Contrary to what is thought when investing in the construction of a home, the formal route represents a lower cost, according to Guido Validivia, executive director of the Peruvian Chamber of Construction (Capeco), considering that 67% of the homes built in Metropolitan Lima for the last 13 years they are informal.
For example, for a 35 m2 home, the average legal price is S/39,460 – including labor, equipment, materials and subcontracts – while informally requires an expense of S/48,318, 18.3% more.
Valdivia recalls that a formal home requires paperwork, technical files, supervision and registration and notarial expenses, which would raise the total to S/44,666, but it is still 8% less than what a family would pay for a home made only by a master. construction and its bricklayers.
Why does formal construction cost less?
Aside from the risks that informality implies—in the event of an 8.0 earthquake, just over half a million would collapse and 51,000 lives would be lost, he predicts. Capeco—, with state aid in programs such as family bonuses or construction on their own site that cover from 50%, Peruvians can afford their own home with progressive payments that adapt to their income.
“There are people who can pay more, but state financial products are not created to complete (…) We have to understand informal income and triple subsidy resources. 5,000 million soles in subsidies are needed and not the 1,500 million now. Resources must be prioritized,” commented Valdivia.
Figures
- It costs S/44,000 to build a house legally with all the permits, 8% cheaper than the informal way.
- 550,000 homes would be destroyed by an 8.0 earthquake.
Source: Larepublica
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