How much money is needed to buy a home worth USD 100,000 with a mortgage loan?

Buying a property financed by a bank not only requires an income that allows you to qualify for credit, but also to have an initial amount and cover various related costs to the work.

The real estate market is showing signs of recovery in the area of ​​mortgage credit activity. According to data from last October, in the city of Buenos Aires Almost 1,000 actions were taken under this method, and in the province of Buenos Aires the figures They exceeded 1,300 as reported Infobae. These numbers reflect a return to levels seen in the best times of the sector, driven by more favorable lending conditions and a context of greater economic stability.

This rebound in demand is explained by a variety of factors, including the reduction of costs associated with operations and the flexibility offered by banks when accepting consolidated income to be worthy. In addition, recent measures, such as the lowering of the Real Estate Registration rate in CABA, helped to reduce initial costs and provide access to credit.

Below are the critical aspects to consider when buying a USD 100,000 home in CABA.

Startup costs

• In advance: You must own at least 20% of the property’s value, which is equivalent to USD 20,000. This percentage can vary depending on the bank and the credit conditions.
• Notary fees (mortgage): They represent 1% of the value of the property (USD 1,000 for the example).
• Registration fees, qualifications and procedures: for 500 US dollars.
• Notary fees (purchase): It is estimated at 2% of the value of the building, that is, USD 2,000.
• Real estate costs: They are equal to 4% of the property price, which adds up to USD 4,000.

Estimated total

To complete the purchase, the buyer must have USD 27,500, which includes the advance payment and all additional costs.

Important considerations

• The loan is settled in pesos at the exchange rate on the day of the job. If there are changes in the exchange rate, the buyer must have cash to cover any difference.

This breakdown will allow you to understand the amount of money needed to cover both financing and additional costs, a key aspect for those looking to buy a home with a mortgage loan.

The real estate sector is going through a period of prosperity driven by a significant increase in the number of deeds, especially in CABA. According to recent data, in the last six months, an average of more than 5,000 monthly activities have been registered in Buenos Aires, a level never seen for more than 6 years.

In October alone, actions reached 5,987, a record for the last six and a half years, and nearly 1,000 of these corresponded to mortgages, a key sign of recovery.

Miguel Chey Musethe coordinator of the Statistical Observatory of the Real Estate Department, which is in charge of the College of Real Estate of Buenos Aires, said that “the market is full of green lights and the coming months will be very interesting. We expect more mortgage lending activity and will see the impact of nearly 15,000 transactions in Buenos Aires over the next four months.”

In addition, he emphasized that this move shows a consolidation in the confidence of the market and an increase in the acceptance of grid resources according to a loan agreement.

Current prices also play an important role in this dynamic. According to Chej Muse, it is still possible to find properties at attractive values ​​in some neighborhoods of the city, such as San Cristóbal, where the square meter is around USD 1,200, and in more sought-after areas such as Caballito can e. reach USD 1,900 per square meter.

“Today you can buy more square meters than tomorrow. “It is a good proposition to invest now, as prices are likely to rise in the medium term,” he said.

The economic impact of the sector could be significant, with thousands of jobs planned for early 2025. Although months like January and February are usually lower in activity, experts say the positive trend will continue .

“The market is getting stuck in dollars, and those who invest now will see benefits in the future. It’s time to make decisions,” Chej Muse concluded.