Archive for July, 2014

The debate about a possible housing bubble is revived

July 28, 2014

Not far the crisis that developed after a housing bubble in the United States and that seriously affected its economy since 2009.

And countries like Peru, where the growth of the economy is based largely on between her construction and housing construction, the possibility of a housing bubble continues to be a topic that many lose sleep.

Consider the situation in the country. In the last five years the increase in housing prices hovered around 20%. But this strong rise in home values ​​is it due to the effects of the high demand of the real estate boom or bong is the advent of a bubble?

For the economist Paul Lira, academic director of the UPC, “the housing bubble is just around the corner,” because, although the pace slowed sales, prices continue to rise.

“A bubble is defined as the increase in the price of a good that goes beyond the fundamentals. Yet as the same Central Reserve Bank notes, between the last quarter of 2014 and 2013 prices have increased by 16 % in constant soles while the sale of real estate units rose only 2%, “he said.

Also in the period November 2013 – November 2012, the 23% housing credits, of which 40% were in dollars rose. “This adds an extra dimension to the real problem, as many borrowers in that currency perceive their income on soles, which exposes them to currency risk,” he declared.

However, for the economist Armando Mendoza, the increase in housing prices is due in part to the speculative boom.

“The bubble is generated by the oversubscription to the loans and many speculative buying, but we are far from that. The real estate sector is quite heterogeneous, but some sectors such as A or B are already reaching its limits, ie, their increases will be more reasonable, “he said.

He added that in the case of the United States or Europe, the crisis of the housing bubble was accompanied by a financial and economic crisis scenarios that do not occur in our country.

In the same vein, economist César Peñaranda said that the analyzes show that there is a risk in the short term. “If the price of the houses I observed and compared with the average prices in the region, these are low,” he said.


Fernando Castañeda Melgar, partner Aramburú Boero Camino Attorneys, argues that a housing bubble is an unrealistic price rise collapse of the property at any given time, causing his dramatic fall as a result of reduced demand and market failure to absorb the existing real estate.

“This drastic correction to financial institutions is affected, as we have seen in the United States and Spain, may get to break the impossibility of recovering their loans, and investors who have no way to pay for credits to which agreed to acquire property in order to resell them at a higher price or lease positively and generate negative perceptions about the economy, as you know the experts in this matter, can cause more damage than the bubble itself. ”

The expert noted that there ratios as Price to Earnings, which represents the number of years it would have to rent a property to recover their purchase price.

Castañeda cites the Banco Central de Reserva del Peru, pointing to the end of 2010, an average of 13 years to recoup the price of housing, with a return of 7.4% for investment by way of rent.

Today, that would mean the range of 17 years and 6% yield. “The bubble ratios are of the order of 25 or more years to recover the price, so we are still on land,” says Fernando Castañeda.


Ricardo Arbulú, president of the General Building Committee of the Peruvian Chamber of Construction (Capeco), says that the rise in the price of housing is due to the lack of supply in the market.

“In 2013 the increase was 10%, lower than the figure recorded in years past, and this 2014 up 8% for social housing projects are expected,” he explained. Estimated that more districts would encarecerían prices El Agustino, Ate, Carabayllo, Barranco and San Miguel.

It called for reducing the time and paperwork to run housing projects.

Recorded 90% decline in real estate projects

July 23, 2014

The president of the Real Estate Chamber of Venezuela, Aquiles Martini Pietri, questioned the political and ideological predominance of the logic that should prevail to solve the country’s problems. He noted that recorded a fall of more than 90% of the presentation of new projects by the private sector in the public and private banks.

He explained that Venezuelans have been overshadowed builders and lagging function contracts give the Chinese and the Russians; and now they have had to build on the islands of the Caribbean, and Central neighboring countries. “There is a clear discrimination against Venezuelan builders are asking what are the minimum standards,” he said.

In his opinion, today the Venezuelan housing market is practically zero and you cut off the possibility of having the Venezuelan housing through leasing. “Today he talks about a reform of the Leasing Act in own mouth Housing Minister, but begin to ideological parties that make it very difficult to arrange the rules appear,” he stressed.

He recalled that thanks to agreements between the Government and the camera got the throw Commercial Leasing Act positive results after two months of its promulgation.

In an interview with Union Radio regretted that, according to official figures, until the goal of 400,000 homes Housing Mission 50,000 have been built.

Colombians among the main investors in real estate in Florida

July 14, 2014

Citizens residing in Latin America – especially in Argentina, Brazil, Colombia, Peru and Venezuela – accounted for 32.1% of all property buyers in Florida, USA; becoming the largest investor group over Canadians (29.6%), Europe (26.6%) and Asians (6.9%). According to annual surveys of the National Association of Realtors (NAR English), Florida has established itself as a destination for investors, mainly in real estate, where 73% of properties transacted were bought by foreign , not necessarily reside in the United States.

“The price of properties in Colombia is very similar or many times more expensive than in Florida, which is why people think of buying and then use it on vacation (22%), rent it as an additional income (40%) or use for both situations (22%), “said Iliana Sagastume, Director of Miami Paradise Investing Consulting, who for fifteen years has specialized in advising investors in Latin America.

