Will taxes reduce prices?What about taxes?

8 January 2022
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Tax - price reduction

Luxury home tax was notified by the IRS to its offices. The head of the union of real estate consultants believes that the implementation of the tax is beneficial in general, but should not cause a shock to the housing market. Yesterday, the tax on luxury houses was announced by the tax organization to its offices. According to housing market experts, the implementation of taxes is useful for regulating housing prices, but it should not shock the housing market

Does the tax reduce housing prices

In an interview with Tejarat News, Mostafa Gholi Khosravi, President of the Union of Real Estate Advisors, pointed out that the housing market should not be shocked by interviews and news, and explained about the luxury house tax: It increases their price. Khosravi considered the tax as a market regulator and believes that in general, if the tax is not implemented properly, it can not reduce housing prices

The head of the union of real estate consultants continued: “Taxes, if implemented correctly and quickly, cause capital adjustment and are very useful for the housing market.” But we see that the tax on vacant houses did not materialize properly and eventually led to an increase in housing prices

Mostafa Gholi Khosravi is of the opinion that the tax on luxury houses may increase the price in the housing market

Why does the tax on luxury homes increase prices

Khosravi, president of the Union of Real Estate Advisors, said one of the possible reasons for the rise in house prices was the increase in the housing transaction commission. He also believes that the publication of this news is not only not in the interest of the market, but also creates excitement in the market and has negative effects

In the end, he mentioned the mentioned factors along with the incorrect implementation of tax collection as factors for increasing the price of luxury houses

The effect of national housing on the market

The head of the union of real estate consultants referred to the national housing plan and explained that if it is implemented properly, it can have a positive effect on the market and the volume of housing transactions

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