however, the policy of the extremely low interest rates of the European Central Bank in Luxembourg is further intensifying the housing market in Luxembourg. Well, who has money, they are less often left in the simple savings account, where they spend almost nothing; if you offset inflation, you are even a peddler. Therefore, if he has too much money, he either invests in (risky) investment funds or he invests in the stone. Understandably, this is my personal interpretation, without having the exact numbers, how many owners own more than a house, possibly over a dozen, over 50, etc. I based that interpretation solely on the price explosion of apartments over the past two years, with a 21.44 percent increase. So when we bought a studio at the end of 2016 for a value of 350,000 euros, it can now sell for 425,000 euros, thus with a profit of 75,000 euros. So much money does not bring in the most risky investment fund, even if you offset taxes.
the last government decided to increase the VAT on construction of a second home from 3 to 17 percent. That was good to calm the real estate market, but it brought nothing,
at most the opposite. Michelle Gantenbein writes in the Luxemburger Wort on August 6: “Die Steuererhöhung contributed to the increase in rent – 2018 by a sensational 18.23 percent”. In other words: for an object where one has to pay a rent of 1500 € a month by 2017, you have to browse 1770 € on the table! Or, to put it another way, the landlords simply repurposed the additional costs incurred by a well-made policy decision into the tenant.
And if, in the next year, the European Central Bank actually wants to introduce minus interest rates – so that if you place your money on a savings account, you will be penalized – then another is the overheating of the march. The course goes on, but Jaune is always the one who does not yet have to make a request on his bank to get money borrowed, but the one who can pay on the beads.
he pressure on real estate is extremely intense. Minister Sam Tanson states in his ministry’s activity report: “On January 1, 2018, the Grand Duchy completed 602,005 habitants, which correspond to an increase in population totaling 1.92% compared to 2017. Pendant for the period the 2001 to 2018, notre population and the associated increase of 162,505 persons (+ 36.97%) “.
Some have in recent months raised the question of whether one really needs to be an owner to be happy? That question is, of course, asked by people who are the longest owners, at best twice, even in order to rent. The latest study from the Habitat Observatory concluded that 159 people accounted for 25 percent of the potential foncier value = 21 billion euros (2016). 1000 owners own 959 hectares of land, which is 45 percent, respectively, which has a value of 7 billion in 2016.
Socially healthy is the unfortunate situation! The housing market is growing apart between the poor and the wealthy! This is clear to another study by Statec (regards no. 18): about 16 percent of the population is financially at the poverty line; if one considers the cost of living with one, there are 24 percent who risk slipping into poverty, so any leading residents! Is it scratchy, right? And the downward spiral is growing faster because a person who is not so good at the cost of living, of course, gets a lot more savings than a person with a better wallet two years ago these costs of those with more weakness, they increased by between 20 and 24%, while in the others the house made up only 7%!
Long is no longer good! In addition, the European Systemic Risk Committee had already issued an alert for Luxembourg in November 2016, as well as the overcrowding of households, as well as the appalling rise in prices! But the carousel continues …