the term of lease and the form of indexing, or that is, return to a 24-month contract and free agreement in the six-monthly adjustment”.