Great mobility to own residential units before the “hike to dhri

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They called for the necessity to benefit from the current period


The housing market is witnessing a growing mobility during the current period to seize the opportunities to buy and sell housing units and lands, before increasing the value-added tax to 15% after about 20 days, in light of the various facilities and options provided by the state through Vision 2030 with the aim of increasing ownership ratios, while specialists stressed Real estate agents said that the increase in value-added tax to 15% may have a reflection on the housing market as any other economic sector, but it will significantly reduce speculation in the market with a view to raising prices, encouraging the necessity of investing the current period in buying housing units before starting to implement the new tax, By taking advantage of the ease of financing procedures and providing state-supported real estate loans, enabling citizens to purchase.

The investor and real estate developer Ibrahim Al-Subaie explained that the housing market has witnessed during the past two years a great movement and unprecedented activity in buying housing units of various forms, whether ready or under implementation, as well as clear activity in the construction movement of lands by benefiting from self-supporting construction loans, as well as encouraging Government agencies real estate developers to implement projects at unprecedented competitive prices in light of developing the housing system and its systems and facilitating financing for projects, which contributed to the infusion of thousands of units in the market and increasing the number of individual financing contracts for about 3 times the past five years, in excess of 89 thousand financing contracts worth 40 billion riyals From last January until April.

He attributed this to the various solutions and options provided by the state that suit all groups of society and enable them to own their homes within easy facilities and procedures, which at the same time led to price balance and stability in most cities.

Al-Subaie pointed out that increasing the tax in the real estate market to 15% will limit many wrong practices in the market, such as speculations between merchants, with a view to raising prices, along with the important role of the state’s initiative to bear value-added tax by no more than 850,000 riyals from the value of the first residence, indicating The new economic measures taken by the state to confront the impact of the Corona pandemic, which includes raising the value-added tax from 5 to 15%, is a national duty that may have some limited impact on the market with the beginnings of implementation, but the need to purchase housing remains essential and is increasing, especially Among the newly married youth category, which means that this period must be invested in purchasing housing units.

While specialist and real estate developer Khaled Al-Mobayed pointed out that it is currently difficult to predict the effects of applying the new tax, advising those wishing to own property from Saudi families to buy during the current time before increasing the tax in light of the countries bearing the first housing tax up to 850 thousand riyals.

He pointed out that the rate of 15% is low as a real estate tax at a time when real estate taxes in many countries have reached more than 30%, realizing that the high tax does not mean a decline in the housing market and a stop in buying and selling.

He added: “The current period has the advantage that the purchase tax does not exceed 5%, and this reduces the cost of housing for the citizen.”

He continued: “The subsidized real estate loan facilities that allow obtaining a 100% profit-backed loan, allow citizens to purchase in light of the current abundance of real estate supply, whether at the level of the housing market in general or real estate developers projects that provide housing units of good quality and reasonable price and under supervision And governmental follow-up to ensure that it is implemented in an appropriate manner.

On the other hand, a member of the Real Estate Valuation Committee in the Jeddah Chamber, Abdullah Al-Ahmari, said that “people’s demand and desire to buy will not be affected by the increase in the tax on homes to 15%,” stressing that the correction movements that the market witnessed during the past two years, specifically by taking advantage of new policies and procedures that Adopted by the state, it clearly contributed to enhancing supply in the market and facilitating demand through subsidized loan programs, which resulted in limiting speculations that raise prices and harm the market and the increase in the volume of real estate financing during the past two years, including more than 200 thousand new real estate loans provided by banks and financing institutions, Because of the active role of state-supported loans and their contribution to facilitating residential ownership.

Real estate professionals: a major movement to own housing units before the “high tax”

Already

The housing market is witnessing a growing mobility during the current period to seize the opportunities to buy and sell housing units and lands, before increasing the value-added tax to 15% after about 20 days, in light of the various facilities and options provided by the state through Vision 2030 with the aim of increasing ownership ratios, while specialists stressed Real estate agents said that the increase in value-added tax to 15% may have a reflection on the housing market as any other economic sector, but it will significantly reduce speculation in the market with a view to raising prices, encouraging the necessity of investing the current period in buying housing units before starting to implement the new tax, By taking advantage of the ease of financing procedures and providing state-supported real estate loans, enabling citizens to purchase.

The investor and real estate developer Ibrahim Al-Subaie said that the housing market witnessed during the past two years a great movement and unprecedented activity in buying housing units of various forms, whether ready or under implementation, as well as the clear activity in the construction movement of lands by benefiting from self-supporting construction loans, as well as encouraging Government agencies real estate developers to implement projects at unprecedented competitive prices in light of developing the housing system and its systems and facilitating financing for projects, which contributed to the infusion of thousands of units in the market and increasing the number of individual financing contracts for about 3 times the past five years, in excess of 89 thousand financing contracts worth 40 billion riyals From last January until April.

He attributed this to the various solutions and options provided by the state that suit all groups of society and enable them to own their homes within easy facilities and procedures, which at the same time led to price balance and stability in most cities.

Al-Subaie pointed out that increasing the tax in the real estate market to 15% will limit many wrong practices in the market such as speculation between merchants with a view to raising prices along with the important role of the state’s initiative to bear value-added tax not exceeding 850 thousand riyals of the value of the first house, indicating The new economic measures taken by the state to confront the impact of the Corona pandemic, which includes raising the value-added tax from 5 to 15%, is a national duty that may have some limited impact on the market with the beginnings of implementation, but the need to purchase housing remains essential and is increasing, especially Among the newly married youth category, which means that this period must be invested in purchasing housing units.

