A proposal presented this Thursday in the Legislature of the province of Córdoba seeks the creation of a line of credit so that young people and students can have access to a rental. A benefit is proposed that contemplates that the Bank of the province of Córdoba SA lends with a zero interest rate and a term that extends until the expiration of the contract.
The legislator of the Building Córdoba bloc, Dante Rossi, presented this bill that seeks to provide various benefits to young people up to 35 years old who rent a home, expanding these benefits for students of public institutions.
The proposal contemplates the creation of a zero-rate credit line through the Banco de la Provincia de Córdoba SA, with a repayment period that will extend until the expiration of the rental contract.
Thus, after the repeal of the Rental Law, the rental contract no longer has a specific term, but is subject to the parties involved. For the most part, the real estate market is looking for a preference for a two-year agreement.
According to the project, young people who formally rent a home will be able to access a loan of up to $500,000 to cover initial expenses such as the first month’s rent, deposit (if required), moving and guarantees.
For those who prove they are university or non-university higher education students at a public institution, the amount of the credit will increase to $700,000.
Thus, this project makes no maximum in the rental price binding, but rather establishes these credit limits in the aid, regardless of whether expenses exceed those amounts.
Beneficiaries must justify the use of the requested amount by demonstrating the expenses necessary to meet the contractual execution of the rental.
In addition, the project proposes exempting the payment of stamp tax for rental contracts regulated by this law, with a maximum limit of $450,000 of monthly rental grants.
This tariff in the year 2024, the Government of the Province of Córdoba established that the stamp tax for urban locations at five per thousand (5%). That is to say that by law the exemption will be for these properties when it does not exceed $57,600.
Surety insurance will also be introduced through the Banco de la Provincia de Córdoba SA, with a bonus of 50% of the cost for rentals that do not exceed $300,000 per month. For the student deposit, the bonus will be 60%.
For its part, the Directorate of Consumer Defense and Commercial Loyalty will provide free legal advice for the correct application of the law.
Rossi highlighted that the proposal “seeks to generate a benefit for people who must start or continue a rental relationship of up to 35 years, with a plus for those who are students.”
According to the legislator, this bill is part of a facilitation plan so that young people and students have access to a rental and alleviate the financial burden of tenants to face the initial expenses of a contract.
