{"id":3661,"date":"2011-11-04T08:24:46","date_gmt":"2011-11-04T13:24:46","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=3661"},"modified":"2011-11-04T08:24:46","modified_gmt":"2011-11-04T13:24:46","slug":"cuba-to-allow-buying-and-selling-of-property-with-few-restrictions","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/cuba-to-allow-buying-and-selling-of-property-with-few-restrictions\/","title":{"rendered":"Cuba to Allow Buying and Selling of Property, With Few Restrictions"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba.jpg\"><\/a><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba_varadero_l.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3663\" title=\"cuba_varadero_l\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba_varadero_l.jpg\" alt=\"\" width=\"486\" height=\"451\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba_varadero_l.jpg 486w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba_varadero_l-300x278.jpg 300w\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" \/><\/a><\/p>\n<p>This Times article grabbed my attention this morning as it is a huge first step for what many predicted would happen in Cuba one day.\u00a0 The new law allowing private ownership, buying and selling of real estate is the platform for change from a purely socialist system to capitalism.\u00a0 It also will allow wealth building in one of the poorest Islands in the region.\u00a0 Having come from Miami and building my business up in a Cuban-American community, I can appreciate what is in store for this Island nation where Havana is just under 200 nautical miles away.<\/p>\n<h6>By <a title=\"More Articles by Damien Cave\" rel=\"author\" href=\"http:\/\/topics.nytimes.com\/top\/reference\/timestopics\/people\/c\/damien_cave\/index.html?inline=nyt-per\">DAMIEN CAVE<\/a><\/h6>\n<h6>Published: November 3, 2011<\/h6>\n<p><a title=\"More news and information about Cuba.\" href=\"http:\/\/www.nytimes.com\/info\/cuba?inline=nyt-geo\">Cuba<\/a> announced a new property law Thursday that promises to allow citizens  and permanent residents to buy and sell real estate \u2014 the most  significant market-oriented change yet approved by the government of <a title=\"More articles about Ra l Castro.\" href=\"http:\/\/topics.nytimes.com\/top\/reference\/timestopics\/people\/c\/raul_castro\/index.html?inline=nyt-per\">Ra\u00fal Castro<\/a>, and one that will probably reshape Cuba\u2019s cities and conceptions of class.<\/p>\n<p>The new rules go into effect on Nov. 10, according to Cuba\u2019s state-run  newspaper, and while some of the fine print is still being written, the  law published on Thursday amounts to a major break from decades of  socialist housing. 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. 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.<\/p>\n<p>\u201cTo say that it\u2019s huge is an understatement,\u201d said Pedro Freyre, an  expert in Cuban-American legal relations who teaches at Columbia Law  School. \u201cThis is the foundation, this is how you build capitalism, by  allowing the free trade of property.\u201d<\/p>\n<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3664\" title=\"cuba 2\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-2.jpg\" alt=\"\" width=\"672\" height=\"452\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-2.jpg 1024w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-2-300x201.jpg 300w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/a><\/p>\n<p>Cuban officials would disagree; they argue that they are carefully  protecting socialism as they move toward economic reform, and the new  law includes some provisions that seem aimed at controlling both  speculation and the concentration of wealth. Owners will be limited to  two homes (a residence and a vacation property) and financing must go  through Cuba\u2019s Central Bank, which will charge fees, which have not been  determined. And a tax of 8 percent will be split by the buyer and  seller.<\/p>\n<p>Nonetheless, experts and Cuban residents \u2014 <a title=\"Times article\" href=\"http:\/\/www.nytimes.com\/2011\/08\/03\/world\/americas\/03cuba.html?pagewanted=all\">who have been expecting the law for months<\/a> \u2014 say the law\u2019s implications are likely to be far-reaching. In a  country defined by limited change and pent-up demand for freedom of all  kinds, they argue, the law will probably open a Pandora\u2019s box of  benefits and risks.<\/p>\n<p>On one hand, billions of dollars in property assets that have been  essentially unvalued or undervalued and locked in place for decades  would be available for sale.<\/p>\n<p>Economists on the island favoring economic liberalization have said the country\u2019s other changes \u2014 <a title=\"Times article\" href=\"http:\/\/www.nytimes.com\/2011\/02\/04\/world\/americas\/04cuba.html?pagewanted=all\">making room for small businesses<\/a>,  and private agriculture \u2014 have been limited by lack of internal demand.  Some experts say home sales could free up the capital needed to  jumpstart the island\u2019s economy. At the very least, they argue, it will  probably lead to a boom in renovation.<\/p>\n<p>\u201cWith a housing market, suddenly people have some wealth and that\u2019s a  stake in the economy that generates activity,\u201d said Ted Henken, a  professor at Baruch College in New York.<\/p>\n<p>Yet on the other hand, there are also significant social concerns. Mario  Coyula, Havana\u2019s director of urbanism and architecture in the 1970s and  \u201980s, said that wide-scale buying and selling would lead to a \u201chuge  rearrangement\u201d in Havana and other cities as the wealthy move to better  areas. He and others said it would inevitably exacerbate class conflict.