According Sagastume, according to the study and research of the NAR, the average price of a home in Florida is $ $ 193,000, however, international buyers, including Colombians, paid an average U.S. $ $ 216,000 during the past year by an average three-bedroom, two bathrooms.

“Many buyers are unaware that you need not be resident in the United States live in Florida or to acquire the assets and / or investments; If to this we add a consultancy in Transparent Spanish, without cost overruns, and the low price per square meter compared to other markets, configures an ideal place to invest in real estate with rates of recovery from 15% to 18% per year scenario, “he concluded Sagastume.

Historically high employment prospects improved construction sector CMIC

July 7, 2014

At the end of 2014, the construction sector recorded a record number of jobs, and with the approval of laws that could promote achieve 6.0% growth for 2016, estimated Bouquet entrepreneurs.

Under the National Infrastructure Forum 2014 of the Chamber of Deputies, the President of the Mexican Chamber of Construction Industry (CMIC), Luis Zárate said in that sense that they welcome that employment in the sector increased .

He noted that in the last three months, 150,000 jobs were recovered, leading to the conclusion that at the end of the sector would reach a record high 5.9 million formal jobs in construction.

He pointed out that if they go hand in hand with the three million indirect jobs will have a critical mass in the segment, conditions should contribute to increased investment in the sector, allowing reactivate during the second half of 2014.

Zarate said that the national infrastructure is another important factor that integrates and congruence to sector programs, plus it adds a long-term public infrastructure policies.

Recognized that good conditions for investment in infrastructure will have support on structural reforms, especially in energy, fiscal, financial and telecommunications, which later this year may already be operating.

He noted that if the interior the advance procurement and an important exercise of public spending coupled with private investment adds, is no guarantee that the second part of the year the Gross Construction Domestic Product to grow 2.0%, which is mount up the fall in 2013.

He explained that the recovery of the sector will have a strong foundation if it can update the legal framework that regulates the construction of basic infrastructure and eventually the involvement of the legislature, which will be crucial to promoting and improving the reform that the College Mexico Civil Engineers, the Chamber of Business Consulting and CMIC been proposed.

CMIC president also recalled the proposal to create a National Infrastructure Coordination, headed by the federal government with the participation of local governments, legislators, academia, business, development banks and serve to promote the National Infrastructure Plan.

With these factors, he said, certainly in 2015 the construction GDP will grow at 4.5 percent and 2016 growth would reach 6.0 percent, bringing the goal of the infrastructure is a lever of development would be met.

ABC to invest in real estate

July 2, 2014

Owning a property should not be synonymous with receiving a monthly income from your tenant. Investments in real estate can generate you great returns if you move away from traditional approaches, which are capable of generating assets, but are far from being highly profitable.

Moving away from the traditional perspective on this type of investment, it must be assumed that the real estate business is not to accumulate and flow properties. The money has to be in motion and evaluated against alternative investments, experts recommend.

To Jorge Castanyares, director of Housing Marhnos, the decision to sell should be clear and not have to “get attached” to the goods and have to reinvest.

Besides real property must be measured against other financial instruments. “If you’re giving less than the bank, you sell it and buy another to generate you more” recommends Castanyares.

In Mexico there are many families who have unproductive properties and believe that property is to remedy the evils; have them for years in case an emergency comes, because nobody has taught them to move the money or because they are afraid of spending that capital if you do liquid, but could earn more if you buy other says Adrian Loustaunau, author of More Money.

Real estate investments should be viewed as any financial action: “It’s just that you have to sell the shares when they are higher, because it is false that real estate will never lose their value, as in the stock market, there are cycles in the real estate, “says Castanyares.

So the secret is to rent and when it reaches goodwill sell.

10 considerations to potentiate your real estate business:

1 -. The best opportunities “are not promoted in both traditional media channels,” says Adrian Loustaunau, banks are seized debtors, portfolio managers, owners or real estate agents who know the potential of your property .

. 2 – Sometimes it is advisable to hire a real estate broker with good information because “you pay the 5% commission, but you get to 295% it will generate,” says Loustaunau.

. 3 – To take best advantage of the investment, you have to know when to sell, according to experts, the properties are recycled every so often.

. 4 – Since you buy a fixed price target to which you want to go, so you know when it’s time to sell.

. 5 – Try to find the property with the least possible previous buyers or intermediaries, since the gain of each is an additional cost to the ultimate customer.

. 6 – In all states of the country there are good opportunities. Industrial development in cities with more properties, but in small places there is a most interesting because there are fewer buyers.

. 7 – Times of crisis often opportune times to buy.

. 8 – If you have no capital to buy can get into investment property if you do detect interesting properties and charge commission to real estate brokers or private customers.

9 -. Applying for a loan to purchase real property and paid with the income is not a bad idea only if the corresponding financial runs are made, the required rates of return are calculated and if proper credit is chosen.

10 -. Reversing a preliminary contract is recommended against this income and apply for a secured credit, although it is more expensive than a mortgage, has the advantage that the loan is given against the applicant’s ability to pay, but studying the cash flow from the investment.