The difficulty in buying a house due to lack of loans

Nowadays, those who wish to request for a loan in Argentina are going through an epic quest. Applying for a mortgage loan has become a difficult target, as it has, saving in order to buy a house.

According to some data of 2010, an income of around $11,000 Argentine pesos was needed in order to become illegible for a mortgage loan in Argentina. This throws as a result, that a great part (and even the majority) of the Argentine society cannot even attempt to request a loan. Moreover, the bank, since the 2001-2002 crisis, has attempted to give short-term loans, aiming at consumption and not to long-term investment (i.e. buying a house).

What is more, and to make things worse, house prices are still on the rise, due to a series of economic uncertainties that the country is going through. The raise on prices, the decrease in the monthly savings, and the increase on the minimum in order to apply for a loan (plus the many other obstacles each bank put), make the idea of having your own house a bit remote.

On the other hand, for some years now, there has been an increase on the building constructions and real estate around the city. Those who can afford to buy a property see it as an investment, and they choose to rent it.

This being said, it can be concluded that the rental and construction businesses are and will be on the rise for some time, while the idea of having your own house for your family is a dream that is becoming more difficult to come true. Unless you are willing to starve and not consume anything for a couple of years (only if your income is more or less high), in the not too near future, you will be able to buy a house or at least be able to apply for a mortgage loan.