Cubans Set for Big Change: Right to Buy Homes

[flamingdem]

This will change Cuba very much and is a huge part of the unraveling of the embargo, imo.

And then there is the role of Cuban emigrants. While the plan seems to prohibit foreign ownership, Cuban-Americans could take advantage of Obama administration rules letting them send as much money as they like to relatives on the island, fueling purchases and giving them a stake in Cuba’s economic success. “That is politically an extremely powerful development,” Mr. Peters said, arguing that it could spur policy changes by both nations.

http://www.nytimes.com/2011/08/03/world/americas/03cuba.html?_r=1&pagewanted=all

excerpt:

But when Cuba legalizes buying and selling by the end of the year — as the government promised again this week — José and many others expect a cascade of changes: higher prices, mass relocation, property taxes and a flood of money from Cubans in the United States and around the world.

“There’s going to be huge demand,” said José, 36, who declined to give his last name, stepping away from the crowd and keeping an eye out for eavesdroppers. “It’s been prohibited for so long.”

Private property is the nucleus of capitalism, of course, so the plan to legitimize it here in a country of slogans like “socialism or death” strikes many Cubans as jaw-dropping. Indeed, most people expect onerous regulations and already, the plan outlined by the state media would suppress the market by limiting Cubans to one home or apartment and requiring full-time residency.

Yet even with some state control, experts say, property sales could transform Cuba more than any of the economic reforms announced by President Raúl Castro’s government, some of which were outlined in the National Assembly on Monday. Compared with the changes already passed (more self-employment and cell-phone ownership), or proposed (car sales and looser emigration rules), “nothing is as big as this,” said Philip Peters, an analyst with the Lexington Institute.

The opportunities for profits and loans would be far larger than what Cuba’s small businesses offer, experts say, potentially creating the disparities of wealth that have accompanied property ownership in places like Eastern Europe and China.

Havana in particular may be in for a move back in time, to when it was a more stratified city. “There will be a huge rearrangement,” said Mario Coyula, Havana’s director of urbanism and architecture in the 1970s and ’80s. “Gentrification will happen.”

[Bacchus39]

1. good news for the Cuban people n/t

s

[flamingdem]

3. Better news for Cubans with family abroad and Cubans in MIami

because this change means some with less will be displaced.

I love the idea that this gives an incentive for Miamians to reject more closure to Cuba as wished by the right wing.

Overall it is a way for Cuba to increase revenues and to start to address the deterioration of the housing stock and to get a construction industry going. I wouldn't want to get involved with that kind of purchase anytime soon. Many don't know what they're into buying/fixing up a property in Cuba no es facil. In the past one had to attend CDR meetings if one was an owner, heh.

[Bacchus39]

5. its a positive step, I am sure there are plenty of Cubans who want a larger place, a smaller place

or a change of location. I am sure new owners and new businesses that come along will be able to manage the renovation and upkeep better than the state.

[flamingdem]

6. I'm glad they figured this out, something had to break to get things rolling

and accepting a little capitalism looks like the answer

They have piles of Cubans up in the USA with $ burining a hole in their pockets .. this way they can get some of that investment but still hold onto the island.

The properties are still in the name of a resident Cuba, btw.

That's how many foreigners were burned, they "fell in love" with a Cuban, bought a house in their name, using the black market which did work for the most part and then the sad breakup..

[joshcryer]

13. There's a woman who was mentioned by a Cuban blogger who lives in a 6 bedroom home...

...she couldn't find anyone to "trade" with her for it because she wanted "only" a small house just for herself (old, widowed, no family, etc). The house was in complete disrepair because being one single lady she couldn't keep it up or afford to fix it.

The Cuban blogger didn't relate this but I wonder, did the woman who originally got the house think that she hit jackpot, but after living there for decades realize just how bad greed can be? Just a parable I thought of. I can find the blog entry if you're interested.

edit: to clarify, to change houses in Cuba you have to "trade" with someone, so her option was limited to trading with someone who had a big family, and who likewise had a rundown habitat, she wanted to trade with someone who had a smaller but nice dwelling. Now that this has been implemented she can at least put it on the market for someone who sees value in the house and who thinks they can repair it to go in and make the investment.

[flamingdem]

19. Previously the trades always occurred with money under the table

She's just waiting for the right time and didn't want to risk the black market permuta

[Bacchus39]

9. actually even Cubans without overseas contacts will also benefit

Cubans will be able sell the only thing they have. Money sent from abroad can be used to purchase properties from other Cubans who may or may not have assistance elsewhere.

[naaman fletcher]

2. I forsee big problems...

Won't the miami mafia go crazy over people buying and selling homes that they claim were stolen from them by castro? Also, won't people be afraid to buy such homes knowing that when the castros are gone the US will attempt to put in a puppet government that will then uphold the old (pre-castro) land titles?

[flamingdem]

4. I think that legally there is no recourse due to some agreement

But I'm not sure about this.

[Bacchus39]

7. hmmmm..maybe, but here the Chavista wing of the Democratic party

doesn't seem too enthusiastic about this momentous change either.

[flamingdem]

8. The poor will not easily benefit from this and it will increase polarization

and thus, crime and other social ills.

However, it recognizes that those with their name on a deed are the true owners, and some who have nothing will be able to openly sell the only thing of value they have, their homes.

What I'm seeing if they loosen up travel restrictions, and other countries agree to accepting Cubans etc. there will be a lot more human and capital flow which is a soft way to improve things and end the restrictions.

Many in the government think the Castros want the embargo. I'm looking forward to them showing how wrong that is.. they feel strong enough to survive the influx.

