Tax: large companies buy up more and more rental properties

Undoubtedly, particularly the zero interest rate policy of the European Central Bank (ECB), the real estate in the value of utopian rise. In the absence of alte

Tax: large companies buy up more and more rental properties

Undoubtedly, particularly the zero interest rate policy of the European Central Bank (ECB), the real estate in the value of utopian rise. In the absence of alternative forms of investment of the funds of the investors in the real estate flow. As a result of this policy, the cost of real estate has increased, which is partially folded then to the Rent. This is less out of greed for profit, but to the increased cost of "killing". The Person

Alexander Schneider, a Professor of tax Economics at the FOM University for Economics & Management and a Partner of the auditing firm BDO AG in Munich, Germany. The doctor of lawyer is a lawyer, tax consultant and auditor.

Also in stock for hire

rise But also those of private house and apartment owners, the purchase of your property, but no longer in stock, you need to lift the necessity of your Rent. Here, too, it is not the market, but the policy continues to be a major cause.

more and More aware that the increased valuation and higher taxation of residential property in the case of Inheritance will lead to a drastic load on the heritage generation. To support this inheritance tax, the landlord will tend to increase your Rent early, or to sell the property in case of inheritance, the operation of the tax debt at a (really) profit-oriented company. Higher Rents are inevitable.

while It is true that the legislature saw this Problem and as a counter-measure, an inheritance tax valuation discount on residential real estate in the amount of ten percent has been installed.

With the discount, it should be created a counterbalance against the market power of large institutional providers. The legislature had accurate recognized that the inheritance of private property can prevent a market concentration of large housing companies. This original measure is no longer enough today because of the high real estate values, in order to keep the residential real estate continue to a sufficient extent in the private sector.

flat company tax

favored Different than private house owners, housing companies the tax reliefs to get from 85 to 100 percent. It is obvious that the actually laudable objective of the legislator can be reached.

The legislature must adjust urgently, if he wants to prevent the Transfer of residential real estate in a big way from private property owners to institutional providers. So you Finance your home, Our PDF guide shows you how to find cheap loans, pitfalls to bypass and get money from the state.To the PDF guide

state valuation discount must also owners grant

he Also has to give the haircut to the owners who do not build a apartment property, which is, however, in the case of inheritance yet finished. Also the leaseholder with heritable building rights, which have a residential property, would have to be given the valuation discount.

It is to be hoped, that the legislature finally solves this Problem and in the tax law to ensure that a concentration in the market of real estate to institutional providers is also complicated by the tax law.

As a counterpart to an increase in the assessment rate on residential property, the legislature could make the valuation haircut depends on that in the future the property to tenants is provided. This is not currently the law, resulting in a sense contrary to the way that, for example, retains a heritage of the house owners, the haircut, even if he demolishes the house after the death of the testator, or for business purposes umwidmet. With the FOCUS Online loans comparison (display) Now follow-on funding

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Date Of Update: 13 March 2020, 12:00
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