Exemption or tax reduction: building societies argue for less real estate transfer tax

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    in the face of rising Rents and house prices are set by the Federal government to promote the residential property. A first step is the introduction of the Baukindergelds. Have to wait for a potential house and apartment buyers are still other measures that are already in the coalition agreement. This includes an allowance for the purchase of land tax for the case of the first acquisition of Residential real estate.

    This wanted to test the coalition. Examined the the Country have now building societies, in cooperation with the real estate research Institute Empirica, then, how such an Allowance could have an impact.

    the study came to the conclusion that with given tax rates and the respective real estate price level, a comparatively low amount of EUR 100,000 6 per cent of young households more for the initial purchase of a property could help. Regional a free amount would have an impact similar to the baukinder money – very differently.

    Depending on the tax rate and real estate prices

    To purchasers of the “natural Only”, the researchers renter households between the ages of 30 and 44 years, have sufficient equity (at least 25 percent of the purchase price plus ancillary costs) as well as sufficient income (income in the burden of interest and repayment to a maximum of 35 percent), to a local property. These conditions fulfilled in Germany currently 291.000 households. The Allowance 18.400 households, it would add again.

    naturally, the discharge is at its greatest where the land acquisition is expensive at highest. In States with high tax rates of between 6 and 6.5 per cent, the additional potential growing at a rate of at least 7 per cent, in countries with lower tax rates (3.5 percent) by only 4 percent. The effect of the allowance depends very much also on the regional price level. The tax-free amount would have a direct effect in regions with low real estate prices disproportionately. In strong economic regions with high purchase prices fell, however, is of less weight.

    Regional would have an impact, especially in the Eastern provinces and in Saarland the most, especially in the Western and Eastern part of the country of Thuringia circles as well as in Saalfeld-Rudolstadt, sun mountain and the Brandenburg Prignitz and oberspreewald-Lausitz.

    Due to the heterogeneous real estate market in Germany, where regions declined and others were extremely expensive, had to act a uniform exemption amount is always distorting. Similar to the regional distribution of the effects of the Baukindergelds he favourable rooms comparatively stronger regions outside of the more affordable large cities and Metropolitan areas. If this was politically desired, to put the brakes about the migration in the Metropolitan areas, so the could be free amounts make sense. In order to enhance the discharge effect in the growth regions, would have to be thought about progressive free amounts, however, this would immediately increase the complexity.