There is a gradual increase in Argentine mortgage orders in Uruguay, traction by a middle and high class profile, which seeks a second residence or an investment outside Argentina. In general, these are professionals and entrepreneurs, among other representatives of a segment that they bet for a more relaxed lifestyle, seeking the possibility of establishing themselves in the country, either for work, educational reasons or simply by the fact of improving their quality of life and that of their children.
And, of course, there are also investors who pursue the usual: profitability and security, in addition to expanding their portfolio. The truth is that both one and others find economic and political stability in the country, thus configuring an attractive environment for investment, with a solid financial system and regulations that facilitate the purchase of properties.
The aforementioned stability is not a word used in the context of a Speech. It is, in truth, that allows a more predictable economic environment, which, at the same time, allows Uruguay to present stable interest rates and flexible deadlines.
Specifically, they range between 4 and 6% in American dollars, being able to reach 7% if the deadlines extend. It should be stressed that in relation to indexed units, rates are even lower. But, beyond the numbers, it is the proverbial Uruguayan stability that counts in front of the options of Argentina, always affected by the stalking of inflation and the adjuvant economic risk.
Where, how, how, what
As for the type of property that Argentines choose, we must distinguish, in principle, the different cities and geographical areas that lead the preferences. Many are inclined by departments when it comes to an investment in Montevideo, especially in coastal or central areas. On the other hand, when we talk about spas or tourist areas, preferences are houses.
The size or size of the properties maintains a pattern that goes from surfaces from medium to large, with comforts and easy access to services. Regarding the amounts, depending on the location and characteristics of the property, the requested mortgage loans can range between $ 100,000 and $ 300,000.
It is worth clarifying that access to mortgage credit for foreigners, in this case Argentines is logically subject to certain conditions, which are even changing depending on specific circumstances. But in general, in addition to documentation such as Argentine ID or passport, and in some cases, a residence voucher, it is necessary to demonstrate the payment capacity, which may include salary receipts, tax statements or bank account states. This helps the entity to evaluate the solvency of the applicant.
Economic, political and social factors
Additionally, many entities ask that the applicant have a certain age in their employment or economic activity, which may vary between one and three years; previous savings -an initial amount is usually required as an advance, which can be between 20% and 30% of the property value; The credit history of the applicant and, logical, the appraisal of the property in question, fundamental in case of the execution of the mortgage.
Beyond the bureaucratic aspects – which perhaps more bureaucratic are read than they really are – the process to obtain a mortgage in Uruguay is relatively accessible to Argentines, which facilitates the purchase of properties.
So much so that the projections for the Argentine mortgage segment in Uruguay by 2025 is positive although it can be influenced by economic, political and social factors. Anyway, it is an attractive market in itself: the country offers a variety of properties, from departments in the city to houses on the beach, allowing buyers to choose according to their preferences and needs.
In particular, the east and coastal areas are experiencing a flood of real estate investments, which is perceived with the naked eye. Although eloquent, the data is not surprising since there is always an increasing demand for housing rental. This is especially attractive in tourist areas in season and in urban areas at the annual lease level.
Carlos Ruiz Lapuente is an advisor to investments, lawyer and Uruguayan accountant
By Carlos Ruiz Lapuente
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