The recent hot topic is real estate tax. I am not a tax expert, but here I mainly want to talk about its introduction and the impact on the large investment market of real estate.
First of all, it should be noted that real estate's "property as an asset" is still allowed, otherwise there wouldn't be cases where a family can buy 2 properties, or various holiday destinations can buy properties.
So, investment discussions can still be made.
Real estate is a typical "yielding asset", so the investment return comes from two avenues.
Rental income, rent yield;
Capital gains, capital gain.
Firstly, rental income depends on the income level of a city.
In other words, the reason why rent cannot increase indefinitely is because tenants look at their wallets, with an income of 0.01 million yuan, 8000 paying rent, it's a mess.
So I won't rent anymore, or move to the suburbs, or simply move to another city. It is also possible that if the wages in this city cannot be raised to meet the rapidly increasing rent, the company will move away.
No matter how specific the implementation of property tax is, it will affect the holding cost of the portion subject to taxation, which cannot be completely offset by rent.
So many people say that introducing taxes can raise rents, which is not entirely correct.
The first conclusion is that from the perspective of rental yield, no matter how real estate tax is introduced, it will reduce investment returns.
But the question is, in different cities, real estate...