Chief Economists and two monetary policy professors at the three largest banks in the Netherlands outlined their thoughts on reinvigorating the home market by raising taxes on homeowners and increasing the supply of new homes.
The government’s current strategy is based on promoting access to the housing market, reducing inequality between tenants and homeowners, and “overcoming cracks” rather than tackling prices, the five said. Said Thursday in an article in the NRC and economist journal ESB.
The Dutch want to put the borrowed money into bricks and mortar, as they claim that homeowners pay relatively little tax. This can be partially addressed by moving the home from Box 3 to Box 1 under the tax system and treating the asset as an asset. You can then pay taxes on the “profit” when the property is sold.
At the same time, the housing allowance paid to the low-income earners of rent-managed properties can be extended to cover the low-income homeowners as additional support.
Official recommendations on renting-now 100% of the value of real estate-should not be expanded or even reduced to stop those who rent beyond their means of raising home prices. , Says the economist.
Energy costs also need to be taken into account when deciding how much people can borrow.
“These reforms are a break from the past, and that’s why they should be introduced gradually,” says economists. “But they offer long-term benefits. Homeowners and tenants are treated more equally, home prices are more stable, taxes on work and other income are lower, and households are more than living expenses. You will be able to spend more money on your home.
Economists also argue that the government’s new strategy to regulate rent for a much larger percentage of rental housing stock is not risk-free.
“It may improve affordability in the short term, but we can’t address the structural shortages of affordable rental housing,” they say. They said the same applies to the government’s plans to build temporary housing.
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