Cuba to provide, purchase, sale of real estate

A woman depends your laundry from the balcony of her colonial home in Havana on 3 July 2011.

Credit: Reuters/Desmond Boylan

By Jeff Franks

HAVANA | Wed, November 3, 2011 5: 09 pm EDT

Havana (Reuters) - Cuba's Government was to buy the right of Cubans and their sell homes for the first time since the early days of the Revolution long in 1959 in one anticipated reform, which created a real estate market and promises, money in the pockets of the people.

The reform in the Government Gazette on Thursday, is one of the principal, by President Raul Castro, the economy of the island of Soviet command to liberalise, and at the same time the Communist system.

Castro has promised to change for a while and Cubans have thus looked forward it as one way, at last the possibility to cash in on the value of their homes, which for five decades could not be sold, but have been replaced by a legal pretext.

When danced to spread word of the new rules visions of big money in the eyes of the Cubans that corresponds to an average level earn $18 per month.

"I could probably sell my house for $100,000." If I could this kind of money I a lot of things, you remain here when would that be my family, "said teacher Isabela Menendez Havana lives in a 19-apartment in the Centre."

Cuba of expert Phil Peters at the Institute of Lexington, Arlington, Virginia, said that the movement as it carves slowly one million jobs from the bloated payroll and payroll could stimulate the growth of self-employment large impact on the Cuban economy, where is the Government coffers.

"The ability to sell homes means instant GFCF for Cuban families." It will be a source of capital at the base, ", said Peters. "It is a great sign of the Government to let go."

The new law is likely a new housing to stimulate market and members gain to money by Cuban exiles for their family buy houses and pieces of the property, for the family, or a bet on the future of Cuba, experts said.

MUCH-NEEDED HOUSING

The Government hopes that it leads to more housing, which urgently needed is 600,000 units in the Caribbean, to address a housing shortage, the official nation of 11 million people.

The Communist Party of Cuba's only legal party, the term of the sale of real estate at a Congress in April adopted.

The new provisions give the people the right to buy and sell, Exchange, donations or pass to inherit their homes. You can do the same with small pieces of the country.

Cuba's Communist Government allows that people own homes, but not previously allowed in theory sell for money. Homeowners that remained on the island, after the revolution at home, while those which the Government lost many escaped you.

The swap, or "Permuta," houses was acceptable for years on an informal black market where Cubans complements Exchange with under-the-table money, if they were traded to a smaller House for a larger.

Many other deception were used to official restrictions to thwart can, but now Cubans one just after the top buy or sell without fear of reprisals.

"Many people have lived and living with the fear of losing their homes, because they they illegally acquired." "Now they are able to legalize it and sleep in peace,", Osmel Gonzalez said a separate food producer in Havana.

Both buyer and seller have to pay, the a welcome new source of revenue for the Government taxes.

The reform is necessary, eliminate some bureaucratic steps to own a House as permanent residents and others as a resort restrict a business, but also people.

Guarantee during Castro that Cuba said his system for its survival in the future must upgrade, have the most reforms so far by rules to limit the accumulation of wealth and property mitigated been.

For the first time the new rules of Cubans allow emigration by law of the island, family members, instead they passed to the Government forced to leave their homes.

Foreign residents in Cuba may also a house purchase.

The housing amendment follows the recent reform allowing people to buy more freely and to sell cars, another change, the removal of one of the early principles of the revolution.

But it came with borders, which is the primary one, that only foreigners and with Sonderstatus--like athletes, artists and doctors-Cubans can buy new cars.

The Government has opened approximately 180 occupations for the independence and according to the latest figures, 338.000 Cuban working for themselves, more than double total two years ago.

(Additional reporting by Nelson Acosta and Marc Frank;) (Editing by Anthony Boadle)