It's not interesting in wealthy Western countries. The cost of surviving increases in a fundamental way. Hence, many young people complain about their miserable fate, including in our country. In addition, dreams of their own place, their own property for broad social masses increasingly stay only and exclusively in the fantasy zone. Average property rates per m2 in the largest cities of Poland scope from PLN 8.5 to PLN 15 thousand. Each year these percent increases in prices are frequently 2 figures. On a akin scale, the average wage increases (achieved only by a tiny percent of earners). Well, depending on the statistic chosen, we gain about 10% more all year. But what are the fundamental reasons why it is increasingly hard for a regular bread eater to gain ownership?
Source of the problem
Unfortunately, the nonsubjective answer to this question will not satisfy either a full free marketer or an intervener. This is because, in part, marketplace mechanisms and partially State activities are liable for this problem.
Let us begin by assessing the current political and economical system. The function of the state in the economy is increasing, as evidenced by the state's share of GDP, with an impact of around 50% in the EU. Europeans are eager to build social systems, so they must make artificial money to finance this arrangement in any way. And here we decision on to the theoretical and economical dispute. 2 crucial academic money theories are quantitative money explanation and Austrian money theory. Economists ask themselves: is money neutral? Do changes in money supply only lead to proportional adjustment of nominal volumes and do not affect real economical variables specified as unemployment or production?
The author of this text advocates Austrian theory. Well, Austrian school officials believe that creating artificial money: it distorts the price structure, does not lead to a neutral and smooth divestment in the economy of these measures. Now let us mention these theoretical considerations to the practice of the real property market. Let's imagine that we're printing gold for circulation, and now it's going to be 5% more than the year before. And in a minute it turns out that the prices in the real property marketplace for m2 rose not by 5% (proportionally), but by 10% year-on-year. What is the origin of this phenomenon? According to the author, this unharmonious increase is an example of an escape from money.
We may or may not like it, but we have a certain political class and a class of bankers. Many of these people are bright adequate to realize how fragile the modern economy is. These environments are full aware that fiducial money is simply a fiction that can collapse at any time, hence occasionally the slogan of the large reset falls into the ether. For us, this is simply a informing signal to prepare for the worst. The previously mentioned serious interest groups have money, they besides receive it first in line, and they feel the request to avoid inflation, so they conclude that they must place it in permanent goods: homes, dwellings, forests, arable land – these capitals in a situation of breakdown will always have any value. A parity of the Cresus for asset accumulation results in a disproportionate increase in property prices. It's worth following our politicians' property statements to see how eager they are to invest in housing. Or else, let's illustrate this: Bill Gates is 1 of the largest private owners of agricultural land in America.
Another issue is that we have already produced specified a large amount of virtual capital as a human being, that it has nothing to do with itself, has no idea. Hence, investment companies, specified as BlackRock, buy properties worldwide in bulk. Let us not forget – a young man who wants to get property will besides gotta compete in auctions with specified giants of the capital marketplace – this is not an easy task, as representatives of economical colossians will lift the stakes up.
Land under construction, orna land are besides forms of goods that we cannot produce – supply is limited here, and request is increasing. The number of people in the world, however, is expanding in a fundamental way, exceeding the 8 billion barrier, according to various estimates. As a rule, all over the planet we see the process of depopulating provinces simultaneously and creating megalopolis. little and little willing to be a farmer in the country, and those who stay in the state have problem uncovering a wife. Moreover, tiny farms have problems maintaining profitability. In addition, women flee tiny centres to larger ones as shortly as possible.
We no longer have virgin areas under the possible colonialism. In another words, the increasing population competes with each another for limited space. It's like crowding a bunch of predators on a tiny island. The results of this greedy fight, hard competition, can be considered devastating. These include a widespread increase in housing and housing prices and an increase in social conflicts. However, the situation is more complicated. On the 1 hand, we hear about provincial properties in Italy and Japan given for a proverbial pears cap, and on the another hand we hear about crazy property prices in the capitals of countries – let the planet live full of paradoxes.
It is besides rather common to lobby property owners against fresh investments. In addition, social media promotes being a flipper, which is expected to be an easy way to become a rich man. frequently these people's behaviour is embarrassing, as evidenced by all these (false) flyers in our mailboxes, concerning the mediocre household who will buy the first flat for cash. These activities, of course, origin an artificial overvalue of property in a given area, as well as an ugly example of playing on emotions and defrauding housing. In mainstream media, we can besides see an effort to discredit among the young generation the desire to own property, by promoting the lifestyle of travel, occasional rental. The imagination of globalists is to be a perfect and mobile consumer, not a patriot attached to his father. While the wise youth has always been linked to a life-saving and investment mode, we now make a false image of reality from Instagram, where detached consumption has a regular alternatively than casual dimension.