[Bacchus39]

10. I don't believe enforced equality for all by making all impoverished is the answer either

I think they effectively use the embargo as an excuse. the reform measures instituted by Raul over the last few years could have and should have been implemented long ago. and the regime could go much further on lifting restrictions on liberties and the economy

[flamingdem]

16. Please cite where they have tried to maintain the embargo

of course they'll use it as an excuse because it is the reason for huge hardship. HUGE.

I think they're moving along okay considering the US and right wing cretins in Miami will
do anything to destroy them.

And that includes the Cuban people, they are the most damaged.

[Bacchus39]

20. I said they use it as an excuse. these reforms could have been enacted long ago

and lets look at the DR or even Haiti. trade with the US hasn't resulted in great economic advancement. it seems Cuba needs more than they have to trade to the US. and again, if private property was illegal as well as most types of businesses, I don't see how lifting the embargo is going to result in prosperity for Cuba.

[flamingdem]

21. The reforms couldn't have been done much sooner, sooner was the Special Period

and they were struggling just to keep the population fed.

I disagree about the impact of the embargo. You would need to research that with an open mind. Judy has posted extensive links on the damage caused, it's billions of dollars a year and impacts their health system and so much else.

Cuba will regain stability with US tourism. It's inevitable. There are so many more reasons to want to visit Cuba than the DR or obviously Haiti. No comparison. Plus, all the Cubans in the USA will return over and over.

Another thing you don't know probably is how difficult it is to buy property in the Caribbean at this point, especially beachfront. It's all taken. Cuba is pristine and undeveloped.

[Bacchus39]

22. US tourism won't lift Cuba out of economic depression

again I point to the DR where tourism from Europe and North America are robust. the DR remains a poor country. there are just as many reasons to visit the DR as Cuba. another example, tourism is about 7% of Puerto Rico's economy. that in no way that can sustain the island. of course, PR has private enterprise and also receives a sizable subsidy from the US. but if private business couldn't operate on the island it would be a disaster like Cuba.

now economic development from American business will certainly aid Cuba, as well as a flood of Americans going to live in Cuba which is likely inevitable. however, the capitalism aspect of the economy isn't permitted nor is the property ownership for foreign entities. prohibition of privately owned businesses and property has always been Cuba's decision. I mean hiring employees and making a profit has until very recently been prohibited. how do you expect a society to develop economically with a system like that??

its Cuba that needs supplies from the US, the US doesn't need products from Cuba. how are they supposed to purchase supplies and materials with no money.

[flamingdem]

23. I don't know anyone who wants to visit or has visited the DR

... and I know hundreds personally who are waiting to travel to Cuba

Cursory look on google says DR gets 1 billion per year from tourism

Cuba already 2.1 billion in 2009

open that up to US tourism and you get another 1-2 billion plus the investments from foreigners
which are allowed at a 49-51% split ... that may have improved by now ... plenty of foreign
countries have huge investments in Cuba and are making $ foreigners can buy real estate in
selected areas and that will broaden

and you forgot THE CHINESE - they are all over investing in Cuba

and you forgot also huge oil deposits found in their territory... that's a long way away
but CUBA is NO DR!

cnas.tamu.edu/.../4645%20Tourism/...Similar
You +1'd this publicly. Undo
File Format: PDF/Adobe Acrobat - Quick View
Travel and Tourism in Cuba. A record 2.4 million tourists visited Cuba in 2009, spending about $2.1 billion (ONE). While the potential increases in U.S. ...

[naaman fletcher]

24. Rush Limbaugh of course

goes to the DR for sex tourism.. but yes, I agree with you.

[flamingdem]

25. Have to admit that I associate the DR with crime and sex tourism

though I'm sure that the beaches are great I'll take Cuba any day. Cubans may be poor
but education, literacy and creative talent is a priority.

There is some sex tourism but it's pretty minimal especially after various government
crackdowns. In certain ways the repression keeps Cuba safe from many modern ills. For
that reason if you spend time there you learn that they have their society as it is
at least partially because they want it that way.

[Bacchus39]

26. and yet Cuba remains in perpetual depression despite all those tourists

the Chinese and foreign investment. anyway, allowing ownership of property is a positive development and it was always in the Cuban government's power to allow it.

the DR is a wonderful country.

[dipsydoodle]

12. I don't think the Castros do want the embargo.

They wouldn't have gone to the trouble of quantifying the loss of tourist and other revenues which they regard as a collective punishment against the people of Cuba.

[joshcryer]

15. If they do feel that strongly about the embargo, I think that's misplaced.

An influx of capital and capital investment and tourism and consumerism is what modern Cubans want. An authoritarian government can only stand so long in such a free flow of commerce.

[flamingdem]

17. They have plenty of rules in place and a strong national identity

so I think they're ready and will survive albeit in a different form.

They have somewhat failed to mentor successors. At least to my knowledge.

[dipsydoodle]

11. "Problems arising" may be constrained

by the fact the State currently owns all of the land. I don't really see that changing. With the regard to a "puppet government" - I think that would be unlikely in our lifetimes given that the average Cuban wouldn't piss on an American if they were on fire.

[flamingdem]

18. I agre that Cubans in Cuba generally hate Miami Cubans, the old guard

but they like American citizens a lot.

[joshcryer]

14. Doubtful, I don't think any but the hardcore take those claims seriously anymore.

The Valera Project rejected those claims internally and no Cuban would stand for such nonsense, anyway, even if the government reformed.

[Bacchus39]

27. kicking for property ownership. any other property owners out there? n.t

s

[joshcryer]

28. Nope, but soon. About to offer a boatload of money to a little old lady in FL for some land...

...she has in her investment portfolio. I have high hopes she won't say no due to the economy and the fact that I'm offering market value for desert land in the middle of nowhere with almost no real worth.

edit: I assume we're talking about immovable property / land / home.