In Argentina, being an owner is a goal that takes away sleep, but which is becoming more and more distant. Very high inflation, which could close the year at 100%, and the lack of mortgage credit makes it almost a mission impossible. Now, according to a private appraisal, the number of years it takes to save to buy a used apartment of about 60 square meters, it is then necessary to calculate how many years of rent it takes to recover the value of the investment.
As every year, the Swiss Bank UBS has prepared the UBS Global Real Estate Bubble Index, which measures the risk of a real estate bubble based on certain schemes. It analyzes some typical signals, such as the wage effort measured in the amount of income needed to access the purchase of a house and rental income, as well as other variables of the real economy such as excessive liquidity or levels of mortgage rates. credit cards that encourage debt taking or not.
From that document that analyzes the situation of 25 cities, it is deduced that to buy an apartment in the capital, in Buenos Aires, used and of about 60sqm, you will have to save for 19 years, Y 34 years will have to pass to recover the value of this investment with the leased property.
The report reproduced in the Real Estate Report warns that to measure the relationship between income and home value, UBS analyzes the number of years a worker in the service sector must spend to purchase a 60m2 apartment Close to the city center.
In this edition, as in the last two years, Hong Kong was the city where the wage effort for housing purchases is the highest in 24 years, 4 more than last year.
Meanwhile, to the opposite pole where the income ratio is more favorable than house prices, Miami is located, where it takes 5 full years of salary to purchase a standard 60m2 unit. “As in Hong Kong, also in Miami this year, based on an increase in property value greater than salary, the amount of income required was extended by one year compared to 2021 when only 4 were needed”, indicate. the UBS report.
“With a value of $ 1,842 per m2 corresponding to the average price per m2 actually paid for 3-room units recorded by the REMAX / UCEMA index last August, a 60 m2 apartment would reach US $ 110,500,” he says. The document. And he adds: “By comparing this figure with the average salary of workers enrolled in the private sector for the same month last August, it appears that the wage effort would be placed in the 19 years of income, one less than in 2021 “.
This slight reduction is due to the decrease in the value of the unit compared to last year, when the price was equal to US $ 117,000 and, despite the devaluation of the weight suffered during the year, to a slight improvement in the average income of 2, 3% measured in dollars.
Thus, this year Buenos Aires occupies the second place in the UBS ranking of cities in which housing is most expensive in relation to salary. of its inhabitants and no longer shares the first line with Hong Kong as in 2021.
Regarding the number of years that an apartment must be rented to pay its purchase value, using the sale value of the same 60m2 unit and matching this with the average rental profitability of each city, UBS calculated the number of years of salary required to pay off the purchase of a home.
Similarly, using the average rental value of a used apartment of 60 m2 in Buenos Aires and comparing it with the sales value, the number of years of rent required to amortize the purchase would amount to 34 years, resulting lower than necessary in 6 other cities and higher than required in the remaining 19 cities that make up the ranking of the Swiss banking institution, including Paris, London, New York and Madrid.
Miami, Dubai and New York are the three cities in which the recovery of investment would be fastest: 14, 16 and 20 years respectively.
Salaries and blue dollar in Argentina
According to Ripte, the average salary of private workers in August (the month in which the sample was taken) was $ 155,611.28. The blue dollar, on the other hand, traded at $ 282 on August 1 and ended the month at $ 291, the highest peak of the month was recorded on August 3, and it was $ 298. That is, if the first value of the parallel currency is taken, the average salary in the eighth month of the year was $ 542.19, and in return just over $ 534.74, if the account was made on the last day of the month.
These numbers are not linear, it must be borne in mind that in Argentina the value of the dollar is not stable, but if you take the constant value of the currency it would result that in about a year an Argentine would have an income of $ 6,504.
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Source: Clarin
