Sunday’s Peruvian Election, leading to a June run off, reminds Suzanne Hollander, attorney, property rights commentator and broker, of her visit to Peru, with demand for 1 Million housing units & where Suzanne  saw “invasiones,” “young cities,” lived in and built by squatters. Squatters do not have legal title to property.  Read the article written re Suzanne’s visit, to the left.
In Peru, Suzanne met with the Ministry of Housing, developers, property owners, multinational banks, institutional investors, U.S. Embassy, brokers and universities about the importance of legalized title and how private and foreign investment may help.The Peruvian Housing Ministry is working on “decentralization programs” to encourage developers to build housing that is affordable or rent-to-own, financed by banks, to help squatters qualify for housing with verifiable title.  Verifiable title allows people to begin to build credit and participate in the global financial market.
In contrast to the U.S., where ownership is easily proven by a deed recorded in the public records, “squatters” build and live in homes without proof of ownership.  Without proof of ownership a person,

  • Can’t qualify for a loan because Lenders look confirm the legal title to the property to secure the loan (mortgage);
  • Must buy and sell in cash, for this reason people spend lifetimes saving cash to buy a home;
  • Must pay for construction & materials in cash – this means people often build homes in phases, taking many years while they pay for construction & materials little by little in cash (because they can’t get a construction loan without title)
  • Can’t accumulate wealth by using financing (like many people do in the U.S.);
  • Doesn’t have certainty that they and their family will continue to be able to live in the property.

Suzanne hopes the new Peruvian administration will provide people with help to prove ownership and have legalized title.  Let’s stay tuned, the run off elections are this June.

Contact Professor Real Estate® Suzanne Hollander for real estate advisory in the U.S. and around the world, to make smarter real estate decisions and for commentary on real estate, housing & property rights.

Professor Real Estate® Suzanne Hollander is a real estate attorney, broker, educator and commentator and voice for real estate, housing and property rights, frequently quoted in the media, including Wall St. Journal Money Watch, YahooFinance!, Miami Herald, El Nuevo Herald,  Wallethub, The Real Deal, Mercado De Dinero USA & Scotsman Guide Commercial Real Estate edition.
Watch  Professor Real Estate®TV for a sneak peek  real estate lessons!To buy or lease property in Florida or Maryland contact Suzanne Hollander.  She is a licensed Real Estate Broker in Miami, Florida with Hollander Realty LLC and a licensed Real Estate Sales person in Maryland with EKB Realty.

Disclaimer: Professor Real Estate® written materials apply generally to real estate subjects and are not intended to apply to specific legal issues. Copyright 2016.  Professor Real Estate® Suzanne Hollander