written by Grupo 4S
I habitually dedicate this column to the new architectural events that turn into urban art of our metropolitan zone. Today, instead of talking about a couple of celestial stars, it would be worth to shortly comment on the recent taxing reform presented by the federal government.
Without a doubt, to tax the real estate activity and mortgage credits will have negative results about the area. Furthermore to stop the dwelling mobility (that will reduce the volume of operations) the measure will incentive the auto construction. This measure stands in opposition to the desire of vertical up the cities, since the apartments require mostly mortgage credits.
It would seem that the resource requirements to fund a government with very few margin of operation are pulling it over to make decisions that slow down the economic activity. Observed from the real estate scope, the reform won’t create high collection given the fact that the housing purchase (for use and investment) has an elastic demand.
Taxing the mortgage credits seem to me as the highest impact measure of the suggested issues. The comparative financial cost of a mortgage in our city is five times higher than United States’. With this increase the cost perception set for the client would be higher.
Certainly we must push our legislators to seek for alternative ways that effectively motivate the collection. Slowing the real estate activity is not an option.
*Carlos Muñoz is an activist to protect the land laws of the country. Contact him on email@example.com