Cuba Gets into the Real Estate Business
Cuba Gets into the Real Estate Business
Starting late next week, Cuba will allow its citizens to buy and sell real estate—which is being viewed as a big move for what’s been a tightly-controlled socialistic economy.
“For the first time since the early days of the revolution, buyers and sellers will be allowed to set home prices and move when they want,” The New York Times reports. “Transactions of various kinds, including sales, trades and gifts to relatives by Cubans who are emigrating, will no longer be subject to government approval, the new law says.”
Cuban home owners will be limited to buying two homes--one a residence and a vacation property. A tax of 8 percent will be split by the buyer and seller, and they’ll be required to do any financing through Cuba’s Central Bank.
With the buying and selling of real estate on the island, some experts see this as having the potential to jump-start Cuba’s economy.
“With a housing market, suddenly people have some wealth and that’s a stake in the economy that generates activity,” Ted Henken, a professor at Baruch College in New York, told The New York Times.
Source: “Cuba to Allow Buying and Selling of Property, With Few Restrictions,” The New York Times (Nov. 3, 2011)
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