New government economic policy direction
Reform plan for property tax, etc. to be finalized next month
LTV, 80% regardless of region, price, or income… Loan limit of KRW 6 billion
The government announced the direction of the new government’s economic policy on the 16th, and also disclosed the direction of tax reform related to housing stability as an immediate issue.
Regarding supply, the government plans to confirm and announce a plan to reorganize the presale price cap system to promote the supply of housing in the city center early this month, and prepare a roadmap for supplying more than 2.5 million units in the third quarter.
The real estate tax is a compound plan to normalize the tax system operated for the purpose of market management according to the tax principle.
In order to recognize the temporary and temporary exclusion of transfer tax for multi-homeowners in the area subject to adjustment and the exemption of transfer tax and heavy acquisition tax, the temporary extension to two years for the disposal of the old house of the two-homeowner is being applied retroactively from May 10 of this year.
Also, on the 30th of last month, a plan to reduce the tax burden on single-family homeowners due to the increase in the announced price was announced to the level of 2020 before the price surge.
As a result, the property tax lowered the fair market value ratio of single householders from 60% to 45%, and the property tax lowered the fair market value ratio from 100% to 60%. to introduce
This has the effect of expanding the tax base amount from 1.1 billion won to 1.4 billion won for a single householder.
For example, in the case of a house with a published price of 2.479 billion won (one house per household), if the fair market value ratio is 60% and a special deduction of 300 million won is applied (50% of the elderly and long-term owners), the property tax will increase from the current 6.57 million won. reduced to 216 million won.
In case of unavoidable reasons, such as the elderly, long-term holding payment deferral, temporary 2 houses, or inherited houses, the exclusion of housing counts will also be applied from the November notice.
The government plans to finalize a plan for reforming the holding tax, including a tax rate cut, to return the holding tax burden to an appropriate level within the next month.
Real estate loan regulations are also relaxed.
Within the third quarter of this year, the government will ease the upper limit of LTV for the first time in life to 80% regardless of region, housing price, or income, and expand the loan limit from 400 million won to 600 million won.