Remedie
There are a number of demands in the public debate on how to make surviving in housing easier for young people. However, many of these ideas represent a solution worse than the problem.
For example, the State’s granting of mortgages does not lead to anything good. specified measures were the origin of the economical crisis in Spain between 2008 and 2013, as a real property bubble was created that broke. The biggest beneficiaries of specified solutions are middle-income people and developers, not the poorest – for rich people it is simply a way to build their own property without interest. any besides number on the improvement of national social housing. The problem is, however, that specified solutions will increase the country's public debt. The state initiative besides involves corruption, nepotism, sluggishness and low profitability. It is besides worth being restrained in the historical assessment of the construction of social housing in Western countries specified as the United Kingdom. erstwhile specified programs began in the 1950s, Albion population was 50.4 million. Currently, it is 68.35 million people, an increase of 35% over 75 years. Moving on, the population of Europe was around 420 million in 1945, and in 2025 it was 744 million. However, land supply has remained the same for years. In another words, in whose areas present can these social settlements be built? Is it worth expropriating legitimate owners from empty, undeveloped areas?
The media is increasingly threatening us with a cadastral tax, which will depend on the value of the property. The implementation of this solution will be alternatively costly, as an office must execute specified a comprehensive cataster. Depending on the legal solutions adopted, we can besides imagine an invasion of our privacy, erstwhile the authoritative will have the power to visit our "household" in order to make an inspection erstwhile individual finds that we deserve more. In countries where specified solutions work, many families have lost their household possessions due to the fact that they have been affected by the gentrification process, or the increase in the value of their city district. The revenues of these people simply did not keep up with the consistent increase in the value tax. any also, for fear of this tribute, do not carry out renovations so as not to overstate the underlying property price. In this solution, pensioners who live through permanent, low retirement besides lose out. The mediators of these decisions point to a possible simplification in emptyness. We are calmed by the fact that originally the cadastral taxation will apply from 3rd or 4th properties. We besides have no warrant that this postulate does not constitute an effort to slow cook a frog, so that after a while, all the properties are taxed without limit. The question is besides immediately raised: if we truly want advancement in this respect, why not introduce a progressive property taxation where we will apply different rates to different meters? In practice, it would appear that, for example, an flat of 40 m2 will be taxed at a different rate than an flat of 80 m2. erstwhile the owner owns respective tiny apartments, this metre would be aggregated and taxed at a higher rate. With this solution, there would be no request to make something like a detailed cataster.
It is besides worth considering simplifying construction procedures. However, any fear that fresh favelas will be created in Poland. However, specified an approach is an expression of deficiency of religion in people. any will build solidly, any will most likely not, but alternatively it is worth believing in the general rule that no 1 will build a home for himself to fall on his head. As well as the massive warming of buildings that took place in our country, this is not a consequence of regulation, but a consequence of the own economical interest of owners who wanted to save on heating bills. Immediately after planet War II, especially in the countryside, our ancestors built many beautiful single-family houses that stand inactive present – and no 1 thought in the 1950s about any complicated documentation. For 1 of the most market-oriented housing solutions, taxation exemptions are reasonably constructed. The advantage of this solution is that it is not a crisis-generous, does not require extended credit or debt increases. We can imagine a situation in which families building their first home are exempt from VAT, i.e. in the area of the acquisition of building materials or construction services. An interesting thought is besides the transfer of central offices to the state of the country, or applicable implementation of the deglomeration process. Who said that Poland must only be Warsaw, Krakow and Gdańsk, not Sanok, Krosne and Przemyśl? Why should the capital suck all the taxation life juices out of smaller centers? Or should it be the exact opposite? Shouldn't wealthy centres invest in a poorer part of the country? Many housing problems of Poles stem from the fact that young people see their future only in the large city.
Conclusion
The above mentioned phenomena show how hard and multidimensional increases in real property prices are. In the current situation, national and patriotic environments can only gain from the rhetoric of distributionism. erstwhile a large part of society has private property, this situation is commendable. The most utmost forms of socialism, communism, were born out of poorness and deficiency of ownership. Residents have no interest in making a revolution. Therefore, for a reasonable political class, the ratio of home prices to income or property ownership indicators can be considered so important.
Author: ]]>Karol Skorek]]>