While specialist and real estate developer Khaled Al-Mobayed pointed out that it is currently difficult to predict the effects of applying the new tax, advising those wishing to own property from Saudi families to buy during the current time before increasing the tax in light of the countries bearing the first housing tax up to 850 thousand riyals.

He pointed out that the rate of 15% is low as a real estate tax at a time when real estate taxes in many countries have reached more than 30%, realizing that the high tax does not mean a decline in the housing market and a stop in buying and selling.

He added: “The current period has the advantage that the purchase tax does not exceed 5%, and this reduces the cost of housing for the citizen.”

He continued: “The subsidized real estate loan facilities that allow obtaining a 100% profit-backed loan, allow citizens to purchase in light of the current abundance of real estate supply, whether at the level of the housing market in general or real estate developers projects that provide housing units of good quality and reasonable price and under supervision And governmental follow-up to ensure that it is implemented in an appropriate manner.

On the other hand, a member of the Real Estate Valuation Committee in the Jeddah Chamber, Abdullah Al-Ahmari, said that “people’s demand and desire to buy will not be affected by the increase in the tax on homes to 15%,” stressing that the correction movements that the market witnessed during the past two years, specifically by taking advantage of new policies and procedures that Adopted by the state, it clearly contributed to enhancing supply in the market and facilitating demand through subsidized loan programs, which resulted in limiting speculations that raise prices and harm the market and the increase in the volume of real estate financing during the past two years, including more than 200 thousand new real estate loans provided by banks and financing institutions, Because of the active role of state-supported loans and their contribution to facilitating residential ownership.

June 08, 2020 – 16 Shawwal 1441

09:40 PM

Last update
June 09, 2020 – 17 Shawwal 1441

12:31 AM


They called for the necessity to benefit from the current period

The housing market is witnessing a growing mobility during the current period to seize the opportunities to buy and sell housing units and lands, before increasing the value-added tax to 15% after about 20 days, in light of the various facilities and options provided by the state through Vision 2030 with the aim of increasing ownership ratios, while specialists stressed Real estate agents said that the increase in value-added tax to 15% may have a reflection on the housing market as any other economic sector, but it will significantly reduce speculation in the market with a view to raising prices, encouraging the necessity of investing the current period in buying housing units before starting to implement the new tax, By taking advantage of the ease of financing procedures and providing state-supported real estate loans, enabling citizens to purchase.

The investor and real estate developer Ibrahim Al-Subaie said that the housing market witnessed during the past two years a great movement and unprecedented activity in buying housing units of various forms, whether ready or under implementation, as well as the clear activity in the construction movement of lands by benefiting from self-supporting construction loans, as well as encouraging Government agencies real estate developers to implement projects at unprecedented competitive prices in light of developing the housing system and its systems and facilitating financing for projects, which contributed to the infusion of thousands of units in the market and increasing the number of individual financing contracts for about 3 times the past five years, in excess of 89 thousand financing contracts worth 40 billion riyals From last January until April.

He attributed this to the various solutions and options provided by the state that suit all groups of society and enable them to own their homes within easy facilities and procedures, which at the same time led to price balance and stability in most cities.

Al-Subaie pointed out that increasing the tax in the real estate market to 15% will limit many wrong practices in the market, such as speculations between merchants, with a view to raising prices, along with the important role of the state’s initiative to bear value-added tax by no more than 850,000 riyals from the value of the first residence, indicating The new economic measures taken by the state to confront the impact of the Corona pandemic, which includes raising the value-added tax from 5 to 15%, is a national duty that may have some limited impact on the market with the beginnings of implementation, but the need to purchase housing remains essential and is increasing, especially Among the newly married youth category, which means that this period must be invested in purchasing housing units.

While specialist and real estate developer Khaled Al-Mobayed pointed out that it is currently difficult to predict the effects of applying the new tax, advising those wishing to own property from Saudi families to buy during the current time before increasing the tax in light of the countries bearing the first housing tax up to 850 thousand riyals.

He pointed out that the rate of 15% is low as a real estate tax at a time when real estate taxes in many countries have reached more than 30%, realizing that the high tax does not mean a decline in the housing market and a stop in buying and selling.

He added: “The current period has the advantage that the purchase tax does not exceed 5%, and this reduces the cost of housing for the citizen.”

He continued: “The subsidized real estate loan facilities that allow obtaining a 100% profit-backed loan, allow citizens to purchase in light of the current abundance of real estate supply, whether at the level of the housing market in general or real estate developers projects that provide housing units of good quality and reasonable price and under supervision And governmental follow-up to ensure that it is implemented in an appropriate manner.

On the other hand, a member of the Real Estate Valuation Committee in the Jeddah Chamber, Abdullah Al-Ahmari, said that “people’s demand and desire to buy will not be affected by the increase in the tax on homes to 15%,” stressing that the correction movements that the market witnessed during the past two years, specifically by taking advantage of new policies and procedures that Adopted by the state, it clearly contributed to enhancing supply in the market and facilitating demand through subsidized loan programs, which resulted in limiting speculations that raise prices and harm the market and the increase in the volume of real estate financing during the past two years, including more than 200 thousand new real estate loans provided by banks and financing institutions, Because of the active role of state-backed loans and their contribution to facilitating residential ownership.





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