Government discusses tax to reduce property hoarding (2014/04/21)
To stop speculators from hoarding property, the government is mooting a rise in taxes on homes that do not serve as the owners’ main residence. This latest proposal to make housing more affordable comes after Premier Jiang Yi-huah said his two children would be unable to independently purchase a home.
Premier Jiang discussed the topic of high housing prices in a youth forum yesterday. Interior Minister Chen Wei-jen shared Jiang’s concerns and mentioned possible solutions.
Chen Wei-jen Interior Minister We can use financial and tax mechanisms to prevent housing prices from soaring again. Another method is strengthening economic growth in order to raise people’s incomes.
Last week the Ministry of the Interior announced that the home price-to-income ratio in Taipei was over 15. Premier Jiang says in order to bring the ratio closer to 10, he wants owners with multiple homes to sell. Incentive could come from raising taxes on homes that owners do not live in.
Chen Tai-yuan Realtor Raising the tax will only affect speculators without a lot of cash on hand. But wealthy investors in the luxury housing market and those using real estate as a mid-to-long term investment will just incorporate the cost of this tax into the housing price. For these types of investors, there will be little impact.
The premier acknowledges that it is difficult for the average person to buy a home in Taipei or New Taipei City. Those hoping to buy hope his tax proposals can make the market more affordable.
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