In the first quarter of 2024, the property market rescue policy has sprung up like mushrooms after a rain, and its rescue efforts are particularly obvious, either through financial support or through the relaxation of purchase restrictions. However, for real estate companies, whether it is bailing out the market or regulating it, they are currently facing huge financial pressure. At the same time, with the increase in the wait-and-see sentiment of home buyers and the intensification of competition among real estate companies, developers have to choose the strategy of price reduction to attract buyers to enter the market, thereby easing financial pressure.
It is worth noting that the current level of housing prices is still high, as if ** is standing at a historical high, and its trend can no longer remain stable, and can only swing between ** and **. This undoubtedly casts a shadow over the outlook for the property market, but it also provides more options for home buyers. In this uncertain market, both real estate companies and home buyers need to keep a clear head and respond flexibly to changes in the market.
In the face of the severe challenges of the current property market environment, the market continues to be sluggish, not only has many investors lost their enthusiasm for real estate investment, but even some real estate experts have begun to change their views. Some experts have called for us to seize the opportunity to optimize asset allocation, monetize excess real estate, and ensure asset safety. At the same time, other experts are observing that people are replacing their lower-quality properties with better-quality homes. Behind this change is the "bombshell" of property market regulation - the approach of property tax.
Is property tax really coming? The answer is yes, and it is expected that within the next five years, this tax will officially enter our lives.
At one time, property tax was a topic of speculation, but now, as the discussion about it in the property market is getting hotter, the Ministry of Finance has made it clear that it is steadily advancing. There is now more concern about when the tax will be officially implemented. For those families who own two or more properties, the implementation of property taxes will undoubtedly have far-reaching implications. In particular, those who have a large number of properties will face a significant amount of additional expenses every year.
The implementation of the property tax will significantly increase the cost of owning a property, making the return on property investment gradually decrease. This will force those who flip the property to sell off their excess properties. With the gradual increase in the flow of ** in the market, housing prices will gradually return to a reasonable level based on the real supply and demand relationship. At the same time, the increase in rent will also effectively curb rent. It can be seen that the risk of losing money in investing in real estate will be higher and higher in the future.
Many real estate experts and economists have expressed support for the implementation of the property tax. Zhu Haibin, a well-known economist, clearly pointed out that the future collection of property tax is inevitable, not only to increase local fiscal revenue, but also to adjust income distribution to achieve common prosperity in society. Economist Ren Zeping also recently said that he praised the collection of property tax. He believes that although it is an individual's freedom to own five or ten houses, when an individual occupies too many social resources, he should pay taxes on it. If there is no property tax, housing prices will continue to be **, which will make it difficult for young people to afford the cost of buying a home, which is contrary to social fairness.
There is a strong expectation that the property tax will effectively curb speculation in the property market and guide house prices to a reasonable level, and the property tax does have the potential to do so. For example, Qiu Baoxing, former vice minister of the Ministry of Housing and Urban-Rural Development, has pointed out that although property tax cannot solve all the problems faced by the property market on its own, it can play a significant role in curbing housing prices**. In particular, when the property tax rate is set above 3%, it will greatly weaken the speculative motivation of property speculators. At the same time, Qiu Baoxing also emphasized the importance of property tax to increase fiscal revenue and reduce financial dependence on land.
Regarding the specific introduction time of the property tax, many experts have given a positive **. They believe that the property tax is likely to be implemented in the next five years, during the 14th Five-Year Plan. Ma Guangyuan, a well-known economist, believes that the next five years will be the first period for the introduction of property tax, and once it is missed, it will be difficult to find such an ideal time. The Minister of Finance also clearly pointed out in the article "Establishing a Modern Fiscal and Taxation System" that the legislation and reform of real estate tax will be steadily promoted in accordance with the principle of "legislation first, full authorization, and step-by-step advancement". This statement undoubtedly provides a clear policy direction for the implementation of property tax. What is more noteworthy is that the importance of real estate tax legislation was once again emphasized in the "Report on the Implementation of the Budget Since the Year of this Year", indicating that the implementation of real estate tax is on the way, but it is necessary to wait patiently for the best time to come. Once the property tax is successfully implemented, it is expected to inject a breath of fresh water into the property market and promote the healthy and stable development of the market.
Real estate tax, as the focus of heated discussions in the society in recent years, has attracted widespread attention in terms of timing, scope and tax rate. In terms of who can be collected, households with many properties are undoubtedly the main targets, while families in need expect to be exempted from this tax reform.
Zhang Xuedan, a well-known financial expert, proposed an innovative "tax-free area" scheme. He believes that setting a reasonable "exempt area" can effectively protect families who just need it from the impact of property tax. Zhang Xuedan suggested that the exempted area should be set at about 40 square meters per person, and suggested that the tax rate should be increased in a stepwise manner, with a range of 03%-1.5%. Take a typical family of three as an example, they will have 120 square meters of exempt area. In fact, for most families, a 120-square-metre house is enough for basic living needs. Even if some families are outside the exemption, the amount of property tax to be paid will be relatively limited due to the limited excess and the lower tax rate.
Therefore, by creating exempt areas and implementing a tiered tax rate, we ensure that families who are just in need do not have to worry too much about property taxes. Conversely, for those families who own a large number of properties, they may need to rethink their property holding strategy. Take a homeowner who owns a 1,000-square-meter property as an example, if you press 1The 5% tax rate is to pay property tax, even if the property value is as high as 10 million yuan based on the current average house price, the annual property tax needs to be paid as high as 150,000 yuan. If the property is located in the core area of a Tier 1 or Tier 2 city, the property tax payable can increase exponentially.
It can be seen that the introduction of the property tax will significantly increase the cost of property ownership and form a strong blow to the speculation of the property market. This reform will not only help maintain the healthy and stable development of the real estate market, but also create more opportunities for families in need to buy houses, and realize the beautiful vision of "home ownership".
With the official implementation of the property tax, the two groups will face unprecedented challenges:
One is those who have multiple properties in third- and fourth-tier cities. The implementation of the property tax is expected to set off a wave of property sell-offs. In the bustling first- and second-tier cities, because housing resources are still stretched, even if the real estate market falls into a downturn, as long as the real estate market is slightly lowered, it is still quite attractive. However, in third- and fourth-tier cities, with the continuous outflow of population and the oversupply of housing resources, the implementation of the property tax will further flood the market, and it may be difficult to find buyers at a reduced price.
The other group is those who have invested in resettlement housing and small tenure housing. In the past, with the rising housing prices, many people turned their attention to the resettlement houses and small property rights houses that were relatively close to the people. However, in addition to the property rights issues, these two types of properties are also often criticized for their living environment and comfort. As property speculators withdraw from the market, the number of property speculators in the market will increase day by day, and housing prices are expected to gradually become reasonable. At that time, buyers may be more inclined to choose higher-quality commercial housing, which will make it difficult for those who invest in resettlement housing and small property rights to sell.