Precaution for rental with tax incentive

Hakan Akçam, president of the Ankara Chamber of Realtors, said rental prices, which rose further after the earthquake disaster, could be contained in the medium term with tax and incentive measures. Stating that they are working as a chamber to prevent rent increases, President Akçam said that they concluded that the tax incentives applied in European countries like the Netherlands can also be applied in Turkey.

OFFER MUST BE INCREASED

Hakan Akçam stated that there is no other option than to quickly increase the supply of rental housing to stop the increase in rental prices. To this end, Akçam suggested that TOKİ, which only produces houses for sale, and municipal companies and large construction companies focus on the production of profitable housing, saying that tax advantages should be given to houses built for rental purposes both during the construction phase and in the rental. Hakan Akçam, stating that such methods have been successfully applied in Europe, shared his findings and suggestions as follows:

PROVIDES ADVANTAGES

“Companies that produce housing for the sole purpose of rental may be exempt from taxes and VAT on rental income, as well as discounts may be applied. The obligation to declare these residences may be operated differently. Thanks to the tax advantage, the production cost of rental housing will decrease and its attractiveness will increase. In this way, companies can produce homes to rent rather than sell. In addition to generating rental income, businesses will be able to process these properties as value on their balance sheets. For the system to succeed, TOKİ and the municipal companies must intervene.”

Hakan Akacam

Regional rental limitation possible

Hakan Akçam explained that in order to stop the increase in rental prices in the Netherlands, an upper limit was imposed on rental prices and tax benefits were offered. Stating that an upper limit can be imposed on rental prices in Turkey, as in the Netherlands, Akçam said: “However, unlike in the Netherlands, the limits to be placed on rent increases should be regional. . Limits may be placed on rent increases in certain regions, especially metropolitan areas, rather than the entire country. Different proportional restrictions may be imposed in places with high rent increases, such as in Istanbul.