<\/p>\n<p>And because the island has a shortage of housing \u2014 with many families  and even divorced couples continuing to live together for lack of a  better option \u2014 critics say that any displacement could raise the  prospect of homelessness. For example, if two families are sharing a  home and one holds what currently amounts to Cuban title with limited  rights, the new law says that the titleholder can sell and the tenant  family will eventually have to move.<\/p>\n<p>Many Cubans say they are afraid that the market system will leave them in the lurch.<\/p>\n<p>\u201cWhat happens if I sell my home and then I can\u2019t find another one to  buy? Where do I sleep?\u201d said F\u00e9lix M\u00e9ndez, a 47-year-old hospital  technician looking at signs for property exchanges tacked to trees on a  Havana boulevard. He said he would prefer to stick with the complex  bartering system currently in use. (Under the new law, that too will be  subject to a tax \u2014 4 percent of the value of the transaction.)<\/p>\n<p>One unanswered question involves the role of foreigners and Cuban  exiles. The law generally requires permanent residency, but Mr. Freyre  said the section of the law applying to areas of \u201cdescanso\u201d or \u201cveraneo\u201d  \u2014 vacation or summer destinations \u2014 leaves open the possibility of  looser enforcement in selected places, perhaps coastal areas, Old Havana  and the <a title=\"Times article\" href=\"http:\/\/www.nytimes.com\/2011\/05\/25\/world\/americas\/25cuba.html?_r=1\">golf communities that are currently under development<\/a> with foreign investment.<\/p>\n<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3662\" title=\"cuba\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba.jpg\" alt=\"\" width=\"350\" height=\"275\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba.jpg 350w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-300x235.jpg 300w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a><\/p>\n<p>The new law does not broach the subject of property confiscated by the  government in the early years of the revolution. Lawyers and experts say  these claims, representing tens of billions of dollars, are still a  long shot. Property law worldwide generally favors compensation, not the  right of return, and Cuba has yet to show serious interest in  addressing the issue. Officials have insisted that the United States  must first pay restitution for the economic damage caused by the 1962  trade embargo.<\/p>\n<p>Still, sanctioned or not, Cuban-Americans will undoubtedly find a way  into Cuban real estate. With President Obama\u2019s 2009 decision to allow  unlimited travel and remittances for Cuban-Americans, <a title=\"Times article\" href=\"http:\/\/www.nytimes.com\/2011\/06\/12\/world\/americas\/12cuba.html?pagewanted=all\">a constant flow of money and visits<\/a> has become the norm. In exile communities like Miami, there are already  efforts under way to funnel money to relatives so that they can buy new  homes or old family homes that were nationalized.<\/p>\n<p>Most experts, and Cubans on the island, expect these efforts to  accelerate. Nov. 10 may be the starting gun for an indirect investment  race.<\/p>\n<p>\u201cI don\u2019t know if they will control the market,\u201d Philip Peters, an expert  at the Lexington Institute in Washington, said of Cuban-Americans. \u201cBut  it is certainly going to be the case that the market is going to settle  in a way that\u2019s heavily influenced by demand from outside Cuba coming  from relatives.\u201d<\/p>\n<p>Of course, even if the market is open, it may not be transparent. The  culture of hiding wealth, from the government, from neighbors, is deeply  engrained in Cuba, and though the new law includes the threat of prison  for people caught lying about home prices, Cubans who work in real  estate today expect buyers and sellers to disguise the true value of  transactions.<\/p>\n<p>\u201cNobody who has been working, honestly, in a job in Cuba in the past 50  years could possibly afford to buy a second home,\u201d said Gerardo, a  property broker in Havana who asked that his full name not be used  because his job was still illegal. \u201cThat money has to come from  relatives overseas.\u201d<\/p>\n<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-cover.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3665\" title=\"cuba cover\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-cover.jpg\" alt=\"\" width=\"486\" height=\"254\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-cover.jpg 486w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2011\/11\/cuba-cover-300x156.jpg 300w\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" \/><\/a><\/p>\n<p>He added that nascent capitalism would probably include a black market  just as hard to figure out and uproot as the underground economy that  has grown up around decades of socialism.<\/p>\n<div>\n<p>Victoria Burnett contributed reporting from Havana.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This Times article grabbed my attention this morning as it is a huge first step for what many<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[174,173,175],"class_list":["post-3661","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-cuba","tag-cuba-real-estate","tag-private-property-in-cuba"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cuba to Allow Buying and Selling of Property, With Few Restrictions - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/cuba-to-allow-buying-and-selling-of-property-with-few-restrictions\/\" \/>\n<meta property=\"og:locale\" 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