Instead of socialist loan subsidy programs at the expense of all Poles, we propose radical and multifaceted deregulation in the construction sector – the Confederation reminds.
“The pressure is logical. A few days after the Confederation Conference and the information about our notification to the CBA about the ‘Starter Loan’, the program is becoming less and less realistic!” – we read on the social media profiles of the libertarian-national group, which also reminds us of the actions it proposes to improve the housing situation of Poles.
“The purpose of our communication is to investigate whether the development industry and the banking sector have had illicit contacts with the government that are causing this operation to fail!” – reminds the Confederation.
The formation consistently expresses a negative opinion about tax subsidy programs for loans. One of the reasons is that they drastically increase house prices, as shown by the “2% loan”.
Confederation: Instead of socialist programs, deregulation in construction
“Instead of socialist loan subsidy programs at the expense of all Poles, we propose a ready-made plan to reduce house prices by up to 30 percent!” – we read on the Confederation’s profile.
“Most Poles do not realize how much of the prices of apartments and houses are costs generated by administrative coercion and new regulations introduced year after year. According to expert estimates, technical and bureaucratic requirements introduced in the construction sector only in the period 2014-2014 have increased the cost of building apartments by as much as 30%,” he points out.
“The Confederation proposes a radical and multifaceted deregulation of the construction sector. Our proposals include solutions that will free up new land for investment, reduce the cost of materials and labor, ease senseless technical requirements dictated by climate ideology, and promote debureaucratization of the investment process. The introduction of these solutions is a guarantee that it will be possible to build a new single-family house or apartment building 30% cheaper! An additional relief for apartment buyers will be the tax reduction provided for in the draft of the new PIT Act by Sławomir Mentzen! – proposes the Confederation.
“Starter Apartment”. Bosak and Łazarski Conference
The “Mieszkanie na start” program (the so-called 0% loan), set up by the government, under which taxpayers would subsidize mortgage repayments for some borrowers, was the subject of a press conference by Krzysztof Bosak and Roman Łazarski on August 12.
Bosak pointed out that many politicians, analysts, investors and, unofficially, developers themselves say that the introduction of this program will result in a new increase in apartment prices. The deputy marshal explained that the announcement of the program makes it work in the imagination of market participants, which translates into higher apartment prices. – The spiral of doubts about the form this will take is not broken. This is a harmful action and it is worth criticizing this program, Bosak said.
“2% loan”. In one year it caused double-digit increases in real estate prices
The chairman of the National Movement recalled that the “2% loan” introduced by the previous government caused a double-digit increase in real estate prices in all major cities of Poland during the year. In the Tricity, prices rose by 27 percent, in Krakow by 24 percent and in Warsaw by 23 percent. – From the point of view of people who are considering buying an apartment, this is a disaster. Some people have received this loan, but we should not think about the part, but about the whole, – the MP from the Confederation stressed.
Huge costs
Politicians talked about the project prepared by the government (as of August 12). – This law announces three tranches, totaling PLN 60,000. loans, which will then have to be repaid over the next ten years and cost PLN 20 billion. This means that taxpayers will have to pay PLN 20 billion in three tranches, which will be divided into three quarters. You don’t have to be an economic genius to predict that in the quarters in which these prices will take place, and also in the preceding period, which is already underway, we will have a price spike on the market – Bosak said, noting that taxpayers will have to pay extra for the terms of 60 thousand borrowers for 10 years, even if the government changes.
The politician pointed out that the essence of the problem is the insufficient supply of apartments. – In its program, the Confederation responds to the supply problem: how to accelerate the investment process and facilitate the construction of apartments. […] However, the government is doing the opposite and will not only lead to an increase in real estate prices, but also to an increase in prices on the market for building materials and services, Bosak said.
The parliamentarian also asked what interest Poland has in targeting such a program also to foreigners.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
