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This move is well appreciated. Currently, I own a house in oudegracht, Utrecht. It is very terrible situation here. All the apartments in and around me are all

This move is well appreciated. Currently, I own a house in oudegracht, Utrecht. It is very terrible situation here. All the apartments in and around me are all the time rented out as airbnb. During peak of pandemic, it was pretty much a ghost town. The housing prices have skyrocketed due to covid, but all these all-cash investor are jumping and swooping in the apartments, holding it for a while and passing it to the next person. Some of the people, even have to pay around 50k euros over the asking price to buy it. Because of the rising prices, the annual property tax to be paid also increases dramatically. People blame the low interest rate, but based on what I am seeing and heard from other people, it is investors all over the globe investing in properties in Amsterdam, Utrecht, Rotterdam etc.

chii 5y ago
> People blame the low interest rate it is the interest rate - because the price of property is related to the cost of money (aka, interest rate). Investors are merely looking for returns, with as low risk as possible. When property is priced low compared to the rate, you must expect this to happen.
- imtringued 5y ago
  >it is the interest rate - because the price of property is related to the cost of money (aka, interest rate). You can manufacture more cars and houses as you get more money. It clearly is related to the fact that land yields a risk free return regardless of what you use to price it. In that sense money and land is an NRA. A non reproducible asset. Low interest rates break the NRA property of money which is perfectly ok if inflation is also low. Rather than holding onto money unproductively they simply switch to holding land unproductively. The solution is to introduce a holding fee onto land.
IkmoIkmo 5y ago
> All the apartments in and around me are all the time rented out as airbnb. During peak of pandemic, it was pretty much a ghost town. What you mention around Airbnb shouldn't be addressed through a buy-to-let ban, but an airbnb or short-term rental ban, which already exists in various forms. If there's problems with enforcement, address that. The ghost-town you described happened regardless of airbnb but due to literal lockdown measures that affected everyone, in particular the local population, you don't see the effect anymore despite tourists still largely staying away. > Because of the rising prices, the annual property tax to be paid also increases dramatically. No that's not correct. Typically Dutch municipalities tax based on what they need. If they need 1 million, they'd charge 1% of 100 in property values, or 2% of 50 million in property values. Price increases don't translate into higher property taxes. You can see a video of how Utrecht does it, on their own website: https://bghu.nl/belasting/ozb https://bghu.nl/belasting/ozb In fact, in Utrecht property tax rates decreased by about 22% in the past 6 years, due to increasing home prices. Of course there is inflation, in absolute terms the number is increasing. But what you're describing isn't happening. I own a home in Utrecht, too. Many studies in the Netherlands have shown investors aren't the cause of the price increases, I don't think this policy will solve things. It'll just relieve some pressure on the buying market and put extra pressure on the rental market. > People blame the low interest rate Yes, these people are economists, including the Dutch Central Bank, the AFM, every bank, every professor, in countless studies. The effect is clear and obvious.
- rhacker 5y ago
  > Airbnb shouldn't be addressed through a buy-to-let ban, but an airbnb or short-term rental ban, which already exists in various forms Airbnb is probably paying off various government officials around the world to make sure the laws are friendly to them.
  - IkmoIkmo 5y ago
    Well, I'm sure this is true for every industry. Nonetheless, in the Netherlands the law is 30 days per year max, that law has been around for years, and penalties are heavy. The Amsterdam municipality is laserfocussed on enforcement (which is difficult) and has been making plenty of headway.
imtringued 5y ago
It's not just the investors. It's literally everyone.
- clydethefrog 5y ago
  I saw a bus ad yesterday in NL that looked straight out of They Live - it just said "INVEST REAL ESTATE" with a website link on a blue blackground.

chii 5y ago

> People blame the low interest rate it is the interest rate - because the price of property is related to the cost of money (aka, interest rate). Investors are merely looking for returns, with as low risk as possible. When property is priced low compared to the rate, you must expect this to happen.

imtringued 5y ago
>it is the interest rate - because the price of property is related to the cost of money (aka, interest rate). You can manufacture more cars and houses as you get more money. It clearly is related to the fact that land yields a risk free return regardless of what you use to price it. In that sense money and land is an NRA. A non reproducible asset. Low interest rates break the NRA property of money which is perfectly ok if inflation is also low. Rather than holding onto money unproductively they simply switch to holding land unproductively. The solution is to introduce a holding fee onto land.

IkmoIkmo 5y ago

> All the apartments in and around me are all the time rented out as airbnb. During peak of pandemic, it was pretty much a ghost town. What you mention around Airbnb shouldn't be addressed through a buy-to-let ban, but an airbnb or short-term rental ban, which already exists in various forms. If there's problems with enforcement, address that. The ghost-town you described happened regardless of airbnb but due to literal lockdown measures that affected everyone, in particular the local population, you don't see the effect anymore despite tourists still largely staying away. > Because of the rising prices, the annual property tax to be paid also increases dramatically. No that's not correct. Typically Dutch municipalities tax based on what they need. If they need 1 million, they'd charge 1% of 100 in property values, or 2% of 50 million in property values. Price increases don't translate into higher property taxes. You can see a video of how Utrecht does it, on their own website: https://bghu.nl/belasting/ozb https://bghu.nl/belasting/ozb In fact, in Utrecht property tax rates decreased by about 22% in the past 6 years, due to increasing home prices. Of course there is inflation, in absolute terms the number is increasing. But what you're describing isn't happening. I own a home in Utrecht, too. Many studies in the Netherlands have shown investors aren't the cause of the price increases, I don't think this policy will solve things. It'll just relieve some pressure on the buying market and put extra pressure on the rental market. > People blame the low interest rate Yes, these people are economists, including the Dutch Central Bank, the AFM, every bank, every professor, in countless studies. The effect is clear and obvious.

rhacker 5y ago
> Airbnb shouldn't be addressed through a buy-to-let ban, but an airbnb or short-term rental ban, which already exists in various forms Airbnb is probably paying off various government officials around the world to make sure the laws are friendly to them.
- IkmoIkmo 5y ago
  Well, I'm sure this is true for every industry. Nonetheless, in the Netherlands the law is 30 days per year max, that law has been around for years, and penalties are heavy. The Amsterdam municipality is laserfocussed on enforcement (which is difficult) and has been making plenty of headway.

imtringued 5y ago

It's not just the investors. It's literally everyone.

clydethefrog 5y ago
I saw a bus ad yesterday in NL that looked straight out of They Live - it just said "INVEST REAL ESTATE" with a website link on a blue blackground.