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To this end, it is important to know what the buyers of such homes these are currently. Mostly people with high incomes can pay a higher price, corresponding to the high quality of new construction. With a flat tax, these people will have an even higher disposable income and, accordingly, are unlikely to turn their attention to old construction despite the lower price (but also lower quality in terms of insulation, infrastructure, security, offering comprehensive services on property management). Use the income tax calculator for the best results.

Corresponding to the high quality of the new construction

With a flat tax, these people will have an even higher disposable income and, accordingly, are unlikely to turn their attention to old construction despite the lower price (but also lower quality in terms of insulation, infrastructure, security, offering comprehensive services on property management).

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From all the above, we believe that the short-term diversion of interest in buying already built homes will not have a significant impact on the construction industry. Demand for real estate for business will increase. The reduction of the corporate tax will naturally leave more funds in the companies for investments in offices, warehouses, shops, etc. similar. This in turn will stimulate the construction industry and all related industries. It is possible at some point may reduce the price of housing due to lower demand.

  • However, this effect is likely to be short-term (to be observed in the period following the introduction of a flat tax when there will be an investment boom in the economy) and less noticeable in the long run (the main investors in housing are mostly individual’s locals and foreigners). ).From all that has been said so far, there is a clear trend of rising real estate prices with the introduction of a flat tax (according to various studies, the rise in prices will not be more than 15-25%).
  • It is important to note, however, that this increase will not be of the same nature as what we have witnessed in the last 3 years. Many market observers warn of unrealistic and speculative expectations that “inflate the bubble” in this industry.

Conclusion

This is due to the strong lag in income growth and labor productivity from real estate prices, which at some point will lead to However, the rise in property prices as a result of the introduction of a flat tax will be a real rise in real estate prices and cannot be seen as a speculative “bubble” because low taxes will reduce investor uncertainty and increase post-tax property income. In other words, it will be caused by stable and positive economic developments in the country (savings, income, investments, and interest rates) and by the positive expectations and forecasts of the subjects for the future.