Hello, I have a question now. I often read about additional costs of up to 500 euros per month after building a house.
Why is this amount so high? There might be new items like insurance, but shared additional costs are also paid in a rental apartment, right?
Or am I missing something else? Thank you ☺️
Why is this amount so high? There might be new items like insurance, but shared additional costs are also paid in a rental apartment, right?
Or am I missing something else? Thank you ☺️
Property tax does not indicate whether you have built an expensive home. They want to know if you have art or other valuables.
It shouldn’t even be called property tax but rather housing tax or something similar. Someone who builds a costly house already pays more to the community.
Vehicle tax is based on engine capacity and emissions, not on whether you have heated seats. Taxing per kilometer driven would be fairer. However, most luxury vehicles would then be almost tax-free because they are driven less.
Tax progressivity penalizes success to some extent. Currently, 10% of taxpayers bear over 60% of the tax burden. I also don’t like that large corporations are able to avoid their responsibilities.
It shouldn’t even be called property tax but rather housing tax or something similar. Someone who builds a costly house already pays more to the community.
Vehicle tax is based on engine capacity and emissions, not on whether you have heated seats. Taxing per kilometer driven would be fairer. However, most luxury vehicles would then be almost tax-free because they are driven less.
Tax progressivity penalizes success to some extent. Currently, 10% of taxpayers bear over 60% of the tax burden. I also don’t like that large corporations are able to avoid their responsibilities.
Yes, I basically agree with that. The question is whether this is already covered by using the land value (whether fair market value or assessed value can still be debated) as the basis for calculation. This way, expensive plots of land would automatically be taxed higher, and detached single-family homes would be taxed higher compared to multi-family houses as well (because the property tax can then be borne by more people).
The idea here is that someone who can afford an expensive plot in a metropolitan area on their own must also be able to afford it permanently.
Socially sustainable models with multi-family houses become more attractive because the tax is shared collectively by the residents (assuming we are talking about a homeowners’ association). That in many cases the property tax is simply passed on to the rent is a different matter.
From a macroeconomic perspective, the question is what the tax is actually meant to achieve. Besides generating revenue, a tax also carries an intended behavioral effect, regardless of how well this is implemented or how successful the measures are.
For example, tobacco tax aims to discourage smoking. A carbon tax is meant to promote low-carbon production. Vehicle tax is intended both to reward environmentally friendly cars and to compensate for societal burdens.
Property tax is probably meant to compensate for the exclusive use of finite land. To what extent it is still necessary to tax the building and its features, I am unsure.
Redistribution is already regulated through income tax and value-added tax. Whether that is done well is another question.
The problem with property tax is that it is a main source of revenue for many municipalities and varies greatly depending on the location.
In particular, in the eastern regions, property tax on similar properties is often much lower than in the west. So reform is definitely necessary, but I hope the focus of the changes is appropriate.
The idea here is that someone who can afford an expensive plot in a metropolitan area on their own must also be able to afford it permanently.
Socially sustainable models with multi-family houses become more attractive because the tax is shared collectively by the residents (assuming we are talking about a homeowners’ association). That in many cases the property tax is simply passed on to the rent is a different matter.
From a macroeconomic perspective, the question is what the tax is actually meant to achieve. Besides generating revenue, a tax also carries an intended behavioral effect, regardless of how well this is implemented or how successful the measures are.
For example, tobacco tax aims to discourage smoking. A carbon tax is meant to promote low-carbon production. Vehicle tax is intended both to reward environmentally friendly cars and to compensate for societal burdens.
Property tax is probably meant to compensate for the exclusive use of finite land. To what extent it is still necessary to tax the building and its features, I am unsure.
Redistribution is already regulated through income tax and value-added tax. Whether that is done well is another question.
The problem with property tax is that it is a main source of revenue for many municipalities and varies greatly depending on the location.
In particular, in the eastern regions, property tax on similar properties is often much lower than in the west. So reform is definitely necessary, but I hope the focus of the changes is appropriate.
M
Matthew0315 May 2020 10:58Here, in a town of 4,000 inhabitants in Baden-Württemberg, the property tax for our 156m2 (1,680 sq ft) house on a 726m2 (7,815 sq ft) plot is 267 euros per year.
Edit: For the original poster, here is a recently calculated comparison of additional costs = 360 euros,
including insurance (also personal liability and legal protection), Netflix, telecommunications, water, heating electricity, electricity consumption, waste disposal, public broadcasting fee, and chimney sweeping.
Edit: For the original poster, here is a recently calculated comparison of additional costs = 360 euros,
including insurance (also personal liability and legal protection), Netflix, telecommunications, water, heating electricity, electricity consumption, waste disposal, public broadcasting fee, and chimney sweeping.
M
Matthew0315 May 2020 11:06rick2018 schrieb:
New house or existing property?
I already pay more for an apartment that is 16 years old.
Similar size Are you referring to me? New build, occupied since 2018
Condominium, 83 m² (893 sq ft), in a newly built multi-family building (2016) with 50 units.
208 EUR property tax / year
Berlin Rummelsburg
Monthly condominium fees: 224 EUR.
This includes heating and hot water due to district heating, as well as the reserve fund for maintenance.
My mother lives in a rural town in southern Hesse with about 30,000 inhabitants.
78 m² (840 sq ft) condominium
Prefabricated building from the 1970s.
400 EUR monthly condominium fees, including the reserve fund for maintenance and allocations for renovation costs (façade, elevators, and windows).
I do not know the property tax here.
208 EUR property tax / year
Berlin Rummelsburg
Monthly condominium fees: 224 EUR.
This includes heating and hot water due to district heating, as well as the reserve fund for maintenance.
My mother lives in a rural town in southern Hesse with about 30,000 inhabitants.
78 m² (840 sq ft) condominium
Prefabricated building from the 1970s.
400 EUR monthly condominium fees, including the reserve fund for maintenance and allocations for renovation costs (façade, elevators, and windows).
I do not know the property tax here.
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