Housing dilemma: How much to rent and how much to pay for the mortgage

Public and private banks have relaunched UVA mortgage lines, with terms of up to 30 years and coverage of up to 80% of the property value (ASPAI).

Many families wonder if this is more convenient Continue renting Or try to get a mortgage. The recent return of UVA-adjusted loans has reignited the debate, in a context where rental values remain high and macroeconomic stability remains uncertain.

In Buenos Aires, the average price of a three-room apartment is approx 130,000 US dollarsThis is according to data from the main real estate agencies. Faced with this figure, those evaluating purchase financing must analyze the terms of new loans available, which many banks have offered again after years of inactivity in the sector.

he Banco Nacion, Ciudad, Santander, BBVA and Mortgage It is among the entities that have relaunched lines of credit modified by UVA. In most cases, the maximum amount covers up to 80% of the property valuewith deadlines that can be reached 30 years. Annual nominal rates vary depending on the entity, client profile and relationship between fees and income.

For example, a loan The equivalent of 100,000 US dollars in pesos 20 years today means an initial payment of close to $500,000 per monthAlthough this value is updated according to the inflation index. The truth is not simple: the UVA component adjusts premiums due to variation in the CPI, so monthly premiums may increase if inflation remains high.

From the financial sector, they highlight that, unlike previous years, new UVA loans have limits on updating quotas. In the case of Nation Bank, for example, the difference between the increase in income and the increase in shares may not exceed 10%. If this gap widens, the loan term is automatically extended.

The average loan of $100,000 includes a down payment of approximately $500,000, which is similar to the monthly cost of renting three rooms in CABA (Freepik)

At the same time, The average rent for a three-room apartment in Kaba round $650,000 per monthAccording to reports from the Zonaprop portal. In addition to this is the quarterly update permitted by the new rent law, which provides increases agreed upon between the two parties according to various indicators.

If the initial UVA loan payment is compared to the rental value, the difference appears limited. In some cases, Even the mortgage payment can be lower than the rent, although there is a risk of greater exposure to inflation. On the other hand, those who rent avoid going into debt, but assume uncertainty about adjustments and a lack of long-term stability.

Analysis conducted by the Real Estate Report portal shows that for a house 130,000 US dollarsThe monthly cost of the initial payment represents approx 75% of the equivalent rental value. However, over time, the relationship can reverse, depending on the development of prices and wages.

Despite the return Mortgage loansAccess remains limited. The relationship between household income and property value remains a major obstacle. According to market estimates, income is greater than $1,500,000 per month To qualify for intermediate credit, which excludes a large portion of formal wage workers.

Moreover, the lack of macroeconomic predictability makes long-term planning difficult. “The problem is not only inflation, but also uncertainty about future income and the exchange rate“, explain from a banking entity. This volatility makes many potential buyers choose to postpone debt decisions, waiting for a more stable environment.

The relationship between income and property prices remains a constraint, limiting access to credit for most households (Freepik)

In parallel, the supply of used homes for sale continues at high levels. Many landlords are looking to dispose of their properties due to the continued decline in dollar prices in recent years. The average value per square meter in CABA is around 2,100 USDAlthough there are vast differences between neighborhoods.

In the rental sector, the trend of strong demand and low supply continues. The abolition of the previous rental law and the opening of agreements between parties reshaped the market, however Prices are still far from average purchasing power.

Analysts agree that, contrary to current numbers, The ease of renting or obtaining a mortgage depends on the time horizon and ability to save.. If inflation stabilizes and incomes continue, credit could become a viable option for the middle sectors. On the other hand, in highly volatile contexts, adjustable quotas can become a difficult burden to bear.