Proposed tax measures hit small property owners, as well as tenants and house hunters
Huib Boissevain is CEO and founder of real estate investor Annexum, which now has some €1.2 billion under management. He speaks out on proposed tax measures and has clear advice for private property owners.
Painful legislation
"There is a series of painful legislation in the pipeline," Boissevain says. "Those results, among other things, in a significantly increased tax burden in Box 3 and also a ban on temporary leases. The keeping property becomes financially unattractive for a large group of people. Selling is then the obvious thing to do." The Annexum founder marvels at the fact that it just doesn't seem to get through to The Hague how many people will be harmed by the proposed tax measures aimed at property owners. So advocacy group Vastgoedbelang already noted that of its sizeable constituency - predominantly private landlords - 92% will be forced to sell some of its properties as a result of the previous cabinet's intentions.
'Real estate is a supplement or even full retirement for a lot of people.'
Sharp dip
"Selling is obvious, but not wise," Boissevain says firmly. "Remarkably pleased former housing minister De Jonge warned some time ago of a 'sharp dip' in housing construction, due to high interest rates and increased construction costs. That makes it even harder to understand his endorsement of the tax measures proposed by his CDA colleague Marnix van Rij. Die after all, encourage selling rental properties."
Pension
Boissevain: "Private property owners are often portrayed as slumlords. But real estate is a supplement or even full retirement for a lot of people. The proposed tax measures draw a line under that." Small property investors are not the only child of the bill, he explained. Large-scale house sales by private landlords significantly worsen the position of tenants. "After all, not every house hunter can afford their own home," Boissevain stresses.
Public outrage
That proposed tax measures affecting a significant group of people - small property owners as well as renting and house-hunting Dutch - have not yet been defeated is remarkable, Boissevain argues. "Yet the shore seems to be slowly turning the ship. The public outcry against the measures is growing and, moreover, alternatives are being suggested. Take the proposal for a new Box 4, in which real estate can be 'isolated'." Under the current circumstances, Boissevain appeals to private real estate investors not to sell their bricks for the time being. "The current intentions of the cabinet are so irrational and can be met with such an amount of criticism that it can certainly not be ruled out that they will fail. The requires some nerves of steel, but sticking to real estate is the most sensible thing for retail investors right now."
