The new economic scenario brought problems, but also some opportunities for those who already own a home and have pending put it into valuefacing necessary improvement works.
The main difficulty is that in recent months, and especially after the devaluation of December, prices skyrocketed in a noticeable way.
A recent survey by the specialized consulting firm Reporte Inmobiliario detected in April that the costs of remodel a bathroommeasured in pesos for a standard apartment, were already 114% Taller what in October and 238% greater than a year before.
Likewise, the budget for renew the kitchen of a typical home increased 86% in 6 months and a 198% in 12 months. In almost one year tripled.
That way, just put these back two key environments (bathroom and kitchen) already requires an investment of more than 10 million pesos in total, according to the study. And if a “facelift” is added to the walls and floors of the rest of the home, it will easily be necessary to put another $2 million.
In this framework, the novelty of the moment is that the return of the UVA mortgage loans offers a new way to get money for these works. Banks now finance them with much longer terms than usual –10, 20, 30 years– and more affordable feesalthough tied to inflation.
How much does it cost to renovate a bathroom now: the budget, item by item
According to Real Estate Report data, to completely renovate a bathroom 3.75 m2 and 2.5m high now we have to foresee an expense of $5,328,987considering the labor and the purchase of materials from reference brands for the market.
The quote includes the change of pipes and drains, new toilets and taps, bathtub, vanity, mirror, new electrical installation, lights, floor and wall ceramics, and general painting.
How much does it cost to renovate a kitchen: the budget, item by item
For its part, in the event of completely renovating a kitchen of 5.60 m2 and 2.5m high, Real Estate Report estimates a final cost of $4,934,596 between materials and labor.
In this case, the works considered include changing pipes and drains, granite countertops, single-lever faucets, melamine-covered furniture under the counter and cupboard, new gas and electrical installation, lights, ceramic floor and wall tiles, and painting. general.
How much does it cost to make other home improvements: paint and flooring?
Finally, according to what was revealed by the Real Estate Report, to remodel a typical apartment you must anticipate expenses for:
–General painting. For a 2 room $1,650,000; and for a 3 room, $2,000,000.
–Polished and plasticized. For surfaces greater than 20 m2, a cost close to $22,000 per m2.
–Carpet change. It costs around $14,000 per m2of which $6,500 corresponds to materials and $7,500 to placement.
New UVA mortgage loans: an opportunity to improve or expand the house?
Several of the banks that in recent weeks relaunched their UVA mortgage loans contemplated in their proposals the option that the borrowed funds be used to pay works for own home.
“For those who need expand or remodel and he doesn’t have the moneythe new UVA mortgage loans are a great opportunity“, considers architect Germán Gómez Picasso, founder of Reporte Inmobiliario.
“There are cases of families that need, for example add a bedroom and it is much less expensive for them to build it than to enter into a process of buying, selling, moving, etc.,” he assures Clarion.
He National Bank is one of the entities that has offered mortgage financing for construction projects since May. extension, repair and termination of one’s own house.
They give for these purposes until 50% of the budget of the work and up to 70,000 UVAs (today almost $70 million). The credit, which is returned in 5, 10 or up to 15 yearshas the cost of a fixed annual nominal interest rate (TNA) of 4.5% (or 8% for those who do not receive their salary in the BNA) and the month-to-month installment adjustment according to the value of the UVA, which follows inflation.
So, for example, when asking $15 million for a work 15 years an initial fee arises $125,929 and the requirement to demonstrate monthly income net of at least $503,717 between holders and co-debtors, according to the official Nación simulator.
The work is done now and the money is repaid in an extensive installment plan. Photo: Shutterstock.The new UVA mortgages of the city Bankwith terms of between 10 and 20 yearscan also be used for repair, improvement or expansion of a home. They lend up to $250 million or up to 75% of the value of the property market, with TNA rates from 5.5% (or 3.5% for the Microcenter) plus the UVA adjustment.
With these loans, for each $10 million awarded to 20 yearsinitial installments arise less than $70,000 or even less than $60,000, as recently reported by the Buenos Aires public bank.
In the case of hipotecary Bancbegan to offer for works of extension until the 100% of the budgetand even a fifty% for projects termination of homes, in both cases with a limit of $125 million. The return can be up to 30 yearsapplying the UVA adjustment plus a TNA that starts at 4.25% for the first year and then goes to 6.9%.
Also, the Galicia finances up to 50% of the works for enlarge either repair, with plans of up to 10 years. He Supervielle lend up to fifty% 10 years to renovate the house or up to 60% to 20 years to expand it. And there are similar options in the new lines of banks such as ICBC and the Patagoniaamong others.
“Yeah suitable or not Taking a loan for this type of work depends a lot on the purpose of the renovation or expansion. In fact, money well spent may or may not revalue the property above what was invested in his work. The key is to work with the right professionals,” concludes Gómez Picasso.
