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Post by crojoe on May 20, 2009 20:32:37 GMT 1
What's really needed is for the government to change the process of property sales & issuing building permits. This law that one can't sell a house for three years or get hit with a huge 30 to 50% PDV bill on profit is crazy. Imagine the frenzy that would go on if they opened up the market. I'd think that plenty of Croatians would jump on board if this came about, not to mention foreigners. I bet it would really help stimulate the economy. Employing local workers (of course we know they're Bosnians), and materials (especially on the coast). Would be great to be able to "Flip that House" in Croatia.
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Post by justapixel on May 20, 2009 22:41:15 GMT 1
If that tax were lifted, we would have seen exodus of the recent speculating buyers from the market which would have deflated prices and hurt the house building companies. In spite of me disliking builders and current prices, that's still bad for the local economy, more gradual deflation of prices is much healthier. Similarly, if that tax were lifted a few years ago, we would have experienced even higher incidence of speculators and even more pronounced housing bubble which would have probably proved fatal.
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Post by Madgolfer on May 21, 2009 10:51:27 GMT 1
You are of course only refering to "private/individual" house sales rather than d.o.o. "company" owned properties here Crojoe
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Post by crojoe on May 21, 2009 11:38:25 GMT 1
madgolfer... yes, I'm talking about private and also d.o.o., but more so privately.
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Post by Carol on May 21, 2009 11:46:09 GMT 1
It might stimulate things a little but then again wouldn't it encourage more houses onto the market when there is already over supply relative to the numbers of buyers creating demand right now?
Also the problem in 2009 is not the investment case for Croatia (as it was in 2007/8), its that buyers don't have money and banks won't lend. So it doesn't matter if there are 1 million well priced properties on the market and no CGT on the re-sale, buyers can't buy even if they want to.
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Post by Madgolfer on May 21, 2009 11:50:34 GMT 1
"This law that one can't sell a house for three years or get hit with a huge 30 to 50% PDV bill on profit is crazy."
Sorry crojoe, should have been more specific in my post. It was the comment above that you wrote, which I was refering to. The tax issue does not apply to those owning property via their d.o.o. company.
But yes you are right, if the 3 year rule for private sales was abolished and perhaps replaced with something like the UK stamp duty idea it might help.
That being said, not that many people other than property developers are really looking to sell on inside 3 years. It's the people who HAVE to sell for one reason or another it really hurts.
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Post by mambo on May 21, 2009 14:41:44 GMT 1
If this 30 % rule was dropped basically nothing would happen to the housing market.
At this moment there are enough houses and apartments for sale and..............they are not getting sold.
Prices are simply too high, nobody has money, which means nothing gets sold. And in this crisis even dropping the prices won't get a lot of local buyers, because with the current average salary (6500 Kuna) they cannot afford 100,000 or 200,000 euro houses, let alone the higher prices.
At current salary levels (12,000 to 15,000 euro per year) most people can afford 36,000 to 48,000 euro houses......MAXIMUM. Good luck trying to find those.
And since the salaries are not increasing it can only mean one thing..........those prices will come down again.
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Post by ray51 on May 22, 2009 0:58:13 GMT 1
nobody has money, which means nothing gets sold. Strongly disagree ; some do have the money required , but are ( somehow ) not exactly rushing to hand it over , for the huuugely overpriced real estate , often of dubious quality and/or worse ... then again , come to think of it : maybe that's just WHY some do still have the money i.e. 'cause they haven't blown it all , on bricks'n'mortar, BeeEmTroubleYou's or what have U , n'est ce pas ? |
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Post by riki on May 22, 2009 5:31:21 GMT 1
I think flip that deralect woulds be great. People definately don't want to buy a run down house. If visionary types could buy a 'ruin' for 20 000 Euro or less, rebuild it or fix it if possible spending around 30 000 Euro . They could then sell it on for around 60 - 70 000 Euro as a decent well priced house. This would be outside of major areas of course! I think this should be encouraged and even supported by the governement, as all these run down houses can be a bit off putting.
Some people do still have a lot of money and see these kinds of times as great for investing.
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Post by ray51 on May 22, 2009 7:58:12 GMT 1
Derelict  |
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