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Are Cubanos Real Estate Mavens?

15:12 H | Topics: Business - Cuba - Money - Society

Capitalism might be the enemy of Castro's Cuba, but according to an article in the International Herald Tribune, that hasn't stopped Cubans from doing their own form of real estate wheeling and dealing. Apparently it's all going on under the table, but it's a secreto a voces:

And although there is no Century 21 here, there is a bustling underground market in homes and apartments, which has given rise to agents (illegal ones), speculators (they are illegal, too) and scams (which range from praising a dive as a dream house to backing out of a deal at the closing and pocketing the cash).

The whole enterprise is quintessentially Cuban, socialist on its face but really a black market involving equal parts drama and dinero, sometimes as much as $50,000 or more. These days, insiders say, prices are on the rise as people try to get their hands on historic homes in anticipation of a time when private property may return to Cuba.

Officially, buying or selling property is forbidden. But the island has a dire housing shortage, despite government-sponsored new construction. And that has led many Cubans to subdivide their often decaying dwellings or to upgrade their surroundings through a decades-old bartering scheme known in Cuban slang as "permuta."

Just like with Coca-Cola, it appears that however supposedly illegal buying and selling property is, it can be done. One woman quoted in the article puts it plainly:

"You have your system, and we have ours," she said, identifying herself only by her first name, Alejandra. "I prefer our system. We don't have mortgages, and so we're not facing foreclosure like so many of you are."

Check out the whole article for the skinny on how it works.

Via / International Herald Tribune

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