The proposal to create an entity in Guatemala in which workers can save up to buy a home is under review by two law firms, and it is expected to be presented to the congress this year.
With the creation of the Housing Savings Institute (AVI by its initials in Spanish), which is based on similar experiences that have taken place in Mexico and Colombia, it is intended to include among the beneficiaries people who receive family remittances, workers in the informal economy and the self employed.
Through a trust the government will provide financing for the purchase of middle class housing, in local currency and at a rate of 8.7%.
From a statement issued by Coalianza:
Tegucigalpa, April 9. With an amount of 600 million lempiras (around $25 million) and to benefit 2,000 Honduran families, the government today announced a trust that will have a special focus on guaranteeing access to housing for the middle class.
This year in Panama realtors expect to sell 9,000 homes and generate $1.146 billion, which would be a 34% increase compared to the value sold last year.
The National Council of Housing Promoters (Convivienda) plans to sell 8,958 units of housing nationwide this year, after having sold 7,219 units last year.
Through a trust belonging to the Nicaraguan Institute of Housing $31 million will be available to finance the purchase of social interest housing, with a fixed interest rate of 7.5%.
Like the construction sector, banks have started backing financing of social interest housing.In the first half of the year, loans granted for the purchase of this type of housing registered an increase of almost 17%, according to reports from the association of developers.
The association of urban developers is organizing for September 8th, 9th and 10th an exhibition of the main private real estate projects under development in the country.
The XXII National Housing Fair will be held at the Crowne Plaza Convention Center, and is expected to include the participation of more than 60 housing projects located in Managua and other cities such as Granada, Jinotepe, Masaya, Leon, Chinandega, Rivas, San Juan del Sur, Estelí and Matagalpa.
The housing deficit in the country is estimated at 1.2 million, with the difficulty faced by developers in obtaining financing having become one of the main obstacles.
Representatives from the association of civil engineers believe that in order to solve the problem of homelessness in the country, 45 thousand units need to be built every year for the next 20 years.Of these 45 thousand, 35 thousand will be to cover part of the existing deficit and the rest to meet the new demand that is emerging.
This year the union of housing developers plans to build 10,958 houses and apartments and generate sales of $979 million, 23% more than in 2016.
Figures from the National Council of Housing Promoters (Convivienda) indicate that in 2016, 8,864 houses were built and sales of $793 million were made, an increase of almost 8% compared to 2015.
Financing for housing and sustainable urban development will be the topics under discussion at the event to be held on August 22 and 23 in Managua.
The Chamber of Builders in Nicaragua and the Inter-American Housing Union are organizing the event, which will bring together professional financial real estate companies, developers and builders, banks and finance companies, savings and loans companies for housing, cooperatives, investors, and representatives of public entities.
During the event 2,575 mortgages were sold, among which social and middle class housing stood out the most, with prices ranging between $40,000 and $80,000.
The figures provided by the Panamanian Chamber of Construction (Capac) again reflect the growing need for housing that exists in the country, mainly in middle class and lower class segment.
"...Capac reported that 79% ($144,010,565) of the approved amounts corresponded to preferential interest housing and of that figure, 7% ($12,760,000) was approved for social interest properties."
Out off the 8,232 homes sold in 2015, 76% was sold at prices lower than $120.000, 18% at prices between $120,000 and $350,000 and the remaining 6% above $350,000.
Figures from the National Board of Housing Developers (Convivienda) show that home sales for the year totalled more than $900 million.
From the report "Convivienda Results Projections for 2015 and 2016"
The Social Housing Fund wants to revive the housing market by reducing interest rates for the purchase of new or used homes by 5.5%.
In the case of loans to public institutions for the purchase of new houses, the rates will drop from 6.05% to 5.50%, while for private loans for new houses, the rate will be reduced from 8.5% to 8 % for amounts ranging between $31,000 and $125,000.
The recently approved amendment to the Housing Act provides a subsidy of 2.5% in the interest rate for mortgage loans that are not greater than $32,000.
Responding to industry demands and seeking to motivate the new housing market, the recently approved reform also provides, as well as the subsidy, that any bank can apply the exemption of 15% from Value Added Tax (VAT) for mortgage loans with this same ceiling rate.
In Panama, preferential interest has been extended to projects whose value is not greater than $80 000, where previously they could not exceed $65,000.
From a press release from the National Government of Panama:
With the aim of encouraging housing construction and maintaining the momentum of investment in infrastructure needed to alleviate the demand for housing and allowing more Panamanians to have access to these projects, President Ricardo Martinelli has passed Act 63 amending preferential interest rate loans.
The Panamanian Congress is debating a bill which would raise the ceiling for home purchase loans with preferential interest rates of 4% to $80,000 .
From a press release issued by the Ministry of Economy and Finance in Panama:
The law, which amends the second tranche of preferential interest rates for home loans home valued at an amount of between $40,000 to $80,000, was approved in its first debate in the Committee of Economy and Finance of the National Assembly.