The apartment Plus, which according to media reports assume is the construction of affordable housing on land the state and the introduction of building societies, can be the beginning of the housing policy of the real, which is not created since 1989. Will it work depends to a large extent on the emphases on the various policy instruments and their adaptation to the needs and possibilities of buyers.
The apartment Plus
For many years, it is clear that – if we believe that the state has in general to promote housing – is should develop tools just for this group. Meanwhile, existing support programs – such as the Family on its (interest subsidy on the loan), Apartment for Young (surcharge own contribution) whether the Fund Housing for Rent (offering apartments at market rates tenancy) – were addressed to the people, which they stand the purchase / lease of the apartment. By the way, work for the benefit of developers and banks.
The planned program of government is made up, at least to start with, the two elements. First, the state will – presumably through specialized entities – to build housing on land transferred by state-owned companies and local governments. This design has a cost of 3 to a maximum of 5 thousand. zł per sqm. These dwellings will then leased at low rates (approx. 20 zł per sqm.). Paying rent for a sufficiently long period (25-30 years), the tenant will receive ownership of the housing. The program will be limited in the income criterion.
Development of lease or ownership support?
It is worth noting that such an instrument is not properly – which was originally announced – the action of developing the rental market. It is rather a new way of reaching the property, designed for those who can not afford the mortgage. This is good news, because investing in the construction of state-owned tenement is not, contrary to what they preach numerous environmental remedy the shortcomings of Polish housing. Firstly, because there are numerous housing (eg. Construction of big plates), more suitable for short-term lease. With proper state support could be used for that purpose much better than before, and demographic reasons, and so will be in the years to supply the pool of apartments for rent. Incidentally, in practice, the rental market in Poland is much bigger than the official 4% per cent resource. There is a whole area unreported (and untaxed) lease, which they should be paid (eg. By encouraging the hiring tax allowances or the introduction of ad valorem duty).
property value
Secondly, a large percentage of housing ownership should be treated more as a Polish advantage to countries such as Germany or Denmark, where more than half are apartments for rent. Instead of trying to copy local patterns we should rather support the Poles in maintaining and enlarging resources condominiums, unloaded (or less loaded) credit. Broad ownership housing for citizens is a guarantee of greater stability in life – without a strong dependence on the work (to repay the loan or pay rent) – independence and freedom. You and it protects against financial crises associated with the real estate market. In this context, it should analyze other government idea, ie. Building societies, which need we wrote at length in a recent commentary.
Both proposed instruments can be considered desirable, but you have to reflect on their scale and related its budget expenditure. Building societies are less expensive system, after several years of virtually self-financing (savings fund loans). Also to encourage individual savings accumulation. Therefore, their scope should be as wide as possible, and put them in a multi-faceted economy (eg. Correlation with instruments supporting the rental market and linking the pension system). In turn, the program of building affordable housing requires large expenditures in the budget, even if the land state-owned companies will be provided free (or paid in kind) and own funds will be multiplied lending to non-budgetary. Announcement of the program mention the investment of 50 billion, which would give approx. 300 thousand. dwellings (roughly three-year domestic supply). It is worth considering whether the building until it does not go out of line and do not help people who could meet their housing needs in the context of other, cheaper support instruments, eg. In the building societies.
This is just the beginning?
the success of a complex program of housing construction by the state will also depend on careful planning all the details. Is the investment will be carried out by entities prepared for this? Or guarding the building structure and financial (including verification of income criteria) will not result in excessive growth of clerical staff? Under what conditions the state-owned companies and local governments to provide land for the construction of housing? These and other questions require deep thoughts before starting the program.
Flats for state land and building societies are well-designed instruments to support individual property and building domestic savings (as a counterweight to big capital). It przypilnować to the way they take into account the introduction of the common good (care of the budget, professionalism, performance, collaboration with private domestic entities), and the scale was adapted to the needs of the housing market. You should also remember that for these instruments should go further: including support for the rental market (eg. Using the tools of tax law changes tenant or by a combination of savings in building societies with a temporary lease) and the improvement and development of cooperative housing formula and TBS- of that. Without a range of instruments corresponding to the range of different needs of citizens, it is difficult to talk about a good housing policy.
The full version of the article is HERE
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