Balanced Taxation for Second Home Buyers: A Call for Fairness in Real Estate

In a discussion with VietNamNet, Dinh highlighted that purchasing second or additional homes for appropriate uses, which benefits society, should be regarded as a constructive action that ought to be supported.

This topic has raised concerns among many individuals. Questions arise about the rationale behind taxing those who acquire homes for their children or for business purposes. Taxation should serve as a mechanism to guide behavior rather than hinder the market. It’s important to note that not all buyers of secondary homes require stringent oversight from tax regulations.

When someone owns multiple properties used for their intended purposes, this should be recognized as a rightful action. For instance, buying properties for one’s children, especially when prices are favorable, is a legitimate practice, even if there are no immediate business intentions. Such properties can still be leased, contributing to the national housing supply and fulfilling community accommodation needs.

Owning two or three residences could enable individuals to rent their properties for medical facilities in underserved areas, or for schools and supermarkets in locations lacking these services. These actions should be encouraged as they foster essential services where infrastructure is inadequate, create job opportunities, and enhance government revenue.

Taxation should aim to build assets and enhance societal value. Thus, real estate taxes should be carefully considered with this principle in mind.

It’s also essential to recognize the underlying issues behind rising housing prices, which stem from an imbalance between supply and demand. The current supply of housing is insufficient and lacks variety to meet public needs, while demand continues to surge.

To stabilize prices, it’s crucial to balance supply with demand. This requires liberalizing supply sources. Numerous property development projects are stalled due to various factors, particularly legal obstacles; these projects must be resolved, and new ones should be initiated.

It’s imperative to acknowledge that owning and trading property is a fundamental right.

If we impose uniform taxation on all second homes without a nuanced understanding of the market, it could have detrimental effects. Such a policy could diminish the purchasing power in real estate, potentially stifling a market that has only just begun to recover.

Challenges in the real estate sector could ripple into other industries, ultimately affecting the broader economy of the nation.

This serves as an important lesson for Vietnam as it seeks to develop macroeconomic policies that support growth.